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What is the state of agricultural trade in Africa?

16/10/2020
Source : news.alome.com
Categories: Sectors

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A vast question answered by the third annual report of the African Agricultural Trade Monitor (AATM) developed by Strategic Analysis and Knowledge Support System (ReSAKSS) and The African Frowth and Development Policy Modeling Consortium (Agrodep) and published the last word. A valuable inventory at a time when the Covid-19 pandemic has weakened the food situation in several countries and disrupted trade flows, particularly inter-African and partly informal. Look at part of this report.

Diversification of agricultural export destinations

African agricultural exports are expanding to emerging and fast-growing countries. African agricultural exports showed an upward trend between 2003 and 2018, along with a diversification of export destinations, with exports increasing to Brazil, Russia, India, China and other Asian countries, including Saudi Arabia, Vietnam, United Arab Emirates and Turkey, Malaysia and Pakistan.
This diversification, the report notes, has resulted in a gradual decline in the share of the European Union (EU) as a destination for African exports, from 45% in 2005-20707 to 36% in 2016–2018.

Nevertheless, the value of EU imports of African agricultural products has shown a steady upward trend, despite the decline in their share, and the EU remains the main destination for African agricultural exports. Similarly, exports to the United States and intra-African destinations have continuously increased in value, but the corresponding shares (5 and 20%, respectively) have remained unchanged.
Unprocessed agricultural products still dominate exports

Cocoa beans, cashew nuts (in shell), tobacco, coffee, oranges, cotton, sesame seeds, black tea, cocoa paste and fresh grapes are the 10 most popular agricultural products. exported from Africa. They represent 39% of African agricultural exports in 2016-2018. Compared to 2005-2007, there are clear changes. Ranked 15th in 2005-2007, cashews rose to 2nd place in 2016-2018.

Similarly, sesame seeds rose from 13th to 7th place. Vanilla, flowers and sucrose are also among the products that gained places. On the other hand, coffee (not roasted or decaffeinated) lost its place in favor of tobacco and cotton fell to 6th place against 2nd in 2005-2007. Cocoa beans and oranges maintained their positions in both rankings as first and fifth export products.

But on the inter-African market, processed products are increasing

Intracontinental trade flows are responding to new trends in domestic food demand, the report highlights. Over time, exports of wheat and maize increased, but especially of processed foods such as soups, broths and food preparations.

Intra-African agricultural trade largely dominated by SADC and Comesa member countries, particularly South Africa, Kenya and Egypt. “Apart from Côte d'Ivoire as a major exporter and Nigeria as a major importer, West and Central African countries play a marginal role in agricultural trade in Africa,” the report reads.


An underestimated inter-African agricultural trade

If over the last decade (2009-2019), only about 22% of African agricultural trade is trade between African countries, this relatively low percentage compared to other continents, is in fact largely underestimated.

In question, informal cross-border trade, which has several realities: cross-border trade in the hands of informal traders passing through official border posts with small quantities or crossing borders at points not covered by officials to avoid controls, and cross-border trade carried out by formal traders who reduce the cost of import duties at the border by under-declaring or misclassifying, or who smuggle goods by avoiding customs officials.

Different realities but that does not alter its importance. For example, a 2011 study by Insae estimated that informal trade between Benin and Nigeria was five times higher than officially recorded exports. This informal trade is therefore an important source of income but also plays an important role in food security. Thus in West Africa, it would represent 30% of the total staple food trade, according to Usaid (2015).

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