Africa’s Trade, Exports and Imports.
Definition of ‘Trade’ A basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange of one’s goods and services for desired goods and services that someone else possesses. And the activity or process of buying, selling, or exchanging goods or services.
The Africa trade is dominated by diverse natural resources that the continent enjoys in abundance. However, africa trade varies from one country to another. Countries such as South Africa represent the higher side of the africa trade, whereas regions such as Burundi have the least trade volumes.
A majority of African countries are underdeveloped and therefore, rely heavily on foreign aids to survive. Africa trade is, therefore, a representation of extremes.
It is analyze that, africa trade systems are not playing impressive role now a days. Traders are facing losses in their businesses. for example.
1. Like trading of vegetables and fruits.
2. Trading of smart phones.
3. Trading of sugar.
4. Trading of Electronics.
5. Cloths trading.
6. And these types of trading businesses.
There are some industries that working for the development of Africa’s trading systems.
The UK is funding the second phase of a pilot carbon offset trading programme in South Africa in readiness for new carbon tax legislation that will come into force in 2016.
Robbie Louw, a director of South African energy consultancy Promethium, said: “The testing of the trading platform will demonstrate how business can optimize the use of relief measures for carbon tax.”
(Extraordinary Session of the Conference of the African Union Ministers of Trade)
The Ministerial meeting was chaired by H.E. Mr. Aziz Mahamat Saleh, Minister of Economy, Trade and Tourism Development of Chad was attended by 41 member states. The meeting undertook strategic discussions as part of the preparations for the effective launch of the CFTA negotiations in 2015 as directed by the January 2014 Summit.
These steps will may be improve the conditions of trading systems of Africa.
What are the exports and imports of Africa?
Export mean send (goods or services) to another country for sale.
Africa Trade: Exports Botswana and South Africa are two biggest exporting countries in Africa. South Africa is the world’s biggest producer of gold as well as diamonds. The country has a well developed law system. South Africa has a large pool of skilled labour and, advanced infrastructure and developed financial resources. All these factors are mostly missing from other countries.
The main exported commodities of African nations are:
1. Palm oil
2. Gold and diamonds
3. Oil
4. Cocoa
5. Timber
6. Precious metals
Oil export has been the main stay for many economies. Nigeria is one of the world’s largest oil reserves and Africa’s largest oil producer. With its resources, Nigeria can produce 3.2 million barrels/day. However it only produces an average of 2.21 million barrels/day. .
In the last two decades, countries such as Sudan, Angola, and Equatorial Guinea have also benefited due to their oil exports.
Imports bring (goods or services) into a country from abroad for sale.
Africa Trade: Imports
Africa struggles with food items and basic facilities. It is often under the grip of internal outbreaks, leaving less scope for infrastructural or administrative change over. Therefore, African imports feature medical supplies as well as food items.
1.The main imported commodities are:
2.Machinery and equipment
3.Chemicals
4.Petroleum products
5.Scientific instruments
6.Foodstuffs
However, the imports are limited to nations that have a decent level of consumption. Otherwise, Africa has regions such as sub Saharan regions where people still live under 70 cents a day.
Overall, Africa trade has been helped enormously by other such as Germany, Japan and China that have not only invested a lot in the emerging countries but have been regular African trade partners as well.
