•
UNITED NATIONS
ECONOMIC AND SOCIAL COUNCIL
ECONO/1IC COMl1ISSION FOR AFRICA
Joint UNCTAD/ECA/OnU Workshop on International Commodity Issues 23-27 November 1981, ~ddis Ababa
AFRICAtJ ECON01-lIC DEVELOPllENT l\I'ID THF
REFERENCr: T') INTRlI.-AFRICM' TRADE
Distr.
LlftITED
ST/EC1V\'Tp. 1/5 20 October 19B1 Original: ENGLISH
TABLE OF CONTEUTS
IV. AFRICAN TRl\DE AIID FCOUOMIC DEVELOP~"ENT
I. INTRODUCTIOi'l .
III. STRUCTURE OF THE COfUIODITY SECTOr- •••••••••
VI. SUl1Ml\RY AND COnCLUSIONS •••.•••••••••••••••
Paragraphs Pages
1
-
5 16 -13 ?
14 _.;:' 4
?3 -25 8
~6 -35 12
35 -38 17
COMMODITY POLICY IN AFRICA
V. INTRA- AFRICAN TRf,DE AND THE COI1tlODITY
SECTOR ••••••••••••••••••••••••••••••••••
I I .
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ST/ECA/~IP• 1/5
I. INTRODUCTION
1. As is well known, African countries have econo~ies that lack diversified production,with eXport outputs (predominantly priMary products) that 100m large in total production but which do not constitutc domestic production surpluses. In most cases, r~ny African countries arc dependent on one or two primary commodity exports. frhe prices and sal~s of many of these cornmoditi0s are highly unstable: prices of mineral exports are heavily influenced by the trade cycle in the industrialized countries and thoSe for agricultural cOMmOdity exports are in addition aggravated by the size of the harvest. In cases where the concentration of commodity exports is high, changes in prices exert a proportionately, and, sometimes, disproportionately, large impact upon export receipts. It goes without saying that the value and dependability of these export receipts have a direct impact on African economic development.
2. On the other hand, African countries' imports constitute a high proportion of their total consumption and available Means of product.Lon, Thus African economic development is inextricably intertwined with the commodity sector, both from the export and import side. These rigidities in the field of trade largely condition the pattern and processcc of economic development in most of the African countries, and make it difficult for them to adopt and
implement new policy strategies in the short-run.
3. The spebial interest of African countries in the commodity sector arises from the fact that 'the present relationship bc~"een ~he commodity sector and the patterns of economic development has frustrated most of their social and econonac aspirations'. As long as the COhl,nodity sector (export and. import) is extra-African oriented, the vicious circles '(poverty because of '1m, production;
low production because of unde.rdevc.Lopruent, and lack of foreign cxchanqe because of dependence on one or two prih~ry-coMmodityexports, dependence on primary commodity exports because J._nter-alia of lack of know-how to process ',raw materials; lack of know-how and foreign exchange because of poverty, etc.)
will continue. To break this ·ricious circle other commodity policY alternatives have been suggest8Q and need to be vigorously tried- with a view to ensurinq that
the commodity sector mckes an optimum contribution to African economic development.
4. The need to ptrrsue a new strategy arises, inter-alia, from the fact that the export performance of a n~~er of African countries is being adversely affected by the policies of developed countries, as reflected in the bias
of the la~tQrcountries in favoirr of primary commodity imports (f,'C" ,;ubjected to
quocas) and agains!" the eme~gence of man'ufactured exports from developing African
countr:ces, and the:cr entry :cnto the markets'of the industrial countries. Intra- African trade expansion as a strategy through which African countries can promote economic'development by making the commodity sector 'a major vehicle for development deserves serious and, indeed, careful articulation and consideration.
ST/ECA/NP.I/5 Page ?
5. Accordingly, the objectives of this p~per include consideration of how the commodity sector within the framework of intra-African trade can assist in promoting and stimulating African economic development (i.e specifically can a change in African commodity policy become a facilitating instrQmentality in the establishment and development of African manufacturing industries, promote African economic integration and reduce dependence on one or two primary commodity exports; etc.), the determination of the extent to .n1ich the commodity sector can be the fulcrum of intra-African trade in the short and medilli~ term as well as in the long-run, and how the commodity sector can be used as a foundation for collective self-reliance.
II. COIThlODITY POLICY IN AFRICA
6. There is no question about the main objective of commodity policy in Africa should be to assist in promoting the socio-economic developme~tof the
continent. How best this can be achieved is the basic point that still remains to be elucidated.
