About Korea - Africa Economic and Investment Summit

 

Asia is Africa's largest trading partner and the recent boom in developing countries commerce between Africa and Asia explains the rise of south-south trade. These trade flows are currently being spearheaded by China, India and Indonesia who has shown increased appetite for African commodities. Africa too greatly depends on manufactured goods from China, Vietnam and other Asia countries. As the global market becomes more fused together, a lot is at stake for the economic welfare of those of us in Africa.

South Africa and Nigeria together accounts for over 55 percent of the entire continents economic activities. Africa's exports to Asia have not yet significantly contributed to sustained widespread export diversification whether in trading partners or exports. Although the boom in natural resources exports to China and India is providing short-term benefits, African countries need to strategies to leverage the current export explosion to create opportunities for long-term economic benefits. Recently, India that used to be the highest buyers of Nigeria's Brent crude has dropped to second place behind Spain as a result of the effects of the covid 19 pandemic in the country.

Twenty years ago, prices for Africa's leading commodity exports have increased significantly. This happened as a result of the rapid growth of Asia's developing countries, China and India. Also, the desire for manufactured goods from China and India has also risen significantly because Chinese goods and commodities are more affordable for majority of the middle class Africans as compared to American and European commodities. These demand changes creates important opportunities for Africa's businesses to increase and diversify exports. It has also created an opportunity for African Entrepreneurs to extract more value locally by further processing commodities before exporting them.

The Asia-Africa Convention being organized by Globe Chamber of Commerce and Industry will address issues to change the status quo of Africa's export to Asia from petroleum and non-oil minerals to other processed commodities. Currently, Africa's export of oil and natural gas accounts for over 60 percent of its total export, followed by ore and metals. Meanwhile, Africa imports mainly more value added commodities like textiles, electric machinery and equipment, gadgets and consumer products like drugs, cosmetics and lot more.

Also, this convention will help to facilitate improved market access for low-income countries. This can be achieved through the lowering of industrial countries multilateral tariff and non tariff barriers on Africa's product which will in turn increase our exports significantly.

Another issue that will be addressed is the lack of trust, infrastructure, understanding and systems that will handle African risk in Asia based banks.

This convention lastly, will help to bring about the African Continental Free Trade Agreement (AfCFTA)'s which will help Africa to achieve the economic growth that will turn the continent to a successful one and increase the welfare and quality of life of everyone.

Further information and date for the convention will be communicated soon