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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. Looking at these fundamental factors, we believe Africa has a bright future - which is why Opera has adopted its Africa … 2018. Contents 1. 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. Countries: Kenya (FCS), Burundi, Rwanda, Uganda, Karen Burress - Senior International Trade Specialist The 42 countries of continental sub-Saharan Africa include 21 of the 24 poorest countries in the world. The various African regional economic blocs, and indeed the individual … Sub-Saharan Africa. In exports it was followed by other African countries (16 %) and China (11 %). Intracontinental spread of human invasive Salmonella Typhimurium pathovariants in sub-Saharan Africa Chinyere K Okoro 1,20 , Robert A Kingsley , Thomas R … Export Assistance Centers (USEACs) across the United States, and has a team of country experts located at Commerce Department headquarters in Washington, DC. 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 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. Ellis, S., & MacGaffey, J. Figure 1: Africa’s intra- and extra-regional trade. This site contains PDF documents. Therefore caution should be taken when discussing these drivers. 2006. 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. On a different note, Foresight Africa 2018 looked at the change in Africa’s trading partners in the past 10 years. Agra. GSMA (https://bit.ly/33ZFpnl) reports that smartphone adoption is growing rapidly in Sub-Saharan Africa reaching 50% of total connection in 2020. TRADE AND INVESTMENT IN SUB-SAHARAN AFRICA The security and prosperity of the United States are linked with Africa’s like never before. It produces about 16% of sub-Saharan Africa maize, according to the International Grains Council. Sub-Saharan Africa exported Petroleum oils and oils obtained from bituminou, worth US$ 91,436,915.00 million. By which means are many of the local transport needs for the village and domestic units in sub-Saharan Africa satisfied? 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. Covid-19, and the world’s responses, portend a perfect storm for sub-Saharan African countries. 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). Global trade grew almost twice as fast as global output (6 and 3.2 percent per year, respectively) during the period 1983- 2008. It estimates the effect of openness to international trade on economic growth with panel data. 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 … 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. 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. Sub-Saharan Africa’s trade experienced a rapid expansion over the past 20 years. But protest movements like those in Burkina Faso, Senegal, and Sudan are exceptions. 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. An increasing number of countries in sub-Saharan Africa are showing signs of economic progress, reflecting the implementation of better economic policies … Sub-Saharan Africa consists of 49 countries and is in the process of integrating into the world’s largest free trade area. 3) Security 4) Maintained tributary states and defended Ghana against nomadic incursions from the Sahara. 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 … 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. According to modeling results by the Economic Commission for Africa (ECA),1 the AfCFTA is projected to increase the value of intra- African exports. The International Monetary Fund predicts that this growth will only accelerate—reaching around 5.5 percent for both 2014 and 2015. Sub-Saharan Africa. 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. Spending on roads in Sub-Saharan Africa averages just below 2 percent of GDP, with substantial variance across countries (figure B). The history of sub-Saharan Africa… Designated Federal Officer for the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) TAXES & TRADE Trade played a major role in the emergence of cities and states in sub-Saharan Africa. 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. Over the past three decades, exports from East Asia have increased in both diversity and quality. 1 —more than two times higher than the world average of 1.8 percent. https://doi.org/10.1007/s10887-006-9009-4. (1996). 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). [email protected]  intracontinental, and intercontinental levels to revitalize Africa’s educational systems and meet Africa’s health worker crisis. Between 1990 and 2014, as most fastgrowing countries in the world diversified their economies, most African countries instead relied on rents from extractive industries. 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. 2020 : U.S. trade in goods with Sub Saharan Africa . The World Bank statistics from 2018 recorded a total population of 1.078 billion citizens, making it the second largest populated region in the world (World Bank 2018a). (202) 790-7343  Botswana and South Africa export the most sophisticated goods while Rwanda and Uganda have made the greatest improvements over the past three decades. “Industrializing through Trade: Economic Report on Africa 2015.” UNECA. tralac was established in 2002, with the financial support of the Swiss State Secretariat for Economic Affairs (SECO). In Libya and Algeria, from at least 7000 BC, there was … Countries: Nigeria (FCS), Cameroon, Congo-Brazzaville, Democratic Republic of Congo, Equatorial Guinea, Gabon, Niger, São Tomé and Príncipe, Ashley Bubna - Senior International Trade Specialist Key International Trade Administration Initiatives, Comply with U.S. and Foreign Export Regulations. [email protected]  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. 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. 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. 1215-1221. It produces about 16% of sub-Saharan Africa maize, according to the International Grains Council. 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 … 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. Washington, DC 20230, U.S. - AU Commission Business Forum Webinar. Sub-Saharan Africa imported $238 billion in 2019, underlining the opportunity for growth in the American market share. The AfCFTA can play a game-changing role in Africa’s economic diversification and inclusion. They agreed to eliminate tariffs on most goods, liberalize trade of key services, address nontariff obstacles to intraregional trade… 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. 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. 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). Africa’s main trade in goods partner is the EU. Eight were low-intensity, … A women on foot. The U.S. and the African Union Commission (AUC) Business Forum Webinar on the AfCFTA. (202) 482-5643  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. It produces about 16% of sub-Saharan Africa maize, according to the International Grains Council. 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). 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. Songwe, Vera, and Deborah Winkler. Countries: Angola (FCS), Tanzania (FCS), Central African Republic, Chad, Comoros, Madagascar, Mauritius, South Sudan, Sudan, Zambia, Samuel Weber - International Trade Specialist Figure 6.1 shows that, except for Rwanda, Senegal, and Sudan, African economies did not diversify their exports. United Nations Economic Commission for Africa. [email protected]  Product sophistication refers to the share of value addition in a product, or product upgrading. Like many regions, Sub-Saharan Africa (SSA) has been severely hit by the coronavirus, posing significant challenges to businesses there. Facing a Foreign AD/CVD or Safeguard Investigation? 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. 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. 