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africanews

The United Nations Center for Trade and Development (UNCTAD) advised the continent to watch its step and take advantage of South-South Cooperation (SSC).

In its new report launched in Addis Ababa this afternoon, June 17, 2010, recently Africa is changing its trade partnership from the Northern states to the South, reported newbusinessethiopia.com from Addis Ababa.

Africa’s new form of South-South Cooperation with mainly China, India and Brazil has dramatically increased over the past few years, noted the report entitled, ‘Economic Development in Africa Report 2010’.

Africa’s total merchandise trade with China increased from 25 billion USD in 2004 to 93 billion USD in 2008, while its trade with India and Brazil also improved from 9 to 31 billion USD and from 8 to 23 billion USD, respectively.

On the other hand, Africa’s trade with the north have declined during this period and since 2007 China and other growing southern nations have taken the lead from the north.

Non-policy conditions on aid (support) approach of the fast growing-growing Southern nations is mentioned as one of the major reason, which lead most African nations to fall in love with the South, according to the report.

The report meanwhile, cautioned African states to watch their step in the South-South Cooperation, which it says the relation is based on ‘win-win’.

“African nations have to use the relationship to their own advantage and also take the cooperation as a supplementary to their historical relation with the north. Most of African countries do not know what exactly they want to achieve from this cooperation,” says Janivier Nkurunziza, Economic Affairs Officer of UNCTAD, briefing on the report to the media.

On the contrary, the Chinese or other developing countries of the south who focus on Africa clearly knows what they want from Africa and work towards that objective of mainly getting new markets and natural resource, according to Mr. Nkurunziza.

As a result, African countries are not benefiting to the maximum from the relationship even though change is observed including in African countries, which are not rich in natural resources, he noted.

Nkurunziza and the report advised African countries to seize the opportunity and gradually shift from the traditional primary commodity export custom, which they used to do with the north for many decades, to exporting manufacturing goods.

In order to change the current business as usual trade trend, African countries should create linkages between foreign direct investment and domestic economies, the report advised.

Directing these investments to sectors where they can catalyze domestic investment, create jobs, spur regional economic integration and boost productive capacity, is also advised to Africa by UNCTAD.