Chapter IV: foreign trade

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y

'

AFRICAN

~~

^NATIONS

DEVELOP!V1EN~~ _ND^FOR_PLA^{E CONOMIC}_NNING

DAKAR

.. f

~·. ,.

/

C H A ^p T E R

FOREIGN TRADE

CS/2796

1 •

IV

(

AP IL, 1977o

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.,.. . .

FOREIGN TRADE

13/2796 Page 1-·,::y

The essential characteristics of foreign trade of dependent Africa reflected the ~ain features of the colonial character of her economy, its outward orientation and dependance, underdevelopment and vulnerability. They can be summarised in the following: 1) The heavy dependance of African economies, particularly the

modern part, on foreign trade. The size of the GDP, public

r&v~nues and expendi tures ·, inves tment, empihoyment, etc. , are determined, by the performance in the external sector.

L; ·: 0

2) The struc·ture of experts reflected the external orientation of the African ·economies, the modern parts. in particular. Primary agricultural crops and mineral output dominated the scene· More- over in most countries, one or two commodities accounted for the major part of export revenues.

3) The pattèrn of importe,. dominated by rr.anufactured consumer and capital goods, pointed ~o the low level of industrial development

·of African economy, and their total dependance on the metropolitan countries .

tœ

machinery and technology .·

4) The share of Africa i~ world trade has been insignificant, re- flectinl5 the small aize and structure of its GDP.

5) ~{est European countries, especially those wi th colonial empires

·in Africa, were the dominant trading partners, while other world economie groups al11i ~~-ies were insigmificant partners. The Intra African trade in particular accounted 'for a very small share of total African trade.

6) The balance of trade remained in deficit during most of the colonial period i.n Africa as a whole.

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CS/27,6

Page· 2-IV'

-.

7) The terms of trade of Africa were unfavourable most of the time. 8) The ownersh.ip of foreign trade conipanies the processing, marketing

transportàtion' distribution of foreign trade commo·di ties were dominated'·by foreign· enterprises.

Performance of Foreign Trade over the Period

1950-1975

During the post independance period, these characteristics of

.African t•ra,de remai.ned intact, and in sorne cases. accentuated·:NO

basic, or even significant changes, should be expected, as long as the main features of the African economies inherited from colonial rule, remained unchanged 'in most of the African countries, as was àhown in. the survey of thegrowth and indw?trial origïn of the GDP, the performance of manufacturing and agricul tural production in Af:iica.

The General Secretary of UNCTAD IV has correctly pointed out

"The sti'uctures (of externel sector) exhibited to this day are still largely an imposition from the past when the metropolitan powers opened up the country's of the periphery - very often their own colonial territories, for the production of raw materials and ether

. primary pro~ucts for their expanding economies. Although after

indepe~dence these countries introduced changes, rn~ characteristics of the old system remain unaltered. Thus in varying degrees, the methode of marketing and distribution, the directions of trade, the control over transportation and other supporting activities, the invol vement in processing., the system. and levels of remuneration, and even the pattern of ownership, and the role played by foreign enterprises, continue to reinforce and perpetuate the essential features of the old relationships.¹¹ ⁽ 1)

(1) UNCTAD IV: New Directions and New Structures For Trade and Development" .Rspor•t,rdf:the Secretajzy General of UNCTAD to the Conference, Nairobi, May

1976.

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CS/2796

Page 3-IV·

The following aspects of foreign trade will be examined: 1) Growth of exporte and importa.

2) Structure of exporta and importa.

3) Dependance on foreign trade.

4) Terms of trade.

5) Balance of trade.

6) Direction of trade.

The Annual Average Growth Rates of Exporta

Over the period

1950-75,

the performance of world experts as a whole and the developed market economies was much better than that of Africa and the developing market economies except for the short period between

1972

and

1974.

The annual average growth of exporta of the developed market economies amounted to

8

per cent during

1950-60, 8.3

per cent during

1960-67, 14.4

per cent during

1967-70, 15.8

par cent during

1970-72,

increased sharply to about

35

per.:ce"nt during

1972-74

and dropped sharply to 3.8 par cent during

1974-75.

The corresponding rates for Africa were 6.2 percent, 6.8 percent,

13.7

percent,

6.5

per cent,

6.7

par cent and dropped to

13.8

percent over the same sub periods. Saa Table IV.I.

The lower growth rates of African exports over the whole quarter of a century (except for 5 years) in comparison with the developed market economies raflecte the differences in the structure of their exporta and the income and priee elasticities of demand for thei~

exporta and the availability of markets for them in general. The main exporta of the developed market economies are manufactured goods with a high income elasticity of demand. By contrast the main exporte of Afrioa ara primary commoditias, with relatively inelastic demand (except for ~uels). This is evident from the fact that between

1965

(5)

. 1 .,

,,..,lô.iJt:

.. ^. ^. ^.

^'rt' '· t

'l'ABLE IT.1

Annual average growth rates of exports

:~··: .

\·.

ltc.&iofta., cnunlrh.-s .tn<1 tariwrics

·--·---~--- -· -

.. WORLD

IJI'VI'l.OI'Eil M .-\I<KI·:T ii ONOMY COlJNTIUES . .

