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Navigating Growth Challenges: Prioritizing Equity in Sub-Saharan Africa’s Economic Recovery

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Global Trade Daily, International Trade, News

Navigating Growth Challenges: Prioritizing Equity in Sub-Saharan Africa’s Economic Recovery

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Sub-Saharan Africa’s economies are poised for a modest rebound in 2024, with growth projected to reach 3.4%, according to the latest Africa’s Pulse report from the World Bank. Despite this uptick, the region faces persistent challenges that threaten the sustainability of its recovery and the reduction of poverty.

While increased private consumption and decreasing inflation provide some support to the economic resurgence, vulnerabilities persist. Global economic uncertainties, mounting debt obligations, recurrent natural calamities, and escalating conflicts hinder the region’s growth prospects.

The report forecasts a gradual improvement in growth rates over the next few years, yet this progress remains fragile. Although inflation is moderating and public debt growth is slowing, many African governments grapple with external liquidity issues and unsustainable debt burdens.

Crucially, the pace of economic expansion in Sub-Saharan Africa lags behind that of previous decades and falls short of significantly alleviating poverty. Structural inequalities exacerbate this challenge, resulting in less effective poverty reduction compared to other regions.

Andrew Dabalen, the World Bank’s Chief Economist for Africa, emphasizes the need for transformative policies to foster faster and more inclusive growth. He notes that relying solely on fiscal measures is insufficient and calls for policies that enhance the private sector’s capacity to generate employment opportunities for all segments of society.

The report also highlights shrinking external resources for African governments and warns of heightened risks from political instability and geopolitical tensions. These factors, coupled with persisting inequalities, underscore the urgency of policy interventions to fortify the region’s resilience against future shocks.

Sub-Saharan Africa grapples with some of the highest levels of inequality globally, manifesting in unequal access to basic services and income-generating activities. Addressing these structural constraints is vital for fostering a more prosperous and equitable future, notes Gabriela Inchauste, co-author of an upcoming World Bank report on inequality in the region.

Africa’s Pulse outlines several policy recommendations to promote robust and equitable growth, including restoring macroeconomic stability, facilitating intergenerational mobility, improving market access, and ensuring fiscal policies do not disproportionately burden the poor.

In navigating the complexities of economic recovery, prioritizing equity and inclusivity is paramount for Sub-Saharan Africa to achieve sustainable and resilient growth.

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Global Logistics, Global Trade Daily, International Trade, Ocean Carriers

5 Major Ports in Africa That Are Strengthening African Trade

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Africa boasts a 26,000-kilometre-long coastline dotted with over 100 ports and harbours. However, despite this extensive maritime access, none of Africa’s ports rank among the top 10 busiest in terms of annual container traffic. Unfortunately, the development of sea ports in Africa has lagged behind other parts of the world in terms of efficiency and capacity for handling international cargo. 

A couple of global port operators are tackling this discrepancy, including Hutchison Ports, DPWorld, APM Terminals, and ICTSI, which operates five major African ports. Continuously looking for opportunities worldwide, the company recently announced the expansion of its portfolio to include DCT Pier 2 in Durban, South Africa—Transnet’s largest container terminal. 

The state of ports in Africa in 2023

According to the World Bank’s Container Port Performance Index 2021, the top 20 most efficient container ports in the world are all located in Asia and Europe. The highest-ranking African port is the Port of Tanger Med, which is ranked 34th on the list. 

Historically, there are a few challenges to developing sea ports in Africa. Many African ports have been underfunded for many years, which has led to outdated infrastructure and equipment. This can make it difficult for them to handle large volumes of cargo efficiently.

There’s also the geographic and socio-political reality of shipping in Africa that causes interconnectivity challenges. Many African ports are not well-connected to the road and rail networks of their respective countries, which can make it difficult to transport cargo to and from the ports. 

Nevertheless,  there are a number of African ports that are making significant progress in improving their efficiency and capacity. For example, the Port of Durban in South Africa and the Port of Tanger Med in Morocco are now among the most efficient ports in the continent. These two and more are making notable contributions to the economies of the region and changing the landscape of global shipping. 

What are the major ports in Africa?

Foreign investments have led to significant upgrades at major seaports across Africa. These are the major ports in Africa today—and how they’re contributing to the economies of the countries around the continent. 

