Since the outbreak of World War II, Africa’s total foreign trade has expanded significantly. The growth compares favorably with other developing regions such as Latin America . However, the value of imports exceeded exports for some time, resulting in a huge trade imbalance for most African countries. The large expansion of African exports is usually attributed to the increased demand for commodities during World War II and the immediate postwar reconstruction period. Subsequently, the independence of a large number of African countries, especially in the early 1960s, accompanied by a desire for economic development, increased the desire to expand exports. Another reason for the rapid growth of African exports was the temporary rise in commodity prices, although subsequently the general trend, with the exception of oil, was a decline in commodity prices. The persistence of this situation was one of the reasons why many African economies were paralyzed by huge foreign debts.
Exports
An important factor in the growth of African exports was the discovery of oil in several countries, notably Libya, Algeria, Nigeria, Gabon, Angola, the Republic of Congo, and Cameroon, as well as the surge in prices caused by the Organization of the Petroleum Exporting Countries (OPEC) in the 1970s. Other factors include the discovery and increase of high-demand minerals, such as diamonds, especially in Sierra Leone, the Republic of Congo, the Central African Republic, and the Democratic Republic of Congo, as well as the development of other minerals. minerals, such as uranium ore.
Since independence, many African countries have attempted to diversify their foreign trade relations. However, the record of achievement is small, as Africa’s trade structure still reflected the influence of traditional ties with Western European countries . These ties were further cemented through a series of agreements, collectively called the Lomé Conventions, which guaranteed preferential access to the European Economic Community (forerunner of the European Community and later the European Union) for various African exports and provided European aid and investment financing. Nevertheless, significant export trade developed with the United States and Japan.
Export trade in most African states is dominated by one or two major commodities – for example, oil and petroleum products in Libya, Nigeria, Algeria, Egypt, Gabon, Republic of Congo, and Angola; iron ore in Mauritania and Liberia; copper in Zambia and the Democratic Republic of Congo; cotton in Chad; coffee in Burundi, Uganda, Rwanda, Ethiopia, Madagascar, Kenya, and Cote d’Ivoire; and sugar in Mauritius.
Imports
Africa’s enormous growth in import trade has meant that most African nations’ import expenditures have exceeded their export earnings; as a consequence, many governments have imposed import restrictions or subsidized many necessary imports. Most imports come from Western Europe, especially from the European Union, with strong trade links maintained along former colonial lines. However, imports from the U.S., Japan, and South Africa have increased significantly. Imports are necessary primarily for the development of manufacturing industries and are therefore largely limited to mineral fuels, manufactured goods, machinery, transport equipment and durable goods.