(Yicai) July 15 -- China’s decision to eliminate import tariffs on goods from 53 African nations is set to give the continent’s coffee growers a stronger foothold in the Chinese market, according to industry insiders.

China will remove tariffs on all products imported from the 53 African countries with which it has diplomatic relations, the General Administration of Customs said yesterday. 

First announced following the Forum on China-Africa Cooperation Ministerial Meeting held in Changsha on June 11, the decision expands the duty‑free access previously enjoyed by Africa’s 33 least-developed countries to 20 more, including the continent’s four largest economies of Nigeria, South Africa, Egypt, and Algeria.

The move will lower the cost of importing African coffee beans into China, Wang Zhendong, chairman of consultancy firm Shanghai Feiyue Investment Management, told Yicai.

China imposes an 8 percent levy on raw coffee beans from some African countries. Under the new zero‑tariff regime, importers will be able to save around USD320 on import levies and USD41 on value-added tax per ton of raw beans priced at USD4,000.

China imported USD170 million of African coffee in 2023, with a compound annual growth rate of 42 percent from 2014 to that year, according to a report on the country’s coffee import sector. Around 12 percent of the world's coffee is produced on the continent. 

Most of the beans used in China's commercial coffee sector come from Southeast Asia and South America, mainly Brazil, which has large-scale production, highly industrialized production, and cost advantages. African beans have distinctive characteristics but relatively high production costs, so reducing import costs can help grow their presence in the Chinese market.

In recent years, the Chinese government has used zero‑tariff measures to encourage coffee exports from Africa. China has already applied zero tariffs on 98 percent of imports, including coffee, from Ethiopia and two other countries since March 2023.

China's coffee industry grew 18 percent to CNY313 billion (USD43.6 billion) last year, according to the latest China City Coffee Development Report. Average consumption per head topped 22.2 cups for the year.

Editor: Martin Kadiev