[Aljazeera] African states should aim for increased continental trade, but more political and economic stability is needed first.
Many
African countries' main exports are raw goods like cocoa and cotton, not
manufactured products [EPA]
Greater African unity has long been
a cherished but elusive goal.
The recently completed 19th African
Union Summit has again given a renewed impetus to establishing closer economic
and political ties among the continent's 54 states, based on a heightened
appreciation of the need for more intra-regional trade. Hence the theme for
this year's summit: "Boosting Intra-African Trade".
The situation is disappointing:
Intra-African trade has remained consistently low compared to its trade with
other continents.
According to the United Nations'
Economic Commission for Africa, more than 80 per cent of Africa's exports are
destined for outside markets, with the European Union and the United States
accounting for more than 50 per cent of this amount. Asia and China in
particular, are also important export markets for African countries.
At the same time, Africa imports
more than 90 per cent of its goods from outside the continent, despite its rich
resource endowments, which provide the potential to supply the continent's own
import needs.
