Dubai strengthens its economic ties with Africa

A recent analysis of the Dubai Chamber revealed the great development witnessed by the economic ties between Dubai and the countries of the African continent, which is evident in part through the growth of exports and re-exports of members of the Chamber to the countries located east of the continent, where the total value of exports reached 3.3 billion dirhams during the first half of this year ($892 million), representing a growth of 2.4% year-on-year. The analysis issued by the Chamber as part of its preparations for the Global African Business Forum 2021, which is organized by the Chamber and Expo 2020 Dubai on October 13 and 14, confirmed that Ethiopia, Kenya and Djibouti accounted for the largest share of exports and re-exports of the Chamber’s members to the East African region, with a rate of 70% of the total. In the first half of this year, the analysis indicated a remarkable growth in the exports and re-exports of members of the Chamber destined for the markets of Kenya, Uganda, Tanzania and Zambia, which raises the value of exports and re-exports of members to these countries to $78.6 million.

The analysis issued by the Chamber indicated that the declared value of certificates of origin for shipments destined for East African markets during the first half of this year witnessed a growth during the past ten years, which confirms the feasibility of efforts made to promote exports of the Chamber members through many activities and events that are held throughout the year with the aim of developing And the development of trade and investment relations between Dubai and East African countries.

Promising investment opportunities

The Director General of the Dubai Chamber of Commerce Hamad Buamim stressed that the analysis issued by the Chamber shows the promising investment opportunities in the East African market in light of the stable growth rates, which reveal great potentials enjoyed by the East African markets and make them a profitable destination for investors, noting that Dubai’s hosting of the Global Forum African Business next October will have a significant impact on strengthening economic and commercial ties with those markets that are full of potential for success, in conjunction with Dubai's continuous efforts to expand its commercial partnerships around the world, confirming its position as a major link to link trade movement between the East and West of the world.

The analysis urged Emirati traders to take the initiative and take advantage of Dubai as a global business hub to develop trade relations for the benefit of the trade scene between the UAE and East African countries.

The analysis showed that Ethiopia maintained the lead in the trade scene in East Africa, with Ethiopia’s share of total exports and re-exports of members to East African markets in the first half of this year reaching 36%, Kenya and Djibouti 17% each, Uganda 8% and Tanzania 7%.  

The latest estimates of the International Trade Center indicate that there is a gap in the UAE's exports to the East African region of $2.9 billion, equivalent to 78% of the current levels of exports.

Kenya dominates the region both in terms of size and remaining untapped opportunities, which were valued at about $573 million.

Ethiopia ranks second in terms of remaining untapped opportunities, with exports worth 450 million dollars, while Tanzania comes third with a gap of 366 million dollars.

The analysis showed that other markets that offer high opportunities in terms of untapped exports include Djibouti ($345 million), Somalia ($279 million), Mozambique ($148 million), Uganda ($140 million) and Zambia ($125 million), in addition to number of other countries.

logistical support

In terms of products, according to ITC estimates, the commodities with the highest untapped potential that UAE exporters can benefit from in this region include: cane or beet sugar, chemically pure sucrose (gap of $201 million), polyethylene with a specific gravity equal to or greater than 0.94 in primary forms ($144 million), vehicles to transport people ($91 million), primary polypropylene ($75 million), trigger batteries ($64 million), iron and steel structures ($49 million), jewelry ($48 million), pure copper wire ($47 million), semi- or whole-milled rice ($47 million) and dried lentils in their skin ($40 million), among other goods.

The Dubai Chamber encourages Emirati merchants to invest in commercial activities in East African countries. The Dubai Chamber provides logistical support to its members through its foreign offices in Ethiopia, Kenya and Mozambique to enable them to expand their business network and exploit investment opportunities optimally.

strong growth

East Africa consists of twenty markets: Kenya, Uganda, Tanzania, Zambia, Burundi, Mozambique, Malawi, Eritrea, Mauritius, South Sudan, Mayotte, Reunion, Comoros, Seychelles, Madagascar, Somalia, Rwanda, Zimbabwe, Ethiopia and Djibouti.

Half of these markets witnessed a strong growth of more than 535%, while the markets of Kenya, Uganda, Tanzania, Zambia and Burundi recorded a distinguished performance, amounting to $305.7 million during the first half of this year.

The Global African Business Forum 2021, with its convening in Dubai next October, aims to provide an advanced business environment that contributes to accelerating the pace of growth and reviving the economic life cycle in the brown continent. In addition to discussing the prospects for strengthening trade, economic and investment relations between Dubai and the brown continent in the post-Covid-19 phase.

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