Benefits from importing from Africa
  • Benefits from importing from Africa
  • 06 Apr 2022

Benefits from importing from Africa

Africa is considered one of the largest continents in the world and it presents 2% of world trade and therefore the advantages of importing from Africa are much better than anywhere else.

Africa is a source of many basic foodstuffs such as:
tea, meat, bananas, and spices.

Great countries prosper economically by exporting their products around the world, as well as, by paying attention to increasing exports and reducing imports, which has a positive impact on the general economy.

Therefore, Africa is interested in exporting and globally looks forward to becoming one of the largest supplier continents.

COMESA to double the advantages of importing from Africa

Africa established COMESA, which refers to the Common Market for Eastern and Southern Africa.

 It is defined as a preferential trade area extending from Libya to Zimbabwe, and its membership includes nineteen countries.

COMESA was established in 1994, regardless of the Preferential Trade Area that has been existed since 1981.

In an initiative that is the first of its kind in Africa, nine countries established a free trade area in 2000 (Egypt, Djibouti, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia, Zimbabwe).

Later on, Rwanda and Burundi joined the FTA in 2004, after this, Libya and Comoros joined in 2006.

Somalia officially joined the Common Market for Eastern and Southern Africa (COMESA), becoming the 21st member of the market.

The COMESA agreement aims to gradually remove customs and non-tariff restrictions on goods among member states so that the minimum local value-added is 45%.

There are countries that apply a 100% customs duty reduction, which are:

Mauritius - Madagascar - Zimbabwe - Egypt - Malawi - Rwanda - Burundi - Kenya - Djibouti - Zambia - Comoros - Libya.

These applied customs exemptions have turned the importers' inclination towards African countries.

Furthermore, importers were getting tea from India, then they turned to get it from Kenya and Uganda.

 Weaknesses of the African market

 An economist said, that the African market is still an emerging market, and it has a lot to do to reach global markets, because:

  •  Poor infrastructure.
  •  The lack of African countries to have national banks on their land.

On the other hand, the development of relations between Europe and Africa led to a huge increase in the exports of West Africa and the African continent in general to Europe, and thus the proportion of exports tripled.

Products that you can import from Africa

The resources produced by the African continent contribute significantly to European industry, especially textile, metallurgy and agriculture.

 Among the materials that Europe imported from Africa:

  •  Fish.
  •  Food.
  •  Tobacco.
  •  Animal products.
  •  Metals, chemicals, and petroleum products.
  •  Machinery and transportation equipment.
  •  Textile and apparel industries.
  •  Agricultural products and fish products.

Other countries in Africa such as Niger and Sierra Leone are exporting (diamonds - uranium - precious metals) to European countries, especially France, Italy and the Netherlands.

Thanks to the potential of the North African region in solar energy, it has attracted the interest of many countries.

The International Energy Agency estimates that North Africa's solar energy potential alone can meet the needs of North Africa, the Middle East and Europe.

Africa also exports commodities such as coffee, tea, sugar, cotton, and fish products primarily to Germany, Belgium and France.

Meanwhile, gold is the most important export commodity in Tanzania and Burundi, which is exported mainly to countries such as Switzerland.

Besides the above commodities, the mentioned countries also import gold, diamonds, platinum, and other metals.

Botswana and South Africa are among the major producers of gold and diamonds in Africa.