Tanzania, Nigeria urge upon Africa-to-Africa trade
5 Aug 2007
Like most of the poor developing countries, one of the major problems of African farmers and industries is that they are simply working to make people in other countries richer. They produce what they do not consume and consume what they do not produce. Tanzania, which is famous for the production of coffee, sisal, cotton, cashew nuts, among others, export most of it as raw materials to the developed countries.
In this context, the former Nigerian President Olesegun Obasanjo recently asked the African countries to add value to their export products instead of remaining suppliers of raw materials and consumers of finished goods from the west.
General Obasanjo made the remarks in a meeting with the Tanzanian business community in Dar es Salaam, in a two-day tour hosted by the National Investment Company Limited (NICO).
He pointed out to the fact that despite several years of independence, most of the African economies still remain suppliers of raw materials to the industries in the West. He urged the African countries to trade more among themselves in order to tackle this problem. He cited the example of Tanzania being an abundant maize producer should export it to neighbouring Nigeria, which requires maize to supplement its own production.
General Obasanjo said that in the last fifty years, Africans have acquired experience through which they have managed to seek what they want and discard what they don't and therefore the paternalistic idea that some people can bring investment capital from Europe and North America to develop must be discarded.
The Confederation of Tanzanian Industries Chairman, Reginald Mengi, said there are serious investors within Africa who can invest directly in the continent and bring development in their respective countries just like foreign investors.
He said Africa is blessed with various natural raw resources, which they always export at very low prices to foreign investors from developed countries and end up paying much more to consume the imported finished products.
"By exporting natural resources in their raw form, Africa is in effect exporting both jobs and the value of its products to other countries, leaving its own people unemployed and poor," he remarked.
The CTI Chairman said that experience has shown that even African countries add value to their commodities by processing them; the processed products are denied easy market access in the developed countries which keep changing their market access conditions and erect entry barriers, including increasing tariffs for manufactured goods.
He said these conditions must prompt promotion of Africa-to-Africa trade and intensification of investment initiatives; otherwise the continent would continue to impoverish its people.
Released on: 5 August 2007
Resource: www.allafrica.com
