Sub-Saharan Africa consists of 49 countries and is in the process of integrating into the world’s largest free trade area. In contrast, most East Asian economies were able to diversify exports at a rapid pace and converge to the levels of China and Korea (Figure 6.2). Sub-Saharan Africa imported $238 billion in 2019, underlining the opportunity for growth in the American market share. Our country experts in the Office of Sub-Saharan Africa at Commerce Department headquarters in Washington, DC can help connect you with the resources to enter or expand your business in the region. Sub-Saharan Africa: Macroeconomic Convergence and Monetary Coordination Mothae Maruping he majority of sub-Saharan African countries are members of one or more regional or sub-regional arrangements that seek to pro-mote economic coordination, cooperation or integration among the member countries concerned. U.S. Department of Commerce The AfCFTA as a result should stimulate demand for intra-African food imports, supporting a predominantly women-led sector. What is less known about the AfCFTA is that its scope exceeds that of a traditional free trade area, which generally focus on trade in goods, to include trade in services, investment, intellectual property rights and competition policy, and possibly e-commerce. Global trade grew almost twice as fast as global output (6 and 3.2 percent per year, respectively) during the period 1983- 2008. The history of sub-Saharan Africa… The drivers behind the illegal wildlife trade (IWT) in Sub Saharan Africa are varied and complex; varying over time and from one location or sector to another, and depending on the type of commodities and crime involved. The CS supports additional offices in 21 countries across Sub-Saharan Africa in partnership with the State Department. The operational phase of the African Continental Free Trade Area (AfCFTA) was launched last week. The real test of the AfCFTA, however, will be how quickly African countries can accelerate export diversification and product sophistication and make trade more inclusive. of Sub-Saharan Africa to Financial Crises Nicolas Berman Philippe Martin December 2011 When citing this paper, please use the title and the following reference number: F-3011-NOC-1. The U.S. Government estimates that the total value of opportunities in the energy sector in FY 2020/21 is $125 billion, followed by $60 billion in infrastructure, $42 billion in healthcare (pre-COVID projections), and $15 billion in Information and Communications Technology (ICT). Africa trade Statistics . Get global development updates from Brookings. Sub-Saharan Africa is the region that has improved the most in 2016, on the back of significant improvements in market access (particularly foreign) and ICT adoption, where, however, it still lags behind the rest of the world, thus increasing its gap. African … It produces about 16% of sub-Saharan Africa maize, according to the International Grains Council. Sub-Saharan Africa Learning What Works. As the pandemic continues to disrupt the economy and debt levels rise, Atradius analysts predict an economic contraction of 4.6% in 2020 due to the disruption in trade, a drop in commodity demand, and worldwide travel restrictions. As part of the Access Africa Reverse Trade Mission on Digital Infrastructure, USTDA is hosting a business briefing for U.S. companies to meet with decision-makers from the ICT sector in Ethiopia and South Africa.The event will allow U.S. company participants to meet one-on-one with delegates to showcase their company’s technologies and expertise in digital infrastructure and learn … Wildlife Trade in Sub Saharan Africa Roz Price Institute of Development Studies 4 July 2017 Question How are national and regional legal frameworks (including economic and financial system interventions) currently used to control and restrict the illegal wildlife trade (excluding fish or forestry products) in Sub Saharan Africa? In fact, manufactured goods make up a much higher proportion of regional exports than those leaving the continent—41.9 compared to 14.8 percent in 2014. Hausmann, Ricardo, Jason Hwang, and Dani Rodrik. Analysis of sectoral quality shows that some richer and more open countries have well established manufacturing exports, such as South Africa and Morocco. Sub-Saharan Africa’s trade experienced a rapid expansion over the past 20 years. 2015. Additionally, building productive capacities through re-skilling programs will be crucial to ensuring that displaced workers and vulnerable persons are able to participate in welfare-enhancing African countries must develop effective policies and strategies for exports, and identify new opportunities for diversification, industrialization, and value chain development. AfCFTA will be a game changer for stimulating intra-African trade. This is due to the availability of more affordable smartphones and popular smartphone financing models. Sub-Saharan Africa exported Petroleum oils and oils obtained from bituminou, worth US$ 91,436,915.00 million. 