Port of Mombasa, Kenya

The Port of Mombasa, operated by the Kenya Ports Authority, is the largest port in East Africa and a central hub for trade between Africa and Asia. It has expanded in recent years, and primarily exports tea, coffee, horticultural products, and other goods from inland African countries like Uganda, Burundi, Rwanda, eastern Congo, Ethiopia, and the southern part of Sudan. Approximately 35.9 million tonnes of cargo and 1.49 million TEUs were handled at the port in 2020.

Kenya’s major port in Mombasa also imports petroleum products, consumer goods, and machinery from Western Europe, Asia, America, and the Far East ports. In Kenya, trade contributed 15.6 % of Kenya’s GDP in 2020, making the port a major contributor to economic success in the country. 

Port of Durban, South Africa

While there are many ports in South Africa, the Port of Durban is a major commercial hub on the East African coast. The Port of Durban accounts for around 60% of trade revenue for South Africa and links products traveling between the Far East, Middle East, South and North America, Europe, and Australia. 

Development continues at this key port. Transnet SOC Ltd selected ICTSI as the preferred bidder for the 25-year joint venture to develop and operate Durban Container Terminal (DCT) Pier 2. 

“Our goal is to maximize the Port of Durban’s potential through responsible operations. We look forward to collaborating with Transnet and all the stakeholders involved, who share our vision for a world-class terminal that serves as a catalyst for economic growth in the region,” said Christian R. Gonzalez, ICTSI’s executive vice president.

Port of Toamasina, Madagascar

The Port of Toamasina may not be the biggest port in the world, but it’s among the most efficient—which is why it warrants a mention in this list of major ports in Africa. 

Strategically located on the eastern coast of Madagascar, Madagascar International Container Terminal Services Ltd. (MICTSL)is a key port facility in the Indian Ocean connecting African and Asian trade. The Port of Toamasina handles 90% of Madagascar’s container traffic. 

Since then, the terminal has been modernised to make port operations run more efficiently, reports The Africa Logistics.

Port of Matadi, Congo

Not all of Africa’s ports are located on the coast. Matadi is the most important port on the Congo River, handling 90% of maritime traffic (not including oil tankers). Approximately 150 kilometers upstream from the Atlantic, Matadi is a major import and export point for the whole of D.R. Congo. 

The Port of Matadi is the only terminal in DRC with mobile harbor cranes allowing gearless vessels to operate, and empty depot services accepting empty containers before vessel arrival. This allows Matadi to have the fastest turnaround time in the region for both trucks and vessels. 

Matadi enables the transport of the DRC’s rich agricultural exports, such as coffee, palm, oil, cotton, and sugar. Its mining sector, however, has been driving the economy with copper, cobalt, gold, coltan, tin, zinc, and diamonds as among its major exports. 

Port of Tanger Med, Morocco

The Port of Tanger Med is a new port complex located near the Strait of Gibraltar. It is one of the largest ports in the Mediterranean Sea and is well-positioned to serve as a hub for trade between Europe, Africa, and Asia. Tanger Med is a central hub for the export of automobiles, textiles, and agricultural products, and for the import of petroleum products, machinery, and consumer goods. It comprises four container terminals, two of which are operated by APM Terminals. 

“Tanger-Med handled 7,174,870 TEUs in 2021, and a total cargo volume of 101,055,713 passed through its general cargo terminal. The RORO terminal crossed the 400,000 mark in the same year, a remarkable achievement,” wrote Marine Insight. “This tremendous upward growth was achieved by port digitisation, reduction in waiting times, resumption of industrial exports and upgradation of port equipment.” 

Empowering the future of ports in Africa

Africa’s maritime ports hold so much potential for improvement. Investments from the private sector have led to the development of more efficient and more competitive port facilities like Onne Multipurpose Terminal in Nigeria and Kribi Multipurpose Terminal in Cameroon, both operated by ICTSI. As the largest independent terminal operator, ICTSI is working diligently to develop, modernise, and upgrade ports around the world, including in AfricaI. 

Learn more about ICTSI Africa’s ongoing projects and future initiatives, and stay informed about the evolution of vital port infrastructure across the continent.

Africa Is Taking Centre Stage In Food Security - And So Is Congolese Potash
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Africa Is Taking Centre Stage In Food Security – And So Is Congolese Potash

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The second highly successful US Africa summit which has just concluded in Washington D.C. marks the beginning of a new chapter in US-Africa relationships.

