Africa’s continued dependence on exporting raw materials is leaving the continent increasingly vulnerable to commodity price swings, geopolitical tensions and global supply-chain disruptions, according to a new report by African Export-Import Bank (Afreximbank).
The warning is contained in Volume 10, Issue 1 of Afreximbank’s Trade and Development Finance Brief titled “Africa’s Trade and Investment Landscape”, which examines the structural challenges shaping the continent’s trade performance and investment outlook amid growing uncertainty in the global economy.
According to the report, Africa’s trade structure remains heavily concentrated in the export of primary commodities such as agricultural products, crude oil, natural gas and minerals, while imports continue to be dominated by manufactured goods, machinery and industrial inputs.
Afreximbank said this trade pattern has left many African economies highly exposed to adverse terms-of-trade shocks and external developments beyond their control.
“The existing export-import configuration leaves many African economies overly exposed
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