Trade & Investment

In the world’s poorest countries, trade and investment can catalyse economic growth and create opportunities that are critical to achieving long-term poverty reduction and development. While many developing countries have been able to climb their way out of poverty through new opportunities presented by the expansion of global trade, most African countries have not been able to reap these benefits. In 2008, 1% of global trade was worth $195 billion, more than five times what sub-Saharan Africa received in development assistance that year. Capturing an additional 1% of global trade could translate into substantial gains for Africa.
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Progress since Gleneagles

ON TRADE AND INVESTMENT, A VAGUE COMMITMENT HAS LITTLE TO SHOW

Little, if any, progress has been made in delivering any policy changes that help 'make trade work for Africa'. While aid for trade has increased over the years, it falls far short of the need. There has been some progress in terms of market access, but some products remain excluded and differences amongst programmes make them difficult to utilise. Further subsidy programmes have become entrenched. Momentum has all but vanished on the Doha Development Round. Things seem slightly more promising in terms of investment, with FDI to sub-Saharan Africa increasing nearly ten-fold from 2000 to 2008 (before a steep decline in 2009 due to the financial crisis) and anticipated capital increase for the African Development Bank, as well as new regional economic corridors taking shape. More must now be done to facilitate greater investment in the continent.

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$219bn - Collective spending on agricultural subsidies by Canada, the EU, Japan and the US in 2008, eight times the amount of ODA from the G8 to sub-Saharan Africa that same year.
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