News / African trade with Asia and Europe lights up as countries boost export verticals

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Increased sourcing from Asia and a bolstering of exports and export diversity is leading to a seismic shift in African supply chains, with several countries capitalising on the wider shake-up in global trade to imprint themselves on international markets.

Prompted by the upheaval brought about by the return of Donald Trump to the White House and his blitzkrieg tariff policies, Morocco is marking itself out as a near-shore alternative to China in the European market, but forwarders say it is not alone.

Chief executive of pan-African logistics provider Logidoo, Tamsir Traore, told The Loadstar: “Morocco is indeed positioning itself as a nearshoring hub for Europe, especially as far as the automotive and textile markets go, but there are more countries worth watching.

“And then what we are also seeing are some early signs of supply chain shifts with African manufacturing (even on a small scale) becoming a part of the broader trend towards global diversification strategies.”

Singling out Tunisia, Rwanda, Kenya and Ghana, Mr Traore noted Tunisia’s strength in apparel, automotive components, and electronics for the European markets, with Rwanda active in policy and ecosystem-building for light manufacturing and tech assembly.

On top of which, he said that Ghana and Kenya have both been making strides through development of special economic zones and industrial parks intended to encourage local transformation and to increase export volumes.

The continent does not appear to be limiting itself, however, by focusing on just one market; Mr Traore is among several forwarders to have noted an upturn – albeit small at present – in export activity out of Africa towards Asia.

He added: “Asian merchants sourcing from Africa is nascent but evolving. There is growing interest, especially in agro-industrial products (eg, processed shea, hibiscus, dried fruits) and minerals, However, it is still largely raw material–driven.”

Even so, Mr Traore noted signs of value-added production gaining traction, echoing not only what other forwarders have told The Loadstar but World Trade Organisation data, which indicated a 59% increase in intermediate goods exports over the three years to 2022.

Again, the bulk of this came in the form of agro-industrial products but also included semi-finished products to be used in both the automotive and aerospace verticals, indicating some semblance of export diversification, with China seen to be actively supporting this.

One forwarder told The Loadstar: “China has been consciously focusing on Africa with focus on Sub Sahara Africa from an Investment perspective. We have noticed a large increase in Chinese manufactured-automotive, especially over the past year.

“And the quality has also been perceived as being above average and value for money. China also remains a very strong market for Sub Sahara Africa minerals, steel, tobacco and scrap metal,” they added.

Mr Traore said increasing economic partnerships between African countries and China were making their mark with an increase in volumes from African merchants sourcing from Asia, particularly through digital platforms that reduce friction in procurement and shipping.

“Trust is growing thanks to more transparent pricing, improved tracking, and streamlined payment and customs processes,” he noted.