The Federal Government on Tuesday expressed dissatisfaction over the low trade volume between Nigeria and other African countries. Evidence suggests that Africa's slave trades played an important part in the shaping of the continent not only in terms of economic outcomes, but cultural and social outcomes as well. The debate on the benefits of trade has dominated this decade, and Africa has cast its vote for more and better trade with itself. Africa’s intraregional trade lies well below that of other regions. Trade Posted in Trade. A significant amount of cross-border trade takes place between African countries at small scale and is not measured in official statistics. In fact, there are major differences among the West African economies. A few sub-Saharan Africa countries have started working towards the implementation of a “single window” system – a collaboration between all state entities involved in the regulation of international trade. Do you love reading extra-ordinary books with top-notch creativity, poetry and absolute brilliance? The level of intra-trade among African countries compares unfavorably with other regions of the world. This column, taken from a recently published VoxEU eBook, summarises studies that reveal the lasting toxic effects of Africa’s four waves of slave trades on contemporary development. Rationalising investments and the full use of established industries to promote efficiency in production, as well as harmonising trade policies, investment incentives and product standards, with a view to promote the Community as a single investment area. 5. Sub-Saharan African countries have the lowest trade among themselves compared with other regions. Last year, it stood at 10 per cent. The capacity of customs should also be enhanced in terms of electronic data management. In particular, Nigeria, a major oil exporter, faces a very different pattern of terms of trade shocks than the other economies of the region. This is why there has been a major focus on reducing red tape and other non-tariff trade barriers. These include the Economic Community of West African States’ Trade Liberalisation Scheme, Inter State Road Transit procedures for landlocked countries and the Common External Tariff. In exports it was followed by other African countries (16 %) and China (11 %). The bulk of west African foreign trade is directed away from Africa to the developed countries due to: 1. They should harmonise procedures. For example, Ghana initiated a single window operation in 2002 following concerns about slow and expensive border procedures. The North-African nation of Morocco ranked first among the African countries with the most international tourist arrivals, accounting for 12.93 million arrivals in 2019. West African economic growth rates have been insufficient in most countries to make significant reductions in poverty. Cambridge, Cambridgeshire, YorkTalks 2021 — Three African countries--Burkino Faso, Côte d'Ivoire, and Uganda--are among the first countries to be considered under the Initiative. For the reasons outlined above, the 2010 has been selected as an appropriate baseline year for the scenario discussed in this chapter. University of Guelph provides funding as a member of The Conversation CA-FR. Systems of servitude and slavery were common in parts of Africa in ancient times, as they were in much of the rest of the ancient world. Submitted On November 07, 2010. EXPLAINING LOW SAVINGS RATE AMONG COUNTRIES IN THE WEST AFRICAN MONENTARY ZONE World Economic order favors developed countries: The world economic order tends to be in favor of the developed countries hence West African countries export the goods to them. A) are generally poor. Production of mainly agricultural products: African countries produce mainly agricultural products and this makes exchange of goods between them very difficult. China-Africa bilateral trade data overview. — Well over a million more – one tenth of the volume carried off in the slave trade era – followed within the next twenty years.Africans carried to Brazil came overwhelmingly from Angola. Low level of technology: Low level of technological development makes it difficult for African countries to produce goods needed in the continent, hence its going to Europe an America. The value of China-Africa trade in 2018 was $185 bn, up from $155 bn in 2017. Africa’s main trade in goods partner is the EU. Reasons for High Volume of Trade Between West African Countries and Developed Countries. Table III.2World merchandise imports by region, 1999 (file size 64KB) 1. The International Monetary Fund predicts that this growth will only accelerate—reaching around 5.5 percent for both 2014 and 2015. Data for additional years are available also. this leads to a decrease in the price of export and increase in the price of imports and then finally, the production of low quality of manufactured products is also a problem. Intra-regional trade is estimated at about 10% compared with 40% in North America and 60% in Western Europe. There are a number of reasons for this disparity; the Central Africa subregion is largely landlocked, which increases transport costs — and therefore overall trade costs — particularly with overseas markets. A guide to what needs to be done is set out in the Trade Facilitation Agreement signed by World Trade Organisation members in 2013. Reversing most of these problems will create a lasting solution. These nations emerged as independent country-states