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Foreign Trade in Africa

Assist. Prof. Özge ÖZGEN

Department of International Business and Trade

Regional Studies in Business: Africa

Over half of merchandise exports from developing economies are sent to other developing economies

Merchandise trade by the BRICS (percentage share in world trade and

main export partners, 2013)

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Foreign Trade in South Africa

Merve ESEN

2011434014

International Business and Trade

About South Africa. . .

I choose this photo because; South Africa is the second larger producer of gold and world’s the largest producer of chrome, manganese, platinium and vadanium. also world’s the third largest cool

exporter. Whole these mining source take out of the ground under the unhealty and by using primitive methods.

Source; http://www.southafricanminingnews.co.za/

Foreign Trade in South Africa

South Africa exported $114 Billion and imported $109 Billion resulting in a positive trade balance of $5.02 Billion.

• The top exports of South Africa are ;

Gold ($20.4B),

Diamonds ($9.5B),

Platinum ($7.85B),

Coal Briquettes ($6.35B) ,

Iron Ore ($5.59B).

• The top export destinations of South Africa are;

China ($10.5B),

The United States ($8.76B),

The United Kingdom ($8.56B),

Hong Kong ($8.5B)

India ($7.21B).

• The top imports are ;

Crude Petroleum ($14.7B),

Refined Petroleum ($6.78B),

Cars ($5.7B), Gold ($5.69B)

Computers ($2.44B).

• The top import origins are;

China ($16.4B),

Germany ($9.4B),

Saudi Arabia ($8.14B),

The United States ($6.83B)

India ($5.56B).

• Doing business ranking in 2015 ; DTF score 71.08 rank 43.

Sources ; http://www.doingbusiness.org/ World Trade Organization statistic database

TOP EXPORT PARTNERS OF SOUTH AFRICA

• 36th largest exporter in the world

• In merchandise trade 27th largest exporter (2013)

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Transportation Structure

• The Department of Transport is the department of the South African government concerned with transport. The political head of the department is Dipua Peters.

• DOT spending in 2013 focused on – maintaining road infrastructure, upgrading rail infrastructure and

services, and constructing and operating transportation infrastructure.

• South Africa’s airport network consists of 135 licensed airports, 19 military airports and up to 1 300 unlicensed aerodromes.

• Rail transport in South Africa is the most important element of the country's transport infrastructure. – All major cities are connected by rail, and South Africa's railway system

is the most highly developed in Africa.

• There are seven mostly important ports in South Africa ; such as port of Cape Town, Elizabeth, East London, Richard Bay.

PORT OF DURBAN

• One of the Africa’s most active port

• 50th rank in top 50 World container port

• 60% of South African exports and imports occured

• 80 million tons of Cargo annually

Merchandise exports by region and product, 2013 (US$ billion)

EXPORT OF AGRICULTURAL PRODUCTS Share in Economy’s Total Merchandise Export - 2013

• ETHIOPIA 84.5%

• MALAWI 80.4 %

• COTE D’IVORE 48.5 %

• MOROCCO 19.7 %

• EGYPT 18.1 %

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Ömer ŞAKRAK-2011434046

Foreign Trade in Africa: Ethiopia

This is just to express one of the main export item of the country… Source: (http://www.ethiopianembassy.be/blog/category/business/)

Export: $4.14 Billion (2014/CIA/ranked as 120.)

Basic Export Items: Gold, Coffee, live animals, oilseeds, flowers and khat.

Export Partners: Switzerland (21% of total export and it mainly includes gold), Somali (11%), China (8%), Sudan (7%), Saudi Arabia (7%)

Import: $12.08 Billion (2014/CIA/ranked as 94.)

Import Items: Foodstuffs, textile, machinery and fuel.

Import Partners: China (18%), Saudi Arabia (13%), United States (9%), Russia and India.

Ease of Doing Buiness Index Rank: 125 (Global Rank:62)

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Transportation in the country has not developed enough, yet.

The country has been using the Mombasa port, the port of Sudan and the Berbera port in Somali. The port of Djibouti is the mainly used port.

MALAWI • Malawi is a predominantly agricultural economy.

• Of the total population of about 16.3 million, more than 75 percent live in rural areas.

• Malawi is one of the top ten producers of tobacco

• Tobacco accounts for more than 70 percent of Malawi's exports and 15 percent of GDP.

• Malawi Investment and Trade Center – http://www.mitc.mw/

80,000 child tobacco workers suffer from a disease called green tobacco sickness, or nicotine poisoning

Foreign Trade in Africa: Côte d’Ivoir

Annelien Rijmen

1015432114

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Import & Export

• Total export: $13,8 billion – Growth rate: 4,8% – Main exported article: Cacao beans: 19,8%

• Others: Coffee, petroleum, cotton, bananas, pineapples, palm oil, fish…

– Main partners: Netherlands (11%), US (11%), France (8,3%)

• Total import: $12,9 billion – Growth rate: 10,3% – Oil: 20,8%

• Others: Capital equipment, food • US (12,3%), Netherlands (12,1%), Germany (7,6%)

Conslusion: Stable and currently groing in the aftermath of political instability in recent decades

Transportation

Côte d’Ivoir has one of the best-developed and best maintained transportation systems in Africa – 660 km of railroads – 50.400 km of roads – 980m navigable rivers, canals and

numerous coastal lagoons

– Two nationalised shipping lines serve West Africa and Europe

– Harbor of Abidjan • West-Africa’s largest container

port • San Pedro: deepwater port • Smaller ports: Sassandra and

Tabou

Air traffic

• Airports – Main airports: F.H. Boigny: located in Abidjan

– 36 smaller airports of which 7 have paved runways

• Air Ivoire – Domestic and International flights

– Domestic flights • Ouagdougou, Burkina Faso, Mali…

– International flights • Paris, Dakar...