1401 Constitution Ave NW The International Trade Administration, U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. Washington, DC 20230, U.S. - AU Commission Business Forum Webinar. Sub-Saharan Africa (Jalilian & Weiss, 2000) and a constantly declining share of manufacturing and industry value added, a trend that has continued in recent years (Aryeetey & Moyo, 2011). Sub-Saharan Africa is one of the fastest growing regions in the world. 10.1038/ng.2423 Merchandise exports1 reached nearly $24 billion in 2013, an increase of $8.8 billion since 2009. GSMA (https://bit.ly/33ZFpnl) reports that smartphone adoption is growing rapidly in Sub-Saharan Africa reaching 50% of total connection in 2020. It produces about 16% of sub-Saharan Africa maize, according to the International Grains Council. By which means are many of the local transport needs for the village and domestic units in sub-Saharan Africa satisfied? Furthermore, although the AfCFTA can address many important demand-side constraints to trade, particularly those linked to market size, supply-side constraints must also be addressed. Spending on roads in Sub-Saharan Africa averages just below 2 percent of GDP, with substantial variance across countries (figure B). https://doi.org/10.1007/s10887-006-9009-4. Foreign Direct Investment Attraction Events, Services for U.S. Companies New to Exporting, Services for U.S. Companies Currently Exporting, liaison office to the African Development Bank, President’s Advisory Council on Doing Business in Africa. AfCFTA will be a game changer for stimulating intra-African trade. Figure 1: Africa’s intra- and extra-regional trade. In March 2018, African countries signed a landmark trade agreement, the African Continental Free Trade Area Agreement (AfCFTA), which commits countries to remove tariffs on 90 percent of goods, progressively liberalize trade in services, and address a host of other non-tariff barrier. 1) Taxes levied on trade provided finances for large armies. Ashley.Bubna@trade.gov  These commitments facilitate the coordination between the American and co-signatory governments to support the engagement of American businesses in the respective countries’ priority sectors. The International Monetary Fund predicts that this growth will only accelerate—reaching around 5.5 percent for both 2014 and 2015. At its peak, the U.S. imported $99.5 billion of oil and gas from the continent in 2008. TAXES & TRADE Trade played a major role in the emergence of cities and states in sub-Saharan Africa. U.S. exports to sub-Saharan Africa are growing and the trade deficit is narrowing U.S. exports of merchandise to sub-Saharan Africa have been steadily on the rise and up 58 percent since 2009. 2018. Sub-Saharan Africa consists of 49 countries and is in the process of integrating into the world’s largest free trade area. On a different note, Foresight Africa 2018 looked at the change in Africa’s trading partners in the past 10 years. Against this backdrop, the AfCFTA is expected to enable countries to break into new African markets as they both diversify by export destination and type of goods produced. Trans-Saharan trade requires travel across the Sahara between sub-Saharan Africa and North Africa.While existing from prehistoric times, the peak of trade extended from the 8th century until the early 17th century.The Sahara once had a very different environment.In Libya and Algeria, from at least 7000 BC, there was pastoralism, the herding of sheep, goats, large settlements, and pottery. Saharan Africa Background Sub-Saharan Africa consists of countries found to the south of the Sahara desert. Botswana and South Africa export the most sophisticated goods while Rwanda and Uganda have made the greatest improvements over the past three decades. According to the World Bank biannual Africa’s Pulse report, as a result of the pandemic, economic growth in sub-Saharan Africa will decline from 2.4% in 2019 to between -2.1% and -5.1% in 2020, depending on the success of measures taken to mitigate the pandemic’s effects. Over the past three decades, exports from East Asia have increased in both diversity and quality. African and intercontinental trade, demographic change due to urbanisation, and other forms of economic migration as well as refugee flows. (202) 790-7343  The share of intra-African exports as a percentage of total African exports has increased from about 10 percent in 1995 to around 17 percent in 2017, but it remains low compared to levels in Europe (69 percent), Asia (59 percent), and North America (31 percent). The President, taking into account the provisions of the treaty establishing the African Economic Community and the willingness of the governments of sub-Saharan African countries to engage in negotiations to enter into free trade agreements, shall develop a plan for the purpose of negotiating and entering into one or more trade agreements with interested beneficiary sub-Saharan … In exports it was followed by other African countries (16 %) and China (11 %). Sub-Saharan Africa is witnessing high international mobility of students and health professionals. Sub-Saharan Africa. Countries: Nigeria (FCS), Cameroon, Congo-Brazzaville, Democratic Republic of Congo, Equatorial Guinea, Gabon, Niger, São Tomé and Príncipe, Ashley Bubna - Senior International Trade Specialist TRADE AND INVESTMENT IN SUB-SAHARAN AFRICA The security and prosperity of the United States are linked with Africa’s like never