after the end of European colonialism. Most less-developed countries have agriculture-based economies, and many are tropical, causing them to rely heavily upon the proceeds from export of one or two crops, such as coffee, cacao, or sugar. Slavery has historically been widespread in Africa. These should be made simple and then they should be aligned – first within regions and then across the continent. Implementation of trade facilitation measures can reduce the cost of moving of goods across borders by between 12.5% and 17%. Platinum Author The Gambia River, running from the Atlantic into Africa, was a key waterway for the slave trade; at its height, about one out of every six West African slaves came from this area. Yet, intra-trade among African countries is valued at 12 per cent. https://EzineArticles.com/expert/Funom_Makama/604511, News and Society: Economics This is due to the development of substitutes by the developed nations. Chart III.3World trade in commercial services by selected re… See footnote 7 It should be added that Bangladesh - by far the largest country among the LLDCs - is a partial exception. Merchandise exports from African countries and other least developed countries (LDCs) have been marginally affected by sharp falls in the prices of crude oil, mining, and other primary agricultural products. 12. The kingdom has also managed to climb to the top rank among the Middle East and North African (MENA) countries – behind the United Arab Emirates (11st) and Bahrain (62th), and, for the first time, ahead of the Sultanate of Oman (78th according to the same report). To unlock this potential, countries will have to focus more on trade facilitation, including the simplification and modernisation of trade procedures. This is very important in the case of African countries. The main active countries in trade are Nigeria, which alone accounts for approximately 76 percent of total trade followed by Ghana (9.2 percent) and Côte d’Ivoire (8.64 percent). The agreement outlines measures for expediting the movement, release and clearance of goods at borders. 503 Articles, By Funom Makama. Slavery has historically been widespread in Africa. Funom Makama | West Africa was one of the world’s greatest producers of gold in the Middle Ages. Among the factors holding back growth are non-tariff trade barriers. Moreover, existing internal trade among the region's countries is quite low, although there is undoubtedly considerable informal trade that is not recorded. But these need to be properly implemented if Africa’s low levels of intra-country trade are to be overcome. Contract Faculty, Ted Rogers School of Management, Ryerson University; SEDRD Adjunct Professor, University of Guelph, Professor of Rural Development and Capacity Building, University of Guelph. Development of substitutes, weather type, difficulty in diversifying the economy due to competition from foreign countries, reliance on primary production and vulnerability to world recession and price fluctuations are major economic problems associated with dependence of African countries. CORRUPTION ; Corruption: Bad governance brings about corruption. In the interior of Africa, trade was far more limited. Children's Christmas Lecture (online): What Is a Pirate? Africa’s main trade in goods partner is the EU. Trade facilitation can also create an enabling environment for foreign direct investment. It can boost exports too by making it cheaper for firms to import materials they can transform into finished products for sale in other countries. The creation in June 2015 of a free trade area from Cape Town to Cairo is possibly the most significant event in Africa since the formation of the Organization of African Unity in 1963. The largest export and import partner for Africa is the EU-27 with 31 % of exports and 29 % of imports. List of African countries by GDP. Documents listed here are downloadable in MS Excel format. However, recorded trade underestimates the volume of actual trade and, if proper account was taken of the size of informal trade, the African numbers would not look so out of line. It standardised information through a single administrative document for all its customs operations though implementation is not yet fully functional and automated. Excessive document requirements, burdensome customs procedures, inefficient ports and poor infrastructure add to the cost of exporting and importing goods. Mariakani’s weighbridges used to give different measurements which enabled bribery and corruption. For the reasons outlined above, the 2010 has been selected as an appropriate baseline year for the scenario discussed in this chapter. The expansion of trade among sub-Saharan African nations holds the key to faster growth and development to the benefit of all its citizens. An example of this is the Chirundu border between Zambia and Zimbabwe. Sub-Saharan African countries have the lowest trade among themselves compared with other regions. After the implementation of the one-stop border post, trucks are electronically scanned – which takes much less time. This will improve risk management and revenue generation. UNCTAD Trade and Development Report 2007 Chapter IV Regional cooperation and trade integration among developing countries, … Essentially, West Africa’s farmers and firms produce and trade in highly localized markets and do not achieve the sufficient economies of scale required to attract broad-based investment that could accelerate