111 VELOPING COUNTRIES .H;!J Tt:R RITOI{IUi . . . . SOt'lr\LIST f'OUNTI{IU): · 1 .\STEHN I·.UROI'F.

.. ..

^.. ^..

SOCIAI.IST CCWNTI{ lES: AStA .. . . . . . . . ^.. ^~ D

· A

A

EVELOPJNG COUNTimfs ND'IERRITORIES: FRIC A .. .... .... .

North .4j'rico. .. .... .. Maghreb . . . . . . . . . . . /\lr,cria . . . . , . . . Morocco .... , .. . . . . Tun1sia. · .. .... . . . , . Egypt .. .... ...

Libyan Arab Rcpublic . . . Sud an .... .... ... .

African StaLesrmd tlfadllgas- t'ar associoted willl the EEC Benin : . . . . . . . . . _.:_:,_

l\urund1 ... . . '

<!i:od ... , .. . . .. . : :

'làda~ascar'· ... ...

R11,111J.o .... . . . '·•m:ilia .. ..... ..

'·1~()

.. . . . . . .. .. . .

Î'lih' . . . . · • • . . . . • . . l '1 l'( . \ ... ....

·cl'ntral :\trican Rl!public 1

Cùngo . .. . . •

!;,,hon • • • • • • 0 • • • •

l'niccJ R.:public of

t'":.Hitt!ruon • · . • .. . .

1950- 1970¹

7.4

8.0

4.6

9.8

4.6

6.2 6.8 4.1 . 5.1

3.7 1.8 2.1 38.4 3.5

4.9 r--2.9 9.7 2.6 1.9 17.8' H.6 6.8 1.9 8.3 4.4 13.3 11.9 6.7 . ·······-·· ^,^.. ^{1 •} . ....

1950- 1960- 1960- 1960¹ 1970' 1967²

6.4 9.2 7)

7.0 10.0 8.3

3.0 6.9' 5.3

10.8 8.7 8.6

10.9 3.1 0 .. 2

3.9 9.1 6.8 2.3 11.3 8.9 3.6 3;7 3.4 3.0 3.6 3.7 5.0 . 3.7 2.6 2.5 4.8 3.1 0.1 4.5 -0.1 0.7 65.9 95.0 2.6 3.4 2.3

4.8 8.3 5.5 4.7 7.3 -2.6 9.8 9.6 10.4 .. o.7 7.1 11.0 0.4 5.5 4.8 17.7 18.4 19.6 15.2 2.4 2.8 2.5 13.3 11.4 4.5 6.1 -1.7 7.2 Q.8 10.5 -·0.6 10.5 11.0 13.4 6.7 15.0 10.4 11.3 . 14.3

7.0 9.4 .7.2

-

^·- ^- ^··-

q. ..

⁴⁴ ^f^..,.,.. P"!"""!!"\4&1·41( $ QKJ. #Wtq M&t4<'7i>l51 4 .,. Qf" 1 $ •.c

't

'~ . . . et ' N •

Tal)X d'accroissement annuel moyen des exportations _,. _.

1967- 1970- 1970- 1971- 1972- 1973· 1974- _RtaioM._P•U'~t_t.:l_tc:rnh~l_rc."S 1970² 1974¹ 1971 1972 1973 1974 1975'

13.2 27.7 11.3 18.J 38.5 45.5 3,8 MONDE

PAYS Df:VELOPPÉS À 14.4 24.7 11.9 18.7 36.9 33.0 5.9 ÉCONOMIE DE M/\Rf'BI::

PAYS ET TERRITOIRES EN VOIE Dt~ I.>ÉVELOP·

10.4 41.1 9.6 15.7 48.1 100.7 -6.6 PFMF:NT

PAYS SOCIALISTES Dl~

10.3 20.6 C).O 18.3 32.2 23.8 20.6 L'EUROPE ORIENT ALI. PAYS SOCI/\USTI:S DF 4.8 25.7 10.9 21.6 1 53.3 20.9 10.9 l'ASIE

PAYS ETTfo:RIUfOIRES· EN VOIE DE D~:VELOf•. 13.7 : _32.6 _3.7 _9.3 _43.0 _90.7 _- _13.8 I'EMENT: AFRIQUE

:' ^.;..

14.7 35.7 J.J 4.2 J9.6. _121.4 '-15.0 Afriq'ue du lliord 8.3 . 42.6 -2.4 28.6 42.0 132.0 -1.6 Maghreb 10.4 43.5 -8.6 25.8 54.5 139.0 -5.7 Algérie 4.8 38.1 2.7 26.5 29.7. 115.8 -9.8 Maroc 7.1 49.5 18.0 4-4.0 24.1 136.8 --12.5

1 ·

Tunisie 10.4 18.8 3.5 4.6 35.4 35.7 :-1.1 Egyph; . 23.5 37.8 10.4 - 12.2 41.9 162.3 -25.0

1

Ré'publiqlll.: Jrabc hhy,·m 11.0 4.5 13.0 8.8 20.6 -19.4 8.6 Soudan

IC

Etats africains et molgach 12.9 22.9 -3.4 10.7 42.2 50.3 -·6.2 associés à la CEE 30.1 13.6 27.3 11.9 -6.4 25.0 -9.1 Bénin

('

...