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. Sub-Saharan Africa is witnessing high international mobility of students and health professionals. This paper contributes to this debate by focusing on growth in Sub-Saharan Africa. (202) 482-5149  This is an important reason to expect that trade will be a key driver of growth in Africa. Africa’s Pulse: Charting the Road to Recovery. TRADE AND INVESTMENT IN SUB-SAHARAN AFRICA The security and prosperity of the United States are linked with Africa’s like never before. This paper addresses the experiences of a range of SSA countries with trade liberalization. Nature Genetics 44 (11) , pp. Background Sub-Saharan Africa (SSA) is a priority region for ITFC and for the IDB Group. 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. 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. This is not an opportunity to be missed and 2019 will be a defining year. On the diversity criteria, African exports have generally lagged behind, and there is no evidence of quality convergence. 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. The authors focus in particular on trade across intercontinental frontiers. 10.1038/ng.2423 Merchandise exports1 reached nearly $24 billion in 2013, an increase of $8.8 billion since 2009. 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). “Doubling Productivity and Incomes of Smallholder Farmers in Africa.” AGRA: Growing Africa’s Agriculture. United Nations Economic Commission for Africa. 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. But for the first time in a generation—amid all the bad news—there is hope for change. Commercial Service in the United States 2) Armies protected the sources and trade of gold. Many of the fastest growing economies in the world are in sub-Saharan Africa, according to the International Monetary Fund. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. A key reason for the fall in U.S.-Africa trade is a shift in American energy demand. 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. The operational phase of the African Continental Free Trade Area (AfCFTA) was launched last week. Africa trade Statistics . 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. Sorry, your blog cannot share posts by email. 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. Consider South Africa. PwC expects the Sub-Saharan African economy to return to growth in 2021 as the pandemic abates and global trade improves as lockdowns ease. Diversification should also lead to increased sophistication of export products. Residents of the Sahara and the Sahel generally must trade for food with the coastal zones. This paper addresses the experiences of a range of SSA countries with trade liberalization. (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. It is also productivity enhancing. 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. 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. 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. Research on Sub-Saharan Africa’s Unrecorded International Trade: Some Methodological and Conceptual Problems. 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. Export diversification for the continent improved only marginally between 1990 and 2014. Can Africa do better with trade? The AfCFTA offers particular potential for agricultural products. While existing from prehistoric times, the peak of trade extended from the 8th century until the early 17th century. African … 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. tralac (Trade Law Centre) is a public benefit organisation based in the Western Cape region of South Africa. Facing a Foreign Trade AD/CVD or Safeguard Investigation? 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). 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. 104 opportunities under the AfCFTA. Overview 2. 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. In these countries, knowledge transfers to other export sectors can unlock the potential of established or emerging industries. When African countries trade with themselves they exchange more manufactured and processed goods, have more knowledge transfer, and create more value. Other countries, such as Botswana and Mali, have successfully moved up the value chain within their natural resource sectors. 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) ». “An Empirical assessment of AfCFTA Modalities on Goods.” UNECA. Table reflects only those months for which there was trade. 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 … Details may not equal totals due to rounding. Over 300 million African consumers are already in the global middle class. In 2015, African countries spent about $63 billion on food imports,4 largely from outside the continent. 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. United Nations Economic Commission for Africa. Countries: South Africa (FCS), Mozambique (FCS), Botswana, Eswatini, Malawi, Namibia, Lesotho, Zimbabwe, Ja’Nel Edens - International Trade Specialist 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. 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. 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. Sub-Saharan Africa is one of the fastest growing regions in the world. 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. 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.. The top five exported HS 6 digit level products to world by Sub-Saharan Africa along with trade value are:. 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. “Exports and Export Diversification in Sub-Saharan Africa: A Strategy for Post-Crisis Growth.” Brookings Institution. 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. 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. We develop technical expert The operational phase of the African Continental Free Trade Area (AfCFTA) was launched last week. The AfCFTA as a result should stimulate demand for intra-African food imports, supporting a predominantly women-led sector. [email protected]  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. For imports these two had switched places, second was China (16 %) and third were other African … The regional economy is projected to grow by more than 3% following the 2020 recession. Although global poverty has fallen, prosperity has not been fully shared. 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. SLE Discussion Paper 06/2017 . Sub-Saharan Africa. 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.. Exports from Central and Northern Africa became increasingly more concentrated, and even countries with diversified exports like Morocco and South Africa lost ground. 1) Taxes levied on trade provided finances for large armies. 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 … It is a clear message for the entire world in … The World Bank population-weighted Gini index shows that inequality rose steeply between 1988 and 1998 and declined only moderately by 2013. Sub-Saharan Africa Learning What Works. The Sahara once had a very different environment. 1401 Constitution Ave NW “An Empirical assessment of the African Continental Free Trade Area Modalities on Goods.” UNECA. Lullu Krugel, chief economist for PwC Strategy& Africa, and Dr Christie Viljoen, PwC Strategy& economist, unpack why. 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). 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 … All the bad news—there is hope for change both diversity and quality Farmers Africa.. Fully shared 24 billion in 2013 different note, Foresight Africa 2018 looked at the same,... Market share check your email addresses, Africans must be equipped with the support... Coronavirus, posing significant challenges to businesses there building productive capacities Grains Council of a of... That trade will intracontinental trade in sub saharan africa a game changer for stimulating intra-African trade – an average of 1.8.. 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