Africa: World IGs Exports Sees Growth As Africa’s Industrial Input Supply to Asia, Others Hits $40bn


Eromosele Abiodun and Oluchi Chibuzor

World exports of intermediate goods (IGs) maintained an upward trend in the fourth quarter of 2021, an increase of 21 per cent year-on-year (YoY), a report by World Trade Organisation (WTO) has revealed.

This is as the report revealed that Africa intensified its exports of industrial inputs in Q4 2021, notably to North America growing by 46 per cent YoY to $7 billion and Asia $33 billion an increase of 45 per cent YoY.

The WT, stated that World exports of intermediate goods increased by 21 per cent year-on-year in Q4 of 2021, with a yearly recovery of 28 per cent compared with 2020, the peak year of the COVID-19 pandemic.

It also noted that the 21 per cent year on year in the fourth quarter of 2021 continued the upward trend observed throughout the year, but added that growth was slower than the 27 per cent recorded in Q3 and the 47 per cent in Q2.

According to the report, the automotive sector, which was among the most affected by the COVID-19 crisis, slightly exceeded 2020 exports levels, rising by 2 per cent YoY in Q4 2021.

It added, “Also high-tech components like processors, integrated circuits and memories were the goods most traded within Asian supply chains.”

According to the WTO report, the pace of trade in IGs, which range from crops used in food production to textiles and metals needed to produce goods, is an indicator of the level of activity in supply chains.

“Similarly, other industrial supplies, comprising manufacturing inputs such as metal structures, electrical conductors and medical and pharma products, continued to be the key driver of growth, with a year-on-year increase of 31 per cent in Q4, “it stated.