Change of sourcing patterns slows down Europe-Africa recovery

While trade between Europe and sub-Saharan Africa remained comparatively healthy during the global recession, the latest data from UK-based Container Trade Statistics (CTS) – which replaces the now defunct European Liner Affairs Association (ELAA) – indicates that trade volumes are only recovering slowly in 2010. This despite strong foreign investment in the area’s oil and gas sector and the Fifa world soccer championship in SA. According to CI Online, CTS figures show that volumes moved northbound for the first five months of 2010 rose just 1.9% (up to 251 100 -TEUs) and southbound by 5.9% (to 450 600-TEUs). These increase rates are relatively small when compared to Europe’s total trade. In the January-May period of 2010, total import volumes rose by 17.9% and exports by 15.4%. The 2009 figures told a different story. In the first five months of that year, imports from Africa fell by just over 3% compared to a 14.5% drop in Europe’s total containerised imports. Exports to Africa were down less than 1%, compared with a 3.7% decrease in the continent’s total exports. Press reports suggested that part of the reason for the rather slow recovery in the Europe-Africa trade, was a change in sourcing patterns as African buyers imported more cargo from the lower-cost producers in the Far East – particularly China and India.