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Boosting Trades in Africa

The potential of Africa to become an exporter is really high. They only need their resources to be given attention to open doors for abundant production. Before, they do not know what they are capable of. But now, chances for growth are great because of their awareness of their potentials.

According to African Rice Center, Africa’s rice production increased by 18 percent in 2008. A prediction was also made that the region can be the main exporter of rice if there will have more land under cultivation. The increase is a result of the support provided by the African government to farmers during the global financial crisis since 2007. Senegal is now the 8th world’s largest rice producing country. This is just a proof that Africa is globally competitive. That they have something to say when it comes to trading industry.

Countries like U.S., France, and China are boosting their trade relationship with the Sub Saharan Africa. They noticed what Africa can offer them.

Since year 2000, there have been programs to boost the trading finance of the African region. African countries has started changing the way they do trade. Instead of landing to the former colonial leaders, they do it now by themselves, in partnership with some foreign investors. Before there were problems when it comes to the cost of exporting from Africa, corrupt officials tend to put higher prices on products leaving and entering their borders. But it is resolved now, every year, there is a greedy official being kicked out of his seat. This is just the introductory part of Africa’s Economic Revolution.

One step that African countries should take to get more trading opportunities is to diversify their products. They have a great source of products but it still needs expansion. More than agricultural products, or petroleum and diamonds, there are opportunities in machinery, medicines, iron and steel and equipments. This will provide open doors for exterior and interior businesses.

Eliminating of tariffs also shows that Africa is really committed in trade industry. Though it’s impossible to make all trades free, thanks because tariffs on goods was reduced to the lowest that it can be. Higher trade taxes on the region compared to other continents is one of the factors why investors get discouraged to start a trade among African countries.

On products where Africa has a clear advantage to produce and export, tariffs were also melted down. These products are raw materials such as fiber, pesticides, fertilizer and many more.

In July 2009 the African Development Bank (AfDB) showed its support for trade and finance by lending $500-million. This will be extended to all African companies who are involved in trading industry. AfDB is shared by 53 African countries and 24 non-African donor countries. With this fund there will have more focus on the improvement of Africa’s Trading Economy.

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