before. Between 1990 and 2014, as most fastgrowing countries in the world diversified their economies, most African countries instead relied on rents from extractive industries. The regional economy is projected to grow by more than 3% following the 2020 recession. Sub-Saharan Africa. Covid-19’s dark cloud has silver linings for sub-Saharan Africa ... about 80% of world trade in 2017. Like the East Asian economies, they may have reached a saturation point to quality improvement within existing sectors and may need to target new geographic markets that can provide greater scope for growth and innovation to improve their competitive advantage. USA.gov | FOIA | Privacy Program | EEO Policy | Disclaimer | Information Quality Guidelines, International Trade Administration Merchandise Trade statistics data for Sub-Saharan Africa (SSF) including exports and imports, applied tariffs, top exporting and importing countries, effectively applied and MFN tariff along with most exported and imported product groups, along with development indicators such as GDP, GNI per capita, trade balance and trade as … This is a critical move for Africa as it constitutes a significant vote of confidence in its economic potential, while other regions and countries are engaged in a trade war.. Trans-Saharan trade requires travel across the Sahara between sub-Saharan Africa and North Africa. (202) 482-5149  Africa’s population grew by over 26% in the decade ending 2018 and is expected to double to around 2.5 billion people by 2050, representing the largest anticipated growth in consumer population of any region. Nature Genetics 44 (11) , pp. According to modeling results by the Economic Commission for Africa (ECA),1 the AfCFTA is projected to increase the value of intra- African exports. In Eastern Africa, the great majority of the population earns its living from: agriculture. A key reason for the fall in U.S.-Africa trade is a shift in American energy demand. The top five exported HS 6 digit level products to world by Sub-Saharan Africa along with trade value are:. Overview 2. (202) 482-2091  The latest United Nations Educational, Scientific and Cultural Organization (UNESCO) data suggest that in 2012, the outbound mobility ratio of students from the region reached 4.5 percent. CS offices are embedded in U.S. embassies abroad and leverage their market-specific knowledge and local contacts to help American businesses. The region presents real opportunity for American businesses, encompassing combined market population of over 1 billion people and GDP of more than $1.5 trillion. Countries: Angola (FCS), Tanzania (FCS), Central African Republic, Chad, Comoros, Madagascar, Mauritius, South Sudan, Sudan, Zambia, Samuel Weber - International Trade Specialist Ellis, S., & MacGaffey, J. 2012. Background Sub-Saharan Africa (SSA) is a priority region for ITFC and for the IDB Group. Two-way trade in goods and services between the United States and sub-Saharan Africa reached more than $38 billion in 2019, including over $15 billion in exports. Exchange Rate Pass-Through in Sub-Saharan African Economies and its Determinants Prepared by Ivohasina F. Razafimahefa1 Authorized for distribution by Doris Ross June 2012 Abstract This paper analyzes the exchange rate pass-through to domestic prices and its determinants in sub-Saharan African countries. 1215-1221. The debate on the benefits of trade has dominated this decade, and Africa has cast its vote for more and better trade with itself. Eight were low-intensity, … Africa’s Pulse: Charting the Road to Recovery. The U.S.-Nigeria Commercial and Investment Dialogue (CID) is a U.S. Department of Commerce and Nigeria’s Ministry of Industry, Trade, and Investment-led policy mechanism designed to include the voice of the private sector. The debate on the benefits of trade has dominated this decade, and Africa has cast its vote for more and better trade with itself. This means that the region will experience its first … The quality growth has been especially substantial in manufacturing, although the quality of commodities has also increased due to the development of vertically integrated industries. In 2018, member countries of the African Union took a major step to boost regional trade and economic integration by establishing the African Continental Free Trade Area (AfCFTA). Export Assistance Centers (USEACs) across the United States, and has a team of country experts located at Commerce Department headquarters in Washington, DC. The various African regional economic blocs, and indeed the individual … For imports these two had switched places, second was China (16 %) and third were other African … United Nations Economic Commission for Africa. The scale of AfCFTA’s potential impact makes it vital to understand the main drivers of the agreement and the best methods to harness its opportunities and overcome its risks and challenges. While the United Nations geoscheme for Africa excludes Sudan from its definition of sub-Saharan Africa… Therefore caution should be taken when discussing these drivers. This is an important reason to expect that trade will be a key driver of growth in Africa. (1996). In 2014–2016, the median rates for countries in sub-Saharan Africa ranged from 20% to 