Pirate Busters - American Shipper

Africa Rising
Helping continent’s Sub-Saharan region reach its
potential through world trade and development.
BY CHRIS DUPIN
U.S. trade with Sub-Sahara Africa has increased
sharply this decade, with imports quadrupling
since 2001 to more than $86 billion in 2008 and
exports doubling in the same period to $18.6 billion.
Last year U.S. exports to Africa rose 29.2 percent over
2007 and imports were up 27.8 percent.
Globally, the World Trade Organization said last year
African exports increased 29 percent to $561 billion, and
imports rose 27 percent to $466 billion.
The increases reflect basic commodity
and mineral exports, but also a surge in
imported consumer goods, said Hans-Ole
Madsen, vice president for business development
at APM Terminals in the Africa,
Middle East and India region.
“Trade is a critical platform for Africa’s
economic growth,” said Secretary of State
Hillary Clinton in an August speech in
Nairobi, Kenya. “Today, Africa accounts
for 2 percent of global trade. If Sub-Saharan
Africa were to increase that share by only 1
percent, it would generate additional export
revenues each year greater than the total
amount of annual assistance that Africa
currently receives.”
Trade with the United States has been
bolstered by the African Growth and Opportunity
Act (AGOA), a 2000 law that
allows about 40 Sub-Saharan Africa nations
to export qualifying goods to the United
States without import duties.
But in the past year Africa has taken a
hit from the global economic crisis. A June
report from the United Nations Economic
Commission for Africa warned: “eight
years of economic growth in Africa could
be entirely consumed by the current global
downturn.” It forecast that “following half a
decade of above 5 percent economic growth
the continent can expect only 2.8 percent in
2009, less than half the 5.7 percent expected
before the crisis.”
How severe or long lasting an impact that
will have on trade and shipping volumes
is not yet clear.
“The most striking impact of the crisis
has been the reduction in export revenues.
Prices of minerals and oil have stumbled
and consequently it has reduced revenue
for African countries, especially from oil,
but also copper and agricultural items as
well,” said Dominique Lafont, executive
vice president for Africa at Bolloré Africa
Logistics.
An arm of a French conglomerate involved
in everything from broadcasting to
the manufacture of batteries and capacitors,
Bolloré Africa Logistics has operated in
Hillary Clinton
U.S. Secretary
of State
“Trade is a critical
platform for Africa’s
economic growth.”
8 AMERICAN SHIPPER: OCTOBER 2009