EXPORT OF FUELS Share in Economy’s Total Merchandise Export - 2013

• ALGERIA 98.3 %

• ANGOLA 98.2 %

• NIGERIA 95.9 %

• SOUTH AFRICA 10.7 %

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Foreign Trade in Africa Algeria

Ece Cevher 2009431012

• Total amount of merchandise export (2013) : $65 billion

• Total amount of merchandise import (2013) : $54 billion

• Basic export items (Average share of sector in country’s exports 2009-2013): Minerals (98.5%), Chemicals (0.6%), Processed food (0.4%), Basic manufactures(0.1%)

• Basic import items (Average share of sector in country’s imports 2009-2013): Basic manufactures (16.7%), non-electronic machinery (16.1%), transport equipment (13.6%), Chemicals (12.1%)

• Algeria main exports partners are

– United States, Italy, Spain, France and Canada.

• Main import partners are

– France, China, Italy, Spain and Germany.

• The ease of doing business rank is 154 in 2015.

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Situation about general transportation structure

Road network: The Algerian road network remains one of the densest of the African continent, its length is estimated at 112,696 km of roads, 29 280 km of which are highways and more than 4910 big structures (bridges, tunnels etc…).There is also the Trans-Saharan Highway (north-south), which was promoted by the government in order to increase trade between the six countries along this road (Algeria, Mali, Niger, Nigeria, Chad and Tunisia).

Railway network: The railway network of Algeria is of 2,150 km. The railway network is managed by the National Rail Transport (SNTF).

Air transportaion: Algeria has 35 airports, including 13 international ones. The most important is Algiers Airport with a capacity of more than 6 million passengers per year. Air

Algérie is the national airlines.

Maritime transportation: The Algerian National Navigation Company (CNAN) and the National Shipping Company of travellers are involved in maritime transport in Algeria.The

almost all of international trade is carried by sea, through eleven commercial ports as follows: Algiers, Oran, Annaba, Skikda, Arzew / Bethioua, Bejaia, Mostaganem, Ghazni, Jijel,

Ténès and Dellys.

Foreign Trade in Africa NIGERIA

Bertan Paqarizi 2012434069

Cashew

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Exports:

$93.01 billion (2014 est.)

$96.74 billion (2013 est.)

Top exports:

• Crude petroleum ($75.3B),

• Petroleum Gas ($10.3B),

• Refined Petroleum ($3.07B),

• Cocoa Beans ($561M)

• Special Purpose Ships ($463M)

• Cashew nuts from the 2015 planting season had contributed about N50 billion ($251M)

Export - partners:

• India 15.4%,

• Brazil 10.2%,

• Netherlands 8.5%,

• Spain 8.5%,

• South Africa 5.5%,

• France 5.4%,

• Germany 5.1%,

• Japan 4.4% (2014)

Foreign Trade in Nigeria Foreign Trade in Nigeria Imports:

$52.79 billion (2014 est.) $51.38 billion (2013 est.) Import - partners:

China 25.3%, US 9.7%, India 4.7%,

South Korea 3.0%, Netherlands 6.7%, Niger 3.0%

The top imports of Nigeria: Refined Petroleum ($9.54B), Cars ($1.87B),

Rolled Tobaccos(1.34B) Wheat($1.42B) Telephones ($984M)

Packaged medicaments($759M)

Ease of doing business rank: 170th among 189 countries, this shows an improvement of 2.9 per cent on the 175 position it occupied last year.

Foreign Trade in Nigeria Airports:54 with paved runways: 40 with unpaved runways: 14

Heliports: 5

Railways: 3,798 km

Roadways:

total: 193,200 km

paved: 28,980 km

unpaved: 164,220 km

Waterways:

8,600 km (Niger and Benue Rivers and smaller rivers and creeks)

Ports and terminals:

major seaports: Bonny Inshore Terminal, Calabar, Lagos

Transportation - note:

the International Maritime Bureau reports the territorial and offshore waters

in the Niger Delta and Gulf of Guinea as high risk for piracy and armed robbery of ships; in 2012, 27 commercial vessels were boarded or attacked compared with 10 attacks in 2011; crews were robbed and stores

or cargoes stolen.

PIRACY

• 71% percent of all incidents in West Africa

• The International Maritime Bureau (IMB), which monitors sea crime, reported 8 piracy incidents off Somalia during the first half of 2013.

