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Freight & Trading Weekly

Why have agricultural exports in Africa died?

12 May 2017 - by Liesl Venter
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Despite its vast

agricultural potential,

Africa continues to import

billions of dollars worth

of food – with a negative

impact on balance of trade.

According to Nosipho

Mdawe, secretary general

of the Ports Management

Association of Eastern and

Southern Africa (Pmaesa),

it is estimated that at least

$35 million per annum is

spent on importing food.

“Why have agricultural

exports died in Africa,”

asked Mdawe. “We have the

potential not only to feed

ourselves on this continent

but to export to the world.”

And she believes imports

at the current rate will

continue to rise to near

$110 million by 2025.

“We are weakening our

economies by not focusing

on ways of addressing the

trade balance,” she said.

“Agriculture alone offers

unique opportunities.

Ghana is one of the best

producers of cocoa, South

Africa has sugar, East

Africa has tea. Yes, these

particular examples are not

doing badly at the moment

when one looks at their

specific export figures

but the situation could be

very different. We could

be doing much better than

we are.”

She said ports in East

and

Southern

Africa were

more than

capable of

handling

increased

agricultural exports and

it remained an area where

African countries could see

real development.

“By increasing and

upping our agricultural

exports we can address

at least some of the trade

imbalance that we have at

present.”

She said three of the

biggest constraints were

transport,

energy

and policy

frameworks

within

countries.

“As a

continent we have to

invest in infrastructure

and develop the transport

solutions to move our

exports more efficiently

to the ports, while power

delivery is crucial for

beneficiation of our raw

products. At the same time

policy frameworks need to be

aligned towards beneficiation

and growing export volumes.”

She said a failure to

implement change would

result in dire consequences

for the continent.

“To correct the trade

imbalance we need

policies that speak

to industrialisation,

diversification and

manufacturing. We have to

develop better and more costefficient

transport corridors

from the hinterland.”

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