19.7 5.7 --20.8 31.6 ¹ -- - -- --- -- - -

3.6 4.7 -6.7 39.3 -12.0 2.6 -5.3 7.1 -10.0 Burundi

11.7 13.9 1.4 44.4 _Tchad

11.6 23.8 20.2 6.6 Madagasca, 21.3 3.5 . 17..9 10.3 -·12.0 12.9 --2213.6 .9 63.2 9.3 2.7.7 19.4 -16.7 8.1 Somalie Rwanda 19 .. 8 34.5 .. 10.9 2.0 22.0 195.1

21.4 12.3 11.1 _Totto

-12.0 -9.3 62.6 22.4 -19.4 Zaïrr 5.3 39.2 12.5 6.9 47.9 110.8 _--4.0 UDEAC

;.2:2 11.6 3.2 Rérubli.,uc

21.9 ··5.1 29.7 0.0 t'•·ntrafriçainc -13.6 0.3 66.1 37.2 ₅₄35.5 _.5 _4.89.5 _46.634.8 _22i.377.4 -13.6 Congo

-0.2 Gabon

13;7 19.7 ·-11.2 RépubÜtfuc·Uni.: du

L

^~-8 ^61.5 ^35.2 ^-^{9:7 .} ^CamcJOun

.. '. ^- ^..¹^• . --' ..

...

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•

.TABLE IVe1 (ble)

ll'est Ajrican En-, C.1111immity . ..

lvo1 )' Cùast .. .. ~ali . . . . •.

~taurita 111a •• • Niger . . . . Scnegal . . . . Upper Vo.I!JI ..

··-::.

~ GJmmunitY,}tf I:D.st A[rica . . . .

Kenya .. . . nomic

. . . .

.. ^• ^• ^• ⁰ ... . .

....

.... . .

.. . .

....

^..

. . . . . . .. .

·Ug~~ .. . . .. . . . . .

' I:Jifit~·$1 Rcpubh c of

T~tnarua : . . •

.

....

l( •

.. : .. . .

. . .

.

..

Otltcr A/rica ..

i\n~ola . .. . . lhllswan:1 . . . Cape Vc1Je lsl:m

hû1iopi~ . . Gambia

. . ds . . . .

... . .

. .

^{. .}

.

Ghana .. .. . .. .

Guin~a . .. . . . . . .

Guinca·Bissau . .. .....

Lesotho .. .. . .. _·_.

Liberi~ . . . . . ...

Malawi . . . . ·.•. ...

Mauritiu~; .. . ....

.. .

.

. . . . .

Mozambique . Nignia . . . Reunion . . · . . Sao Tome and Pr Sierra lçof)c · ...

Southcrn Rhodes

.. ... ... . .

incipe

.... _'.

ia . . .

7.0 4.9 8.2 4.5 3.0 5.6

29.8 7.9

6.9 6.6

2.8 ·5.1

1.0.1 3.1·

6.2 4.5 ..

CJ..4 8.0 S.l 3.1

4.11

.

l.S''

..

6.2 5.1

7.0 3.6 7.6. 8.0

1.1 3.5

5.2 6.1

3.5 1.6

2.2' 3.1

7.7 •11.1

-·3.1 l.S 7.3 9.1 10.5 9.0

7.0 4.4 2.2 2.5 7.1 6.2 5.8 4.1 2.7 3.7 0.0 -0.5 8.0 11.1 6.7 5.3'

/0.5 Jf2 11.7 11.6 5.1 .-2.4 . 52.5 66.5

8,1 14.2 3.1. :4.6 19.7 24.0

6.3 .·.6.0 6.8 ·. 6.$

7.1 6.7.

l

· 5.0· . 4.9 ' B. if 5.1.

--11.9 9.if 7.9 .·7.2:.

-0.8 ' 2-.4 5.1 4.7.

7.2 12.3 . 1.9 70,8= 0.9 '2 .•. -7.i -4.0

. <4.8 6.0 13.1. 9.7, 9.9 12.5 1.1 7.3

1.o· 7.6

1.9 .. ^{. 5}^.^..2

3.2 0.0 3.8 1.9

' 2.9 ·-2.4

5.5 5.6

,. ^{' '} ^'

..