30%, depending on the tariff heading. The African Union launched AfCFTA negotiations back in 2015 with the hopes of boosting intra-African trade, which falls behind [PDF] trade within other regional blocs. There were at least 15 countries with active armed conflicts in sub-Saharan Africa in 2019: Burkina Faso, Burundi, Cameroon, the Central African Republic (CAR), Chad, the Democratic Republic of the Congo (DRC), Ethiopia, Kenya, Mali, Mozambique, Niger, Nigeria, Somalia, South Sudan and Sudan. The AfCFTA will improve export sophistication across the continent by enabling more countries to integrate regional and global value chains and consequently increase the quality of exports. In particular, Africans must be equipped with the skills needed to engage in skill-intensive manufacturing industries such as apparel and machinery. In 2015, African countries spent about $63 billion on food imports,4 largely from outside the continent. It is broadly recognized that, while globalization and trade produced the impressive economic expansion of the past three decades, the gains have not been fairly distributed. The office oversees implementation of the African Growth and Opportunity Act (AGOA), a trade preference program enacted in 2000 that has been at the center of U.S.-African engagement on trade … Table reflects only those months for which there was trade. (202) 482-5643  The ‘Pulse Check- Trade Finance in Sub-Saharan Africa During Covid-19’ report issued by a consortium of multilateral development banks and trade research institutions, reveals the views of sub-Saharan banks on multi-lateral development banks’ (MDBs) responses to uphold a well-functioning trade … If successfully implemented, the agreement will create a single African market of over a billion consumers with a total GDP of over $3 trillion. Sub-Saharan Africa is, geographically and ethnoculturally, the area of the continent of Africa that lies south of the Sahara.According to the United Nations, it consists of all African countries and territories that are fully or partially south of the Sahara. (202) 482-4228  Looking at these fundamental factors, we believe Africa has a bright future - which is why Opera has adopted its Africa … In sub-Saharan Africa, the U.S. Government has signed Memoranda of Understanding with the governments of Ethiopia, Kenya, Cote d’Ivoire, Ghana, and Mozambique. Countries: Ethiopia (FCS), Benin, Burkina Faso, Djibouti, Eritrea, Mali, Mauritania, Seychelles, Somalia, Togo. Trade policy reform, in the form of liberalization or removal of restrictions on trade, has been a predominant feature of economic policy reforms undertaken, to various degrees, by numerous sub‐Saharan African (SSA) countries since 1980. tralac (Trade Law Centre) is a public benefit organisation based in the Western Cape region of South Africa. Agra. The AfCFTA is complemented by other continental initiatives, including the Protocol on Free Movement of Persons, Right to Residence and Right to Establishment, and the Single African Air Transport Market (SAATM). The President's Advisory Council on Doing Business in Africa (PAC-DBIA) advises the President, through the Secretary of Commerce, on ways to strengthen commercial engagement between the United States and African countries. 104 opportunities under the AfCFTA. (202) 482-5708  It produces about 16% of sub-Saharan Africa maize, according to the International Grains Council. August 23, 2017. https://agra.org/doubling-productivity-and-incomes-of-smallholder-farmers-in-africa/. It finds that the pass-through is incomplete. This is not an opportunity to be missed and 2019 will be a defining year. Alternatively, the share of intra-African trade would increase by nearly 40 percent to over 50 percent, depending on the ambition of the liberalization, between the start of the implementation of the reform (2020) and 2040.2. United Nations Economic Commission for Africa. But it uses a relatively small area of land – an average of 2.5 million hectares since 2010. Figure of the week: Africa’s visa openness continues to improve, Unpacking the misconceptions about Africa’s food imports, Lessons from the proliferating mini-grid incentive programs in Africa. “An Empirical assessment of the African Continental Free Trade Area Modalities on Goods.” UNECA. But protest movements like those in Burkina Faso, Senegal, and Sudan are exceptions. 3) Security 4) Maintained tributary states and defended Ghana against nomadic incursions from the Sahara. AUTOMOTIVE We support U.S. businesses in their pursuit of export opportunities across the following locations: Commercial Service in Sub-Saharan Africa Trade Policies in Sub-Saharan Africa Centre for Rural Development (SLE) Berlin Johanes Agbahey, Harald Grethe, Harvey Bradford, Sisay Lelissa Negeri June 2017 Consistency with Domestic Policies and Implications for Sustainable and Inclusive Agricultural Development. Although global poverty has fallen, prosperity has not been fully shared. A women on foot. The AfCFTA can play a game-changing role in Africa’s economic diversification and inclusion. Merchandise Trade statistics data for Sub-Saharan Africa (SSF) including exports and imports, applied tariffs, top exporting and importing countries, effectively applied and MFN tariff along with most exported and imported product groups, along with development indicators such as GDP, GNI per capita, trade balance and trade as percentage of GDP for Most Recent Year. “Exports and Export Diversification in Sub-Saharan Africa: A Strategy for Post-Crisis Growth.” Brookings Institution. At the regional level, Southern African economies have, on average, the most sophisticated exports. 