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Oil Products Dominate Africa's Exports to U.S.

The East African Standard (Nairobi)
NEWS
November 14, 2004
Posted to the web November 15, 2004

By Benson Kathuri
Nairobi
Petroleum products dominated Sub-Saharan Africa exports to the US under the
African Growth and Opportunity Act (AGOA) last year.
A report by the US Department of Commerce reveal that petroleum products
accounted for 80 per cent of all the AGOA exports.
Exports from sub-Saharan Africa also rose by 45 per cent from US$17,891 million
(Sh152 billion) in 2002 to US$25,644 million (Sh208 billion) last year, while
imports from the US to the region increased marginally.
"US exports to Sub-Saharan Africa rose 14.4 per cent to US$7 billion (Sh560
billion), due to increased sales of aircrafts, vehicles, computers and
telecommunications equipment," says the report.
US exports mainly went to Ethiopia, Equatorial Guinea, and Eritrea while
imports were mainly from the AGOA eligible countries.
"This figure includes duty-free imports from AGOA-eligible countries under both
the pre-existing US Generalized System of Preferences (GSP) and the expanded
AGOA," says the report.
Textile and apparel are also exported to the US under the preferential duty
terms.
For yet another year, Nigeria, Angola and South Africa dominated trade with the
first two exporting large volumes of fuel products to the US.
'AGOA textile and apparel imports increased by almost 50 per cent, to US$1.2
billion (Sh96 billion) and agricultural products grew 13 per cent, to US$241
million (Sh19 billion)," says the department.
However, Kenya is not classified as a major exporter to the US as total exports
concentrated mainly in textiles and apparel is below one per cent of the total
exports from the region.
Nigeria leads other sub-Saharan African countries in supplying 40.5 per cent of
the goods and especially oil products to the US market.
South Africa, exporting platinum, diamonds, and motor vehicles, is placed
second accounting for 18.1 per cent of the lucrative market.
Other emerging trading partners are Angola, Gabon, Code d'Ivoire and Equatorial
Guinea that jointly commanding 30 per cent.
Kenya is grouped together with the other smaller exporters that supplied a mere
11.6 per cent of the products.
However, woven and knit apparel that Kenya exports to the US was the second
largest exports from the region amounting to US$1.5 billion (Sh100 billion).
Crude and non-crude oil is the major export item amounting to a whooping
US$17.8 billion (Sh142 billion).
"Oil imports continued to dominate imports from sub-Saharan Africa with US$17.9
billion in oil imports in 2003, accounting for 69.6 per cent of all US
purchases," notes the department.
The US government however warns that the region continues to be marginalised in
global trade.
"The marginal increase in world economic activity has been insufficient to
encourage growth in Sub-Saharan Africa," observes the World undisputed super
power.

   

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