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7. In this respect it is worth recalling that, so far, in most Afriean countries, the commodity sector has been looked upon primarily as a supplier of foreign
exchange that provides resources for development, instead of as a cpain of socio- economic processes and relations leading to the production of goods necessary for
development and linked in various ways to other sectors also producing necessary goods.
8. The fact that the quasi-exclusive objective and concern of commodity policy is to generate foreign exchange, generally results in the existence of a high level of integration between this sector anu t~e world economy as well as of commercial, financial and technological dependence on the developed world.
9. Conversely, commodity policies, while not ignoring naturally foreign exchange considerations, should place em9hasis on the production of goods potentially capable of satisfying human needs in conformity with development strategies that centre around self-reliance and the integration of the commodity sector with the other sectors, in the national economy as well as with a degree of de-linking it from the industrialized economies and of re-linking it within a sub-region or region.
10. The concept of collective self-reliance emphasizes the strengthening of links among countries of a sub-~egion or region both for purposes of jo~ntly attempting the satisfaction of material needs of the population of the are.a and for dealing collectively with other regions of the world. It should also be noted that a crucial element in the implementation of a pOlicy of self-reliance is the need' to
en~'l~e that existing patterns of sooialproduction, distributiOn, consumption, accumulation (savings) and external relations that may be at va~iancc with it
.• e. this policy) are re-defined and re-ordered accordingly.
ST/EC:\I"!P .1/5 Paoe 3 11. Quite clearly, one of the '""st concrete ways of achieving sub-regional or regional integration and collective self-reliance is through the commodity sector.
Processing in this sector can make it pos s i.b.Le to increase sub-regional self- reliance, subregional consumption and integration, through promotion of
COMplementarity of juxtaposed economies and intra-and inter~sub~egionaltrade;and reduction of external dependence and vulnerability. The existence of linkages bet\leen the commodity sector and other sectors of the econoMy, helps to generate new activities of a collective self-reliant nature, thereby facilitating integration upstream.
12. Possibilities of joint production of inputs for the commodity sector for the subregional or regional market to replace imports fron outside largely depend upon the correct formUlation and implementation of cornmodi ty policies .b y African
countries. The number and value of commodities th~t go into intra-African trade are, to some extent,' still unknown because of the high incidence of un-recorded
trade (smuggling) in this sector. It is clear, however, that the potential of intra- African trade is quite substantial, as will be shown in section V of this paper.
No less clearly, the developnlent of intra~Africantrade, whether at subregional level or African continental level, on the basis of the commodity sector, and the processing of identified commodities would go a long way in promoting self-reliant and self-sustaining national and subregional/regional economic development.
13. As stated earlier, the clearest link bet',een a self-reliant approach and commodity policy would be an atte~pt at consuming the hulk of the commodity locally or subregionally and through a pattern of distribution based on effective need.
It should be observed that the further downstream processing goes, the more it approximates a situation of local or subregional consumption of the raw commodity;
depending on its physical and technical features, the commodity is, at a certain point productively consumed in processing and manufacturing even though it might not have reached its final end-use. Even at relatively low levels, however, processing might have a significant effect in terms of increasing t~e integration of the
economy and reducing its external vulnerability. ;\nother possible contribution of processing to self-reliance strategies might consist in the development of new products from primary commodities that can be incorporated in the process of
operation and expansion of the local economy. The sugar study by D.H.N. Alleyne
!!
gives examples of possible industrial complexes deriviDg from the sugar sector,
ranging from the production of live-stock and dairy products with sugar cane and molasses as basic inputs, to the use of bagasse - suitably processed - as building material, and to the production of alcohol fuel for combustion engines.
!!
D.H.N. Alleyne, The International Sugar Industry and the Third World Occasional Paper No. 9 of the Third Horld Forum.ST/ECA/t·'P.1/5
1:''::'19':' 4
III. STRUCTUa,><;
or
THE com:ODITY SECTOR14. The commodity sector in African countries CRn ryen~ra1ly be divided into t>ro sub-sectors: the commercialized ,sub-sector whi~h is dominated by export activities and the subsistence 'sub-sector >lhieh is dominatec1 by "easants.
t~ithin the commercialized co~~odity sub-sectqr, the main agents of
economtc activity range from poorly ozqani.zod and ill-el1uipn·.3d African fazme r s to well organized transnational cor;~rations involved in th3 extraction and exportation of a variety of minerals of Ilarketing lloards.
15. Because of its e~ternal orientation and the quest for foreign exchange by ~frican 9overnments, 'the commercialized commodity sub-sector has become the dominant one in >lhich both the private and the public sectors are most active. Nithin this's~-sectora vefY high proportion of total investments has been directed 'tol"ards the production and ex?ortation of one or two commodities to developed market 'economies by African couptries.
