The trade relations between Latin America and Africa have become increasingly important in recent decades, as both regions share similarities in terms of challenges and opportunities, so that strengthening trade ties can benefit both parties.
And it is that these relations have great potential to boost economic growth and strengthen cooperation between the two regions. It should be noted that both parties have natural resources, agricultural products and investment opportunities that can benefit each other. In addition, the diversification of commercial relationships helps reduce dependence on traditional markets and open up new business opportunities.
It should be noted that historically speaking, Latin America and Africa They have mainly oriented their international trade towards Europe, North America and Asia. There is increasing interest in closer economic alliances between the two regions that are driven by different factors, such as the desire to diversify trading partners, access new markets and boost South-South cooperation.
Both regions are rich in natural resources and in this sense the trade of basic products plays an important role in their bilateral relations.
Chart of the day: Trade relations between Latin America and Africa
According to data from the Observatory of Economic Complexity (OEC) in the Latin American continent, exports are mainly focused on food products such as vegetables, animals and minerals. In this sense, vegetable products represent approximately 27.7 percent of Latin American exports to Africa, with corn standing out with 14 percent. Food products rank second, accounting for 25 percent of all exports to Africa. Likewise, unrefined sugar is one of the main products in this category, followed by products of animal origin, minerals and machinery.
Latin America is also in charge of importing chemical products from Africa with a percentage of 38.4 percent, in addition to minerals with 35 percent. This sector focuses mainly on fertilizers, such as mineral or chemical mixtures and nitrogen fertilizers. Regarding minerals, crude oil stands out as the main imported product, representing almost 23 percent of all Latin American imports from Africa.
To further strengthen trade relations between Latin America and Africa, it is necessary to take specific measures such as promoting the exchange of information and knowledge to help companies better understand markets and opportunities. In addition to promoting the participation of small and medium-sized enterprises (SMEs), it can diversify trade and foster innovation. Improving transport and logistics infrastructure is essential to facilitate trade and reduce costs. In addition, simplifying trade procedures and reducing trade barriers promotes fluid exchange between regions.