Growing preference for made-in-Africa goods

African businesses increasingly prefer to trade across the continent’s borders over out-of-the-continent markets like Asia, the US and Europe, due to the rising quality of made-in-Africa goods, lower market prices, and accessibility. The Mail & Guardian reports that the latest Standard Bank Africa Trade Barometer, which tracks 10 African countries among the 54 signatory nations of the African Continental Free Trade Area Agreement (AfCFTA) shows 37% of the businesses prefer partners based in African markets compared to Asia (24%), Europe (16%) and North America (3%). Businesses from Namibia (75%), Tanzania (48%) and Angola (43%) showed the highest affinity for cross-border trade compared to firms from some of the continent’s biggest economies – Nigeria (34%) and Kenya (34%) with a huge preference for Asian markets like China. ‘Businesses surveyed report that trading within Africa is easier than trading with the rest of the world. This observation underlines their preferences in trading partners, revealing a significant lean towards engaging in commerce with African markets,’ the survey noted. The M&G notes that ongoing implementation of the AfCFTA has been the most significant contributor to easing trade barriers across country borders, propelled by the Guided Trade Initiative (GTI) that started with eight countries in 2022, trading in select goods to catalyse trade through preferential tariff arrangements. Up to 30 more African countries are expected to be covered by the GTI by the close of 2024, as well as an increase in the scope of products to be traded, including biopesticides, packaged moringa, tea, coffee, and meat products.