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ST/ECA/,:')P.1/5 Page 5
The resulting well-known dependence of the African econonies on a few commodities is illustrated in Table 1 below.
Ta':>le 1
Dependence on Exports of Primary Products of Selected African Countries
Country Commodity Percentage of Total Exports
Zambia Copper 94%
IcIauritius Sugar 90%
Gambia Groundnuts and groundnut oils 85%
Mauritania Iron Ore 77%
l3urundi Coffee 73%
Zaire Copper 68%
Ghana Cocoa 6.~'0
Sudan Cotton 61%
Congo Timber 57%
Ethiopia Coffee 53%
Egypt Cotton 47%
Upper Volta Cotton 42%
Liberia Iron Ore 73% Rubber 16%
Sao Tome & Principe Cocoa 70% Coffee 28%
Namibia Copper 63% Lead 26%
Uganda Coffee 59% Cotton 20%
Rwanda Coffee 57% Tin 19%
Malawi Tor,acco 42'0 Tea 20%
Togo Phosphates 33% Cocoa 35% Coffee 18%
SOURCE: L•.N. Rangarajan, Commodity Conflicts, (London Crsom HeLm 1978) PP. BO - 82
ST/ECA/I/P .1/5 Page 6
16. The individual country percentage export figures are indicative of the importance for the country of the commodity beinq exported, not only in terms of foreign exchange earnings, but also in t8r~s of production activity and ext8rnal relations with the rest of the world. For instance fuel exports constitute a very high proportion of total exports of tligeria, Libya and Angola. According to ~he '1orld Bank, petroleum exports currently account for no less than 43.5 per cent of total sub-Saharan African exports of which Nigeria's share is estimated to be 95.5 per cent. In the commercialized commodity sub-sector, commodities such as.
bananas Groundnuts Rubber
Bauxite Iron Ore Sugar
Chrome LBad Tea
Cocoa ilanganese Timl"ler
Coffee 11eat and meat proc1ucts Tin
Copper Palm Oil Tobacco
Cotton Phosphates Zinc
generate some of the najor activities in the export sectors of many African
countries~
17. An analysis of African economic development processes must take into account the roles played hy the commodity sector, and special attention should be paid to that part of the cOMmercialized commodity sub-sector which produces goods for export to the industriali7.ed countries. Some of the crucial questions that arise in this connexion include the following:
to what extent do the efforts exerted, in terms of human resources and
investible funds, in each commodity or a bundle of cornmcdities, contribute to the economic development of tile country or countries concerned; how does the production of the commodity facilitate the developnent of a nationally or subregionally integrated economic system?
18. In the commercialized cOmMOdity sub-sector, there are some commodities vmich are produced and traded within a particular country or sub-region.
tfllen such commodities are consumed within theryolitical boundaries of a nation, there is need to identify their role in proMOting economic development. The commodities found in this category are those that form part of the daily consumption basket of the majority of the population. Included in this category are naizo, meat and meat products, rice, plantains, cassava, beans, fish (mainly dried and fresh). Hilk is produced and consumed in national markets in most of the African countries and so arc goat meat and mutton.
For reasons already given, there is no question that the processing of some
of these 'commodities contributes oris' capable of contributinq to African economic development.
STIJlCAjT~.1/5 Page 7
19. The other commodity sub-sector found in most, if not all, African countries is the subsistence co~~odity such-sector dominated by peasant farmers whose economic activities are mostly cut-off from the import- export enclaves. Rach individual peasant strives to produce for his own needs and, in most cases, cannot produce enough food for the family.
The variety of crops and animals produced is very limited and the production process is··dominated by traditional and unscientific production techniques.
20. Since the activities in this sub-sector are limited to the production of food commodities (crops and animals) and because of Low production levels, it is not integrated with the other economic sectors so that its contribution to economic dcvelo~ent is sub-optimal, nor does it make a significant
contribution to sub-regional economic integration or facilitate intra-African trade. This commodity sub-sector coincides in fact <lith the rural sector which is characterized by poverty and underdevelopment. And it should not naturally be forgotten that some of the problems of rural development are the direct result of the neglect of the commodity sector. Poor agricultural development, in the final analysis, refers to poor commodity production which acts as a hindrance to the development of sUPPortive infrastructures such as roads, storage and transport facilities~
21. _lliat is being argued here is that devclo~ent in African countries· should be based on the production of commodities that satisfy domestic (i.e national, subregional or regional) needs as,well as external needs. Such a strategical approach relies to the extent possible on processing of the raw commodities for consumption locally and export to neighbouring countries. Even processing oriented towards export can be introduced with a view to'maximi~inglocal linkages and stimulating orowth in other sectors of the economy. In other words, the comnodity sector can and should be used as a means of ihtroducinq collective self-reliance in the rural areas as well as promoting economic development. This, unfortunately, more often than not, does not obtain at present. For instance, in many African countri€s, grains such as maize have to be transported to the urban areas where ~illing companies are located and the milled flour is transported back to the rural areas, thus effectively depriving the latter of the value-added generating activities that could result from processing.
