Urbanisation creates new opportunities

West Africa offers
South African
exporters
opportunities
beyond the mines, oil and gas
and hospitality industries.
And they have ready access
to the markets because lines
hub through South Africa
to cover the markets from
Namibia to the Ivory Coast.
Rapid urbanisation and
the rise of the middle class is
creating new markets for food
and fast-moving consumer
goods.
According to the 2016
African Economic Outlook
report, foreign direct
investment in the region
is starting to diversify into
consumer market oriented
industries, including ICT,
retail, food and financial
services.
South African traders are
competing against those in the
European Union (EU).
According to the European
Commission, West Africa
is the EU’s largest trading
partner in Sub-Saharan
Africa, and the EU is West
Africa’s biggest trading
partner.
The EU “supplies a large
part of the equipment that
contributes to economic
growth and development in
the region and is the main
export market for West
African agricultural and
fisheries products,” according
to the Commission.
Trade is supported by
an economic partnership
agreement between the
Economic Community of West
African States (Ecowas) and
the EU.
Where South Africa may
be competitive is in some
food exports.
The West African food
economy is estimated at
over US$178 billion, which
at 36% of regional gross
domestic product (GDP),
is the largest sector of the
West African economy.
Expenditure on food
is increasing faster than
urbanisation in six West
African states.
Fruits and vegetables,
meat and fish now account
for 50% of urban households’
total food expenditure, while
consumption of cereals and
pulses is declining.
All income groups
show higher demand for
convenience, and processed
foods now account for 41%
of food budgets for urban
households and 36% of that
for rural households.
The non-agricultural postharvest
activities of the food
economy, such as processing,
logistics and retail, are
developing quickly.
But it is not only food that is
in demand.
A market has been created
for gas and electric stoves
by an Ecowas initiative, the
West African Clean Cooking
Alliance, which aims to
provide modern cooking
fuels and devices to the entire
Ecowas population by 2030.
An early success story is
Senegal, where incentives
have supported LPG use, and
less than 25% of the urban
population now uses solid
biomass.
There is also a growing
market for high-end apparel,
shoes and other consumer
goods produced in South
Africa, according to analysts.
CAPTION
A Shoprite store in Nigeria... SA competitive in food exports.