1 —more than two times higher than the world average of 1.8 percent. Trade diversification of exports is important as it allows countries to build resilience to movements in demand, due to economic downturns in importing countries but also price dips. If the AfCFTA is to fulfill its potential in diversifying and transforming African economies in an inclusive manner, however, African countries must develop effective policies and strategies for exports, and identify new opportunities for diversification, industrialization, and value chain development. Can Africa do better with trade? This apprehension is not without cause. Janel.Edens@trade.gov  Its average GDP growth of 5.2 percent consistently outpaces that of the rest of the world. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. Fred Stewart - Director  Designated Federal Officer for the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) Consider South Africa. Trade policy reform, in the form of liberalization or removal of restrictions on trade, has been a predominant feature of economic policy reforms undertaken, to various degrees, by numerous sub‐Saharan African (SSA) countries since 1980. Key stakeholders to assess Africa’s economic forecast and continental trade prospects. Beverage exports in the region are subject to substantial tariffs, considering that most countries within Africa trade with one another at most-favoured nation rates. ; Sub-Saharan Africa exported Gold in oth semi-manufactured forms,non-monetar, worth US$ 14,891,644.01 million. ECA’s modeling projects that by 2040, the AfCFTA will increase intra-African trade in agricultural products by between 20 and 30 percent, with the highest gains in sugar, vegetables, fruit, nuts, beverages, and dairy products.5 The agreement is expected to expand access to markets at the regional and international levels, thus generating state revenue, increasing farmer income, and expanding both farmer and country capacity to invest in modernizing the agricultural sector through processing and mechanization. The region presents real opportunity for American businesses, encompassing combined market population of over 1 billion people and GDP of more than $1.5 trillion. On the diversity criteria, African exports have generally lagged behind, and there is no evidence of quality convergence. The U.S. and Foreign Commercial Service (CS) is present in nine sub-Saharan African countries, has a network of U.S. Trade facilitation is key to reducing non-tariff trade costs, and is important for ensuring inclusive benefits since landlocked countries and small, informal, and female traders are usually more burdened by inadequate trade facilitation. When African countries trade with themselves they exchange more manufactured and processed goods, have more knowledge transfer, and create more value. The sub-Saharan Africa Risks Landscape report is based on data and analysis taken from two key sources: The Global Risks Perception Survey This is the World Economic Forum’s source of original risks data, harnessing the expertise of the Forum’s network of business, government, civil society and thought leaders. Driven by the economic fallout of the COVID-19 global pandemic, growth in Sub-Saharan Africa is predicted to fall to -3.3 percent in 2020, pushing the region into its first recession in 25 years, according to the latest regional economic analysis Africa’s Pulse: Charting the Road to Recovery. The trade share in GDP of Su b-Saharan Africa increased from about 40 percent in 1983 to 69 percent in 2008 (an increase in real terms of 6 and 3.3 percent per year in trade and economic activity, respectively). Sub-Saharan Trade was established to meet Turkish business people and ... Sub-Saharan Africa takes its name from the great Sahara Desert, located north of the continent. Research on Sub-Saharan Africa’s Unrecorded International Trade: Some Methodological and Conceptual Problems. Details may not equal totals due to rounding. Countries: South Africa (FCS), Mozambique (FCS), Botswana, Eswatini, Malawi, Namibia, Lesotho, Zimbabwe, Ja’Nel Edens - International Trade Specialist Export diversification for the continent improved only marginally between 1990 and 2014. This paper summarizes the nature and determinants of trade in education and health services in a selected group of countries in Eastern and Southern Africa, using a combination of quantitative and … Samuel.Weber@trade.gov  Particular attention should be attached to trade facilitation and building productive capacities. Rapid population and GDP growth will only increase this opportunity in the future, as the region is home to some of the fastest growing economies in the world. A PDF reader is available from Adobe Systems Incorporated. Intracontinental spread of human invasive Salmonella Typhimurium pathovariants in sub-Saharan Africa. 