Nigeria did not make the International Monetary Fund (IMF) list on export diversification, comprising two African nations.
The global agency urged countries to focus on governance, education, infrastructure, and open trade, to achieve profitable exports.
In new findings made available to VELOXNEWS, the IMF said the economy-wide factors relate closely to more varied and complex exports globally.
The institution observed that several countries have much stronger policies than expected for their income levels. Two countries in Africa were recognized for their efforts.
“Rwanda for governance; Georgia and Ukraine for educational attainment; Malaysia for infrastructure; and Mauritius and Peru for tariffs. These economies can be role models”, the report noted.
It revealed that as the world’s biggest copper producer, Chile’s shipments meet around one-third of global demand and represent about half its goods exports.
IMF said apart from the dominance in mining, Chile’s trade flows are more varied and complex than they may appear, with significant exports of vehicles, pharmaceuticals and telecommunications equipment.
“The Andean economy is among those that shine as a role model for diversification policies”, the institution added.
IMF expects that the findings can better guide nations aiming to expand their international trade.
“The examination of 201 countries and territories goes beyond the economic complexity indices that have traditionally been used by economists.
“Those proxies for the productive capability of a given economic system have strong sensitivity to commodities, which can distort their accuracy.
“The analysis shows that, except for abundant copper reserves, Chile’s economic profile, surprisingly, resembles Malaysia’s.
“The Asian nation has similarly strong education and institutions, but it benefits from being much closer to the major global supply-chain hubs of China, Japan and Korea.
“Prominent Asian and European exporters, from Hong Kong and Singapore to Ireland and Denmark, have among the most diverse and complex shipments and the strongest horizontal policies.
“For governments aspiring to more varied trade flows, the new approach to explaining diversification underscores the need to effectively shorten geographic distance by enhancing connectivity between nations.
“Better transportation logistics, at seaports for example, effectively shorten distance by reducing transit times for goods, easing trade policy barriers, enhancing trade facilitation.
“Others are fostering the spread of technology through educational exchange programs, and investing in communication technologies such as broadband that support the digital economy”, it added.
Mauritius has a high human development score and an economy performing well, with major contributions from financial services, tourism and information technology.
Just 24 hours prior to the IMF report, Mauritius emerged the most innovative African country on the Global Innovation Index 2021, placing 52nd among 132 countries.
Mauritius was followed by South Africa (61), Tunisia (71) and Kenya (85) in terms of innovation.
Ten moved improved in the low-income group. Rwanda (102), Kenya (85), Cape Verde (89), Egypt (94), Namibia (100), Malawi (107), Madagascar (110), Zimbabwe (113), Burkina Faso (115) and Algeria (120).
The GII 2021 was published by World Intellectual Property Organisation (WIPO) in partnership with the Portulans Institute.
The ranking is based on nations’ performance in institutions, human capital and research, infrastructure, market sophistication, business sophistication, knowledge and technology outputs, creative outputs.
Exports: IMF shuns Nigeria, hails governance in Rwanda, Mauritius’ tariffs