Commodity Export Dependency: The Sub-Saharan Africa Region as a Case Study

The international trade of commodities plays a pivotal role in shaping global economic dynamics, particularly for resource-rich regions such as Sub-Saharan African countries. This thesis explores the intricate relationship between commodity trade and the economic trajectories. To this end, the thesis focuses on three core dimensions: the structure and significance of international commodity trade, Sub-Saharan Africa’s role in global markets, and the socio-economic implications of the region’s dependence on commodities. First, the study examines the fundamentals of international trade of commodities, highlighting the unique characteristics of commodities as primary exports and their susceptibility to global price volatility. Second, the research contextualizes Sub-Saharan Africa’s role, delving into its abundant natural resource base, the prominence of oil, minerals, and agricultural products in its trade portfolios, and the region’s reliance on commodity exports for foreign exchange and revenue generation. Third, the analysis addresses the economic ramifications of this dependence and the challenges of diversifying economies of SSA. The findings underscore the dual-edged impact of commodity trade in Sub-Saharan Africa: while it fosters export-led growth and capital inflows, it also exposes economies to external shocks and hinders structural transformation. By emphasizing the need for sustainable trade practices, diversified economies, and policy reforms, this thesis contributes to a deeper understanding of how Sub-Saharan Africa can navigate the complexities of commodity trade to achieve economic growth.