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.
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:
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:
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.
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