Geopolitical shifts have created major dislocations in the international energy and fertilized markets, massively impacting emerging and developed marketplaces alike, highlighting the critical need for sustainable global food security solutions.

Indeed a new African food security renaissance is about to take place – As a critical world leading nation, the United States of America has promised to rise to the challenge as a genuine, engaged and powerful partner in the building of Africa as a sustainable food security powerhouse -And the Kanga Potash project is an integral piece of this critical equation.

After 5 years and over USD40m, the Kanga Project team has completed its Definitive Feasibility Study (DFS) and is now preparing to move to the execution phase to develop what is one of the most promising potash production projects in the world, taking place in one of the most strategic locations on the African continent.

The country is blessed with enormous undeveloped reserves of potash, abundant natural gas, as well as phosphate. Straddling the equator on Africa’s west coast, it is uniquely positioned to supply the African continent to the north, south and center, all areas which are geared to emerge as agriculture powerhouses.

The Congo is also perfectly located across the Atlantic to supply Brazil and the rest of the South, and North American continent.

The Kouilou Region of the Republic of the Congo contains billions of tons of proven reserves of potash-rich carnallite, which can be recovered to produce potash in an ecologically friendly way, through tried and tested mining solutions.

The Project Team has also proven the existence of ultra thick super seams which are unique to its licenses and which have never been seen anywhere else in the world.

These ultra thick seams have a dramatic impact on the cost of production of potash as it drastically reduces the amount of solution mining caverns required to recover the carnallite.

Finally, the Kanga License sits directly on the Atlantic coast with planned export facilities a few hundred meters from the ocean. Independent potash export jetty facilities erase traditional logistics nightmares which other suppliers might face. Kanga will thus be the lowest cost supplier to both continental and international markets.

The combination of a strategic geographic location and these unique super thick seams position Kanga as a key player in African and global food security integrity.

The government of the Republic of Congo, under the Leadership of its President, Denis Sassou Nguesso, who participated in the US-Africa Summit, as well as his State Minister of Mines, Mr. Pierre Oba, are highly supportive of fertilizer mining projects in the Congo. Recognizing the significant work completed by Kanga Potash, the government granted a production license to Kanga Potash in late July of 2022. The Minister’s teams have since been working diligently with Kanga Potash to finalize as expediently as possible the signing of the Mining Convention, which is required to begin work.

The Government has also adopted a development-focused policy and has been extremely supportive in negotiating a long-term gas supply agreement at viable prices.

For years, natural gas has been flared at great expense to the environment, with the Republic of Congo residing on top of vast natural gas reserves. The newly appointed Minister of Hydrocarbons, Mr. Bruno Itoua, has demonstrated critical leadership in implementing the President’s carbon footprint reduction policies, having imposed a strict ban on flared gas, which will be redirected to the development of domestic industries.

The Kanga team is in discussions with industry players and financial institutions who are working on reaching financial closure for the USD500m CAPEX project. The Project has completed a NI43-101 Report. The first stage of implementation and next phase of work entails front end engineering and the drilling of the first production well, which will not only be used to further strengthen its resource report with measured and proven reserves sufficient for life of mine at all production scenarios, from 200 ktpa right through to 2m+ tpa, but it will also be used as the first well in the extraction of carnalite for processing.

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Archives, Global Logistics, Global Trade Daily

Moving Past COVID-19: Risk Mitigation Strategies to Drive Supply Chain Resilience

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As the world begins to ease movement restrictions imposed during the COVID-19 pandemic, companies are wondering where they go from here and how they can reduce risks moving forward.

These questions are especially relevant to supply chains, as the pandemic disrupted trade flows across borders, from raw materials to finished products. The initial decline in production in China rippled across the world, as the country sits at the heart of many global manufacturing networks. As the virus spread west, more nations instituted lockdowns to protect public health, leading to an increase in factory closures and a sudden drop in consumer demand.

The shock to the global economy was breathtaking in both scope and speed. The search for efficiencies within disrupted supply chains is now driving organizations to look at the lessons that can be learned, in order to better manage and mitigate risk of disruption from future events.

Before you develop risk mitigation strategies, you have to first understand how your suppliers were affected by the pandemic. Are they considered essential? Did they have trouble sourcing raw materials or run low on critical inventory? Did they suffer a shortage of labor due to workers falling sick? Did they face transportation issues?

