Commodities in Africa lead continental growth

Commodities in Africa – The Continents Hero

I’m sure by now all of you around the world (regardless of what field you work in) are well aware of the degree in which countries across Africa have been growing. Between 2000 and 2012 the sub-Saharan Africa region expanded roughly 5.6% a year due to the abundant commodities in Africa. Africa’s overall growth has truly lifted gross domestic product per capita regardless of the intense population expansion the continent has experienced.

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.

3 reasons why external establishments want to do business with commodities in Africa

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.


#wheatcommodity #expansion #subSaharanAfrica #petrolcommodity #commodities

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