This document is an annual trends and outlook report by IFPRI/Badiane focusing on trade and resilience in Africa. It contains the following key points:
1) It analyzes progress against CAADP growth and budget targets for agriculture at the regional economic community and country levels in Africa.
2) It examines how regional trade can boost resilience in Africa by increasing incomes, stabilizing supply and prices, and diversifying exports.
3) It explores how global trade also enhances resilience in Africa through price stabilization and reduced supply volatility compared to domestic markets.
Annual Trends and Outlook Report 2013: Trade and Resilience
1. IFPRI/Badiane
OUSMANE
BADIANE
Director
for
Africa
Interna:onal
Food
Policy
Research
Ins:tute
ANNUAL
TRENDS
AND
OUTLOOK
REPORT
2013
Feature
Topic:
Trade
and
Resilience
2. MAIN
TOPICS
1 REPORT AGAINST CAADP GROWTH AND BUDGET TARGETS
2
3
REGIONAL
TRADE
AND
RESILIENCE
GLOBAL
TRADE
AND
RESILIENCE
ANNUAL
TRENDS
AND
OUTLOOK
REPORT
2013
FEATURE
TOPIC:
TRADE
AND
RESILIENCE
3. MAIN
TOPICS
1 REPORT AGAINST CAADP GROWTH AND BUDGET TARGETS
2
3
REGIONAL
TRADE
AND
RESILIENCE
GLOBAL
TRADE
AND
RESILIENCE
ANNUAL
TRENDS
AND
OUTLOOK
REPORT
2013
FEATURE
TOPIC:
TRADE
AND
RESILIENCE
4. OVERALL
GDP
GROWTH
TRENDS
Annual
GDP
growrth
rate,
1980
–
2010
COMESA
Annual
GDP
growrth
rate,
1980
–
2010
ECCAS
Annual
GDP
growrth
rate,
1980
–
2010
ECOWAS
Annual
GDP
growrth
rate,
1980
–
2010
SADC
5. PROGRESS
TOWARDS
GROWTH
TARGET
–
BY
RECs
Agriculture
GDP
growth,
1980
–
2010
COMESA
Agriculture
GDP
growth,
1980
–
2010
ECCAS
Agriculture
GDP
growth,
1980
–
2010
ECOWAS
Agriculture
GDP
growth,
1980
–
2010
SADC
6. PROGRESS
TOWARDS
GROWTH
TARGET
BY
COUNTRY
-‐
COMESA
Agriculture
GDP
growth
by
country,
1980
–
2010
COMESA
7. PROGRESS
TOWARDS
GROWTH
TARGET
BY
COUNTRY
-‐
ECCAS
Agriculture
GDP
growth
by
country,
1980
–
2010
ECCAS
8. PROGRESS
TOWARDS
GROWTH
TARGET
BY
COUNTRY
-‐
ECOWAS
Agriculture
GDP
growth
by
country,
1980
–
2010
ECOWAS
9. PROGRESS
TOWARDS
GROWTH
TARGET
BY
COUNTRY
-‐
SADC
Agriculture
GDP
growth
by
country,
1980
–
2010
SADC
11. PROGRESS
TOWARDS
MAPUTO
TARGET
BY
COUNTRY
-‐
COMESA
Agriculture
expenditure
share
by
country
-‐
COMESA
12. PROGRESS
TOWARDS
MAPUTO
TARGET
BY
COUNTRY
-‐
ECCAS
Agriculture
expenditure
share
by
country
-‐
ECCAS
13. PROGRESS
TOWARDS
MAPUTO
TARGET
BY
COUNTRY
-‐
ECOWAS
Agriculture
expenditure
share
by
country
-‐
ECOWAS
14. PROGRESS
TOWARDS
MAPUTO
TARGET
BY
COUNTRY
-‐
SADC
Agriculture
expenditure
share
by
country
-‐
SADC
15. ANNUAL
GROWTH
RATE
OF
PUBLIC
AG.
EXPENDITURE
–
2003
-‐
2010
Source:
Benin
and
Yu.
ATOR
2012.
16. MAIN
TOPICS
1 REPORT AGAINST CAADP GROWTH AND BUDGET TARGETS
2
3
REGIONAL
TRADE
AND
RESILIENCE
GLOBAL
TRADE
AND
RESILIENCE
ANNUAL
TRENDS
AND
OUTLOOK
REPORT
2013
FEATURE
TOPIC:
TRADE
AND
RESILIENCE
17. EXPORT
GROWTH
INDUST.