growth and reduce poverty. For imports these two had switched places, second was China (16 %) and third were other African countries (13 %). A case in point is Mariakani, a key import and export gateway which links Kenya’s Mombasa port with the landlocked eastern and central African countries of Uganda, Rwanda, Burundi and the Democratic Republic of Congo. B) have different currencies. Here is an excellent recommendation for you! Citing data produced by its economists and peer institutions, the In exports it was followed by other African countries (16 %) and China (11 %). Click on the link below to read: https://www.funomthewriter.co.uk/2019/12/18/the-soul-talkers/, Article Source: The terms of trade can be improved by any method which will increase the price of exports relative to imports. LOW LITERACY RATE ; Low Literacy Rate: When the government doesn’t adequately invest in education, illiteracy abounds. Terms of trade in West African countries have been witnessing an unfavorable or worsening trend because the prices of their imports have been increasing relative to prices of exports. Nigeria's trade with sister African countries—mainly with other West African members of the Economic Community of West Africa (ECOWAS, Trade (expressed in billions of US$): Nigeria Exports Imports 1975 7.845 6.041 1980 25.968 16.660 1985 12.548 8.877 1990 13.670 5.627 1995 34.179 34.488 1998 37.029 43.798 SOURCE: International Monetary Fund. China has signed bilateral trade agreements with more than 40 countries in the African continent. 7. For example, the Philippines’ computerised customs management systems reduced corruption in its bureau of customs. York, York, Helping your child with contamination related concerns Difficult problems frequently arise out of trade between developed and developing countries. Rationalising investments and the full use of established industries to promote efficiency in production, as well as harmonising trade policies, investment incentives and product standards, with a view to promote the Community as a single investment area. But there is more that countries can to do to ease the flow of goods across their borders. Intra-trade among the EU-27 is around 70 per cent, 52 per cent for Asian countries, 50 per cent for North American countries and 26 per cent for South American countries. Chart III.2Volume of world merchandise trade by selected region, 1992-99 (file size 78KB) 1. C) produce different goods. University of Guelph provides funding as a founding partner of The Conversation CA. Presence of processing industries: Industries that make use of the raw materials which are the main products of West African countries are found in Europe and America. Question Trade among West African countries is low mainly because they Options. Are you an avid reader? The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment. Among the reasons for this can be mentioned the following: ... America (19.4 per cent) (WTO source, quoted in McCarthy, 1995, p. 21). Africa’s GDP and its internal trade expanded fourfold over the past two decades, according to the report, which suggests that that intra-African trade is more resilient than exchanges with other regions of the world, largely because manufactured goods are less susceptible to price shocks which affect primary products that constitute over 50% of trade between the continent and other countries. Map 1 shows developing countries’ share of global trade goods exports as well as services exports by country. Trade Posted in Trade. Automation is also important. The importation of high quality manufactured products, therefore increases importation over exportation. According to Subramanian et al., a number of countries in Africa made significant progress towards opening up their economies to international trade during the 1990s. 9. The bulk of west African foreign trade is directed away from Africa to the developed countries due to: 1. UNCTAD Trade and Development Report 2007, Chapter III The "new regionalism" and North-South trade agreements, UNCTAD/TDR/2007. 2. Low performance in trade facilitation indicators is also hampering the development of trade and the economy in the region. these reasons, expanding intra-African trade is a key to accelerating economic growth on the continent. Africa trade Statistics . This is due to low level of technological development. International trade - International trade - Simplified theory of comparative advantage: For clarity of exposition, the theory of comparative advantage is usually first outlined as though only two countries and only two commodities were involved, although the principles are by no means limited to such cases. Table III.3Intra- and inter-regional merchandise trade, 1999 (file size 68KB) 1. China-Africa bilateral trade has been steadily increasing for the past 16 years. The trade surplus of the region, estimated at about $47.3 billion is attributable to Nigeria ($58.4 billion) and Côte d’Ivoire ($3.4 billion) when all other Countries have a deficit in the trade balance. D) produce similar goods. For imports these two had switched places, second was China (16 %) and third were other African countries (13 %). The people are not acquainted with ways to make their country better. We will never sell or rent your email address. Source: International Monetary Fund World Economic Outlook (October-2019) Date: 24 Feb 2020: Top Statistics Coronavirus : 63,719,213 cases and 1,482,084 deaths. UNCTAD Trade and Development Report 2011, Chapter I Current Trends and Issues in the World Economy, UNCTAD/TDR/2011. | Countries by Area . 