22. Thus, the str.uctur8 of the co~nodity sector in most African countries
requires a fundamental recasting so that a clear link can be established between the overall development objectives and the activities in this sector. As long
as commodities are ~roduced without reference to a clearly defined commodity policy and are not related to specific and chosen paths of economic development and growth, the contrilJution of the commodity sector to social and economic development is lnest likely to be minimal, if not negative,altogether.
STIECA/~Il',.1/5 Page
a
IV. AFRICAN TRADE fu'lD ECONONIC DEVELOPHENT
23. The share of African trade in world trade is very small, ranging from 3.85 per cent to 4.70 per cent of world trade during the period 1970-1979.
As sho.m in Table 2 African exports as a percentage of world exports have boen relatively higher ~han African imports as a percentage of world imports during 1970-1979. The average annual growth of total world trade was 17.3 per cent for the period 1970-1979, while that of African total trade for the same period was 18.5 per cent; for developing Latin America, the average annual growth was about.
20.3 per eent for the same period. African imports as a percentage of world imports rose from 3.7 per cent in 1970 to 4.0 per cent in 1979, while the share of African exports remained at over 4.0 per cent durin~ the period und~r review.
These figures do not say much about the implications of trade for,economic development, exce~t that foreign exchange earnings which were larger than the import bill in 1975 had been greatly reduced by 1979 and were just sufficient to finance imports in 1978, as shot~ in table 2.
24. As already pointed out, the structure of commodity bearing on the process of African economic development.
the African region was a net importer of COMmodity items categories:
exports has a direct As sho\<n in table 3, covered by the following
SITC (0 + 1) food and live animalS, beverages and tobacco;
SITe (2 + 4) crude materials (excluding fuels) plus animal and vegetable oils and fats
SITC (3) ~<inerals, fuels and related Materials
Ysar
Total ~~rld Trade
(c~rrent values in million us dollars)
TABLF 2
World Trade and Share of Africa in World Trade (value in million US$)
African Trade
(Current values in million US dollars)
ST/ECA/HP.l/5 Page 9
African Trade as a Percentage of World Trade
Irq:orts Exports Total Imports Exoorts Total Imports Exports Total
1970 ::94 100 ~30 000 574 100 11 020 12 580 23 600 3.74 4.49 " .11
1971 3:E 300 314 100 642 400 1:' 640 13 000 25 640 3.85 4.13 3.99
1972 383 600 372 300 755 900 13 880 15 320 29 200 3.61 4.11 3.85
1973 528 600 517 900 1 048 500 18 170 21 590 39 760 3.43 4.16 3.79
1974 773 300 768 900 1 542 600 28 42CJ 39 530 67 950 3.66 5.14 1\.40
1975 801 000 788 000 i 589 000 37 960 35 170 73 130 3.73 4.45 4.60
1976 910 400 B% 500 1 306 900 38 510 42 560 '11 070 4.22 4.74 4.49
1977 1 045 000 1 018 400 2 063 400 48 100 49 020 97 120 4.61 4.79 4.71
1978 1 207 000 1 175 500 :J 382 500 56 900 45 810 102
no
4.n
3.89 4.311979 ~ 5;',2 900 1 4H 300 3 010 700 60 620 65 820 126 440 4.0 4.42 4.20
Source~ ~onth...y Bulletin of Statistics, United ::ations Vol. XXXV!lo. 2, Febru"ry 1981
ST/ECA/l'lP .1/5 Page 10
25. Of these three categories, the largest export surryluses were recorded in minerals, fuels, etc., and the smallest surpluses were in food and live animals.
HOVlever, out of ten groups of commodities, M'rica was a net exporter of cOill!,lOdities included in only three groups and a net importer of five (see table 3). It is also particularly notC'.lOr<:hy that the cat.,gories in ,/hich the African region is a net exporter are composed mainly of ~aw or semi-procesBed ~terials~ '~ith
regard to the remaining five categories (che~icals, nacj,inery and transport equipment wanufactured goods), other manufactured goods and goods not classified by kind, Africa was a net inporter during the period under r8vim·,. The Larrtest;
ir.,port surplusus l,-lere registered in basic manufactureS, machinery ann trans.;?Ort equipment, chemicals, and miscellaneous manufactured goods in that order, while beverages and tobacco registered the smallest import surpluses. Tho e"cesses of imports over exports are, ceteris paribus, a measure of Africa's demand for a change
in production structure and trade pattern. The contribution of these commodities to
A~rican economic development is to say the least limited for a number of reasons.
