Africa and Asia: Trading partners of the twenty-first century

Asia is booming, and Africa can too. Here’s how our continent – and your business – can benefit from Asia’s massive economic growth.

By Craig Falck for Africa Report
Photograph:© Zurijeta | Dreamstime.com

It’s no secret that Asia is the world’s fastest growing economic bloc, as well as one of the most powerful. It’s also no secret that Asia has a favourable business relationship with a number of African countries and that is only getting better as time goes by. Because of these favourable relationships and the ever-growing Asian economy, Africa is in the fortunate position to be able to benefit from the Eastern region.

The important thing to remember when investigating how Asia’s booming economy will benefit Africa, is to take each and every aspect into consideration. While it’s fine to say that “Africa will benefit from Asia’s economy”, that’s a very broad term as Africa is one of the seven continents and is massive not only in physical size, but also business and industry-wise. Asia doesn’t need technology items from Africa, it is already a mega producer in this industry. What the region needs, however, are foodstuffs and skills. Asia has only so much agricultural knowledge and possibilities, while Africa is still growing as more and more farmers begin farming. As a result, Asia will increase their consumption and be able to use Africa as a source. They consume produce, and the farmers are compensated with money. It’s simple trade, but thanks to Asia’s size, demand and increasing economy, it’s going to be very good trade in the future.

There are numerous other industries where Africa excels and Asia lags behind. These are key sectors where African entrepreneurs and industry leaders need to stand up and come to the fore, leading the business gains from Asia. These include mining, oil and natural gas extraction and production, manufactured materials and raw materials. Asia, for all its size and economic strength still needs assistance. It cannot do everything for itself all the time, and because it has a strong link with Africa, it makes sense that our continent will benefit. What Africa – and you as a business entrepreneur – need to do is look at the big picture and see where Asia will be lacking.

Now is the perfect opportunity to get into business early and become key players in these individual industries by benefitting from Asia’s growing demands in the future. We must warn you: it’s not going to be easy. But then again, what is? When it comes to business, you reap what you sow, so be prepared for a long, hard road.