The World Trade Organisation (WTO), the international trade organization, has reported that the expected $265 billion in intermediate goods (IGs) exported from Africa in 2021 will grow at an average annual rate of 15% from 2019 to 2021.
Inputs (IGs) are the materials that go into making a final product and serve as a gauge of supply chain activity. In 2021, three-quarters of Africa’s total merchandise exports were made up of intellectual goods. In contrast, the value of the region’s imports of intermediate goods increased by 5% year on average between 2019 and 2021, totaling $284 billion. These growth rates exceed the average increases of 2% and 5% for imports and exports of intellectual goods from 2010 to 2021, respectively.
The most recent data, which covered the years 2010 to 2021, showed that while intermediate goods imports and exports from Africa were increasing, there was also a notable concentration of exports to a small number of economies and a very limited range of products. A comparatively tiny percentage of intra-African trades are also disclosed in the note.
The availability of predominantly raw or semi-processed ores, minerals, metals, and agricultural products—all of which witnessed higher pricing on international commodity markets in the wake of the COVID-19 pandemic—was the primary driver of the spike in IG exports. In comparison, food and drink made up 15% of all imports into Africa, while industrial supplies made up the majority of the continent’s IG imports (62%).
Between 2010 and 2021, the growth in industrial input exchanges between China and Africa averaged 10% annually.
It also emphasized how the region’s IG exports are concentrated among a limited number of economies, with South Africa leading the pack with 30.9% of all IG exports and a narrow range of items. Additionally, it was projected that in 2021, intra-African trade will account for 13% of all IG exports, serving as a stand-in for trade in regional supply chains.
Due to a lack of reported data and the incomplete or nonexistent coverage of informal trade in official statistics, which is noteworthy in the area, this may be underestimated.