A main one is that ~he economic activi~ies associated with these commodities do not promote sectoral integration or industrialization, nor do they help African couptri~~
in dealing widl the problem of unemployment and external dependence. Needless to say, this pattern of trade militates against the very aspirations of African countries of
pr~moting collective self-reliance and sub-regional or regional interdependence, as recently spelled out in the Lagos Plan of ~ction.
Table 3: Value of Developing Afri..,'s Imports a("d Exports by SITC Se.tion (La .•. ) for sele.ted years (in million US dollars)
ST /ECA/WP • ] /5 Page 11
:iITC
1971 1972 1972 1974 1976 1977 1978
Import Export Import Export Import Export Ir:Jport~ort Import Export Import Export - Food, Beverages
(0+1 ) 1 581 3 070 1 928 3 18G 4 892 5 165 5 248 6 088 6 459 8 137 7 423 7 830
To ba(;CO
Crude materials
( scI. fuels) oils5 fats
(2+4) 510 2 440 632 2 880 1
c)4~'5 879 1 453 4 87!! 1 983 4 994 2 098 4 829
Animals and vegetable
oils a r.d fats
4 198 318 'J15 558 482 375 661 41C 796 381
Mineral fuels and
related materials
3 700 4 t7t 667 6 294 2 778 23 260 3 125 26 865 3 625 30 794 3 850 27 464
Cbemi caLe c;.»
970 145 1 164 189 2 563
~822 734 331 3 456 45,1 3 913 520
Nachil:ery
7 .4 580 68 6 338 114 11 786 124 19 485 114 23 450 123 24 983 146
Other manuf.otured
goods
(6+8) 3 370 2 40( 3 855 2 087 8 254 3 803 9 9C5 2 979 12 606 3 140 14 089 3 149
TOTAL
~/
(0-9 )11 890 12 210 14 813 14 796 32 118 38 705 42 634 41 356 52 497 47 762 57 507 44 057
lTote~ l . Does not ino:ude tr~de of Zimbabwe.
2. The tot3l in this table does not agree with th~t in'table 1 due mainly to frequent revision, of the latter. The figures particularly relating to imports (f.o.b.) are subjeot to revision and they are likely to be lower, if adjusted than they appear to be jlere.
Souroe~ l . UN monthly bulletin of Statistics - June
1978,
July1980
2.
G~ Statistioal year book -1978
5T/ECA/wp.1/5 Page 12
V. INTRA-AFRICAN TR1\DE AflP THE COH110DITY 5P.CTOR
;~6. As set out; in the same Plan, the economic development of tho African region calls for the fundamental transformation of a number of sectors, including the trade one. The trade patterns which are mostly outward oriented clearly need to be
re~ast with a view to turning them inward i.e giving them an African market orientation, so that the latent potential in intra-African trade can be fully tapped and its possible substantial contribution to economic d~vGloprnenteffected.
27. Exploitation of the potential for intr,,-African trade "'ill depend, inter- alia , upon tho extent to whtch African goverTh~Gnts, producers and' all trade organizations commit themselves to identifying commodi£y ~roducts that can be traded among the African countries and upon the efforts exerted in actually orienting their production and commerical activities towar~s_Africanmarkets •.•
The existence of large differentials bet"een demand/consumption and supplY/production in any national or slli~regional ~arket for some co~odity products is no doubt an indicator of the possible existeft€e nf exportable sur?luses or production
deficiencies which other African countries or subregions of the African region could exploit. However, to fill the gap between demand and supply in one country or African subregion through trade, producers woul.d have to increase their product Ion and, most probably, also their productivity, in those s!1ecific commodities. This
"ould inevitably call for the development of more efficient transportation and communications net~rork infrastructures and improvement in marketing systems as well. In this way the commodity sector could become an effective facilitating instrumentality in promoting not. only intra-African trade. but also economic
development in the African continent. •
:zn.
Furthermore~ the expansion of intra-African tr ade partly depends on the countries' ability to organize and Manage the processin9 of raw materials for distribution within the African region. But for productivn of processed goods to take place, and further leading to intra-African trade in these goods. marketconditions ~n the African region must be known to present and potential 'producers.
Hence the crucial need for th6 development of tradE information services specifically geared to intra-African trad£.
