24 www.ceramics.org | American Ceramic Society Bulletin, Vol. 100, No. 8 Africa—A wealth of resources and aspirations Celebrating 100 years AFRICA MARKET SNAPSHOTS A wealth of contradictions (cont.) Spain, the United States, the United Kingdom, India, and South Korea. Imports for the year totaled $48.54 billion, led by refined petroleum, wheat, packaged medical supplied, milk, and vehicle parts. Principal import partners include China, France, Italy, Spain, Germany, and Turkey. To learn more about this market, see the U.S. International Trade Administration’s Algeria Country Commercial Guide,d the World Bank’s Doing Business guide for Algeria, and resources available through the U.S.–Algeriae Business Council,f which is hosting a Green Economy Forum & Expo on Nov. 15–17, 2021, in Algiers. Egypt: Facing economic hurdles to manufactur- ing progress Although hydrocarbons are a factor in Egypt’s finances, the country’s economy is more diverse than Algeria’s drivers also include agriculture, manufacturing, tourism, and other service sec- tors. However, that diversity does not translate to freedom from significant economic chal- lenges that have created manufacturing and business difficulties. “In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency, intro- duced new taxes, and cut energy subsidies—all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a genera- tion,” the CIA World Factbook notes. “Since the currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will be challenged to obtain foreign and local investment in manufacturing and other sectors without a sustained effort to implement a range of business reforms.” Services generate 54% of GDP, followed by industry (34.3%) and agriculture (11.7%). Chief industrial sectors include textiles, food process- ing, tourism, chemicals, pharmaceuticals, hydro- carbons, construction, cement, metals, and light manufacture. The labor force of 24.11 million is employed in services (49.1%), industry (25.1%), and agriculture (25.8%). Egypt’s 2018 export volume was $87.89 billion. Crude and refined petroleum, gold, natural gas, and fertilizers are among the chief exports, and leading export partners include the United States, United Arab Emirates, Italy, Turkey, Saudi Arabia, and India. Imports for the year were $115.34 bil- lion. Refined and crude petroleum, wheat, cars, and packaged medicines lead import activity, and major import partners include China, Russia, the United States, Saudi Arabia, Germany, and Turkey. To learn more about this market, see the U.S. International Trade Administration’s Egypt Country Commercial Guide,g the World Bank’s Doing Business guide for Egypt,h and resources available through the U.S.–Egypt Business Councili and the American Chamber of Commerce in Egypt.j Kenya: High rates of GDP growth—and unemployment In 2014, Kenya achieved a milestone: its per capita GDP rose above a World Bank threshold that earned the country for status as a lower-middle- income country. It was a qualified victory for the country the World Factbook dubs “the economic, financial and transport hub of East Africa.” Although the authors note that Kenya had achieved real GDP growth that averaged over 5% for a decade and that it “has a growing entre- preneurial middle class,” negative indicators are equally striking. Estimates of under-employment/ unemployment have been as high as 40%. Weak governance, corruption, and inadequate infrastructure are cited as obstacles to improved annual growth and capacity to “meaningfully address poverty and unemployment.” The govern- ment’s planned growth initiatives focus on univer- sal healthcare, food security, affordable housing, and expansion of manufacturing. Services generate 47.5% of GDP, followed by agri- culture (34.5%) and industry (17.8%). Agriculture provides at least part-time employment to approxi- mately 75% of Kenyans, and the World Factbook notes that “small-scale, rain-fed farming or livestock production” is responsible for 75% of agricultural output. Services provide employment to 32.2% of the labor force, while industry employs just 6.7%. Strongholds of the industrial sector include small- scale consumer goods (plastic, furniture, batteries, textiles, clothing, soap, cigarettes, and flour), agri- cultural products, horticulture, oil refining, alumi- num, steel, lead, cement, commercial ship repair, tourism, and information technology. In 2019, Kenya’s export volume was $10.07 billion, led by tea, cut flowers, refined petroleum, coffee and titanium. Uganda, the United States, the Netherlands, Pakistan, the United Kingdom, United Arab Emirates and Tanzania are Kenya’s biggest export partners. Import volume for the year was $18.73 billion, driven by imports of refined petroleum, cars, packaged medicines, wheat, and iron products. Leading import partners include China, United Arab Emirates, India, Saudi Arabia, and Japan. In 2020, the U.S. and Kenya announced that they had entered into free trade negotiations. These negotiations marked the first time the U.S. had launched trade talks of this kind with a country in sub-Saharan Africa. The U.S. Chamber of Commerce published U.S.–Kenya Trade Negotiations: Implications for the Future of the U.S.–Africa Trade Relationship in April 2021 the report is available for free download at https://www.uschamber.com/ report/us-kenya-trade-negotiations. To learn more about this market, see the U.S. International Trade Administration’s Kenya Country Commercial Guide,k the World Bank’s Doing Business guide for Kenya,l and resources available through the American Chamber of Commerce Kenya.m Morocco: Free trade champion faces poverty challenges At its narrowest point, the Strait of Gibraltar separates Morocco from Spain by just 8 miles.n This geographic proximity is complemented by the nation’s efforts to build a diverse, open, market- oriented economy—one that emulates those found in Europe. Investments in its port, transportation, and industrial infrastructure and development of a free trade zone near Tangier have enabled Morocco to become more competitive and “posi- tion itself as a center and broker for business throughout Africa,” the CIA World Factbook notes. A bilateral Free Trade Agreement with the U.S. has been in force since 2006, and Morocco entered into an Advanced Status agreement with the European Union in 2008. Its future development plans include expansion of its renewable energy capacity toward a goal of generating more than 50% of installed electricity from renewable sources by 2030. But alongside these sophisticated targets are more traditional and entrenched challenges—high unemployment, poverty, and illiteracy rates, which are particularly acute in rural areas—and priorities include reform of the education system and the judiciary. Agriculture, tourism, aerospace, automotive, phos- phates, textiles, apparel, and subcomponents are among Morocco’s key economic sectors. Services generate 56.5% of GDP, followed by industry (29.5%) and agriculture (14%). Dominant industries include automotive parts, phosphate mining and processing, aerospace, food processing, leather goods, textiles, construction, energy, and tourism. Within the labor force of 10.4 million, services employ 40.5%, followed by agriculture (39.1%) and industry (20.3%). In 2019, Morocco’s export volume was $48.56 billion, led by cars, insulated wiring, fertilizers, phosphoric acid, clothing, and apparel Spain and France are its key export partners. For that year, import volume was $64.12 billion. Key imports were refined petroleum, cars and vehicle parts, natural gas, coal, and low-voltage protection equipment, and leading import partners were Spain, France, China, the United States, Germany, Turkey, and Italy.
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