Commodities in Africa – The Continents Hero
Establishments across the world which focus on commodities are heavily attracted to Africa and doing business with the region is such establishments’ number one goal.
The first reason why commodity business in Africa is on the rise is because demand is rising fast. Secondly, many African governments subsidies basic commodities such as petrol and wheat, in effect guaranteeing a return to the traders. Thirdly, most African countries lack the infrastructure needed to import raw materials, from silos for storing wheat and rice to terminals for unloading petrol.
Commodity based establishments say that, as they build this infrastructure, they will be able to secure a market and benefit from years of rising demand. Let’s hope for Africa’s sake that this is an honest and realistic objective.