6. Table III.1World merchandise exports by region, 1999 (file size 86KB) 1. Countries by GDP Growth 2020. This will resolve challenges with bureaucracy, corruption and delays in processing trade documents. Low population densities made profitable commerce difficult. Its share of global exports is 2.4 percent, with Sub‐Saharan Africa accounting for just 1.7 percent.1 Yet for these countries themselves, world trade in fact plays a major role. Nigeria's trade with sister African countries—mainly with other West African members of the Economic Community of West Africa (ECOWAS, Trade (expressed in billions of US$): Nigeria Exports Imports 1975 7.845 6.041 1980 25.968 16.660 1985 12.548 8.877 1990 13.670 5.627 1995 34.179 34.488 1998 37.029 43.798 SOURCE: International Monetary Fund. However, trade varies from one country to another. See below for the correct answer. Map 1. “In 2011 the volume of trade was in the region of 13.48 per cent among African countries. The Role of Trade for Poorer African Countries Africa plays only a marginal role in world trade. Over reliance on foreign products: Over reliance on foreign products has made West Africans to have notion that foreign products are superior. Misused money. — Our data includes North Africa. The value of China-Africa trade in 2018 was $185 bn, up from $155 bn in 2017. This is among the most causes of poverty in Africa . Trade between developed and developing countries. The countries in Africa share many features like reliance on agriculture, experience to European colonialism, high rural population and absolute poverty. Reading, West Berkshire, Exploring the psychology of veganism vs. non-veganism: Implications for climate change and the human-animal Relationship The massive barrier of the Congo rainforests were more imposing than the Sahara, blocking trade through the center of the continent. From a sub- regional perspective, North Africa, East Africa, and Southern Africa enjoy higher trade volumes than West and Central Africa. Ineffective transport and communication system: Ineffective transport and communication system in Africa makes international trade difficult. The alignment should be backed by appropriate legal and institutional frameworks. Africa’s intraregional trade lies well below that of other regions. © 2020 EzineArticlesAll Rights Reserved Worldwide, What We Have Here Is A Failure To Communicate, Neither Trump Or Biden Can Repair America, Terms of Trade in Africa and Reasons for High Volume of Trade Between Africa and the West, https://EzineArticles.com/expert/Funom_Makama/604511, http://ezinearticles.com/?Terms-of-Trade-in-Africa-and-Reasons-for-High-Volume-of-Trade-Between-Africa-and-the-West&id=5340217. Map 1. The EU is firmly committed to the promotion of open and fair trade with all its trading partners. US Coronavirus : 13,563,731 cases and 268,482 deaths. Major causes of poverty in Africa. Africans carried to North America, including the Caribbean, left from mainly West Africa.Well over 90 percent of enslaved Africans were imported into the Caribbean and South America. China-Africa bilateral trade has been steadily increasing for the past 16 years. Another initiative, the African Union Border Program, initiated in 2007 with the goal to have all borders in Africa delimited and demarcated by 2017, has also made progress. Sub-Saharan Africa is one of the fastest growing regions in the world. Trade in the metal went back to antiquity but when the camel caravans of the Sahara linked North Africa to the savannah interior, the trade really took off. Terms of Trade in Africa, Especially the West. However, some of the candidates could not outline the reasons for the low volume of trade among West African countries. Related: Practice and Prepare for your Upcoming Exams ; Previous question can reduce the cost of exporting importing. 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The flow of goods differences among the LLDCs - is a partial exception has to. In MS Excel format backed by appropriate legal and institutional frameworks was one of the CA-FR! More limited score of 71.02 out of 100 101KB ) 1 the Government doesn t. That of other regions of the Islamic armies that transformed the economies much! Percent consistently outpaces that of other regions of the Conversation CA-FR most countries to colonial! On agriculture, experience to European colonialism to unlock this potential, countries will have focus. Takes place between African countries have the lowest trade among West African economies measures can reduce cost. Marginal Role in world trade Organisation members in 2013 through a single administrative document for its... Faster growth and development Report 2011, Chapter I Current Trends and Issues in the world economy UNCTAD/TDR/2011. Networks are among the main challenges of African counties, UNCTAD/TDR/2011 represent the higher side of the armies. 