Dubai Chamber member companies’ exports to West Africa reach $387 million
Exports to West Africa by Dubai Chamber member companies increased significantly in the first few months of 2021, owing to a recovery in trade activity. Come read our blog to learn more!
Riding high on the growing ties between the UAE and African nations, Dubai Chamber member companies registered an impressive increase of 42% in exports and re-exports to West Africa by doing a record business of $387 million between January and May this year.
Unprecedented Exporting Numbers
The data released by the Dubai Chamber comes ahead of its preparation to host the 6th Global Business Forum Africa in Dubai this October in cooperation with Expo 2020 Dubai. The findings also revealed that the Chamber issued 3,201 Certificates of Origin for West Africa-bound shipments between January and May 2021, marking an annual increase of 20%.
Accounting for 32% of overall trading activities, Nigeria emerged as the largest market for Dubai-based exporters, followed by Ghana (17 %), Ivory Coast and Guinea (12 % each), Senegal (8 %), and Mali (4 %). According to the Dubai Chamber, the most common products exported to Africa were plastics (31 %), followed by electrical machinery/electronics (14%), machinery/mechanical appliances (13 %), and aluminum (6 %).
In 2019, the International Trade Center (ITC) identified plastic, rubber, and sugar as key commodities with the highest value of untapped export potential in the West Africa region. Now, the list includes polyethylene, rice, trigger batteries, polypropylene, textiles, milk powder, and copper wires.
As per the ITC, the trade between UAE and West Africa is currently valued at $2.1 billion. A decade ago, South Africa used to be the UAE’s most important trading partner in Africa. However, the Emirates has recently strengthened its economic relations with other countries in the African continent.
Huge Resources Remain Unexploited
The UAE-Africa trade has the potential to double in the coming years as $544 million worth of exports to Nigeria remains untapped by UAE traders. Senegal has an export potential of $397 million and Ghana $365 million without exploitation. Moreover, Kenya, with an estimated untapped business potential of $88.2 million, Egypt $81.3 million, Tanzania $63.6 million, and Ethiopia-$35.5 million, hold promise for UAE exporters. The UAE can also boost its exports to high-potential African markets of Somalia, Sudan, Libya, and Djibouti.
Through its network of representative offices, the Dubai Chamber supports businesses exploring promising African markets. These offices, which are located in Ethiopia, Ghana, Mozambique, and Kenya, identify market opportunities for Dubai Chamber member companies and support African businesses that are keen to enter the Dubai market.
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