?9. Table 4 gives a saMple of imports and exports of selected goods largely falling under the category of fooA and live ePiroals. The excess of imodrts over exports for the period 1976-19/8 sho\JS an increasing demand trend for most of those commodities. The table also gives total African trade d~ficits and surpluses in selected COmMOdities. For exanple, in 1976, imports ot'canned meat exceeded exports by U5$17,655 thousand, a year later, import'i, Were U5$45',879 thousand more than exports; an~ in 1970 imports were U8$58,652 thousand more than exports. In 1978 FAO estimates 11 showed that the largest ex\x>rters of canned me~t were Kenya, Zi~"Jab\'lep Tanz~ia, r·1adagascar, Ethiopiaf Swazi'land and Somal~.•
The bulk of these exports were destined for European markets,while other African countries imported canned meat from Europe, South Anerica and New 7Jealand.
~I 1978 FAO Trade Year book, Vol. 32.
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s'r/ECA/W? .1/5 Pa{';e 13
30. Table
4
also shows that the African reGion 'me a net importer of sausages, and prepared and preserved meat. Countries like A~~ola, Botsw8na, Ethiopia, SUdan, V~dagascar~ Chad, Kenya~ Swaziland and ZiEbabwe are among the lar~estexporters of· fresh, chilled arid f'r-c-z en meat (cOT'1prising beef and veal, mutt on ,
pi~ meat and'poultry). The potential for intra-African trade in meat is ~reat
partly because of the relatively large population of bovine cattle, sheep and goats, pig and poultry; partl¥ because of the increase in d8~Dnd for fresh meat, processed meat products due to increasing purchasinG pever in many African
countries and lastly because of ever-increasing I'1fl.rketins difficulties in the traditional markets of Europe and the stiff compet it i.on from other rer:ions that African meat f'ac e s in the triddle East.
31. Products such as butter, cheese and curd, can'] ensed, dry and fresh mi Lk end eggs in shell, vhich' are obtained lare;ely fro:m Liv e s tock , offer great
opportunities for deve,lopment within the f'r-amevor-k of intra-African trade. The African r egion is a net exporter of comnod'it i es such as fresh tomatoes, oranges, tangerines, bananas, green ,and roasted coffee, cocoa beans, 11n.TUanufactured tobacco, ground~uts and groundnut oil, etc. as sho.~ in Tnble
4.
The lar~est Africanexpor-t.er-s of fresh tomatoes ver e Morocco and E~Jrpt. A'lt.hour-h fresh tomatoes are exported overseas the majority of African countries ar e irJ_porters of t"rr..ato products such as tomato eat.c h or .iuicc ,
32. As far as tinned or bottled fruits and ve,-,ctables exports to the EEe market are concerned; Ivory Coast and Kenya, which both enjoy duty-free access to the EEC maf4:et under the Lcme Convention, are the principal suppliers, especially of pineapples. Morocco exports to France and ],Iest Cermnny , while Tunisia
exr~rts canned vegetables mainly to Europe. African inports of cotton-seed oil are about twenty times larGer than exports. Intra-African trade in cotton- seed oil is dominated by the Sudan as an exporter r~d Er,ypt as an importer.
To the extent that African demand for cotton-seed oil is le.rp:elJ' r-et by .irrport s from outside the region:, there seems to be great scope for procnction and diversi- ficaticn particularly in Tanzania, UgandQ.~ Moze!l1b~quc and A.n:;olCt, if ifl.trn--1\frican trade is used as a vehic.le.
33. Again, there nppe~rs to exist a f,reat potenti~l for intru-African trade in a nlli~ber of commOdities, falling under such hpadinf,s as heavy petrochemical products, chemical and pha~_a~eutical products~ vQrious fertilizers (phosphates, super
phosphates =oniUf.[, etc.), ;rood and rubber products, bauxite and a'lumirriun products,
ST!ECPc!"'1' .l/5
Fage 14 TABLE t,
Developing Africa~s ictpcrts a.nd exports of selected items (in thousand US dollars)
Trade Balance (E~port-Import)
1978 1976 1977
Export
Ins
Impor't . Export
1977--'---'----,
Import Export
Import 1976
(001.1): 115 070 of which -' sauf".dgGs (014e:~) :
r1ect dric~. saJtod 0rsmoked (G1') :<e?t car.ned n . L S . (014)
--14 5(11 -6 )65
-14 6:26 -58 G52
-10 113 57 700 -;,74 069
-" 3:: 3 -8 9~,~
-:' 571 -.15 006
-'37 277 -75 235 -179 ·197
15 958 1 615 -95 075 -2 197 -17 655 -5 707 -11 519 l:E
') 765 E 855 G9 347
11 191 70 507
9 0::,8
63 :91 BC 997 55 735
1..1 752 3d3 H6
756 OG6 153 953 29L1
7 573
79 ge9
;:0 873
19 336 88 760
9 :;38 6 1'4
56 G13
2·~ 312
cs
~'i79~68 :',57
2G~ 608 127 373 77 395
::"j, 930 590 33 885 175 31 016 116 705
/1 789
5 8.8::\
45 535 51 5'10
c'}7 97'2 170 470
(OOL',2) : (014.9);
,
Sheepf lr?'":'los Q:'"h1 g()ats Other prcTar,~d m(~at
Bovin2 ce'tcLc
r.:.eat.r fr,~sh, crillcd, frozen
~,l'}l~at + f:'our + wncat; ("c;.uivalent
53 317 17 <:12
~'1 ~8 42,1
-.56 58:.:' -Btl .c<lS -1'1'1 617
-'a:.