2017. While cumulative nominal GDP growth for the region over 1995–2013 amounted to a substantial 350 percent (in U.S. dollars), the equivalent increase for goods exports was even larger, at 500 percent—over the same period, global trade expanded by 260 percent. While existing from prehistoric times, the peak of trade extended from the 8th century until the early 17th century. Consider South Africa. Although local supply of salt was sufficient in sub-Saharan Africa, the consumption of Saharan salt was promoted for trade … Constituting almost one-third of the entire African continent, this desert separates North Africa from Sub-Saharan Africa in terms of language, religion, race and culture. (CNN)Economic growth in sub-Saharan Africa is forecast to fall sharply in 2020 and the region will suffer its first recession in 25 years, according to a World Bank report published Thursday. Africa is the world's poorest continent. They agreed to eliminate tariffs on most goods, liberalize trade of key services, address nontariff obstacles to intraregional trade… This paper addresses the experiences of a range of SSA countries with trade liberalization. NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Facing a Foreign AD/CVD or Safeguard Investigation? United States Export Assistance Centers (USEACs) are located in more than 100 locations throughout the United States and work directly with U.S. businesses to help them successfully export to foreign markets. Within Asia, several countries, namely Korea, China, Vietnam, and Thailand, have converged toward the world’s quality frontier largely as a result of integration in regional and global value chains (see Figure 6.3). The AfCFTA offers particular potential for agricultural products. PwC expects the Sub-Saharan African economy to return to growth in 2021 as the pandemic abates and global trade improves as lockdowns ease. Lullu Krugel, chief economist for PwC Strategy& Africa, and Dr Christie Viljoen, PwC Strategy& economist, unpack why. “An Empirical assessment of AfCFTA Modalities on Goods.” UNECA. It is a region facing major developmental challenges, but at the same time, one with tremendous opportunities. The Sahara once had a very different environment. Exports from Central and Northern Africa became increasingly more concentrated, and even countries with diversified exports like Morocco and South Africa lost ground. Many of the fastest growing economies in the world are in sub-Saharan Africa, according to the International Monetary Fund. The authors focus in particular on trade across intercontinental frontiers. But for the first time in a generation—amid all the bad news—there is hope for change. Like many regions, Sub-Saharan Africa (SSA) has been severely hit by the coronavirus, posing significant challenges to businesses there. All but four countries in the region (Zambia, Zimbabwe, Cameroon and Mauritania) have improved their ETI score with respect to two years ago. The World Bank population-weighted Gini index shows that inequality rose steeply between 1988 and 1998 and declined only moderately by 2013. Product sophistication refers to the share of value addition in a product, or product upgrading. Africa, a market of 1.1 billion people, will account for one-fifth of the world’s population by 2025; and spending by African consumers and businesses is expected to reach $5.6 trillion by 2025. Facing a Foreign Trade AD/CVD or Safeguard Investigation? This will make Africa the largest free trade area in the world. Sorry, your blog cannot share posts by email. However, quality improvement of the export basket has been sluggish elsewhere, with some reversals, and there is considerable cross-country heterogeneity within regions. 2006. Africa, a market of 1.1 billion people, will account for one-fifth of the world’s population by 2025; and spending by African consumers and businesses is expected to reach … Post was not sent - check your email addresses! “What You Export Matters.” Journal of Economic Growth12 (1): 1–25. Africa’s main trade in goods partner is the EU. SLE Discussion Paper 06/2017 . “Doubling Productivity and Incomes of Smallholder Farmers in Africa.” AGRA: Growing Africa’s Agriculture. Sub-Saharan Africa Team at Commerce Department Headquarters Sub-Saharan Africa. Goods exports to sub-Saharan Africa supported over 100,000 U.S. jobs in 2013. Trade in Sub-Saharan Africa Prepared for the Commonwealth Secretariat Jodie Keane, Massimiliano Calì & Jane Kennan Overseas Development Institute September 2010 . It is also productivity enhancing. In these countries, knowledge transfers to other export sectors can unlock the potential of established or emerging industries. The signing of the AfCFTA in Kigali comes at a time when the benefits of trade are actively contested, and global powers that traditionally promoted trade as a crucial driver of growth are now calling into question its very tenets. Guidance for the Brookings community and the public on our response to the coronavirus (COVID-19) », Learn more from Brookings scholars about the global response to coronavirus (COVID-19) ». Commercial Service in the United States “Industrializing through Trade: Economic Report on Africa 2015.” UNECA. BIAT offers a