- Sanjeev Gupta, Kevin Carey, and Ulrich Jacoby
- Published Date:
- October 2007
© 2007 International Monetary Fund
Production: IMF Multimedia Services Division
Cover Design: Lai Oy Louie
Typesetting: Alicia Etchebarne-Bourdin
Cover Photo: © Gideon Mendel/Corbis
Carey, Kevin Joseph, 1967–.
Sub-Saharan Africa: forging new trade links with Asia/Kevin Carey, Sanjeev Gupta, and Ulrich Jacoby—Washington, DC: International Monetary Fund, 2007.
Includes bibliographical references.
1. Africa, Sub-Saharan—Foreign economic relations—Asia. 2. Asia—Foreign economic relations—Africa, Sub-Saharan. 3. Africa, Sub-Saharan—Commerce. 4. Africa, Sub-Saharan—Economic conditions. 5. Africa, Sub-Saharan—Economic policy. I. Gupta, Sanjeev. II. Jacoby, Ulrich. III. International Monetary Fund.
Disclaimer: This publication should not be reported as representing the views or policies of the International Monetary Fund. The views expressed in this work are those of the authors and do not necessarily represent those of the IMF, its Executive Board, or its management.
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African, Caribbean, and PacificAGOA
Africa Growth and Opportunity ActATC
Agreement on Textiles and Clothing (WTO)CEMAC
Communauté Économique et Monétaire de l’Afrique Centrale (Central African Economic and Monetary Community)CNOOC
China National Offshore Oil CorporationCOMESA
Common Market for Eastern and Southern AfricaEBA
Everything But Arms initiative (European Union)ECOWAS
Economic Community of West African StatesEIA
U.S. Energy Information AdministrationEU
National Oil Company of Equatorial GuineaGSP
Generalized System of Preferences (WTO)ISO
International service outsourcingLAC
Latin America and the CaribbeanMENA
Middle East and North AfricaMFN
Poverty Reduction and Growth Facility (IMF)RTA
Regional trade agreementsSADC
Southern African Development CommunitySITC
Standard International Trade ClassificationWTO
World Trade Organization
Sub-Saharan Africa’s share in world trade has been declining since the 1970s. The growth in many emerging economies in Asia, in particular China, and the associated increased demand for commodities is creating opportunities for the region to reverse this decline and to use trade to promote growth and reduce poverty. This paper examines shifts in sub-Saharan Africa’s trade with different regions since 1985 as well as changes in its composition, including trade in manufactured goods. It also presents estimates on the extent to which sub-Saharan Africa is exploiting its trade potential, using a benchmark model. This is followed by an analysis of the impediments to trade that are specific to the region, and suggestions to tackle these in order to make trade an engine of growth.
An earlier, shorter version of this paper’s material appeared in the April 2007 issue of the Regional Economic Outlook: Sub-Saharan Africa. The authors wish to thank Benedicte Christensen, Arvind Panagriya, Volker Treichel, Dmitry Gershenson, and Yongzheng Yang for their guidance and help in preparing this paper, and Axel Palmason, Stephen Tokarick, Brad McDonald, Felix Eschenbach, Caroline Freund, Zhiwei Zhang, and Nuno Limão for helpful comments. They are grateful to Gustavo Ramirez for research assistance, Anne Grant for editorial assistance, Emma Morgan for production of the document, and Marina Primorac for coordinating production of the printed publication.