Editorial Comment: Africa must dictate terms of trade

zimpIt is disturbing to note that despite the fact that Africa is endowed with natural resources that constitute the bulk of the raw materials for industries, some of its countries remain among the poorest in the world. There are many factors attributed to this state of affairs but the major one is unfair trade practices by developed countries. Developed countries have come up with deliberate policies that ensure that the continent remains a source of raw materials and as such does not benefit much from its natural resources.

There have been repeated calls for Africa to process its raw materials into finished or semi-finished products in order to derive maximum benefits from its natural resources but not much has been achieved.

Beneficiation initiatives have been frustrated by the developed countries that are enjoying cheap raw materials from the continent.

Many African countries have been forced by circumstances to continue exporting their natural resources in their raw form. The developed countries have also ensured that Africa does not benefit from the global trade treaties.

According to the United Nations Commission’s latest report on Millennium Development Goals, there is still limited integration of African economies into the global markets. The report said Africa has benefited very little from international trade and economic arrangements.

“The policies prescribed by the International Monetary Fund and the World Bank (particularly Structural Adjustment Programmes) resulted in excessive economic liberalisation with disastrous effects, including the requirements to cut back on health, education and public service,” said the report.

Africa, the report noted, remains poor with very little rewards from international treaties despite the fact that most of its countries are the major producers of raw materials globally.  The developed countries continue to control the terms of technology transfer, private capital and foreign aid inflows while maintaining trade barriers to protect their domestic suppliers from cheaper imports from Africa.

According to the report, Africa’s share of the global exports represented only 3,4 percent of the total in 2012, up from 2,3 percent in 2000. It is therefore time Africa claims its share of the global market that reflects its abundant natural resources.

The call to add value to the continent’s natural resources such as minerals should be taken seriously by all African countries. Zimbabwe is among the countries that continue to export its resources that include minerals such as platinum and chrome in its raw form.

The country is also exporting its agricultural produce such as tobacco in their raw form. What is however comforting is that the government has already made a commitment to ensure that minerals such as platinum are processed locally and has in fact                   ordered mining companies to put up refineries.

It is our fervent hope that the mines are already working on the refineries so that platinum is processed locally. This will not only add value to our mineral but will also create jobs. There is also a need to invest in technology to ensure our products compete on the global market.

We want to once again implore Africa to be aggressive and claim its rightful place on the global market and be in a position to dictate terms of trade.

 

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