{UAH} WHAT EXACTLY DOES AFRICA STILL NEED TO IMPORT FROM EUROPE?

Modern economic reality indicates that thanks to China's global economic expansion, we now see African countries like Uganda finally having a positive trade balance with the EU (Meaning we export more goods to Europe than we import from Europeans).

A positive trade balance is an economic situation that every African country should at least be aiming to have against all overseas countries. What this positive Africa-EU trade balance tells us is that Europe is still very dependant on Africa. But Africa needs Europe less (compared to post-colonial days for example). Obviously we switched to China where the data shows Africa importing far more from China than from anywhere else. Almost all countries in the world are variably in the same situation. We all now depend on China, the second largest world economy, and now the leader in renewable energy products.

With oil production being operationalized in Uganda, Europe has been pushing Uganda to join the Extractive Industries Transparency Initiative. This is an international agreement that aims to ensure that the production and export of resources such as oil are handled in a transparent manner. While transparency is clearly a necessary initiative, besides being a good source for big data (which is itself a major global industry these days) I can't help but wonder what else could be behind the EU's economic or political interest in insisting on this otherwise very noble request for transparency. Actually it is a shame for us because we should have ensured transparency ourselves from the very beginning of oil exploration, and not need to be partriarchally patronized by any EU on so called "transparency concerns".

But as I said earlier, economically speaking, the EU is steadily being uncovered as needing Africa more than Africa needs the EU. That is what Uganda's trade balance with Europe clearly indicates.

They therefore silently need Africa to import more from them if the trade balance is to turn in their favour. But because the EU still provides Uganda with hefty amounts of foreign aid, Uganda is therefore not politically fully appreciating the trade balance in its favor, and we clearly remain committed to needing the EU's foreign aid as we simultaneously beat them at the trade balance at least.

Obviously we have to recognize China's role in bringing sanity and a better political and economic level playing field in Africa-Europe relations.

What I am concerned about is that the Extractives Industries Transparency Initiative is going to be a difficult international standard for some African countries to live by. Particularly when it comes to the income generated from oil and the lucrative contracts signed with oil production companies.

In Uganda's case, bribes have already been paid in exchange for oil contracts.

Corruption thrives in mediocre accountability systems which allow easy diversion of funds from deliberately maintained loopholes. But where there is a strict requirement for precise accountability, then it is not fun anymore for the corrupt.

I therefore predict that this transparency initiative will be heavily sabotaged somehow and will therefore require persistent oversight and follow up for it to be fully established as an operational accountability system. Remember that in some African countries, there is what is well presented publicly, and then there is what is going on in vernacular behind the scenes.

The recent abrupt resignation of the Head of Uganda National Oil Company two days ago, has raised eyebrows in the country.

Many have immediately opined that it must have something to do with the fear of being discovered as being forced to sit on a lot of dirt and hidden irregularities. Or possibly some other ulterior jostling over her position by other regime cronies.

A few weeks ago, as Uganda National Airlnes Company was found to be a private enterprise owned by unknown people yet masquerading as a national company, I and several other observers mentioned how a similar situation could probably be going on in many other so-called "national companies", including the Uganda National Oil Company.

Suddenly, the resignation of the head of the company makes us worried that we could have been saying the truth by mistake.

She reportedly resigned to take care of her family.

Finally, I would like to ask the EU to make more efforts towards better relations and more trade with Africa on better terms. And also consider transfering certain industries to Africa rather than have them collapse in the famous "Death by China" economic theory. I would also like to add that while the public EU claim is that African products are free to be sold in Europe, the reality is that there are countless indirect barriers in place under the excuse of "European standards". While standards are understandable in health & safety concerns, why not let the free market itself do the remaining rejecting or accepting of any particular African product or raw materials of which many have found their way to Europe even in the crudest of forms for centuries, at least since colonialism to-date. 

By Hussein Lumumba Amin

Kampala, Uganda

(Interesting research article on the main products and industries exporting from Africa to Europe: waystocap.com/blog/what-do-european-countries-import-from-africa/)

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