-

^{- '} -

/0.0 2.4.0 .-4.9 ~0.'5 35.0 41.3

13.0 26.7 -2.8 21.3 55.0 41.2 44.2 6.2 -12.~ )7.2 2.9 20.0 7.8 18.8 1.1 18.9 44.9 14.2 -1.0 12.9 18.8 42.1 13.0 -14.8 3.5 14.1 .. 17.8 72.8 -9.7 84.6 0.0 ^18.9 -11.1 25.0 15.0 56.5

6.3 12.2 0.6 12.7 18.0 18.6 8.7 18.4 2.3 1<4.3 32:3 26.9 8:8 2.8' -7.8 8.8 2.8 8.2 l.S .13.3 7.7 14.3 15.4 16.0 14.5 36.6 6.5 JJ.6 51.2 90.2 21.1 29.8 0.0 20.6 Ji.s . 54.5' 11.5 45.2 55.6 64.3 52.2 14.3

-5.4 2.2 9.1 0,0 o.o 0.0

6.5 :2).7 1.6 34.7·' 41:9 13.1

-1.9 26.1 -23.5 46.2 .31.6 72.0

15.9 .14:8 -21.9 .16.3 43.0 33.8 -2.3 ~1.0 -3.6 25.9 2.9 .. it.4

0.0

·· o:o

-33.3 0.0 so.o"' 0.0

0.0 27.8 -33.3 100.0 75.0 ~4.3 10.2 .. 16.7 5.2 8.9 30.7 t8

.1-.7 18.7 20.0 12.5 22.2 20.2

. 2.5 .45.6 -5.8 64.6 ' 23.4. _tU.~

8.5 17.5 2.6 9:4 . 18.0 32.6 20.0 67.5 53.8 5.6 ,12.1 18-l;Ô 12.3 10.8 -13.7 13.6- 66.0 -'}.2 0.0 5.7 -12.5 0.0 . 42.9'. 0.0 13.0 9.5 -1.0 . 17.0., .11~8- 9.8

1).8 8.9· 9.3 28.6 •' '90.7 -23.3

, ... ~ ... ,..":1'!"1 ._ ....

-2.9 -9.1

11.9 ' 7.3 44:2 5.6 -16.7

-11.5 -8.8 -7.9 -18.0 -15.4 -29.3 12.5 '8.3 Q.7 27.9 13.0 8.3 0.0

~6.3

1.3 . 9.2 19.0 -9.1 -19.5 16.9 0.0 :.} 0.3.

. ·- --··-^~- Com~naute économi·

.-que de l'AfriQue de l'Oueu

Côte d'Ivoire . tû(l

Mauritanie Niger Sénégal Haute-Volta

Comi'IWIIllUti de l'Afrique de l'Est

Kenya Ouganda

République-Unie de Tanzanie

Atl/ft't pays d'Afrique

!.n&Ola Bots\vana lies du Cap-Vert

·Ethiopie •

Gâmbie Ghana Guinée

· Guinée-Bissau Lesotho Libéria Malawi Maurice

Mo1.am~ig.uc •.

Nifé.fia · li' ,.,, . t·7·;·.

Ritiïllo~'11 · • (" , .

..

1

..

0 • • • 14.4 16.2; i 1.3 11.6 8.2 Swaziland .. . .

Zambia . . . . ltS 6.6 lM ^.·^8.9 15.0

15.2 11.3 . 8.9

8.9. -32.2 11.6 t ^26.7 ^14.7^:

,'50.8 23.1 20.0 -28.9

Sâo Tqmb.et·I!J'incipe, Sierra.Lçone·~ , <·. ~f· · ... , RI!Odélie ~u . .Sud :,~·· ~ .t.~f. , Souaziland ·. ·₁;: ~: ''~' ,· : , Zambie ~- • ','f ^'!.~~~~.. ·

-~~-.---

· -- --

. ~-~:::

,..._. - - ....

,' '

... .

,. '

.

...

.

SOlJRCBa Bud'book ^-~

ot

I.,tenatioDal ^.1

TziU•

-~.n.t ^• ^• DeYelopaeat ^~ Statiatioa. 1'976 tniC'l'AD,. ^o...,.~~-

.•. "": ';'

,\'t'.

i '4

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-- -~- --~- _:_~~_c-_;;' i?'t ,;, ~: -~--

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_._, ^-:_·_{. i}^.^, _·

.··· ^-..

.

"'·· ·

. ,,, ,:.

~\

~ ... -

· .

.

'

,

. .

(7)

•

CS/2796 ..

Page 5-I.T

and 1973 the different categories of exporta of Africa increased î at an annual ~verage growth rate 6.9 per cent for food items, 7.4 per cent for agricultural materials, 9.5 per cent for ores and metals, 10.6 for manufactured commodities, 23.8 percent for fuels. See

Table (~~' In fact a major feature of trade over the post war period has been the relative lag in the growth trade in primary commodities compared with world trade as a whole. From mid-1950s to the early 1970s world trade in primary commodities (other than petroleum) rose by sorne .4f.~ per cent a year as against f 7~e5¹ per cent for world trade as a whole. The relatively slow demand for the exporte of Africa similar to the developing countries as a whole re- flects in part the slow demand in the developed market economies for the food products, raw materials and industrial materials traditional- ly produced in these countries. This is due to the law .increase of~e

mand for primary products, increasing economy in their use~ the shift to less material intensive productc and the rising competition from synthetics. Another important factor for the slow growth of African exporte (other than petroleum) has been the protectionist policies (tariff and non tariff barrif barriere) of the developed countries.

The annual average ratio of growth of exporte varied widely among African countries over the period 1950-70. The average for

Africa as a whole was 6.2 per cent, while in 6 countries the corres~on•

cUngJ.!igiir~:nJwaJ:~lower than 4 per cent. Only the mineral exporting countries achieved a relatively higher rate of growth of exporte.

