A loosening of trade
restrictions and growing
sophistication among African
consumers has helped spur
growth within Africa for sub-
Saharan Africa (SSA).
“Intra-African trade is
largely driven by exports of
value-added goods such as
transportation equipment,
agri-business and light
manufactured goods,”
said Grace Otieno, senior
manager: Rest of Africa at
Nedbank.
Speaking at a business
briefing last week, she said
that from a global perspective
the SSA region had seen its
trade compass shifting south
– to Asia, Latin America and
Intra-Africa. “However, the
north (ie, Europe and the
Unites States) still accounts
for the biggest share of
value-added trade, followed
by intra-African trade,” said
Otieno. She added that the
south was dominated by the
export
of primary raw commodities.
“Asia – mainly China – is
fthe third largest export
destination for SSA oil,” she
said.
Otieno said the four
regional bodies within the
SSA region – Economic
Community of West African
States (Ecowas); Common
Market for Eastern and
Southern Africa (Comesa);
East African Community
(EAC) and the Southern
African Development
Community (SADC) – were
pursuing deeper integration
which was expected to
eventually converge into the
African Common Market
and an African Economic
Community (AEC).
“The region’s strengths
are the regional trade
diversification strategies,
the rising African middle
class consumer and sizeable
regional bodies, both in
terms of a growing gross
domestic product (GDP) and
a large population,”
said Otieno.
INSERT & CAPTION
The African
export portfolio
is predominantly
commodity exports,
leaving it prone to
commodity price
shocks.
– Grace Otieno
