Tue 10-08-2021 13:22 PM
DUBAI, 10th August, 2021 (WAM) -- Dubai Chamber member companies’ exports and re-exports to West Africa surged by 42 percent in the first five months of 2021 to reach a record $387 million, fuelled by a recovery in trade activity, according to a recent analysis.
The analysis was released by Dubai Chamber of Commerce and Industry as it prepares to host the 6th Global Business Forum Africa in Dubai this October in cooperation with Expo 2020 Dubai. The data revealed that 3,201 Certificates of Origin for West Africa-bound shipments were issued between January and May 2021, marking a year-over-year increase of 20 percent, a Dubai Chamber press release said on Tuesday.
Export markets targeted by member companies were more balanced and diversified when compared to previous years, which is a clear sign that Dubai-based exporters are expanding to new markets.
Nigeria was the largest West African export market for member companies, accounting for a 32 percent share of the value of exports and re-exports to the region, followed by Ghana (17 percent), Ivory Coast and Guinea with 12 percent each, Senegal (8 percent), and Mali (4 percent).
Product categories of exports to the region were also diversified. Plastics accounted for 31 percent of exports, followed by electrical machinery/electronics (14 percent), machinery/mechanical appliances (13percent) and aluminium (6 percent).
The latest estimates by the International Trade Centre (ITC), indicate that there is potential for UAE traders to double their exports and re-exports to the Western Africa markets, currently valued at $2.1 billion.
In terms of markets, Nigeria is currently the largest market for member exports, yet it still has an estimated annual gap of $544 million worth of exports that could be captured in the near term by UAE traders. Senegal comes second with an untapped export potential of $397 million, followed by Ghana with $365 million.
The commodities with the highest untapped potential for export and re-export companies in the West Africa region include polyethylene, sugar cane and rice, trigger batteries, polypropylene, textiles from yarn and milk powder, pure copper wires and other products.
Through its network of representative offices, Dubai Chamber supports businesses exploring promising African markets. These offices – 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.