This week on trade, the extractive industry once again is on the spotlight owing to series of
investment on the sector by particularly Asian leading economies of India and China. Stimulus
to increase Trade on the continent equally got its fair share.
Asian imports of West African oil jumps
Export of West African oil to Asia rose to a record high, thanks to factors like cheap freight fees
and a stronger Chinese demand. This November, export rose to 1.83 million barrels per day
from 1.62 million barrels per day. This is the second highest export to Asia ever.
Red tape at port costlier than shipping between ports: Economists mull Doha’s value
According to Doha Development Agenda, between $121 billion and $202 billion could be added
to the world economy annually if bureaucratic bottlenecks are dealt with at ports worldwide.
At the roundtable discussion, they deliberated on how to cut red tape and streamline custom
procedures. According to the discussants, “Trade facilitation” deal could cut trade costs by
more than the “impact of geographical distance” between countries. A 1% improvement in
indicators representing transparency and predictability could increase trade in manufactured
products by 0.7%.
E-commerce will expand Africa’s Trade horizon
E-commerce with the right framework will turn Africa into a competitive region in the global
village. This was the consensus at the Kuramo conference an international colloquium on
trade, law and economic development held on November 3 2010 in Lagos Nigeria. E-commerce
which is the buying and selling of products and services over the internet and other computer
networks can expand the horizons of the African market according to Eenver Daniels, the
South African chief state legal adviser. It was further agreed that developmental policies and
infrastructural development can always work in favour of trade promotion in Africa and against its mitigators.
Nigeria and South Africa to strengthen Trade relations
Nigeria and South Africa have sought to strengthen their trade relations. This was
communicated during a breakfast organized by Nigeria-South Africa chamber of commerce.
Thandi Mgxwati, political counselor/Head of Lagos mission of South Africa High Commission and
leader of the country’s delegation to the breakfast promised that his country was looking to
boosting trade between both countries by removing the bottlenecks associated with visa
application. Trade relation between both countries is considered to be in asymmetrical order
favouring South Africa than Nigeria. Since the launch of South Africa-Nigeria Bi- National
commission, trade between both countries has risen from $16.5million in 1999 to $2.1billion in
Nigeria’s Bonny crude exports to hit 2 year high
Owing to sustained peace in the Niger Delta region, export of Nigeria’s benchmark Bonny light
crude has hit 285,000 barrels per day in November up from 245,000 in October. The Amnesty
offered by the Nigerian government is yielding result as less economic sabotage is experienced
in the region. Repairs to sabotaged oil facilities in the Delta region have equally aided this rise in
output. In 2005, Bonny light reached its peak of 500,000.
West Africa crude falls as China takes fewer cargoes
Exports of West African crude has fallen as a result of depressed weaker margins in western
markets, excessive supplies in October and slightly less buying by Chinese companies.
Uncertainty as regards to security in the Delta region has also contributed to the lull in the
market as one of the militant groups in the region is threatening to end its cease fire and
resume hostilities by Nov 9 2010 if government does not honour its Amnesty promises. Chinese
buyers have picked 27-28 West African cargoes down from 36 in October. Indian buying has
Made-in-Nigeria gets a lift
The campaign for made in Nigeria product is yielding the desired result. This was stated by Dr
Michael Awunor president of Nigeria-Mali chamber of commerce, industry, mines, Agriculture
and Tourism (NAMACCIMAT) in Abuja when he said that over 50% of consummed goods in
West Africa are of Nigerian origin. According to him, Mali and Burkina Faso import over 300
tonnes weekly of made in Nigeria products amounting to 14,400 tonnes annually. Dr Michael
Awunor said this during a one day seminar/exhibition themed “the Malian experience”
organized by Nigerian export promotion council (NEPC).