See Table IV. 1.

The Structure of Exporte and Importa

African exporte, are predominantly, primary cornmodi ti es, l'tlld

fuels the share of which declined slightly from 96.3 per cent in 1955 to 93.2 percent in 1973 in the total African exporte. The share of manufactured commodities increased slightly from 5.7 per

( • . J. / 0

'.·

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1

-~ ~ ...

TA:B.L:Bl TV,2 ^{. 1} ^.;•

---

'

·

__

r· ... m~.odi

____

ty Group

..., ____________

.

^·~-r--

S!-ar~ in Total World Trad.e (percent) ',

1955

4-7

(percent) ~-

Sna.re .. in all food items (SITC

0+1+22.? 4.} .

^j

Agr .cultural Raw Ma terial3 ( SITC

2-22··27 -28)

; Ores and uetals (SI'N

27+28+67+68)

1

ï· FUels (SITC }) •

. 1 ' • . •

1 Manu!aoturing Goods'(SITC

5

to a·laes

( 67+68 )

l

10,:7

a.o

8.1 o.;

0.7

U!pH.'ffi. ·-

19S5 197}

4::-r::6

8.4,

1 ^5· ⁷

7.8 ^6. ⁰

6.4 5.0 9.0 4.1

..

. 0.7 - ^0. ⁴

~ . .

l ^IMPOR;,m - ...

· 1955 .

19~5

1973-

5o4

l· ^4. ⁴

^~.s

;

· · 4.3 .

l

4~2

3.6

'1.1

1.4 ^1.5

...

2 .5 2.1 2.f ..

;.o

1 2.6 ^1. ⁶ 8 _ ., 5.8

_.._~

4. 7

_'

Pero

en(~

^S^hare^by^Major^Commodity^G^rciup ^:

! .

All food items (SITC

0+14+22+24)

. , Agriculturâl Raw Materials SI'TC

2-22-27-28)

. i .

· ~ Ores· and Metals (SITC

27+28+67+68)

· "i Fu~ls (SITC

:3)

·: 1 .

· · ~e.Ctured Goods (SITC 5 to 8 lese

67+68).,

Total

' .. ::.

All Food Items

. . ~

Agricultural Raw Materiale

·: Ores and Metels

49.1 37.1 . 24.1 . 2:3.3 . 15.1

^10.2

20~9

- 16.8 14.8 o.8 20.8 ' 43.7

5.7 8.0 6.8

Growth . Bates. 1965-1973

' ^.^. "12.8

..

_6.9,

7~4

9.5 23-.8

10 ..

6

~

.. 17.4 17.6 15.4 -

'

2.6 2.5 2.5

5.7 .

^•.

5.9 ··

. 6.~

7.8

^5.8 ^5.0 ^.

'·

61.4 66.5 .

69~5 (Annual Average· in. percent)

.j

12.0 ·. 1 .·

10.1 .. 12.0

^..

• ¹

12.9

10.0 12.6

.

S/2796.

. P~ge 6-.X :

.

\.

. ·

⁽^.

,

.

' '

,, ^'-

·. '

: ...

,

^'

^..

. . .

••\" ..

., .

. ·1

., .·· 1

', ' ..

•. _'

_. .

.

_.

.

_...._~_"_.

. ~ .. \ .

'""

.. .;... .·. . . ^~.

•' t -0 .

' .

.

' ' -

--~-ei_~

^_ ^·ufac

_ _ _ ___ _ _ _ _

^~€d^G^c^oda

. _ -~ ~ ^{_ _ _}

^•

~ j

^____

__

Sources: UNCTAD ^...Handbook of International Trade and Development

· -

Statistics

1976 Gene~

(9)

CS/2796 Pa&>-e 7-IV

cent to 6.8 par cent during the same period. The structure of the primary exporta, however, has undergone significant changeas The share of fuels in total exporta inoreaseà from 0.8 par cent to 43.7 per cent~ while both (a) raw materials (exoluding fuels) and (b) food, items decreased their ahare from 44.1 par cent to

25

par cent and from 49.1 par cent to 24 par cent respectively during the same period.

In 1913 fuels, ores and metals accounted for 5'8.5 per.-cent of the exporta of Afrioa.

Another aspect of the structure of Af.rican exporta, ia the high concentration of total exporta accounted for by one or two oommodities in each country. Thus in 1972 petroleum accounted for all the export earnings of the Libyan Arab Republic, for 82 per cent of those of Nigeria and for 60 per cent of those of Algaria. Copper brought in 91 per cent of Zambia's total export earninga and 58 par cent to Zaire. The share of coffee in Burundi's total experts was 80 per cent and coffee accounted for nearly one half of exporta from Rwanda and Ethiopia, Cotton represented 67% of the total value of exporta frAm Chad and 60% of the value of exporta from Sudan. Cocoa was reaponsible for 54 per cent of total value of exporta from Ghana and

BO

par cent of the value of thoae from E~uatorial Guinea. Other single export commodities of great importance to individual countries are wood and timber which accounted for

