The International Relations Subcommittee of the African National Congress (ANC), South Africa’s governing party, held a virtual Umrabulo (panel discussion) on Sunday 27th June 2021, where various matters were discussed. Of particular importance were the comments by Linidwe Zulu, South Africa’s Minister for Social Development with regard to Africa’s low levels of intra-Africa trade being rooted in the continuity of colonialism.
Zulu remarked that Africa is home to 17% of the world’s population, of which 60% is under 25 years of age, thus accounting for 3% of the world’s GDP and endless promise. Then she went on to say that despite this, “with 3% of the world’s trade [Africa] claims only 2% of the world’s manufacturing output compared with Intra-Asia Trade, which is 52%; Intra-North America Trade, at 50%; and Intra-EU Trade, which is at 70%. Intra-Africa Trade is small, covering only 16 to 18% of traded goods. Among other factors, the low level of Intra-Africa Trade results from the continuity of colonialism into present Africa and the exclusion of the informal sector by market research methodologies.”
Zulu went on to say that Africa must continue the work of international relations, regardless of the COVID-19 global pandemic. She further stressed that Africa must, “Learn lessons from the international environment and everything that is happening, including how the world is trying to deal with Covid-19.”
The other speakers on the panel included Alvin Botes, Deputy Minister of International Relations in South Africa and chairman of the ANCs Subcommittee on International relations, along with Wamkele Mene and Peter Katwesige.
Mr. Botes stressed the importance of the African Continental Free Trade Agreement as an important repository in an effort to negate poverty in South Africa and the African continent as a whole. Addressing the Umrabulo, he also stated that the purpose of the session was to reimagine Africa within a globalized world order that has become volatile, uncertain, complex and ambiguous. He also stressed the importance of vaccination drives stating that, “As we gather today, below 2% of Africa’s population has been vaccinated and approximately 20 African countries are in the middle of the third wave.”
Helping to Create Opportunities for Intra-Africa Trade
African businesses often find it difficult to obtain trade financing and other support they need to engage in easy cross-border intra-African trade. This is due to many reasons which include politics, a lack of cross-border relations between banks and also excessive regulation. Therefore, at Euro Exim Bank, we have made the entire African continent a focus area for us. We are creating opportunities for intra-Africa trade through easy access to world-class trade finance solutions. As a reputed international bank specialized in trade financing, we are ideally positioned to provide even the smallest businesses with the necessary support they need, unlike traditional local banks.
