In the late 1990s, South Africa’s then-Trade and Industry Minister Alec Erwin likened the country’s trade strategy to a “butterfly,” according to which the thorax ran north-south to Europe and North America, while the “wings” oriented west-east were to link Africa with Latin America and Asia.
Erwin’s concept promised much then, as now, for a diversification effort, but so far has delivered less.
Still, there is much to gain from closer regional ties, in at least two respects.
The first of these is underscored by the growth and nature of economic relations. While trade relations between Africa and Asia have burgeoned, they remain lopsided; Africa is primarily a source of raw commodities, Asia an exporter of finished products. This result speaks to the relative development and diversification experience of the two regions over the last 60 years.
Africa’s external relations: Reinventing and pursuing new partnerships (brookings.edu)
