Arab-Africa Trade — When Mansa Musa, the 14th-century king of the Mali Empire, undertook a trip to Mecca in 1324, he carried so much gold with him that he discounted the precious metal's worth by up to 25%.
Stopping at Cairo along the journey, the African kingdom's monarch, who is regarded to be one of the richest men who ever lived, is supposed to have had an influence on the local economy for the following 12 years due to excessive spending and gift-giving in the ancient city.
Musa's trip is only one illustration of the long-standing cultural, religious, and economic links between the Arab and African civilizations.
It may be claimed that the Arab world has had the longest and most continuous effect on the African continent, from Sokoto in northern Nigeria to Zanzibar on Tanzania's coast.
In the contemporary era, these relationships have manifested as actual economic and trade ties.
Across Africa, a number of official development organisations and private Arab enterprises are active. One of the most well-known is DP World, a Dubai-based logistics business that plans to invest more than USD 1 billion in three African countries: Senegal, Egypt, and Somaliland.
Light manufacturing is one of the most lucrative prospects in Africa for Arab investors, with an estimated USD 80 billion in potential on the continent.
According to Oramah, the Arab world may benefit from Africa's lower capital and labour costs, either for the home market or for exports.
The establishment of the African Continental Free Trade Area (AfCFTA), with a combined GDP of USD 3.4 trillion, could serve as a trigger to encourage Arab firms to produce items that can be marketed throughout the continent.
Afreximbank and the International Islamic Trade Finance Corporation (ITFC) created a USD 500 million facility in 2019 to support important industries and develop export value chains in order to promote trade. Agriculture and SMEs were recognised by the ITFC as two significant areas in Africa that may strengthen ties with the Arab world through increased investment.
In the past, the trade finance agency and its partners created the Arab-Africa Commerce Bridges (AATB) to increase trade between the two areas. The AATB offers a forum for Arab and African firms to explore and capitalise on opportunities in both areas.
Since then, over 1,000 financial players have participated in the effort, and the platform has resulted in over USD 150 million in transactions.
Successes from the United Arab Emirates:
Saudi Arabia-based Jamjoon Pharma is one example of an Arab firm that has fully capitalised on the African market. The multibillion-dollar medication manufacturer and exporter distributes pharmaceuticals in more than 30 countries, with Africa accounting for the majority of sales.
The corporation intends to expand into 12 new markets, all of which will be in Africa.
This system will be linked to Buna, the Arab Monetary Fund's cross-border and multi-currency payment system, allowing Arab and African firms to quickly transfer payments between the two areas.