Once these questions have been answered, then you can start developing and implementing risk mitigation strategies: from immediate actions to enhance supply chain resilience and reduce future supply bottlenecks, to longer-term strategies that require a greater investment of time and resources.

Short- to Medium-Term Strategies

1. Develop a supply chain risk monitoring program

If not already in place, companies should integrate risk management into their supply chain, sourcing strategies and ongoing category management processes. A comprehensive risk monitoring framework should capture the following key elements:

-Understanding the critical risk-prone categories and level of risk across the supply chain

-Regular monitoring of different risk types across suppliers – going beyond just financial indicators, to cover operational, compliance, strategic and geographic risks

-Scenario and contingency planning for unforeseen situations

2. Identity alternative logistics partners for future contingencies

Companies trying to recover from economic lockdowns will face hurdles in shipping markets roiled by deep capacity cuts and weeks of disruption. Airfreight could be constrained for months as airlines continue to operate reduced schedules. Identify and qualify alternative logistics providers to mitigate service failures by an existing partner.

3. Shift supplier base to other low-cost countries

The drop in exports from China in the first quarter led to a significant increase in sourcing from other countries for many product categories. American and European manufacturers started sourcing raw materials and goods from low-cost countries such as India, Vietnam, Bangladesh and Turkey. A diversified geographical sourcing strategy is an effective way to ensure supply chain continuity. Larger companies are leading the charge in this respect: Apple, for example, recently pledged to invest more in Vietnam.

4. Adequate focus on ensuring compliance with new regulatory norms

Companies need to assess new regulations put in place by regulatory bodies across the globe, and identify those that impact their supply chains, manufacturing processes or end products. Dedicating time and resources to reviewing and adapting existing procedures will be critical to ensure compliance with the latest requirements.

Long-Term Strategies

1. Implement a Direct-to-Consumer (DTC) model for uninterrupted supply

COVID-19 has affected many e-commerce businesses as well as how consumers shop. Brands need to be agile and able to move at speed to find and meet demand. Many B2C businesses (and their partners) are pivoting to a direct-to-consumer model because it helps strengthen brand loyalty and increase consumer confidence in terms of certainty and guaranteed supply of goods and products.

2. Develop alternative supply chains

Developing new supply chains in collaboration with respective governments can ensure faster delivery of key raw materials. Further, to avoid supply chain disruptions arising from factory shutdowns in the future, companies can develop a manufacturing network strategy that leverages government economic development programs that encourage domestic production.

3. Consider supply chain digitalization supported by automation

The coronavirus crisis may be a tipping point in the transition to digital platforms and applications that help establish an interconnected network of supply chain components. In a digital supply chain, every activity is able to interact with one another, allowing for greater connectivity between areas that previously did not exist.

Investment in technologies such as artificial intelligence, machine learning and Internet of Things can help companies gain real-time visibility, better manage inventories, improve logistics tracking and make better-informed decisions. These alternatives to often error-prone ERP systems and manual spreadsheets can help businesses predict disruptions and design actionable mitigation strategies.

4. Adopt robust demand planning practices

Traditional planning tries to match demand with supply for the next 30 days. The problem with this process is that a lot of things can change in a month, or even a week. Today’s fast-moving markets require more forward-looking planning to correctly determine demand for future production and identify potential material and manufacturing capacity shortages. Companies should also invest in strengthening their online presence, and focus on quality assurance and delivery timelines, as more and more customers become reliant on e-commerce channels.

Outlook for the future

The COVID-19 pandemic has had significant effects on international supply chains. Going forward, the crisis is likely to give further impetus to trends already underway. More companies are seeking to leverage their production plants outside China or are planning to build production in new locations. The shift to online shopping will accelerate, putting more pressure on companies to meet expectations in an on-demand economy.

When planning ahead, timely, relevant market intelligence is fundamental to making complex decisions and embedding long-term strategies.

Access to timely, relevant market intelligence, conducting the right analysis and asking the right questions now, will provide the opportunity to build a robust, agile procurement strategy that minimizes risk and safeguards business continuity, without sacrificing profitability.

