TRADE FINANCE TALKS
4.4
Rejigging Africa’s trade position post COVID19: The AfCFTA option The impact of COVID19 on African states and their steps to curtail it has seen African economies shrink. What options are available in the AfCFTA to revitalize trade in Africa? COVID-19 AND THE AFRICAN TRADE DYNAMICS
AKINBOBOLA OLUKAYODE OLUGBEMI Trade Professional TFG’s International Trade Professionals Programme
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Just like other countries in the world, African states were not prepared for the spread of the novel coronavirus. Interestingly and as expected, two powerful African states, Egypt and Nigeria, recorded the first cases of the virus in Africa and sub-Saharan Africa. Of 54 countries in Africa, 53 countries have recorded cases
of the virus and only Lesotho is yet to record any. This record in Lesotho has perhaps been linked to a lack of testing materials and not that the country is indeed free from the virus. Trade in Africa has primarily been a case of a producer exporting raw materials to foreign countries for production and the original producer importing the finished products. This situation has seen Africa contribute so much to global trade than it is given credit for. Indeed, Africans have a penchant for foreign goods, without necessarily producing the same goods. Producers who have made what can be referred to as “Made in Africa” products have not reaped much profit as much as their foreign counterparts because the African market is saturated with foreign products. For instance, 75% of the world’s cocoa is sourced from Africa yet Africa imports most of its chocolates. The oil-producing states in Africa contribute significantly to global crude but almost all petroleum products in Africa are imported.
tradefinanceglobal.com
