I am aware of the recent report by Value Added in Africa that reviews trade between Ireland and six countries in Africa over the period 2011 to 2014.
The enhancement of economic relations with Africa is a central pillar of my Department’s Africa Strategy. Two-way trade, in goods and services, between Ireland and Africa increased by about one third between 2010 and 2014, from €3.4 billion to €4.5 billion.
I welcome the growth we are now seeing in Irish exports to Africa. This responds to opportunities in the market and is very much in line with the Government’s focus on boosting exports to new and emerging markets.
In focusing on just six African countries where Ireland has bilateral development programmes, the Value Added in Africa report presents a very limited aspect of Ireland’s trade relations with Africa. It is difficult to draw definitive conclusions from the data provided, given that the amounts involved are relatively low and, as the report states, a single sale can have a significant impact on trade figures.
Total imports by the six African countries referred to grew nearly tenfold over the period analysed. This was largely due to increases in consumption and in external and domestic investment. Imports specifically from Ireland have grown at about half this rate. The growth in exports from the countries to Ireland has been lower, but this is not surprising given the structure of the Irish economy, which means that we are not a direct importer of many of the primary products that our partner countries in Africa produce.
The Irish Government does not bear primary responsibility for boosting African exports to Ireland, and nor should we. However, through the Irish Aid programme, Ireland is contributing to the social and economic development of our partner countries in Africa. This includes efforts to increase production of value-added goods for both domestic consumption and for export. Indeed, Irish Aid provides grant support to Value Added in Africa specifically for this purpose. We have also supported the Fairtrade movement in order to increase export opportunities, and to ensure that Irish companies and consumers choose products which deliver a fair return for African producers.
Trade with Ireland alone will never constitute a significant component of the export markets that countries in Africa need. What is needed is the ability to access and export to global scale markets such as the EU, US and emerging markets, and to trade regionally. For this reason, Irish Aid is supporting the efforts of Geneva-based multilateral organisations to build the capacity of developing countries to implement their own trade and investment policies.
We have also carefully monitored the negotiations of Economic Partnership Agreements between the EU and African countries to ensure that they serve the development interests of our African partners. The implementation of these Agreements has the potential to further boost African exports.
In advance of the Africa-Ireland Economic Forum in Dublin earlier this month, my Department hosted a round table to facilitate experience sharing between Ireland’s trade and investment promotion experts and their counterparts from African countries. The Forum itself, with 450 participants, also provided a platform to identify and explore opportunities for trade and investment between Ireland and Africa, including in agri-business, energy/cleantech and aviation.
