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Africa as a continent, immensely rich in extractive resources, However, suffers from the stigma of a  highly undervalued export market. And as such, opportunities in her export industry are left unexplored. As the industry actors are either not fully aware of the market opportunities and capacity, or are undercapitalized. 

Challenges of exportation in Africa

Africa holds the majority of the fastest growing countries in the world but her dependence on commodity export alone, leaves the African economy vulnerable to global dictates. Therefore, the need to diversify the export industry than mere reliance on primary commodities, is essential.

Africa also boasts of about 60% of the plough able soil. But is highly dependent on foreign countries such as Russia, for basic necessities like wheat. Thereby causing a surge in price. And the price surge directly affects food insecurity.

Furthermore, currency depreciation of countries in Africa against other currencies of value in international trade, remains worthy of mention. As unfair balance of trade results in increase of import value mostly by oil producing countries. So initiatives to enhance Africa’s trade terms, in the interest of affected countries is crucial.

Advantages of exportation in Africa

There are quite some notable advantages in the export industry. As the market value remains very much untapped, it is of utmost importance to seize the opportunities in the industry as early as possible. 

A July 2022 report of the Economic Development in Africa, Fostered by united nations conference on trade and development (UNCTAD), was quoted to have said that “African countries can diversify their economies through boosting exports of high-value services, expanding private businesses, grant access to financial services, tapping into new financial technologies and implementing effective policies” a move that has been honored by the African Continental Free Trade Area (AFCFTA) 

Benefits of exportation in Africa

The export industry boast of so much benefits to not just the industry actors, but to their respective countries and Africa as a continent. As 45 out of 54 of the countries in Africa rely on export of agricultural products, and extractive resources. Hereby generating over 65% of their country’s total merchandise.

Import and export activities of a country, is one of the determinant factors of the country’s economic strength. As the value of a country’s currency, has a direct impact in the lives of the citizens of that country. So it is in the interest of a dominantly exporting country that her export activities are on the high as it enhances funds circulation to the betterment of economic growth and thereby striking a balance in the the country’s GDP and Inflation and exchange rate.

Opportunities in African Exportation

There is an understanding for export surge. And governments, put measures in place to support exporters as against importers who are slammed with tariffs.

Government incentives in the export industry, from tax reduction on commodities, to low cost loans and subsidies, has over the years, proved very beneficial to exporters. As this encourages accessibility to foreign markets leaving domestic products competitive in the global market.

While these initiatives gives exporters access to foreign opportunities, it in turn expands their businesses and maximizes profits compared to a country’s interstate trade.

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