Market News

Information key to raising Africa trade numbers

Information

Benedict Oramah, president of the African Export-Import Bank

The size of intra-African trade could be doubled from the current $170 billion (about Sh17.6 trillion) a year to almost $400 billion (Sh41 trillion) through market information, Benedict Oramah, president of the African Export-Import Bank (Afreximbank) has said.

Dr Oramah said lack of knowledge on the continent and limited access to trade information among Kenyan and African businesses is a major constraint to cross-border trade.

He cited a study on the regional value chains for leather and leather products, commissioned by Afreximbank, UNCTAD and the Commonwealth Secretariat, which found Kenya imported raw hides from New Zealand yet Burundi exported the same to the world at a much lower price.

Better quality

The study established West African countries on average imported meat worth more than $3 billion (about Sh311 billion) annually from Argentina and Australia while Mali, Chad and Sudan could supply all the meat requirement.

It noted Australia is the main source of tanned hides and skins for southern Africa, including South Africa, even though Zambia exports its better quality stuff at lower costs.