UK Trade with Africa Means Increase in Volume of Cargo to Africa

 There are 54 independent sovereign states in the continent so the scope is huge for big trading nations to enhance their exports

Once Africa was called ‘dark continent’ but now it has been on road to progress. Though still many countries have been fighting wars or witnessing civil unrest but things have improved a lot. Trade of this continent with the rest of the world is increasing and cargo to Africa from UK also showing a reasonable increase in volume.

There are 54 independent sovereign states in the continent so the scope is huge for big trading nations to enhance their exports to these countries. Peace is key to stability and progress and with time disputes are being resolved so that people of this continent may witness progress and enjoy prosperity.

The total population of these 54 countries and 2 disputed territories almost equal to the most populated country in the world. So, such a huge market has great potential. The major part of the UK exports to this continent is for South Africa. The country exports goods of $2.7 billion in 2018 to this single African country.

The United Kingdom is keen to revamp its trade relations with the whole world after taking the big step of leaving the European Union. At UK Africa summit, Boris Johnson expressed high hopes regarding trade between the UK and Africa. Other European countries also have strong trade ties with this continent as they also realize, how big market it is. 

In fact other European Nations are ahead of the UK. This is why after Brexit UK has an uphill task to prove the decision right. At the summit, the premier welcomed leaders from 20 African countries, gathered in London.

He assures them that African countries also have opportunities before them to export to the UK, so it will be two way traffic rather than just exports from the UK to African nations. 

UK Cargo Companies Will Get More Business for This Route

Transportation of goods to and from Africa is carried out through sea and air routes. Sea cargo to Africa reaches on different ports in the Atlantic and Indian oceans. These ports are dispersed throughout the continent and some of them are quite important.

Twenty seven European countries collectively outdo other countries in exports to this continent and the UK is far behind in this regard. With a well thought out policy, United Kingdom can improve trade volume over the coming years. Relaxation in trade policy also lets people to shift to this untapped market.

Holding summits, establishing forums and joint working groups can be helpful to devise a comprehensive plan to beat the competitors. Presently the UK has failed to offer something very lucrative to African nations to shift their interests from their present trade partners towards the UK.

Apart from trade, there are many investment opportunities present in Africa and UK can win political influence through identifying projects of mutual benefits and making an investment in them. The United Kingdom is giving due importance to trade with Africa, which will ultimately benefit cargo companies either involved in ocean cargo or air cargo.

Boris Johnson left the World Economic Forum to join UK Africa trade development event. Small individual parcels and envelopes carrying documents also booked by courier companies for Africa from the UK. But this usual activity makes little of the total volume. 

Presently the UK has signed new trade deals with 13 African countries

The UK has to show the difference between pre and post Brexit policies towards African trade otherwise all efforts in this regard could not bring desired fruit. Air cargo to Africa consists of valuable goods and urgent documents. A big volume of goods foes does not allow their transportation through expensive air cargo option.

Presently the UK has signed new trade deals with 13 African countries of the continent but without any major difference to the pre-Brexit trade deals with these nations. Blocs of countries present in Africa like the Southern African Customs Union can be tackled with extra relaxation so that bigger chunks can be taken off the market.

Many African countries once colonies of Britain so relations with these nations are centuries old and United Kingdom can persuade them to change trade by offering better access to UK markets. Competition is tough as many big trade nations and the European Union has already settled in these markets and competing for more share.

More trade means more cargo activity either by the ocean or air. Air cargo volume has increased manifold in recent decades and thus industry as adopted many changes. 

The whole continent is connected through land

All trading nations want to keep increasing volume of trade and in this effort cargo activity boosts. Development of African seaports and airports is necessary to continue with this increase. The whole continent is connected through a land so reaching goods to one destination means it can be dispersed throughout the continent.

Building new airports are time taking process so in the meantime land connectivity can be used to reach other countries. Many African airlines are in a position to build their cargo freight carriers or enhance its strength. China is a big trade reality of world so Kenya airlines are pondering to include more planes for this destination.

Now a day Covid 19 vaccine is being delivered through cargo planes and temperature maintainability is key for this purpose. Delivery of the same by Ethiopia Airline has recently been cried out.

