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.