Expert on cooperation with Africa, the Middle East and the prospects for entering new markets

Pavel Shvedko HEAD of the Sector of the Economy of Foreign Countries of the Institute of Economics of the National Academy of Sciences of Belarus

At the invitation of the leadership of the United Arab Emirates and the President of Zimbabwe, the head of the Belarusian state , ALEXANDER LUKASHENKO , paid a state visit to these countries and held a number of fruitful meetings and negotiations. Agreements have been reached on dozens of different areas. Pavel Shvedko, Head of the Foreign Economy Sector of the Institute of Economics of the National Academy of Sciences of Belarus, spoke about the prospects for further cooperation with the countries of Africa and the Middle East, as well as about other regions of interest to Belarus.

Prospects of Belarus in the African market

According to Pavel Shvedko, over the past decade, the African economy has been growing at a fairly high rate, despite the global financial crisis. "African countries are a concentration of colossal economic potential associated with huge reserves of minerals, the availability of labor resources, the possibility of developing and increasing production volumes. The middle class is growing rapidly, which creates a new capacious consumer market, including for the EXPORT of Belarusian goods and services," he said.

Large industrial projects and infrastructure programs implemented by some African countries, such as, for example, in Zimbabwe, with appropriate support from the leadership of this country, should become potential objects of application of knowledge, technologies and experience of Belarusian companies, including in the production and processing of agricultural raw materials , housing, public safety, transportation and information technology. "Zimbabwe is ready to provide Belarusian companies with access to its mineral resources on mutually beneficial terms and to place joint ventures on its territory, the products of which will have to be exported to neighboring states in the future," the expert said.

The development of trade and economic relations with the countries of the African continent opens up great opportunities for Belarusian companies to jointly extract or purchase mineral resources, minerals, as well as direct imports of tropical farming products, fruits and vegetables. “Belarus has to purchase these products in most cases from foreign intermediaries, which invariably affects the price. The supply of agricultural machinery, mineral fertilizers, engineering products, synthetic fibers, pneumatic tires, food, weapons and other things to Africa should contribute to further diversification and increase in the volume of well proven in the international markets of Belarusian products", - the expert is sure.

However, for many potential Belarusian exporters, the African market is little known. “Not all Belarusian companies have sufficient experience of effective work on it. Therefore, an important role in promoting national products to the world market in general and to the African market in particular is assigned to the state. In connection with the economic sanctions imposed on Belarus, it is necessary to take full advantage of all the achievements agreements during the President's visit to Zimbabwe," said Pavel Shvedko.

Cooperation with the countries of the Middle East

The countries of the Middle East are an integral part of the rapidly developing Asian market, which is becoming a global economic center. This market has a vast and diverse supply of resources, huge trading potential and strategic opportunities for further growth. This opens up broad prospects for Belarusian exporters.

Despite the small size of the market, the UAE offers all interested Belarusian companies prospects for cooperation in the extractive industry, energy, construction, defense and security, healthcare, and transport. “Due to the lack of proper conditions for farming, 70% of all food needs are met through imports. The UAE spends heavily on food. Income growth, combined with high dependence on imports, creates great opportunities for Belarusian food suppliers and beverages, especially in the high-quality processed food sector The most sought-after food categories are chilled and ready-to-eat foods, bakery and confectionery, dairy products, convenience foods, canned and frozen foods, soft drinks and flavored water. Due to the scarcity of fresh water in the region, the UAE is one of the largest consumers of bottled drinking water," said Pavel Shvedko.

There is a particular demand for video surveillance systems, infrared and thermal cameras, voice and emergency warning systems, multi-sensor cameras, identity management systems, security patrol robots and drones, RADAR systems, fire safety equipment, perimeter control and access control devices.

According to the expert, due to the liberal trade regimes and the developed transport and logistics infrastructure of the UAE, a significant share of imported products is subsequently re-exported to the countries of Asia and Africa. "Many importers in Oman, Qatar, Bahrain and Kuwait purchase goods through the UAE, as order volumes from these countries are often less than the minimum required by suppliers. Thus, containerized cargo sent to the UAE can be broken down into smaller shipments for transportation to other countries ", said the economist.

Other regions for the development of trade and economic cooperation

International trade remains an important component of the functioning of not only each individual country, but the entire system of international economic relations as a whole. "Not a single state, including the Republic of Belarus, is able to successfully develop without building an effective network of foreign trade relations with other countries. This process is becoming especially relevant given the rapid changes in the geopolitical situation in the world, the intensification of global competition, increased protectionism and the implementation of discriminatory sanctions Western policy towards many countries.This explains the toughening of the struggle of individual states for economic influence on the African continent.International experts say that a new "scramble for Africa" ​​is now taking place,, EU (as a block of states and separately), usa , India, Russian Federation. Brazil, Turkey, Iran, SOUTH KOREA and Japan are also interested in building up cooperation with Africa," said Pavel Shvedko. This situation requires decisive measures to intensify foreign economic activity: both expanding the supply of Belarusian goods to already established traditional markets, and entering new promising markets in Asia, Africa and Latin America.

In general, there are promising opportunities for the development of mutually beneficial trade and economic relations for Belarusian manufacturers in all regions of the world without exception, especially in such sectors as infrastructure, healthcare, agriculture and food, defense and security, vehicles, telecommunications technologies, the economist stressed.

“I would like to especially mention the countries of Latin America and the Caribbean, despite the fact that the region has been severely affected by the covid-19 pandemic.. There were high rates of morbidity and mortality among the population, there was a sharp economic decline, the governments of many states of the LAC aim to revive their national industry and focus on the agricultural industry associated with it, the expert said. - The formation of a more favorable price environment encourages the local agricultural sector to invest more actively in new equipment. There is a growing demand for innovative technological solutions in the field of agricultural production, farming and the modernization of the dairy industry. For countries where the use of modern agricultural technologies is generally limited, new and used agricultural machinery and equipment become the most promising positions for trade. Some small Caribbean states are in need of modern laboratory equipment for testing and confirming the nutritional value of food, fruits, and vegetables. Currently, local producers are sending their products to other countries for nutritional and compositional testing."

According to Pavel Shvedko, electric vehicles can also become a promising area of ​​cooperation with various countries, especially in the field of public transport. “They must have the necessary power to operate them both on flat and mountainous terrain. For example, local public transport operators in Argentina and Brazil are regularly upgrading their fleet and are considering purchasing electric buses, which will allow cities to save on rising fuel prices and minimize pollution. In addition, the industry of security equipment demonstrates dynamic development, there is a demand for public and personal security systems. There are opportunities for promising cooperation for Belarusian enterprises in this area of ​​foreign trade," the economist concluded.

BELTA.