Africa’s changing place and role in the IER

From the point of view of economic science and commercial practice, modern international trade is an inseparable fusion of trade in goods and services. Export-import commodity transactions are inseparable from related services such as insurance, freight, warehousing, etc. In this sense, African foreign trade differs little from global models. However, in terms of trade in services (financial, legal, insurance, communications, services, etc.) rather than real goods, Africa lags far behind not only the developed world, but also all other developing regions. Taking this into account, another feature of Africa’s trade relations with the outside world is the dominant role of merchandise trade itself.

There are significant regional differences in the commodity structure, volume and price dynamics of African foreign trade. They are particularly profound between the Arab states in the North of the continent (mainly large oil and gas exporters, which also supply foreign markets with a fairly wide range of industrial products) and the states of Sub-Saharan Africa (SSA), which are generally less developed and mostly poor.

South Africa, Africa’s most economically advanced country with a diversified economy, developed agriculture and strong industry, stands apart among the continent’s countries. Some South African industries (such as mining equipment, etc.) still retain a leading position in the world. The country is Africa’s largest supplier of industrial products to foreign markets. However, like many other countries of the continent, its exports are based on minerals.

Thus, another feature of Africa’s international trade is the clear differentiation of the three economic and geographic areas – North Africa, Sub-Saharan Africa (SSA) and South Africa. They differ greatly in basic characteristics: the volume of trade turnover, the terms of trade, the level of diversification of geographic distribution, and the commodity structure of exports and imports.

Finally, the fourth feature is that the persistence of “real marketability” of African foreign trade allows the continent’s countries, almost for the first time in the history of independent development, to change the hierarchy of economic relations with the developed world in their favor. Under the transformation of the world economic development model at the beginning of the 21st century, the countries of the continent for the first time cease to be just an object of economic relations in the world economy formed without taking into account their interests.

For almost four decades of independent development, there has been virtually no fundamental change in terms of the position of African states in the world system of commodity exchange.

Africa was and still is perceived by many as only a backward and subordinate peripheral region of the world. Indeed, according to the main macroeconomic and human development indicators, most countries of the continent still remain in low places in the world rankings (the continent’s share in world GDP does not exceed 2%, in trade – 3%, and in investment – 5%). Internal and interstate (often armed) conflicts, worsening problems of poverty, hunger and the spread of infectious diseases in the continent have forced the international community to add African issues to the list of global problems of humanity.

In recent years, however, leading world powers and centers of economic power have come to recognize the high importance of resource, human and increasing economic potential of Africa in the emerging new model of global development and the world economy. The consequence of this understanding was the increased economic expansion into this resource-rich region by all countries, without exception, claiming the role of a significant player on the world stage and a significant force in the future world economy. Their task is to guarantee their position in the region by investing in existing and emerging economic chains. This will not be limited to trade relations with African countries in the future, but will enable them to gain a foothold in Africa in the future. In this case, they will guarantee themselves the inflow of a significant amount of its resources necessary for their own development in the new economic conditions of resource scarcity.