Accra, Ghana//-Africa mostly colonized by Europe makes the later the biggest trade partner yet in recent times, Asia’s trade with Africa is growing at a faster rate than other blocs.
Africa’s most important suppliers of manufactured goods were listed as Europe (35%) and (30%) Asia.
Currently trade with Asia is gradually matching what is done with Europe. In 2019 an UNCTAD report indicated that African developing economies choosing Asian markets, with China ($59.6 billion) and India ($38.0 billion) as main destinations.
In Asia trade is mainly centered on India and China. China’s Ministry of Commerce indicate trade between China and Africa increased by 40.5 percent year-on-year in the first seven months of 2021, and was valued at a record high of USD 139.1 billion.
Trade between China and Africa almost doubled between 2020 and 2021, and over the last 20 years trade between China and the region has increased twenty-fold
33 of the poorest jurisdictions in Africa export 97% of their exports to China with no tariffs and no customs duties. This is heavily tilted towards the importation of Africa’s natural resources.
Chinese investment on the continent has remained small over the years, standing at $3.1bn in 2017 – just 2.5% of China’s overall FDI.
Over 10,000 companies as at 2008 registered in Africa. Singapore which is one of the richest Asian countries in the world known for excellence in port activities does not have strong footprints in Africa. So far, 60 Singapore businesses have been identified on the continent
How Africa can prepare for the change
While Asia gradually weaves its way into the continent of Africa, the continent needs to be ready for trade. International Trade advisers advised that in order to do that, Africa should increase ties with local and regional development financial institutions such as Afreximbank, the African Finance Corporation and the African Development Bank.
They should use these organisations’ tremendous international experience to improve negotiations and financing terms with foreign firms.
The new Executive Secretary of the Asian African Chamber of Commerce Ghana Prince Boampong said trade associations would play a critical role going forward especially with the continental free trade.
The Private-sector alliances led by regional chambers of commerce are also a great tool for this purpose: the most recent Africa-South-east Asia Chamber of Commerce’s annual general meeting gathered 15 private members from both regions in Singapore – including NSIA, Afreximbank, Opaia, African Logistics Holdings and Aenergy on the African side, and PIL, Olam, Wilmar and Crimson Logic on the Asian side.
These events are a bridge between Africa and Asia, encouraging private-sector partnership and collaboration. “We at the Asia Africa Chamber on the 10th of December will host the biggest gathering of Asian business leaders in Africa, at the Marriott Hotel Accra to network and open the continent up for trade” Mr Boampong added
About Asian African Chamber of Commerce & Industry
The Asian African Chamber of Commerce and Industry act as a trade & business promoting chamber supporting SMEs and industries by means of representing them as bilateral chamber for the Asian and African region and help them to build better economic growth and sustainable business.
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