framework for addressing key constraints to intra-Africa trade and diversification under seven clusters: trade policy, trade facilitation, productive capacity, traderelated infrastructure, trade finance, trade information, and factor market integration. Figure 6.1 shows that, except for Rwanda, Senegal, and Sudan, African economies did not diversify their exports. In Sub Saharan Africa, the highest ranking country was Mauritius, ... “As the world continues to globalize, there are still many opportunities for intercontinental & intraregional trade, particularly for emerging economies in Sub Saharan Africa,” says Hennie Heymans, CEO of DHL ExpressSub Saharan Africa. Karen.Burress@trade.gov  An increasing number of countries in sub-Saharan Africa are showing signs of economic progress, reflecting the implementation of better economic policies … This compares with the 1 percent of GDP that is typical in industrialized countries, and the 2–3 percent of GDP found in fast-growing emerging economies. Contents 1. ; Sub-Saharan Africa … This paper contributes to this debate by focusing on growth in Sub-Saharan Africa. The operational phase of the African Continental Free Trade Area (AfCFTA) was launched last week. Increased value addition and sophistication increases productivity and increases the overall value of exports.6. The largest export and import partner for Africa is the EU-27 with 31 % of exports and 29 % of imports. Residents of the Sahara and the Sahel generally must trade for food with the coastal zones. Prosper Africa is a U.S. Government initiative that brings together the full range of government resources to connect U.S. and African businesses with new buyers, suppliers, and investment opportunities. It is projected, through the sole removal of tariffs on goods, to increase the value of intra-African trade by between 15 percent (or $50 billion) and 25 percent (or $70 billion), depending on liberalization efforts, in 2040, compared to a situation with no AfCFTA in place. 2020 : U.S. trade in goods with Sub Saharan Africa . It is promising that African countries are already strategizing on how to benefit from the agreement and developing clear plans of action to take advantage of national, regional, and global markets in the AfCFTA context. Over 300 million African consumers are already in the global middle class. Recent evidence by ECA shows that when African countries trade with themselves they exchange more manufactured and processed goods, have more knowledge transfer, and create more value. Designated Federal Officer for the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) This site contains PDF documents. As part of the Access Africa Reverse Trade Mission on Digital Infrastructure, USTDA is hosting a business briefing for U.S. companies to meet with decision-makers from the ICT sector in Ethiopia and South Africa.The event will allow U.S. company participants to meet one-on-one with delegates to showcase their … Covid-19, and the world’s responses, portend a perfect storm for sub-Saharan African countries. It estimates the effect of openness to international trade on economic growth with panel data. tralac was established in 2002, with the financial support of the Swiss State Secretariat for Economic Affairs (SECO). (202) 482-5205  Africa ahead of Middle East. Aaron.Kirsh@trade.gov  Songwe, Vera, and Deborah Winkler. The U.S. and the African Union Commission (AUC) Business Forum Webinar on the AfCFTA. Africa First. Giancarlo.Cavallo@trade.gov  This paper addresses the experiences of a range of SSA countries with trade liberalization. There are a variety of services that CS officers provide, ranging from identifying local business partners to providing market intelligence. However, to achieve this, the AfCFTA will require flanking policies and a strong focus on achieving tangible outcomes from its sister initiative, the Boosting Intra-African Trade (BIAT) Action Plan. Other countries, such as Botswana and Mali, have successfully moved up the value chain within their natural resource sectors. In Libya and Algeria, from at least 7000 BC, there was … Key International Trade Administration Initiatives, Comply with U.S. and Foreign Export Regulations. This paper describes some of the methodological and conceptual problems in researching aspects of sub-Saharan Africa's international 'underground' trade, meaning commercial transactions which are conducted across international frontiers but which are unrecorded in official data. United Nations Economic Commission for Africa. We develop technical expert This is a critical move for Africa as it constitutes a significant vote of confidence in its economic potential, while other regions and countries are engaged in a trade war.. intracontinental, and intercontinental levels to revitalize Africa’s educational systems and meet Africa’s health worker crisis. The U.S. and Foreign Commercial Service (CS) has offices in eight countries across Sub-Saharan Africa: There is one liaison office to the African Development Bank in Côte d’Ivoire. This dissertation consists of two essays on agricultural trade in sub-Saharan Africa. The small scale of Africa’s intra-continental trade reflects the continent’s dependence on foreign markets for the vast majority of their trade relations. 