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Tavleen Kaur and P Vijay are Research Managers at The Smart Cube

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Africa’s Palm Oil Market – Foreign Suppliers Benefit From Resilient Market Growth

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IndexBox has just published a new report: ‘Africa – Palm Oil – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The palm oil market size in Africa is estimated at $8.2B in 2018, an increase of 3.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

The total market indicated a resilient expansion from 2007 to 2018: its value increased at an average annual rate of +4.6% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, palm oil consumption increased by +9.3% against 2016 indices. The most prominent rate of growth was recorded in 2011 when the market value increased by 24% year-to-year. Over the period under review, the palm oil market attained its peak figure level at $9.9B in 2014; however, from 2015 to 2018, consumption stood at a somewhat lower figure.

Consumption By Country in Africa

The countries with the highest volumes of palm oil consumption in 2018 were Nigeria (1.2M tonnes), Egypt (959K tonnes) and Kenya (705K tonnes), with a combined 31% share of total consumption. These countries were followed by Tanzania, Ghana, South Africa, Democratic Republic of the Congo, Djibouti, Mozambique, Uganda, Togo and Cameroon, which together accounted for a further 42%.

From 2007 to 2018, the most notable rate of growth in terms of palm oil consumption, amongst the main consuming countries, was attained by Djibouti, while the other leaders experienced more modest paces of growth.

In value terms, the largest palm oil markets in Africa were Nigeria ($861M), Egypt ($626M) and Tanzania ($559M), with a combined 25% share of the total market. Kenya, Cameroon, Ghana, Djibouti, South Africa, Togo, Uganda, Mozambique and Democratic Republic of the Congo lagged somewhat behind, together accounting for a further 37%.

In 2018, the highest levels of palm oil per capita consumption was registered in Djibouti (431 kg per person), followed by Togo (40 kg per person), Ghana (18 kg per person) and Kenya (14 kg per person), while the world average per capita consumption of palm oil was estimated at 7.09 kg per person.

From 2007 to 2018, the average annual growth rate of the palm oil per capita consumption in Djibouti stood at +17.6%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Togo (+6.9% per year) and Ghana (+3.6% per year).

Market Forecast 2019-2025 in Africa

Driven by increasing demand for palm oil in Africa, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +3.9% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 12M tonnes by the end of 2025.

Production in Africa

The palm oil production amounted to 2.4M tonnes in 2018, approximately equating the previous year. Overall, palm oil production, however, continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2011 when production volume increased by 3.7% y-o-y. The volume of palm oil production peaked at 2.5M tonnes in 2008; however, from 2009 to 2018, production remained at a lower figure.

In value terms, palm oil production stood at $2.1B in 2018 estimated in export prices. Over the period under review, palm oil production, however, continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2011 when production volume increased by 9.7% year-to-year. In that year, palm oil production reached its peak level of $2.8B. From 2012 to 2018, palm oil production growth remained at a lower figure.

Production By Country in Africa

The countries with the highest volumes of palm oil production in 2018 were Nigeria (739K tonnes), Cote d’Ivoire (426K tonnes) and Democratic Republic of the Congo (410K tonnes), together accounting for 65% of total production.

From 2007 to 2018, the most notable rate of growth in terms of palm oil production, amongst the main producing countries, was attained by Democratic Republic of the Congo, while the other leaders experienced more modest paces of growth.

Exports in Africa

In 2018, approx. 462K tonnes of palm oil were exported in Africa; picking up by 7.6% against the previous year. Over the period under review, palm oil exports continue to indicate a prominent expansion. The growth pace was the most rapid in 2014 with an increase of 39% against the previous year. Over the period under review, palm oil exports attained their maximum in 2018 and are likely to see steady growth in the immediate term.

In value terms, palm oil exports totaled $355M (IndexBox estimates) in 2018. The total exports indicated a strong expansion from 2007 to 2018: its value increased at an average annual rate of +6.0% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, palm oil exports increased by +29.9% against 2016 indices. The most prominent rate of growth was recorded in 2014 with an increase of 33% y-o-y. Over the period under review, palm oil exports attained their peak figure in 2018 and are expected to retain its growth in the near future.

Exports by Country

In 2018, Cote d’Ivoire (200K tonnes) was the major exporter of palm oil, making up 43% of total exports. It was distantly followed by Ghana (80K tonnes), Kenya (59K tonnes) and Seychelles (45K tonnes), together creating a 40% share of total exports. South Africa (15K tonnes), Senegal (13K tonnes), Togo (9.5K tonnes) and Liberia (8.9K tonnes) followed a long way behind the leaders.

