ChinAfrica : How can the Sino-African cooperation be beneficial for Africa ?

In this paper, different scenarios of increased cooperation between China and African countries are simulated. Recent intensifications of political and economic ties between China and Sub-Saharan African countries may give hope that an economic improvement in Sub-Saharan Africa (SSA) is possible. Three channels may lead to a catching-up of Africa with China : a reduction in Africa's investment ristk, an increase in its total factor productivity (TFP) and an improvement of its worker skills. A computable general equilibrium model of the world economy is used, that shares the world in 10 regions, among wich Sub-Saharan Africa and China. Three scenarios are considered in wich, by 2100, Africa will have reduced simultaneously its gaps in investment risk, TFP and education to China by either 20% (scenario 1), 40% (scenario 2) or 60% (scenario 3). The effects on the Sub-Saharan African economy are very promising. The results show that, already in 2050, Africa will have increased its per capita Gross Domestic Product (GDP) by 50% with scenario 1, by 80% with scenario 2 and by 125% with scenario 3.