Publication Number: 3914

Report Title: Sub-Saharan Africa: Factors Affecting Trade Patterns of Selected Industries

Investigation Number: 332-477

Author's name(s): Brad Gehrke, Joanne Guth, Laura Bloodgood, Joanna Bonarriva, Samantha Brady, Roger Corey, Vincent DeSapio, Alfred Forstall, Andrew Gately, Dawn Heuschel, Douglas Newman, Philip Stone, Alan Treat, Jose Signoret

Date Published: April 2007

Report Description/Introductory Text: This report examines factors that affected trade patterns in sub-Saharan Africa (SSA) during 2001–05. Twelve industries are discussed: nuts (primarily cashews), cocoa butter and paste, cut flowers, prepared and preserved fish, acyclic alcohols, flat-rolled steel, petroleum gases (primarily liquefied natural gas), textiles and apparel (primarily apparel), unwrought aluminum, wood veneer, financial services, and tourism services. Most industries demonstrated strong growth in the value of exports during 2001–05), ranging from a 54 percent increase in the value of prepared and preserved fish exports to a nearly 300 percent increase in the value of cashew exports. Apparel was an exception, with growth of only 13 percent. The volume of exports also grew, but at a more modest rate, ranging from 1 percent for wood veneer to 160 percent for cashews.

The Commission found that increased export values were predominantly linked to four factors common among most of the selected industries: (1) demand growth and increased prices; (2) investment in new and expanded production capacity; (3) implementation of policies to promote industrial development, whether targeted to a specific industry or applied generally to all industries; and (4) improvements in general and industry-specific infrastructure. While SSA country governments had little control over global demand and prices, in many cases, the Commission found that various policies implemented by SSA governments contributed to the growth in exports. The Commission also identified other underlying factors that contributed to the development of various industries and facilitated African exporters' ability to respond to increased demand. These factors include: (1) availability of natural resources, (2) long-standing trade agreements and tariff preference programs, (3) abundant supply of low-wage labor, and (4) regional integration. In general, increased political stability and reduced conflict also contributed to improvement in the environment for economic and investment growth.

Topics Covered: Sub-Saharan Africa, cashews, cocoa butter and paste, cut flowers, prepared and preserved fish, acyclic alcohols, flat-rolled steel, liquified natural gas, textiles and apparel, unwrought aluminum, wood veneer, financial services, tourism, competitive factors, export growth, trade, investment, demand, regional integration, prices, government policy, tariff preference programs, trade agreements, infrastructure, natural resources

Countries: Angola, Benin, Botswana, Cape Verde, Cameroon, Cote d'Ivoire, Ethiopia, Equatorial Guinea, Gabon, Ghana, Guinea-Bissau, Kenya, Lesotho, Madagascar, Mali, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda

HTS Numbers: 0603, 1604, 1801, 1803, 1804, 2905, 2711, 2905, 4408, 7208, 7209, 7210, 7211, 7212, 7219, 7220, 6110, 6203, 6204, 7601

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