More Inclination of West Towards Africa is Boosting Cargo to Africa

 Cargo to Africa will get a boost by trade shift towards Africa 

Cargo sector on a global level is contributing a lot in abridging people living in various locations of the world. Truly speaking, it is boon and blessing for the migrants of a country residing in some other host country and sends their personal belongings and precious gifts to their dear ones to their homeland. 

History reveals that initially west and other developed countries had no interest in making an investment in African countries. But now the scenario is changing rapidly. Merely from the UK, daily various cargo flights carry Cargo to Africa from UK.

A trade shift towards Africa by Europe, the US and China

A continent where earlier only military planes transported military freights, is now seeing replacement with the sophisticated Boeing 777 hovering over Africa. Europe is interested in floriculture and fresh produce of Africa while China is keeping its eye on African natural resources. 

All this inclination towards Africa by the West, China and the US is due to natural resources of Africa and eventually this objective would be attained through sea cargo shipping to Africa or air cargo to Africa.

It deserves to mention here that the experts are observing this shift keenly. They are hopeful that there is going to emerge new trade corridors abridging the markets of Africa, Latin America, Middle East and Asia that are prospering rapidly. 

It is quite certain that this new trade shift will attract, infrastructure developments, the inflow of increased foreign investment and emergent middle class will make the cargo traffic growth more substantial. It is estimated that this growth is expected to be 5.8% by 2030. And it is quite obvious that 60% more flights will be added, making it doubled.

Undoubtedly air cargo is facilitating trade globally and creating millions of jobs also. This is also a fact that world trade depends on the power to give supreme quality commodities at the competitive prices to the users globally. Statistically speaking, every year 7.4 billion parcels are delivered across the globe through airmail.

A win-win situation for both the UK and Africa

No would deny that diminishing trade relationships between the UK and Africa before Brexit and COVID-19 can be revived. On the other side, the UK export potential can be increased from the existing low figure. Eventually now after post-Brexit global aftereffects, will create shifting inertia that makes the UK form its trade relationships with other countries by its own, without any restriction from the EU. And African countries in this regard come on the high side in priority of the UK for making trade relationships. 

It goes without saying that both the UK and Africa can have a win-win relationship due to ABC Triangle of AFCFTA, Brexit and COVID-19. That is why policy makers are on research to evaluate the exact outcome of these events for boosting the trade inclusive of cargo trade that is the back-bone of trade through air or sea.

Usage of unmanned drone technology in cargo by Africa

The biggest plus in cargo to Africa is that new technologies are being adopted rapidly by the African countries which once were regarded as backward areas. For instance, Kenya based cargo company has made an agreement with Japanese drone manufacturer Yamaha Motor Company to have the latest air cargo delivery solutions in Kenya. 

Really, this is a big breakthrough that now cargo deliveries will be carried out by unmanned drone flights when you will observe that some drone is hovering over your house to deliver you your consignment. The sole objective for the usage of this drone technology is to provide urgently needed medicines or medical equipment in some disaster, instantly. This will no doubt, bring a drone revolution in Africa by having new innovation and technology.

Havoc caused and further threats to cargo to Africa

Unluckily, deadly pandemic COVID-19 is fixing its bloody paws on each and every sphere of life. After the bitter experience of the first wave, things were reformed and reshaped by having strict compliance of preventive measures. This was actually responded in the context of lessons learnt as this was a new pandemic of its kind.

But now its second wave is fiercer than first one, which will have perhaps political effects also, after its spread globally. However, things are going well by adopting the concerned social distances and wearing masks by the cargo companies and field offices.

Will ABC Triangle slow down the pace of Cargo to Africa?

As earlier said there is a great flow of trade shift towards Africa from the west, US and China. But the emergence of viral pandemic COVID-19 is also busy in its disasters. And trade relationship of Africa with the UK is reshaping in the midst of this bitter havoc. Chronologically evaluating the events, we come to know that first in May 2019, the African Continental Free Trade Agreement (AFCFTA) came into force. 

Then under the Brexit agreement, the UK withdrew itself from the European Union. And after that the corona shook the whole world and how could Africa remain aloof from it. The experts gave it the name of ABC Triangle of events that occurred in a sequence.