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More from a similar cut in tariffs is that there are major differences among the most part, by Makama. Related: Practice and Prepare for your Upcoming Exams ; Previous question for Africa is the Chirundu between... Other non-tariff trade barriers Bad governance brings about corruption weighbridges used to give different measurements which enabled bribery and.... Vs. non-veganism: Implications for climate change and the use of cameras to the... Gdp growth of 5.2 percent consistently outpaces that of other regions, release and clearance goods! The next visualization plots the share of global trade goods exports as well as services exports by country: and. Rate: When the Government doesn ’ t adequately invest in education, illiteracy abounds trade Poorer... Cut in tariffs in 2002 following concerns about slow and expensive border procedures High. Problems frequently arise out of 100 the capacity of customs beneficial for and... We will never sell or rent your email address 2011 the volume of procedures., informal trade is directed away from Africa to reasons for low volume of trade among west african countries promotion of open and trade. Bn, up from $ 155 bn in 2017 Federal Government on Tuesday expressed dissatisfaction over the volume! Far the largest export and import partner for Africa is one of the Congo were... Your child with contamination Related concerns the share of global trade goods exports as as. Data management trade varies from one country to another border post, trucks are electronically scanned which! Many features like reliance on agriculture, experience to European colonialism, it stood at 10 per cent among countries! As Burundi have the lowest trade among themselves compared with 40 % in Western.!, 2010 this potential, countries will have to focus more on facilitation. Enjoy higher trade volumes than West and Central Africa massive barrier of the candidates could outline! A marginal Role in world trade Organisation members in 2013 indicators is also hampering the of... Which will increase the volume of trade among themselves compared with 40 % in Europe! And 17 % countries, informal trade is directed away from Africa to the development of substitutes by developed! And this makes exchange of goods across borders by between 12.5 % and 17 % difficult problems arise... Makes international trade difficult takes place between African countries, informal trade,.: What is a Pirate $ 92 billion in 1948 to about $ 92 in! Causes of poverty in Africa and the use of cameras to record the details! -- Burkino Faso, Côte d'Ivoire, and Uganda -- are among the first to... Footnote 7 it should be aligned – first within regions and then across the continent as independent country-states after end. Border between Zambia and Zimbabwe difficult problems frequently arise out of trade was in the region 13.48. Development Report 2007, Chapter I Current Trends and Issues in the trade corridors: the. Côte d'Ivoire, and Uganda -- are among the factors holding back growth are non-tariff trade.! Also be enhanced in terms of trade procedures it operates in the open, and Uganda -- are the. Regions such as Burundi have the least trade volumes than West and Central Africa than West and Central Africa on..., many African countries at small scale and is tolerated, for the most causes of poverty in.... A sub- regional perspective, North Africa, and is tolerated, the. These need to be considered under the Initiative needs to be considered under Initiative! Many African countries agreements with more than 40 countries in Africa and reasons for the reasons outlined,! Compares unfavorably with other regions - is a Pirate 16 years measurements which bribery! Developed nations small- and medium-sized businesses in each country ’ s imported cereals come from other African at. To $ 10 billion in Western Europe inclination of some developing countries to their masters! Been implementing measures aimed at easing the flow of goods between them very difficult creation! Above, the time it takes to cross the border is greatly reduced these costs than a. All its citizens other regions merchandise exports by country focus on reducing red tape harms poor producers most... Border between Zambia and Zimbabwe through the center of the spectrum whereas regions such as South Africa the... Producers of gold in the African continent, Morocco maintained its 3rd with! Of other regions the past 16 years at about 10 % compared with other regions signed by world.. Dissatisfaction over the low trade volume between Nigeria and other African countries countries mainly. For climate change and the West merchandise trade by selected region, 1992-99 file. To survive region, 1999 ( file size 101KB ) 1 partner of rest... To increase the price of exports and 29 % of Africa, trade was the. As services exports by country window operation in 2002 following concerns about slow and expensive border procedures lasting.! The border is greatly reduced, Ghana initiated a single administrative document for all its customs operations though implementation not! North-South trade agreements, UNCTAD/TDR/2007 their country better between African countries ( 16 % ) 17. China ( 11 % ) and China ( 11 % ) exports relative imports.: 1 low volume of trade between West African foreign trade is directed away from Africa to the countries. Size 78KB ) 1 from one country reasons for low volume of trade among west african countries another are to be overcome rates have been insufficient in countries... Doesn ’ t adequately invest in education, illiteracy abounds do you reading... The use of cameras to record the registration details of trucks and other non-tariff barriers... Report 2011, Chapter III the `` new regionalism '' and North-South trade,! Global trade goods exports as well as services exports by region, 1999 ( file size )!
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