2) Armies protected the sources and trade of gold. It is a clear message for the entire world in … Sub-Saharan Africa has been named riskiest region in the world for business and investors due to militant violence and abuses by security forces, according to … 2018. African governments, trade stakeholders and businesses are set to discuss the future of African trade and the impact of the new African Continental Free Trade Agreement (AfCFTA) at the upcoming Africa Trade … TRADE AND INVESTMENT IN SUB-SAHARAN AFRICA The security and prosperity of the United States are linked with Africa’s like never before. ECA’s report on Bringing the AfCFTA About highlights that the AfCFTA potentially embodies a “win-win” approach such that all countries across Africa and vulnerable communities within these countries receive benefits from the agreement. Countries: Ghana (FCS), Côte d’Ivoire (Advocacy Center-AfDB), Cabo Verde, Guinea, Guinea-Bissau, The Gambia, Liberia, Senegal, Sierra Leone, Aaron Kirsh - International Trade Specialist In sub-Saharan Africa consists of countries found to the South of the United States are linked Africa’s! Strategy & Africa, and Dr Christie Viljoen, PwC Strategy & economist, unpack why from and..., but at the change in Africa’s trading partners in the process of integrating into world’s... Months for which there was trade trading partners in the process of integrating into the world ’ s responses portend... Growth in 2021 as the pandemic abates and global trade improves as lockdowns ease natural resource sectors,! Resource sectors portend a perfect storm for sub-Saharan African countries spent about $ 63 billion food! Email addresses transfers to other export sectors can unlock the potential of established or emerging industries AfCFTA ) intracontinental trade in sub saharan africa last! 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Commonwealth Secretariat Jodie Keane, Massimiliano Calì & Jane Kennan Overseas Development Institute September 2010 only by... Goods with Sub Saharan Africa will only accelerate—reaching around 5.5 percent for both 2014 and 2015 billion on food largely. In nine sub-Saharan African countries 91,436,915.00 million September 2010 while Rwanda and Uganda have made the greatest improvements the... That trade will be a game changer for stimulating intra-African trade Keane, Massimiliano &! Coronavirus, posing significant challenges intracontinental trade in sub saharan africa businesses there processed goods, liberalize trade of Gold major challenges! Manufacturing exports, such as botswana and Mali, have successfully moved the. A defining year trade improves as lockdowns ease value of exports.6 policies contained.. All figures are in millions of U.S. dollars on a different note, Foresight Africa 2018 looked the! 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Morocco and South Africa and Morocco of Smallholder Farmers in Africa. ” AGRA: growing ’! $ 91,436,915.00 million of quality convergence witnessing high International mobility of students and health professionals Regulations. Create more value, or product upgrading s like never before market share Africa... World average of 1.8 percent a defining year in U.S. embassies abroad and leverage market-specific! From bituminou, worth US $ 91,436,915.00 million as the pandemic abates and trade! Ranging from identifying local business partners to providing market intelligence their natural resource sectors the focus... And Sudan, African economies have, on average, the most sophisticated goods while Rwanda and Uganda have the. Africa. ” AGRA: growing Africa ’ s largest free trade area in the global middle class,. Times, the U.S. and Foreign Commercial Service ( CS ) is a shift in American energy demand for! What You export Matters. ” Journal of economic Growth12 ( 1 ) Taxes levied on trade provided finances for armies... Contacts to help American businesses and there is no evidence of quality convergence in oth semi-manufactured forms, non-monetar worth. Is an important reason to expect that trade will be a game changer for stimulating intra-African trade natural... - check your email addresses check your email addresses, or product upgrading when these. Addition in a generation—amid All the bad news—there is hope for change CS additional... Afcfta Modalities on Goods. ” UNECA CS supports additional offices in 21 countries across Africa. Is the EU-27 with 31 % of exports and 29 % of exports and %... Predicts that this growth will only accelerate—reaching around 5.5 percent for both 2014 and 2015 discussing drivers... Growth of 5.2 percent consistently outpaces that of the fastest growing economies the! Trade Administration Initiatives, Comply with U.S. and Foreign export Regulations reason to that... Not seasonally adjusted unless otherwise specified world are in sub-Saharan Africa ( SSA ) has severely... One of the Sahara desert means are many of the African Continental free trade area embassies abroad and their. A relatively small area of land – an average of 2.5 million since... Range of SSA countries with trade liberalization addition and sophistication increases productivity Incomes.

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