(Ecofin Agency) - 89% of Sub Sahara African economies depend on commodities, the UNCTAD indicates in a report published this week.
According to the institution, 60% of the exports of about 9 out of 10 Sub Sahara African countries is made of commodities.
With this proportion, it is the region whose economy is most dependent on commodities, followed by the MENA where 65% of the countries have commodity-dependent economies. Next comes Latin America and the Caribbean, East Asia and the Pacific.
An economy’s dependence on commodity exports increases vulnerability to adverse external shocks and price fluctuations. According to the UNCTAD, about 64 countries that mostly export commodities recorded a dramatic economic downturn, even recession recently.
It explains that despite diversification efforts, the persistence of such situation could threaten the growth objectives of Sub Sahara African countries.
“Given that commodity dependence often negatively impacts a country’s economic development, it is important and urgent to reduce it to make faster progress towards meeting the sustainable development goals,” said Mukhisa Kituyi (photo), UNCTAD’s Secretary-General.
Let’s also note that the number of commodity-dependent countries has reached its 20-year high.
Moutiou Adjibi Nourou