Asia-Africa trade set for five-fold increase

Trade between Asia and Africa
is set to increase five-fold to
as much as US$1.5 trillion
by 2020 and is prompting
companies such as Maersk
and Deutsche Post to increase
shipping links between the two
continents.
According to Anil Gupta,
who holds the Michael
Dingman Chair in Global
Strategy & Entrepreneurship
at the University of Maryland
in College Park, Chinese
and Indian demand for raw
materials and African demand
for automobiles and rice are
the main drivers behind the
predicted surge.
“Africa has the resources
Asia needs,” said Gupta.
“Africa now has an historic
opportunity to transform
its development, and Asia
has begun to look at Africa
as a market of high growth
potential.”
Copenhagen-based shipping
firm Maersk has said it is
spending more than $2 billion
to create a 22-strong fleet of
4 500-TEU containerships
dedicated to connecting the two
continents.
Sonny Dahl, director of West
Africa services for Maersk said:
“It’s a route that gets a lot of
attention internally at Maersk,
and it’s one of the fastest
growing.”
The shipping line predicts
cargo volumes to increase 15%
year-on-year for the next five
years.
According to data from
the United Nations and the
Population Reference Bureau,
trade between Asia and Africa
rose more than 400% from
2001 to 2010.