Exports from Cote d’Ivoire increased at an average annual rate of +7.6% from 2007 to 2018. At the same time, Liberia (+31.6%), Ghana (+23.8%), Senegal (+21.7%), Seychelles (+19.8%), Togo (+13.3%), Kenya (+4.9%) and South Africa (+4.2%) displayed positive paces of growth. Moreover, Liberia emerged as the fastest-growing exporter in Africa, with a CAGR of +31.6% from 2007-2018. While the share of Cote d’Ivoire (+24 p.p.), Ghana (+16 p.p.), Seychelles (+8.3 p.p.), Kenya (+5.2 p.p.), Senegal (+2.4 p.p.), Liberia (+1.8 p.p.) and Togo (+1.5 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest palm oil markets in Africa were Cote d’Ivoire ($133M), Ghana ($73M) and Kenya ($46M), together accounting for 71% of total exports. Seychelles, South Africa, Senegal, Togo and Liberia lagged somewhat behind, together comprising a further 22%.

Among the main exporting countries, Liberia recorded the highest rates of growth with regard to exports, over the last eleven-year period, while the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the palm oil export price in Africa amounted to $769 per tonne, jumping by 2.1% against the previous year. Overall, the palm oil export price, however, continues to indicate a slight contraction. The growth pace was the most rapid in 2008 when the export price increased by 20% year-to-year. Over the period under review, the export prices for palm oil attained their peak figure at $1,084 per tonne in 2012; however, from 2013 to 2018, export prices failed to regain their momentum.

Prices varied noticeably by the country of origin; the country with the highest price was South Africa ($1,021 per tonne), while Cote d’Ivoire ($665 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by South Africa, while the other leaders experienced more modest paces of growth.

Imports in Africa

In 2018, the palm oil imports in Africa stood at 7.1M tonnes, surging by 5.1% against the previous year. Over the period under review, palm oil imports continue to indicate a remarkable expansion. The most prominent rate of growth was recorded in 2014 with an increase of 21% against the previous year. The volume of imports peaked in 2018 and are likely to see steady growth in the near future.

In value terms, palm oil imports totaled $4.8B (IndexBox estimates) in 2018. The total imports indicated a buoyant expansion from 2007 to 2018: its value increased at an average annual rate of +7.2% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, palm oil imports increased by +7.9% against 2016 indices. The most prominent rate of growth was recorded in 2011 when imports increased by 33% against the previous year. Over the period under review, palm oil imports attained their maximum at $5.8B in 2014; however, from 2015 to 2018, imports stood at a somewhat lower figure.

Imports by Country

Egypt (968K tonnes), Kenya (764K tonnes), Tanzania (648K tonnes), Ghana (481K tonnes), South Africa (473K tonnes), Nigeria (425K tonnes), Djibouti (419K tonnes), Uganda (343K tonnes), Mozambique (342K tonnes) and Togo (320K tonnes) represented roughly 73% of total imports of palm oil in 2018. Algeria (198K tonnes) and Angola (178K tonnes) held a relatively small share of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Nigeria, while the other leaders experienced more modest paces of growth.

In value terms, the largest palm oil importing markets in Africa were Egypt ($592M), Kenya ($505M) and Tanzania ($455M), together comprising 32% of total imports. Ghana, Djibouti, South Africa, Nigeria, Uganda, Mozambique, Togo, Angola and Algeria lagged somewhat behind, together accounting for a further 45%.

Nigeria experienced the highest rates of growth with regard to imports, in terms of the main importing countries over the last eleven years, while the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2018, the palm oil import price in Africa amounted to $673 per tonne, declining by -10.5% against the previous year. In general, the palm oil import price continues to indicate a mild decrease. The pace of growth appeared the most rapid in 2008 an increase of 29% y-o-y. The level of import price peaked at $1,038 per tonne in 2011; however, from 2012 to 2018, import prices stood at a somewhat lower figure.

Average prices varied somewhat amongst the major importing countries. In 2018, major importing countries recorded the following prices: in Angola ($806 per tonne) and Djibouti ($746 per tonne), while Egypt ($611 per tonne) and South Africa ($627 per tonne) were amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Mozambique, while the other leaders experienced a decline in the import price figures.

Source: IndexBox AI Platform