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Africa’s trade in intermediate goods up by 15%

Africa’s exports of Intermediate Goods (IGs) are estimated at $265 billion in 2021, growing an average of 15 per cent yearly from 2019 to 2021, the global body for trade, the World Trade Organisation (WTO) has revealed.

IGs refer to inputs used to produce a final product and are an indicator of the activity in supply chains. Africa’s IG exports represented three-quarters of its total merchandise exports in 2021. The region’s imports of intermediate goods, meanwhile, were worth $284 billion, with yearly average growth of five per cent from 2019 to 2021. These growth rates are higher than the five and two per cent average increases for IG exports and imports respectively for 2010-2021.
   
The latest data covering 2010 to 2021 indicated an expansion in Africa’s exports and imports of intermediate goods while also pointing to a high concentration of exports to a few economies and a comparatively narrow range of products. The note also reveals a relatively small share of intra-African transactions.
 
The surge in IG exports was mainly driven by the supply of mostly raw or semi-processed ores, minerals, metals and agricultural products, which saw higher prices on global commodity markets in the aftermath of the COVID-19 pandemic. The majority of Africa’s IG imports, in contrast, was for industrial supplies (62 per cent share of total IG imports) while food and beverages accounted for 15 per cent. The exchanges of industrial inputs between China and Africa grew between 2010 and 2021, averaging yearly growth of 10 per cent.
 
It also highlighted that the region’s IG exports are concentrated among just a few economies, led by South Africa, which accounts for 30.9 per cent of the region’s total IG exports, and a relatively small range of products. Moreover, the share of intra-African trade in total IG exports, a proxy for trade in regional supply chains, was estimated at 13 per cent in 2021. This may be an under-estimate due to a paucity of reported data and the partial or non-coverage of informal trade in official statistics, which is significant in the region.

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