"55-778 189 -597 ',82
-2 1·:8 968 -69 965
-31 007 -l1J 466
.-2,~,.~ :',58 -503 063
-1 711 095 -170 057 -16 88::
-153 797 -,125 030 -110 7~8
-53 :2~8
-211 611 -1 758 823 173
3 '350
201
" 778
to 8:'8 5S 028 IS 990 56 855
300 ~>15
601 I:,
182 395 81 7<:6
? 155 796 BB "17
S~3
5 485 1 c.~).''""-,,, 1 959 5,,5
71 130 11 127 985
7J 510 31 530
2S5 504 987 11; ]Co,
1 715 580 5:'1 ]91 530
3 39'!
ll'~
3 10,1 1 683
9,~ 2/~0
15 !1BO
7~7 12,1 112
cn
:'53 037
,
•
, , , •
• •,
•
:1 761 <r-'7 (0,2)(0" 3)
C;:::r~als (041, 045.1, 045.:~
04~.9, 046) Hilk ~n coidcnscd , dry, fresl:
Butter
Eggs ii' sh ,II Cheese: dno cu.rd
:-'.ic~
1'.3..1.2:3
!>uls'_0
e
• ,
(054·~,l
19~ 866 69 366
20 .'~9;;
lit1 590
·2iJ9 8:: 2 73 ,:·,~:·7
19 310 99 751
"71 59:'.
76 5\:.8
eC\ 779 72 Ol3
-17'2 367 '15 228
-].';,'3 512 7:C 30:
-211 813 -'1 555
PU'..:ato, f~ 5/l 700 65 518 1St) Gl:i 60 014 65 30 :·:7 '12~;: lQ 818 -9 ;j99 -37 920
TOr:::::~OL.~:~ t~:-02sh (054.41 /J94 30 326 [<3D 27 619 8/~5 36 333 29 832 26 739 35 '188
~
Table (~ (Cant0d)
STIECA/l'iP .1/5 Page 15
Trad~ Balance (Export-Import)
1976 1977 1978 1976 1977 1978
Inpart Export Inport Export Import Export
orancc.s + 'I."3.ns·-:ri ,(~S + CJ"'!m (o: 70 1)
Bar~,J.nas
~1 915 7.9 39:?
201 90'0
,~-1 08l
875 18 190
21h 35,1
,;~: 610
5 ,17~
12 377
,-W? 046 49 106
196 993 1: "PC)
211 0179
2,~ --120
276 57~
36
no,
3U9ar
of Ij·!hi::h + .L,~.:.,fiJ.lc:.~ UJ61.'~)
il21 13C , 5'):-~ SJ7
~91 5CO 763 '6~
59 553 598 ?~}8
530 69:' 51 518
'-H7 3~6 70~~ :.::39
516 501 33 260
··3,9 570 -:'Hj2 08·i
'··37.777 -5,16 730
-300 8')~~
-668 97<::
"} 176 /.' 175 115 09'·j B9911
-3~ 8-~3
2 ,19~ 325
17 67) -16 ?77 56 583 2 ,116 01r
89 ?67 9 636 132 078
-137 53t1 J ~8.'. (}16
1 859 44 339
-99JC2 131 997 7 1'":0 158
-1 1~~9
20 500
~99667 :~78 90,1 2 7.1G 769
" 510 931 1 '66 C~l 1 8"3 358
0-;--'0
~',' ,
3£3 97-:
18 606 3?O 753
~',,,,3 08/[
295 181 17 i}04
310 712 775 037 ,} 785 3 5,;8 175 1 83·~ ·~16
76'1 276 L'"
11 OS'
159 ,;33 I n 63<
281 908 185 770 ( , ) 3 i n 8D
'~ 03:·
2 )88 SOO 1 /70 797
"1,"r,
!"l,e_
105 525 WIl.l ) 168
'2obCiCCC 11nr:'!:1i.:I;fJ.<.;'t.\~r,-:-.:d Tea.
