Daily Times

Pakistan enjoys friendly relations with most of the African countries. These relations are based on historical linkages, common beliefs and shared developmental goals. Pakistan played a key role during the decolonization of important African countries, hence, the leadership of Algeria, Tunisia, Morocco, South Africa, Eritrea, Kenya, Zimbabwe and Libya acknowledge Pakistan’s contribution in their independence struggles. Similarly, African countries commend Pakistan for being the highest contributor of troops at UN peacekeeping missions within Africa. Pakistan also has around 200,000 Pakistanis diaspora in Africa of which 120,000 are in South Africa.

At a diplomatic level, Pakistan maintains a very close interaction with African nations. However, Pakistan has failed to translate this goodwill into worthwhile political and economic engagement. The high-level engagements with Africa is almost non-existent and the trade volume is far below the potential. In order to intensify political exchanges and broaden trade the Ministry of Commerce and the Ministry of Foreign Affairs respectively launched ‘Look Africa’ and ‘Engage Africa’ policy initiatives.

While “Look Africa” policy was introduced in 2014, it could not generate any momentum. It was relaunched in 2017 and M/o Commerce relocated 5 Commercial Wings to Africa in 2019. The Ministry of Foreign Affairs launched its ‘Engage Africa’ policy in 2019, which was envisioned to not only focus on economic diplomacy but also at creating political and socio-cultural linkages.

Pakistan has failed to translate its goodwill with African countries into worthwhile political and economic engagement.

Under the ‘Look Africa Policy Initiative,’ ten countries that accounted for 78 percent of the total GDP of Africa i.e., Ethiopia, Tanzania, South Africa, Senegal, Kenya, Egypt, Sudan, Nigeria, Morocco, and Algeria, were made focus with the aim to double the trade by 2025. The action plan included facilitation of Pakistani companies to attend trade fairs in Africa, reduction of duty on exports to Africa, kickstarting the negotiations on trade agreements with Africa, strengthening presence of commercial sections in Pakistan Missions in Africa, creating awareness among the private sector of Pakistan about business opportunities in Africa and establishment of an Africa section in the Trade Development Authority of Pakistan. The ‘Look Africa Initiative’ was also aimed at signing the preferential trade agreements with regional economic zones of Africa namely the Southern African Customs Union (SACU), East African Community (EAC) and Economic Community of West African States (ECOWAS).

So far Pakistan has held four Pakistan-Africa Trade Development Conferences (PATDC). First was held in Kenya in 2020; second was held in Nigeria in November 2021 and the third Pakistan Africa Trade Conference and Single Country Exhibition was held in Johannesburg, South Africa in 2022. The fourth was held in January 2024 in Cairo, Egypt.

The ‘Engage Africa Policy’ was aimed at expanding relations with Africa. Its action plan revolved around opening of five new embassies in Ghana, Ivory Coast, Rwanda, Djibouti and Uganda; Upgradation of Pak-Missions in Tanzania and Niger to the Ambassadorial level; and establishment of a new Defence Wing in Djibouti. All these steps have already been completed. In reciprocity Ethiopia opened its Embassy in Pakistan in 2022 (formally inaugurated in May 2023), while Zimbabwe established its resident mission in July, 2023.

However, neither our political engagement, nor our trade has picked up. The few notable visits since the launch of initiatives are that of Senegalese President in 2016, Niger’s Ministers for Trade and Investments in June 2021; the Kenyan Minister for Agriculture and Livestock Development in Feb 2023, and the Ethiopian Minister of State for Foreign Affairs in May 2023 to inaugurate the Embassy of Ethiopia in Islamabad. Most importantly our exports to Africa are showing no signs of increase.

Africa’s top ten imports in terms of dollar are petroleum products(e.g. gasoline, diesel, and lubricants), machinery and equipment, vehicles (e.g. cars, trucks, and other vehicles), electronics (e.g. smartphones and computers), pharmaceuticals (medicines and medical supplies), Iron and Steel, Chemicals (e.g. industrial chemicals to consumer goods), Textiles and Apparel (clothing and textiles), plastics and rubber (e.g. raw plastics, rubber materials and products) and foodstuffs (wheat and rice).

Today, Africa has significant domestic growth potential in many sectors partly linked with a growing middle class and continuously expanding young and rapidly urbanizing population. As a Pakistani exporter or investor, the surge in demand for “Made in Africa” products open up significant avenues in sectors where Africa seeks import substitution.

This trend, coupled with the expected rise of Africa’s middle class to 1.1 billion by 2060, creates opportunities in the automotive, pharmaceutical, and cotton clothing sectors. With potential exports of $10 billion in automotive, $1 billion in pharmaceuticals and $6.4 billion in cotton clothing by 2026, establishing value chains across African countries can reduce imports, diversify economies, and open new markets for Pakistani businesses. This development is especially beneficial as the growing middle class in Africa offers a skilled workforce and a consumer base for these sectors.

African Continental Free Trade Area (AfCFTA): Historically, a significant part of Africa’s trade has been with partners outside the continent. The intra-regional trade in 2022 was only 18 percent. It is widely agreed that trading with neighbours is more cost effective and economically beneficial. Major examples of intra-regional trade are the European Union and ASEAN. In order to address the inherent anomaly in the continent, African leaders had been deliberating on common trade rules across the continent for tapping into the enormous size of the collective African market. Established in last decade, AfCFTA (March 2018) is envisaged to become a free trade area encompassing most of Africa utilizing the full potential for further diversification, attracting investors in non-traditional sectors, and achieving competitive economies of scale.

The implementation of AfCFTA adds another layer of attractiveness to the African market, promising to streamline intra-continental trade and create a more unified, accessible market. Once materialized, it would be the largest free-trade area by number of member states (55), after the World Trade Organization, and the largest in population and geographic size, spanning 1.4 billion people and combined GDP exceeding $ 3.4 trillion. While the potential is immense, challenges such as political instability and infrastructural gaps remain significant considerations for investors. Thus, it is anticipated that AfCFTA could lift 30 million Africans out of extreme poverty, boost the incomes of nearly 70 million people, and generate $450 billion in income by 2035.

(To be concluded)

Alizar Sajjad is law student at University of London. Saud Bin Ahsen works at public policy think tank.