DUBAI: Exports and re-exports of the member companies of Dubai Chamber to West Africa rose by 42 percent in the first five months of 2021 to reach a record $387 million, the Chamber said on Tuesday.
The increase has been triggered by a recovery in trade activity, according to an analysis released by the Dubai Chamber of Commerce, which will be hosting Global Business Forum Africa in Dubai this October in cooperation with Expo 2020 Dubai.
According to the analysis, a total of 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 percent.
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 percent share of the value of exports and re-exports to the region, followed by Ghana (17 percent), Ivory Coast and Guinea with 12 percent each, Senegal (8 percent) and Mali (4 percent).
Product categories of exports to the region were also diversified. Plastics accounted for 31 percent of exports, followed by electrical machinery/electronics (14 percent), machinery/mechanical appliances (13percent) and aluminum (6 percent).
A statement by the Chamber said the latest estimates by the International Trade Centre (ITC) indicate 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.