Coco.::, LJo,\:,!'k .. r
Coi i-:...~ gr:.~8n a.rd r'.')-~'!.st
l.k.::-.Jr
CaL;'),:', ~c ·t~lS
Cotton··s(.,_~d01.1 75 106 1 f.::'~..\ 309 903 2
.n.o
L~5 ~·~lO 9,'~8 73 ,,67 -13<1 <}93 -1;-~;:1 28'"Crou:udnut oil
S u nfL o w v r s c .; : - : . . o i . L
,-., -'
...
'J.1.1V...:: 01..1.
-27 438 33 /,75 30 'US
198 ::00
:.:~1 101 ;"1
:,'1 6~O
D 750
u 678
278 00"
42 75 %5
U 985 71 688 5 ~::1
115 i i :
n
88 085
171 071 -33 094
71 5SH
206 182 -39 708 33 287
100 U9 -71 661 31 26:
So uz c o : 1:1\0 Tradc-' Y~,;arboo}~·n 1978, 19'79
ST/ECA/i'IP/1/5 Page 16
copper products, gas and plastic products such as bags pipes, batterii;s and various packaging mat0rials, iron and steel products, leather and 12athBr products, agricultural machinery such as ploughs, hurrows, plough discs, threshers etc, zinc and tin products, h~rdwarc products. In the long run, there is no question that - t.hc production of :l nur-b-.r-
0::
these commoddti c s and their availability for t.r.adc not only among n e.i qhrrou'r i.nq countries, but a l so with other countries in the African continent; tr3nsport facilities p~rmitting,would substantially -'1ssist in promot.i.no llfrican s-::·lf c •.:::ust?li::!i:1g economic growth and dev~lopment.
34. In the short and mediwJ tCrQi thG vrospccts for such ~n expansion of intra- African trade appear to be good enough, if b~S8d on a n~~or of selected
commodities. These include moat and ~eat products; veg0tabl~ oilt fish and fish products, especially canned and dried fish; locally designed choaper shoes
(babouches), cheap cotton t.ext.i.Les , Milk powde r , mango juicc, s li ced manqo , tomato paste, hides and skinsf cheese, canned pineapple and pin8~pple juice.
•
,
ST!ECA!WP,1!5 Page 17
VI. SU~ll~RY AND CONCLUSIONS
35. Quite clearly the question of the relationship between the commodity sector and overall economic development in African countries from the perspective of a collective self-reliant strategy of developnent makes it necessary to have a
fresh look at some of the standard policy prescriptions usually referred to in the current development debate. It should also be clear that the creation of solid linkages between the commodity sector and overall economic development in African countries calls for a fundamental transformation of the existing economic system.
This inevitably means that some very difficult problems will have to be tackled at least in the initial stages. Be that as it may, 'Jiven t"e present pace of
economic development and the degree of economic vulneralility arising from external dependence, the n~~er of options available to the African region as a whole and to individual countries in particular appears to be very limited. One such
option is the systematic, and "ell planned for,utilization of the cOl1ll'lOdity sector as a basis for the promotion of intra-African trade and economic development.
36. Furthermore, the ~nplementationof a strategy of self-reliance requires some fundamental changes in the way in which production and distribution are orryanized and consumption is oriented. From the available evidence, it would appear that the connodity sectors in a majority of African countries need to be restructured in such a way as to facilitate the attainment of the stated
development activities. This need stems, in particular, from the fact that
commodity policy is, in ~st cases, defined by reference to development strategies that basically seek to find a more favourable accommodation for the national
economy, rather than specific ways and means of lessening dependence on the industrialized world.
37. Such an-in-depth re-appraisal of co~odity policy qS is called for
requires a careful and serious exploration of tIl<:~ relation bet\.Jeen the commodity sector and the broader strategies for socio-economic development. The commodity sector should be seen as one of the most important ?Ossihle bases for economic development to the e~tent, intcr"alia, that optimum use ,"ould be made of intera- African trade as a strategy for developing skills for the identification,
extraction and processing of the locally available agricultural and mineral raw commodities.
38. Lastly the pro~otion of intra-African trade on the basis of the commodity seclor should itself be viewed as a means of advancing in the path of processing and resource-based industrialization and of fostering social and economic
co-operation among African countries.
