Dubai Chamber members’ exports, re-exports to West Africa up 42%

Dubai Chamber member companies’ exports and re-exports to West Africa surged 42 per cent in first five months of 2021 to reach a record $387 million, fuelled by a recovery in trade activity, recent analysis shows.

The analysis was released by Dubai Chamber 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 per cent.

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 per cent share of the value of exports and re-exports to the region, followed by Ghana (17 per cent), Ivory Coast and Guinea with 12 per cent each, Senegal (8 per cent), and Mali (4 per cent).

Product categories of exports to the region were also diversified. Plastics accounted for 31 per cent of exports, followed by electrical machinery/electronics (14 per cent), machinery/mechanical appliances (13 per cent) and aluminium (6 per cent).

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.

Established in 1965, Dubai Chamber of Commerce and Industry is a non-profit public entity, whose mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub.

Earlier the Dubai Chamber has launched a new online business intelligence tool to help Dubai traders identify the untapped potential for exporting commodities to 30 promising markets across the Mena region, Asia, Africa and Europe.