65

per cent of Congo's

total exporta earnings in 1972, iron ore representing

75

per cent of Liberia'a and 63 per cent of Mauritania'a. diamonds, providing 60 percent of Sierra Leone'a, sugar

89

par cent of .Mauritius, groundnuts 64 par cent of Gambia's and aluminium and bauxite accounting for 10 par cent of Guinea's export earnings. ( 2 )

The country'a concentration of the leading export earninga is another feature of African exporta. Thus a large share of crude petroleum is exported by Libya, Algeria, Nigeria and Gabon. Copper

2. ECA. Survey of Economie Conditions in Africa, 1973.

(10)

CS/2796

Page 8-IYt

by Zambia and Zaire, cotton by Egypt and Sudan, coffee from Ivory Coast, Uganda and Ethiopia, cocoa from Ghana and Nigeria, wood and timber from Ivory Coast, Gabon, Ghana and Congo, iron ore from Liberia and Mauritania and so on.

Thus a large amount of Africa's export earnings are realised in a small number of countries. In

1972

the two major petroleum

exportera, the Libyan Arab Republic and Nigeria accounted for more than one third of the regions total export earnings• Six countries, which export, petroleum, copper and phosphatee, Libya, Nigeria, Zambia7 Zaire, Algeria and Morocco, between them accounted for

60

par cent of the total value of experts from the region. Another

ei~ht countries, Egypt, Sudan, Tunisia, Ghana, Ivory Coast, Kenya1

each contributed just more than 2 par cent. While the remaining

27

countries, which represent two thirds of the total number of African developing cou<xries accounted for only

16%

of the total export value of the region.

The Structure of Importa

The pattern of importa of Africa as a whole over the period

1955-73,

bas witnessed seme changes. The share of manufactured goods in total importa increased from

61.4

per cent in

t955

to

69.5

per cent in

1973.

The corresponding shares of food items decreased from

17.4

per cent to

15.4

per cent, fuels decreased from

7.8

per cent to

5.0

percent, ores and metals increased to

5.7

par cent to

6.3

per cent, and agricultural raw materiala kept their share constant over the same period.I c~nsumer goods accounted for

42.7

percent of the value of importa in

1960

decreased to

38.1

par cent in

1965

and rose again to

41.2

per cent in

1969.

The corresponding share

iE. See Table IV. 2

(11)

TABLE IV.3

CS/2'796

EXPORTS AN.D IMFOl,lTS OF GQQDS AND SERVICES AS A PERCENT AGE OF · GDP AT CONSTANT 197Q MJJUŒT PIUCES 1960 .Unl 19'/0 -

72

p ~.9-·-

Country

J .

Tbtal North Africa Algeria

Egypt

Libyan Arab Republi Mo rocco

. SUdan

''1\misia West Africa. Dahomey -Gra.mbia

Ghana Guinea Ivory Coast Liberia . Mair

Maur! tania

..

lUger Nigeria

( Senegal·

Sierra Leone Togo

-

^Upper ^Volta

'

.

- - -

re of

~ Share of

%

Sha EXports in Impor

CombineQ. Share ts in of Exporte and

GDP GDP

1960 1972 1960

Importe

in ·GDP 1-972 1960 1972

21 . 6 25.7 30.2 23.6 51.8 49.3

2~.5

24. 9 43.9 27.7 67.4 52 . 6 . 19.3 12.9 20.5

14.9

⁷

et5 ^83.1 ^28.6 ^19.2 ^98.6 ^{39.8 32} ^100.1 ^.1 ^-

26.7

¹

21.5 24.3

^·^21.~

51.0 43.3 17.0 19.5 16.3 19.1 33.3

^~

.. 6 . 23..0 24.8 30.0 28.5 5.3.0 53.3 20.7 23.5 24.5 21.-6 45.2 45.1 13.7 32.7 21.3 .39.7 45.0 67.4

'44•?

50.2

48e1

55.9 92.3 106.1

25.7 16.4 31.0 14.0 56.7

.30~4

25.0· 20.· 8 24.6 . 26.5 49.6 47.3 .34.1 .35.2 26.3 ,1.3 60.4 66.5

~.3

50.4 .32.9 ,36.9 75.2 87 • .3 13.2

~3.5

_ 20.7 29.3 33.9 52.8 . 17 • .3 41.9 56.2 - 29.8 73.5 71.7 15.6 18.1 15.6 2. 4.2 31.2 .42.3 14.5 21.4 - 20.2 1 ' 7.9 }4.7 39., 26.9 25.9 26'!9 25.9' 53.8 51.8 ^. ^. 39. 2. 29.5 36.2 27 .. 7 75.4 57.2

16.6

23.8 27.2 23.8 43.8 47.6 6.1

6-.,2~ -1·9

17.8 1 14. 0 24.0

!

- f

•

'

-

' ⁰

·_-Country 7!.:..;;... ,- .'

l"

Exporte .in

^s~

^of

t

^GDP ^·.

..

. 1960 .. 1972 .

Central

Airioa

^.^.

