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Will Africa Finally Trade With Itself?
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Russia Ukraine War Blowback
Ukraine and Russia together are the most important wheat producing region on the planet. Together the two countries account for about 40% of global wheat exports. The invasion means that the problem moves from the high cost of wheat to finding wheat through more expensive alternative sources like France and Portugal.
As things stand, one in every three of the biggest importers of wheat from Russia or Ukraine are African countries, with Egypt as the biggest spender, spending more than $4 billion annually to feed its 100million population. The other big African importers are Nigeria, Sudan, Senegal, Tunisia, Morocco and Algeria which imports mostly from France.
But an equally intriguing problem for Africa is that European Union and US sanctions present major compliance issues for African governments which do business with Russia. The involvement of Russian players complicates the very survival of banks, companies or governments who have no choice but to comply with US sanctions. Like China, Russian trade and investment has also been increasing in Africa, and like China it has multiplied bilateral deals with African countries from $8 billion in 2015 to $20 billion in 2021.
Stay tuned and remember to subscribe
Ukraine and Russia together are the most important wheat producing region on the planet. Together the two countries account for about 40% of global wheat exports. The invasion means that the problem moves from the high cost of wheat to finding wheat through more expensive alternative sources like France and Portugal.
As things stand, one in every three of the biggest importers of wheat from Russia or Ukraine are African countries, with Egypt as the biggest spender, spending more than $4 billion annually to feed its 100million population. The other big African importers are Nigeria, Sudan, Senegal, Tunisia, Morocco and Algeria which imports mostly from France.
But an equally intriguing problem for Africa is that European Union and US sanctions present major compliance issues for African governments which do business with Russia. The involvement of Russian players complicates the very survival of banks, companies or governments who have no choice but to comply with US sanctions. Like China, Russian trade and investment has also been increasing in Africa, and like China it has multiplied bilateral deals with African countries from $8 billion in 2015 to $20 billion in 2021.
Stay tuned and remember to subscribe
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