Trade
Africa’s current account surplus amounted to 2.3% of the GDP in 2005; the current account deficit amounted to 0.1% of the GDP in 2004. In 2005, sub-Saharan countries ran an average deficit of 0.6% of the GDP, and countries in the Arab Maghreb Union ran an average surplus of 12.2% of the GDP. Trade surpluses in oil-exporting countries more than offset trade deficits in oil-importing countries.
Oil-importing countries had an average current account deficit of 3.3% of the GDP in 2005, and oil-exporting countries had an average current account surplus of 12.2% of the GDP. Out of 33 African nations for which information was available, 20 countries experienced a decline in their terms of trade from 2002 to 2005 and 13 experienced an improvement. The countries that experienced the worst decline in their terms of trade were oil importers. However, Botswana’s terms of trade improved because higher prices for oil imports were more than offset by higher prices for diamond exports. Similar reasoning held for Mozambique because of higher prices for aluminum; in Niger, for uranium; and in Zambia, for copper.
The average current account deficit for oil-importing countries is expected to increase to 4.1% of the GDP in 2006 and to 3.8% of the GDP in 2007. For oil-exporting countries, the surplus is predicted to rise to 15.4% of the GDP in 2006 and 15.8% of the GDP in 2007. Africa was expected to run a current account surplus of 3.6% of the GDP in 2006 and 4.2% of the GDP in 2007.
In 2004 or 2005, mineral fuels accounted for more than 90% of the export earnings of Algeria, Equatorial Guinea, Libya, and Nigeria. Minerals and mineral fuels accounted for more than 80% of the export earnings of Botswana (led by, in order of value, diamond, copper, nickel, soda ash, and gold), Congo (Brazzaville) (petroleum), Congo (Kinshasa) (diamond, petroleum, cobalt, and copper), Gabon (petroleum and manganese), Guinea (bauxite, alumina, gold, and diamond), Sierra Leone (diamond), and Sudan (petroleum and gold). Minerals and mineral fuels accounted for more than 50% of the export earnings of Mali (gold), Mauritania (iron ore), Mozambique (aluminum), Namibia (diamond, uranium, gold, and zinc), and Zambia (copper and cobalt). Gold was a significant source of export earnings in Ghana, South Africa, and Tanzania. Diamond was a significant source of export earnings in the Central African Republic and South Africa, as was uranium in Niger.
| % of production | Destination of LNG | ||
|---|---|---|---|
| Algeria | 72% | Europe | 88% |
| Nigeria | 13% | USA | 11% |
| Egypt | 9% | Asia | 1% |
| Libya | 6% | ||
Africa’s natural gas exporters included Algeria, which accounted for 72% of the continent’s natural gas exports, Nigeria, 13%, Egypt, 9%, and Libya, 6%. Europe received 91% of African total natural gas exports and was the destination of 95% of Africa’s natural gas exports by pipeline and 88% of Africa’s liquefied natural gas (LNG) exports. The United States received 11% of Africa’s LNG exports, and countries of the Asia and the Pacific region, 1%.
In 2005, Europe received 35% of Africa’s petroleum exports; the United States, 32%; China, 10%; Japan, 2%; and other countries in the Asia and the Pacific region, 12%. West African countries sent 45% of their exports to the United States and 32% to China, Japan, and other countries in the Asia and the Pacific region. North African countries sent 64% of their exports to Europe and 18% to the United States. Intraregional exports to African countries amounted to only 2% of total African petroleum exports.
Intraregional minerals trade was, however, significant for gold. South Africa imported 142,000 kilograms per year of gold mostly from West African countries to supply its gold refinery. A majority of African gold mine production was refined in South Africa Before export to other regions.
Most of Africa’s copper and PGM production was exported in refined form. The majority of Africa’s chromite production was processed into ferrochromium before export. For other commodities, which included bauxite, colored gemstones, diamond, iron ore, petroleum, and uranium, most of or all the continent’s production was exported before downstream processing.
Read more about this topic: Mineral Industry Of Africa
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