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Menampilkan postingan yang diurutkan menurut relevansi untuk kueri intra-African. Urutkan menurut tanggal Tampilkan semua postingan
Menampilkan postingan yang diurutkan menurut relevansi untuk kueri intra-African. Urutkan menurut tanggal Tampilkan semua postingan

Can Africa trade with Africa?

Obiageli Ezekwesili writes:

Today, there is strong consensus among African leaders that regional integration is indispensable to unlock economies of scale and sharpen competitiveness. And promoting intra-African trade has emerged as a top priority, in recognition that the African market of one billion consumers can be a powerful engine for growth and employment.
Yet despite the introduction of free trade areas, customs unions, and common markets within the Region, the level of intra-African trade remains among the lowest in the world -- only about 10% of African trade is within the continent, compared to about 40% in North America and about 60% in Western Europe.
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Building up the Informal Economies and the role of Remittances

Sanou Mbaye writing in Project Syndicate:

He speaks on the need to liberalize the remittance channels:

The effects of banks’ hijacking of national payment systems to service only the modern economy are compounded by the exclusive agreements that banks and money-transfer companies such as Western Union have signed with most African countries. These agreements lock out non-banking entities from the highly lucrative market for migrant remittances from the African diaspora, which remain a key engine of growth
Furthermore on how key it is to nourish the informal economies:
African states must now recognize that modernizing their informal sectors by integrating them into the modern economy can be a major development tool. Yet only a few countries have started moving in that direction. Nigeria has refrained from signing any exclusive agreements with Western Union and others, and its newly consolidated banking industry is making significant inroads across the region...
Arguing for the broader inclusion of more financial actors in national payment systems
Giving micro-finance institutions access to national and regional payments systems and electronic retail facilities will go a long way toward meeting the requirements of the retail and business sector in terms of banking facilities. It will also help facilitate access by the poorest to financial services, thus helping to reduce the high proportion of the un-banked population.

All of this will invariably spur development and integration of national financial systems and intra-regional trade. This will be a welcome development, because a large proportion of intra-regional trade is carried out by informal operators and small and medium enterprises that do not have access to the banking system. Moreover, economic integration and increased intra-regional trade are the best entry point into global markets for all countries.
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Quick Hits

Business as usual, French corruption in Africa.
The passing of a whistleblower-David Munyakei via Displaced African
Another call for Intra-African trade.
Emerging markets have more to say-Mbanking
Questioning Abdoulaye Wade...
The paradox of plenty against a backdrop of plunder.
Nigeria and Ethiopia top investment index via African Loft
Zimbabwe farmers make progress in Nigeria.
More on the Africa Asia comparison theme from Coldtusker
The Gulf continues to invest in the continent.
How Mugabe steals.. via Global Voices
Bongo's french accounts frozen...Switzerland next?
Githongo on corruption-Economist

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The role of women in informal trade in Africa

From UNECA's Assessing Regional Integration in Africa publication on “Informal Trade in Africa”:
Image courtesy of parallelozero
Women play a prominent role in informal trade, and in informal business activities in particular. These few figures are proof enough: four to five million women in West Africa are involved in collecting, processing and marketing shea nuts and butter, bringing in an estimated 80 per cent of their income (Plunked and Stryker, 2002). In Benin, women are 80 per cent of those involved in informal trade, and the figure rises to 95 per cent for informal marketing of unprocessed goods.
Madam Tinubu’s fame has no doubt been surpassed by the rich merchant women of contemporary Togo, known as the “Nana-Benz.” While these women have followed varying routes to success, they share several characteristics. Then, as now, these women conduct their businesses on the regional, and even international, stage, drawing on a long history of trading experience as informal actors. This results in their economic success, rather than initiating it. The volume of trade that passes through their hands enables them to regularly increase their economic and social capital (Humarau, 1999) even if their absence from or minimal institutional representation in formal political decision-making tends to minimize the crucial role that they could play in the development of intra-African trade. The factors that bring them together also separate them from most of the small-scale West African traders operating daily, who barely succeed in breaking even with their investments. All these groups constitute the major trading agents of both the formal and informal sectors.
via The Prepaid Economy Blog

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Industrialization: Recipe for jobs and Wealth Creation

Bienvenu-Magloire Quenum of Africa Biz Online writes that the "...The industrialization process will create a larger consumers' base in each African country with higher purchasing power. Therefore, the dependence towards overseas markets would be less important in a first stage. Otherwise, selling raw agricultural products - cotton, coffee, cacao beans to name the few, will lead SSA countries to a dead end of continued poverty. Negotiation rounds at the World Trade Organization will not give any reprieve to African farmers. The solution is to process the agriculture products to satisfy national market first and second African regional markets. Overseas markets coming as a last conquest...".Intra-regional trade largly informal and unsupported is centerpiece to rebuilding a viable trading ecosystem.

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Africa must Trade Within

Lazarus Amayo makes a case for increased intra-continental trade:

He said there is need to expand trade links within the African region through product diversification and establishment of joint ventures...African nations need to improve its trade with other nations through cooperation agreements“There is need for African continent that trades with itself and rely on overseas countries to buy our products when our neighboring countries can do the same,”

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