Improved Asian market access can boost Africa's exports, but Africa needs domestic reforms to fully capture the economic benefits
The recent boom in developing country commerce between Africa and Asia epitomizes the explosion of South-South trade. These trade flows are driven by the burgeoning middle classes in Asia's emerging economic giants—China and India—whose appetite for Africa's commodities is growing, and by rising economic growth in sub-Saharan Africa (SSA), which is increasing the demand for Asian manufactured goods.
These trends are fostering trade that is qualitatively different from Africa's traditional North-South commerce with the European Union (EU) and the United States, in which trade flows have been stimulated largely by preferential arrangements. The strengthening South-South complementarities between the two developing regions suggest that the trade we are observing is likely to be sustainable.
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