Global Business Roundtable
World Congress Report 2018
Stimulating intra-African trade has been a top discussion point over the last decade. The recently signed Continental Free Trade Area agreement between all 54 states will look to address key concerns in terms of trading within Africa. This agreement will also need to be taken into account within the context of evolving industries across the continent, but also specifically in countries such as Angola, Kenya, Nigeria, Rwanda, Tanzania and Zambia.
IOA’s latest report, in partnership with the Global Business Roundtable, provides key insights on the shifting nature of trade agreements in Africa, the evolution and decentralisation within top sectors such as energy, mining, ICT and agriculture, and the relevant opportunities for small business growth in these focal areas.
The following article is based on information obtained by the author while undertaking a comparative study on African nations’ competitive statuses for a client of IOA. Other IOA research is also referenced.
Is there an African economist who hasn’t advised against making an economy predominantly dependent on raw material exports? The governments of Africa mostly lack the political will to venture into value added manufacturing rather than shipping out natural resources in their unprocessed state. With investment in the value added chain, raw agricultural products and minerals have their profitability enhanced. Oil that can be refined for domestic consumption in oil-rich African countries is instead refined on other continents and shipped back at higher cost to African countries of origin. Instead, Nigeria, Africa’s largest oil producer, recently invited tenders for the importation of petroleum products.