. 38.2 21.8

Brundi

12.5 10.7

Cameroon

24.2 "' 17 ·5

Central A!r. Republio

17.5 19.1

Chad:

15.5 1.9.3

Coneo

34.2 28.4

. Equatorial Guiœa

94.7 ^___

^..,

....

Gabon _'

,a., ^66.1

R~ --

'12.4 8.3

Za.1né

53.0 .. 35.5

-East .Atrioa

30._ 0 26.9

Botevana

22.8 .39.4

~Ethiopta·

9.8 . 11. - 4

· tenia . _,, ^22.3

^.^26.7

Lesotho

. 11.7 9.6

Mada«Ucar 1-14!9 18.2

Malawi. 18~5

20.5

MaUritius .

31.-5 58·8

Somali& _.-

17.5 20.7

Swaziland · _'

48.4 64.1

Tanu.nia

32.1 ' 26.8 .

Uganda

32.6 · 20.0

. Zambia . ·. .

ao.6. 52.2

· totaL ⁴¹

^--^Dev.

^Atriean ^fz4.7 ^25.4

Countries

~·-.~----... ~--~----··

L -

^Source:

- - -

^·snrve~r ^f ^~co~o..

^~-

^Cc^ndi^Lc^~s.in Africa 1973 ECA Add:i.s /,baba.

-.

fo shai-e

or cbmbined.~

Importa· in or--,Rxports and

GDP Importé j,n GDP

1960 . 1972 1960 1972

_,....,~ ...

- ·

36.3 .33.9 74.5 61.7.

13.4 12•7 25.9 . · 21.4

^.

19.7 .. 22.2 43.9 39.1 24.4'-' 21.3 41.9 40.4 .

22.5 , 24.6 .38.0 .43,.9 86.9 34.2 121.0 62.6 '

.

^·: ^'

65.9 --- ^1lD.5

^~- ^'

.37 • .3 65.4

7.5_-6 \

131.,.

'·

. . .

1().1 12.8 22.5 21;1 45-9 · 40•5

^{98.9 ·.}^76.0^·

r ^,~

\

6o.3

~'55~4 ^'>^\ ^•

'30.3

28.5

34·4 59.1

^-·^5.,~2

98.5 .

~

11.0 10.9-

^{. 20.8}

32'.2 .

^'

.31.8 29.7 54.2 56.4 . .

..

68.5

78~1

.38.5 50.2

. .

.

30~3

41.2 ·· ' .· ..

19.4 ·; 2 - ,.o 36.'3 1 ,1.l:

' ^,.,-

54.8 51 8

·'\.

. . ': ·-. ^..

^.~^..

^. 55.4

55.0

e- 6.9 11,-.s

~-

. \ · 23.6 . 29.3

f

41 . • 4

_50~ .

34·4

^1.

53.0 1 72.8 117.1

^..

29.5 '31.0 61.6 51.8

_.. _'

27 ·1 . 17.1 60.3 .37.1 . . 62.0

_48.0

1 143.2 ^100.2

^..

.29.2 24.8 53.9 50.2

.<,

i'

,. -~

v '

:

, .

..

.

"

--

\ .

..

_...^._...^:

-~- -: . . . . .. . . #

... • ~- . • .

. ....

'

--

.

- -· - ··· -- - ---..--

(12)

•

..

CS/2796 Page 10-IV:

of capital goods increased from 29.6 percent to 33.8 per cent and dropped to 29.0 percent over the sarne period. As long as ~he main characteristics of the economies of African çountries rernained al- most unchanged, failing to achieve real economie transformation of their economies by real industrialisation, no ch~ges ~n the pattern of experts and irnports should be expected. The structure of irnports .indicates the è~ntinuation of Africa's dependance on the rnanufactured

consumer goods, capital goods and technology from the developed market economies.

Dependence on Foreign Trade

Thà heavy dependance of African economies on foreign trade is

·quite obvious from the big weight of ·exports and irnports in the Q}Œ.

which accounted in 1960 for 24.1 percent and 29.2 percent respectively, rnaking a total of 53.9 per cent of the GDF. Between 1960 and 1972, no significant change has taken place, exports increase to 25.4 per cent, while importe declined to 24.8 per cent rnaking a cornbined total· of ·50. 2 per cent ·or 3. 7 per cent less than in 1960.

Th.e share of experts and irnports in the GDP of the ·d.evEfl.oped market economies cornprised 11.1 percent and 11.7 percent making a cornbined total·of 2~.8 percent in 1973. See Table IV.3.

In several African countries, the dependance on experts reaches levels far higher than the average for Africa. In 1972 the share of experts in GDP accounted for 1~.) percent in Libya, 66.1 per cent in Gabon, 52 pér cent in Zarnbia, 50.4 per cent in Liberia,

Bt:J't)swana-.3~. 4 :per. O·ent, ·42 per cent in Mauri tania, Zaire 35.5 per cen:t; Ivory Coast 35.2 per cent. · In ·sorne a·o'untries the share of experts is less ·than the avexage >for Africa as ln th'e casa· of' Egypt

· 12.9 per cent Etlaiopia 1 1. 4 per cent, 1

o.