GROWTH
1%
Growth
0.04%
To
1.83%
AGR. EXPORT AND DOMESTIC GROWTH
0
0.5
1
1.5
2
2.5
3
Niger Senegal Zambia Burkina
Faso
The
increase
in
non-‐agricultural
incomes
resul:ng
from
$1.00
incremental
revenue
from
sales
of
agricultural
products
The
increase
in
non-‐agricultural
growth
resul:ng
from
1%
incremental
revenue
from
agricultural
exports
TRADE
AND
RESILIENCE:
THE
INCOME/REVENUE
CHANNEL
18. 0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Ra:o
between
domes:c
and
global
supply
vola:lity
GLOBAL
TRADE
AND
RESILIENCE:
THE
SUPPLY
STABILIZATION
CHANNEL
19. • World prices of maize, rice, and
wheat are less volatile (0.073 –
0.082) than African prices of the
same commodities (0.094 –
0.144)
• Prices of tradable goods in Africa
are less volatile (0.106) than
prices of non-tradable goods
(0.133)
• Prices of processed foods (bread
& cooking oil) are less volatile
than prices of unprocessed foods
• Prices of drought-resistant grains
(millet & sorghum) are less
volatile than prices of other non-
tradable grains (maize)
GLOBAL
TRADE
AND
RESILIENCE:
THE
PRICE
STABILIZATION
CHANNEL
20. -‐1
-‐0.8
-‐0.6
-‐0.4
-‐0.2
0
0.2
0.4
0.6
0.8
1
1.2
ZAF
ZWE
Oceania
Africa
NGA
UGA
BFA
BWA
MOZ
SSA
South
America
CPV
NER
ZMB
STP
North
America
CAF
NAM
CEMAC
RWA
CIV
COG
SEN
GAB
TUN
Asia
Correla:on
between
export
and
import
prices
for
agricultural
products
TRADE
AND
RESILIENCE:
THE
EXPORT
DIVERSIFICATION
CHANNEL
21. MAIN
TOPICS
1 REPORT AGAINST CAADP GROWTH AND BUDGET TARGETS
2
3
REGIONAL
TRADE
AND
RESILIENCE
GLOBAL
TRADE
AND
RESILIENCE
ANNUAL
TRENDS
AND
OUTLOOK
REPORT
2013
FEATURE
TOPIC:
TRADE
AND
RESILIENCE
22. Potential agribusiness growth and expected income
to farmers
US$ billion
3 8
50
10 10.5
150
High value
exports
Commodities Urban food
2000
2030
2.9 1.6 30
Potential Increased
farmer income in
2030
Expected sector growth to 2030
Increase
in
Demand
and
Incomes
in
Billion
US$
IFPRI/Badiane
REGIONAL
TRADE
AND
RESILIENCE:
THE
INCOME/REVENUE
CHANNEL
23. REGIONAL
TRADE
AND
RESILIENCE:
THE
SUPPLY
STABILIZATION
CHANNEL
Coted'Ivoire
ECOWAS
Togo
Guinea
Benin
BurkinaFaso
GuineaBissau
Ghana
Nigeria
Niger
Senegal
Mali
Gambia
Liberia
0
10
20
30
40
50
ECOWAS Cereal Production Instability, 1980--2010
COMESA
Comoros
Egypt
Uganda
Burundi
DRC
Kenya
Madagascar
Angola
Namibia
Malawi
Sudan
Swaziland
Zambia
Rwanda
Zimbabwe
Mauritius
0
20
40
60
80
100
120
COMESA Cereal Production Instability, 1980--2010
SADC
South.Africa
Angola
Namibia
Malawi
Mozambique
Swaziland
Zambia
Lesotho
Zimbabwe
Bostowana
Mauritius
0
0.2
0.4
0.6
0.8
1
1.2
SADC cereal production instability, 1980--2010
The
difference
between
the
average
regional
produc:on
vola:lity
levels
and
individual
country
vola:lity
indicates
scope
of
domes:c
market
stabiliza:on
through
regional
trade
24. 0
50
100
150
200
250
300
350
0-‐10
10-‐20
20-‐30
30-‐40
40-‐50
50-‐60
60-‐70
70-‐80
80-‐90
90-‐100
Number
of
country
Pairs
Produc@on
Similarity
Index
COMESA
ECOWAS
SADC
Similarity
of
produc:on
paferns
within
RECs,
2007-‐2011
SPECIALIZATION
AND
TRADE
EXPANSION
POTENTIAL
More
scope
for
trade
Less
scope
for
trade
25. 0
100
200
300
400
500
600
700
800
0-‐10
10-‐20
20-‐30
30-‐40
40-‐50
50-‐60
60-‐70
70-‐80
80-‐90
90-‐100
Number
of
Country
Pairs
Export
Similarity
Index
COMESA
ECOWAS
SADC
Similarity
of
export
paferns
within
RECs,
2007-‐2011
SPECIALIZATION
AND
TRADE
EXPANSION
POTENTIAL
More
scope
for
trade
Less
scope
for
trade
26. q Baseline
=
2000-‐2007
q SIM1
=
0.5%
reduc:on
in
trade
cost
annually
2013
–
2020
q SIM2
=
50%
increase
in
yields
by
2020
q SIM3
=
Combine
SIM1
and
SIM2
ALTERNATIVE
POLICY
OPTIONS
TO
EXPAND
REGIONAL
TRADE
27. 0
5
10
15
20
25
BurkinaFaso
CapeVerde
Chad
Gambia
Mali
Mauritania
Niger
Senegal
Percentage
BASE
SIM1
SIM2
SIM3
CHANGE
IN
REGIONAL
IMPORTS
SAHELIAN
COUNTRIES
BY
2020
UNDER
ALTERNATIVE
SCENARIOS
28. -‐15
-‐10
-‐5
0
5
10
15
20
25
30
BurkinaFaso
CapeVerde
Chad
Gambia
Mali
Mauritania
Niger
Senegal
Percentage
BASE
SIM1
SIM2
SIM3
CHANGE
IN
REGIONAL
EXPORTS
SAHELIAN
COUNTRIES
BY
2020
UNDER
ALTERNATIVE
SCENARIOS
29. 0
5
10
15
20
25
30
Baseline
SIM1
SIM2
SIM3
Percentage
CHANGE
IN
TOTAL
WEST
AFRICAN
INTRA-‐REGIONAL
EXPORTS
BY
2020
UNDER
ALTERNATIVE
SCENARIOS