The Impact of Climate Change on African Commodity Trade

Africa is the world's second-largest continent, covering an area of approximately 30.2 million square kilometers. It is home to 54 countries, each with its unique culture, history, and natural resources. The continent is rich in natural resources, including oil, gas, minerals, and agricultural commodities, which are in high demand globally.

The African continent plays a significant role in the global commodity trade, providing the world with critical raw materials. Africa is a leading producer of various minerals, such as gold, platinum, diamonds, manganese, copper and now the world is looking to Africa as a source of Lithium for battery production. It is also a major supplier of crude oil, with countries such as Nigeria, Angola, and Libya being significant producers. Africa is also a significant producer of agricultural commodities such as cocoa, coffee, tea, and cotton.

Numerous multinational corporations looking to invest in Africa's natural resources have been drawn to the continent due to its significance in the global commodity trade. As a result, there has been an increase in foreign investment and the growth of the extractive sector in many African nations. African economies could benefit significantly from the extractive industry, but it also faces difficulties like climate change, environmental degradation, societal conflicts, a lack of infrastructure, and legislative restraints.

Climate change has since transitioned from being an environmental problem, but also a systemic problem which affected people and economy. This report discusses how climate change affect Africa commodity trade through production, supply chain operations and direct trade cost. It furthers analyses the effectiveness of strategies that have been adopted and recommends ways to adapt to the long-term effect of climate change in the Africa continent.