⁷ ^per^cent in Burundi,

16.4 per cent in Ghana. See Table IV.3.

(13)

- .

'~

..

CS/2796 , :Pàge·· 11-Il

Under condition of unfavourable terms of trade,fluctuations of 'priees, declining pürohasilig power of priinary ·commodities·, the more dependent a country ·.on export trade' the. more vulnerable' thé wh ole of'ite economy· will be~ : '

'-

Share in "forld Experts and· Imports

·, . ' ·.

The slow rate of grQwtb_ of Africa¹

s

^export^re~ative^{to qther}

economie groups in the world, bas naturally ~esulted in a decline in

• • • 1 1 • . ~

ber share of world trade.

In 1948 the sbare of the developing market economies and the centrally planned economies inthe value of·world exper-ts bas im- prgved in co~parison with their previous leve~ in ·1938. The former .increa.sed the~r sha.re .from 26·. 4 ·per cent to 29.9 per cent; while the

l.a~t_el;l inc,reased their share from 3. 8 per cent tto -5.3 per cent. The .. e~ports of .t,he developed market economies decreased fr!l'm .66. 5 per

, 9ent, tq_. 6,3. 6 per cent. Since that time, howe.ver, th~ situation has

_ . .b.e~n _chan~ing continuous ly: in faveur: ·of t-he developed market economies.

They increased their share in world experts .from-63. 6 per -cent in

1948. t.~ 65.7 per ceni; in 1958 to 70.4 percent in 1968, to 7·1.5 per

.~ent ~n· 197·~· On the other band the share of the developing market economies in world experts seriously declined, by :12 p-er cent: from

29.9

per cent in 1948 to 17.8 per cent in 1971. Afrioa'a share in

.world experts similar to ether ·daveloping ·re'gions·, 'bas :been continuousl;

· · declining from 5. 3 .per cent in 1948 to 4. 3 'pei' cent

i ri.

1959 4 per cent and 3.6 par cent in 1968 and 1973 respactively. · See Table IV.4.

:·.

The: changes. in the share ,of t~e .tw;o grou.ps of: _th~ -~ar~t-_ economies in wo:rld imp9rts wer.e :aimillâr·)to'J.thoserin e.xp_<Drts. :.:~m.ca.~s share i,n '*ôrl,d ir;nports¹i.noreaeed;"'from_·. . _.44 2 ·perr;bent in -1938 .ito_. '"'5t_.6 .per cent i;n 1948. · Since .then, however Africa'.e. ~h _ _a.re· ·has _bee:n continuously declining, 5.3 par cent ~n 1958,, 3.4 per.c.ent in 1968, 3per cent in 1973. See Table IV.5.

•

(14)

TABLE. IV.4

'Wo.rld

Developed Market • Economies

Developing Market Economies

\ Central~ Planned Economies.

~

.

Africa ( e~luding South Africa)

..

•

. . : ...

-~-' ,. ,. .

.

CS/2796 · ... ·:.'"'.:

PagE>· 12 ... IL: . -. · '"" .. ; ; SRARE OF · THE !1A.Df. WORLD GH9UPINGS Uf EXroRl' TRA.DE F,O.B.

VALUE IN MILLION U. S..

i

^AND ^INPERCENTAGES 1938 - 1913_.

~

.

·~·

1938

1948

1958 1963 . 1968'

..

22,.700

(100) 57,500

( 100) . 108,600 .

( 100),. 154,600 ₁

( 100)

< •

~39,.700

(100) ,13,400 }50,500 417,100 . ( 100) ( 100) . ( 109)

.

15,100 36,600 71,400 104,200 168; 700 (66.5) (63,6) {65. 7) ... ._ . . .(67.4) (70.4)

.. 224', ?00 .. ; 251,600 . '298 ..

300

(71. 7) . (71.8)

·---~

(71.5)

. .

_-

6,000

{26.4) 17,200

(29~9) 24,900

{22.9) ^,^31,500(20.4) (3' 700

. 18.2) 55,300

(17 •. 6) . 62,500 (17.6) 1,600

(7.0)

. 3,

700

. (6.4) 12.,300 (11.3)

18,900 .

(12.2) 27,300

( 11 ~4)'

33,400

(10.7) 36;400 (10.4)

e6o

3,030 4,650 6,230 r,69o

(3.8) (5.3) . (4.3) . (4.0) (4 •. 0) 22,600 12,920 (4.0) (:5-i)

•.

- .

· ....

Sourceea Based on and deX'ived trom U.-B. Statietical Yearbook

1974 U.B. Bew York• '· .

' ^.

. ··..,

...

·j

·'

.

J'~ ^;

'!

•.

' ~~ .RJ:_; .. --

. . .._?:""

191.f- ·

574,200 ~ (100) · ...

..

407

,_100 .

(71.0) '-

, -~ <.::."-.

. ....

~- ,.

'

.

^·.

'

^.^·.

y ' .

,. "'- ·•

'_.· >

--~· ~-

·.

.

^._...._._~^._.^"^~_·;-^._.

. . ·. ~?.~=~-~---~~;~---~-

• L

··"

! .

.. - .