• 31 piracy incidents were recorded off the West African coast during the same period, – 9 off the coast of Nigeria and 22

outside of Nigeria’s territorial waters

• https://www.youtube.com/watch?v=HLxbXmSPMZM

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Lagos Port Lagos Port

The most active in the economic capital of Nigeria, with direct links to the main motorways in the metropolitan area and its industrial centres.

Lagos's importance as a commercial centre and port and its strategic location have led to it being the end-point of three Trans-African Highway routes using Nigeria's national roads (Benin, Dakar, Nouakchott)

• Lagos is known to be the second fastest growing city in Africa and the seventh fastest in the world. Lagos has one of the highest standards of living as compared to other cities in Nigeria as well as in Africa.

Lagos Port EXPORT OF MANUFACTURERS

Share in Economy’s Total Merchandise Export - 2013

• BOTSWANA 87.1%

• MOROCCO 63.7 %

• EGYPT 47.7 %

• SOUTH AFRICA 42.0 %

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Foreign Trade In Africa BOTSWANA

Doğukan Durdağı

2011434010

• These are the 4 biggest diamond mines in Botswana and there are 2 more mines.

• Jwaneng is the world’s richest diamond mine • The first few rough diamonds were discovered in 1955 • Botswana’s first diamond mine at Orapa in 1971. Three other Debswana

mining operations followed Orapa namely Letlhakane (1975), Jwaneng (1982) and Damtshaa (2003).

DIAMOND AND BOTSWANA

• 80 percent of export earnings, about 95 percent of mineral revenue, 40 percent of government revenue and about one-third of our gross domestic product (GDP) comes from diamonds

• Diamond Trading Company Botswana (DTC Botswana) is a 50/50 Joint Venture partnership between the Government of the Republic of Botswana and De Beers – De Beers currently sells approximately 35% of the

world’s rough diamond production

https://www.youtube.com/watch?v=QQzWSFMAGrY

• Total value of imports: US$ 7.83 billion.

• Total value of exports: US$ 7.91 billion.

• Botswana imports fuel, food, beverages and tobacco, machinery and electric equipment, chemical and rubber products and vehicles. Its main imports partners are South Africa (75% of total imports), Canada, Belgium, Namibia and Israel.

• Botswana exports basicly raw material such as diamond, nickel, soda ash, copper, and meat and textiles, its main export partners are Belgium (%40 of total exports), India, South Africa, Israel, Namibia.

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• An "inner circle" highway connecting all major towns and district capitals is completely paved, and the all-weather Trans-Kalahari Highway connects the country to Namibia and to South Africa.

• Airports: • Francistown International Airport(North-East) • Kasane Airport(North-West) • Maun Airport(Near the Center) • Sir Seretse Khama International Airport(South-

East) • Botswana possesses 888 km of railways serving a

number of towns and connecting the country to its neighbours.

Trans-Kalahari Corridor

Exporting Profile

• In 2011, one-third of Africa’s merchandise exports went to the European Union (down from 37% in 2006) and

• more than 11% to the United States against 16% in 2006,

• while exports to China increased to around 10% of total exports from around 6% in 2006 and

• exports to India rose to 6% in 2011 from around 4.5% in 2006.

Dependency to European Market

• North African countries – like several other countries, which depend on European markets are particularly exposed to the weakness of the European economy

• In 2011, exporters in Tunisia, Libya, Botswana, Cape Verde and the Seychelles shipped around 70% or more of total exports to the European Union.

• In Algeria, Morocco, Cameroon, Ghana, Mauritius, Mozambique and Sierra Leone, export shares to Europe amounted to between 50% and 60%.

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Regional Studies in Business: Africa

Mert Deniz Günaydın 2012434019

Foreign Trade in Africa Seychelles

Seychelles joins World Trade Organization as 161st member after 20-years wait.

Exports-Imports • Total Exports: $525.1 Million (2014), $580.2 Million (2013)

• Total Imports: $1.07 Billion (2014), $0.99 Billion (2013)

• Export - Commodities: Canned Tuna, Frozen Fish, Petroleum Products (reexports)

• Import - Commodities: Machinery and Equipment, Foodstuffs, Petroleum Products, Chemicals, Other Manufactured Goods

• Export Partners: France (24.8%), U.K. (18.6%), Italy (11.9%), Japan (9.2%), Mauritius (6.2%), Spain (4.2%)

• Import Partners: K.S.A. (23.6%), Spain (9.8%), France (5.2%), South Africa (4.6%)

• Ease of Doing Business Rank: 63.16 (85th)

Other Countries China, US and India

• China has become the most important export market, notably in the Democratic Republic of the Congo (DRC), Congo Rep., Sudan, Angola, Mauritania and Zambia,

• while the United States is the most important export destination for Chad and Lesotho.

• In Guinea-Bissau (Coconuts, Brazil Nuts, and Cashews which represent 69.4% of the total exports), the bulk of exports goes to India

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Africa’s growth is supported by domestic activity while exports remain

subdued • On the demand side, domestic demand was the

main driving force in many African countries.

EXPORTS of TURKEY by COUNTRY GROUPS

IMPORTS of TURKEY by COUNTRY GROUPS

• African Countries’ Share is 2.4%