The Advantages of Import from Africa

Africa is a continent rich in natural resources and diverse cultures, making it a prime location for importing goods. While many businesses may not consider Africa as a primary source for imports, there are several advantages to importing from Africa that can benefit businesses of all sizes.

• Cost-effectiveness: One of the most significant advantages of importing from Africa is the cost-effectiveness of goods. African countries have a lower cost of labor and production, which translates into lower prices for imported goods. This cost-effectiveness can help businesses save money and increase profit margins.
• Diverse products: Africa is home to a wide variety of products, ranging from natural resources like oil and minerals to agricultural products like cocoa and coffee. The continent also offers unique handicrafts and textiles that can add a unique touch to a business's product line. By importing from Africa, businesses can diversify their product offerings and appeal to a wider range of customers.
  
  
• social responsibility and ethical sourcing: Many African countries have made significant strides in improving labor conditions and reducing environmental impact. By importing from these countries, businesses can demonstrate their commitment to ethical sourcing and social responsibility, which can help improve their brand reputation and appeal to socially conscious consumers.
  
  
• Business opportunities: Importing from Africa can also open up new business opportunities for businesses. For example, businesses can establish partnerships with African suppliers or distributors and explore new markets within the continent. By building these relationships, businesses can gain a deeper understanding of African markets and cultures, which can help them better serve their customers.
  
  
• Trade agreements: Many African countries have established trade agreements with other countries around the world, making it easier and more cost-effective for businesses to import goods. For example, the African Continental Free Trade Area (AfCFTA) was established in 2019 to promote intra-African trade and eliminate tariffs on 90% of goods traded within the continent. By importing from African countries that are part of such agreements, businesses can benefit from reduced tariffs and streamlined import procedures.

COMESA to double the advantages of importing from Africa

Africa established COMESA, which refers to the Common Market for Eastern and Southern Africa. It is defined as a preferential trade area extending from Libya to Zimbabwe, and its membership includes nineteen countries.

COMESA was established in 1994, regardless of the Preferential Trade Area that has existed since 1981.

In an initiative that is the first of its kind in Africa, nine countries established a free trade area in 2000 (Egypt, Djibouti, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia, and Zimbabwe).

Later on, Rwanda and Burundi joined the FTA in 2004, after this, Libya and Comoros joined in 2006.

Somalia officially joined the Common Market for Eastern and Southern Africa (COMESA), becoming the 21st member of the market.

The COMESA agreement aims to gradually remove customs and non-tariff restrictions on goods among member states, so that the minimum local value added is 45%.

There are countries that apply a 100% customs duty reduction, which are:

Mauritius - Madagascar - Zimbabwe - Egypt - Malawi - Rwanda - Burundi - Kenya - Djibouti - Zambia - Comoros - Libya.

These applied customs exemptions have turned the importers' inclination towards African countries.

Furthermore, importers were getting tea from India, then they turned to get it from Kenya and Uganda.

Products that you can import from Africa

The resources produced by the African continent contribute significantly to European industry, especially textile, metallurgy, and agriculture.

 Among the materials that Europe imported from Africa:

•  Fish.
•  Food.
•  Tobacco.
•  Animal products.
•  Metals, chemicals, and petroleum products.
•  Machinery and transportation equipment.
•  Textile and apparel industries.
•  Agricultural products and fish products.

Other countries in Africa such as Niger and Sierra Leone are exporting (diamonds - uranium - precious metals) to European countries, especially France, Italy, and the Netherlands.

Thanks to the potential of the North African region in solar energy, it has attracted the interest of many countries.

The International Energy Agency estimates that North Africa's solar energy potential alone can meet the needs of North Africa, the Middle East, and Europe.

Africa also exports commodities such as coffee, tea, sugar, cotton, and fish products primarily to Germany, Belgium, and France.

Meanwhile, gold is the most important export commodity in Tanzania and Burundi, which is exported mainly to countries such as Switzerland.

Besides the above commodities, the mentioned countries also import gold, diamonds, platinum, and other metals.

Botswana and South Africa are among the major producers of gold and diamonds in Africa.

policies and programs that support companies importing goods from Africa:

there are several government policies and programs that support companies importing goods from Africa. Here are a few examples:

• African Growth and Opportunity Act (AGOA): This U.S. government program provides duty-free access to the U.S. market for eligible products from African countries. To qualify, products must meet certain criteria, such as being produced in an eligible African country using African inputs. This program has helped to promote trade and economic development between the United States and Africa.

• Trade and Investment Hubs: The U.S. government has established several trade and investment hubs in Africa, including in Kenya, Ghana, and Senegal. These hubs provide support and resources to U.S. businesses looking to import goods from Africa, such as market research, business matchmaking, and trade missions.

• Development Finance Institutions (DFIs): DFIs are specialized financial institutions that provide financing and other support to promote economic development in developing countries. Many DFIs have programs that support trade and investment in Africa, such as the International Finance Corporation's Africa Small and Medium Enterprises Program.

These government policies and programs can be valuable resources for companies looking to import goods from Africa. By taking advantage of these resources, companies can often reduce the risks and costs associated with importing from Africa, while also supporting economic development in the region.

In conclusion, importing from Africa offers several advantages, including cost-effectiveness, diverse product offerings, ethical sourcing, trade agreements, and business opportunities. By considering Africa as a source for imports, businesses can expand their product lines, improve their brand reputation, and increase their profits in a sustainable and socially responsible manner.

References:

• Importing from Africa: Benefits and Risks by Export.gov:
  https://www.export.gov/article?id=Importing-from-Africa-Benefits-and-Risks
• African Export-Import Bank
  https://www.afreximbank.com/
• The official website of the European Commission
  https://commission.europa.eu/index_en