Multiple barriers stifling Africa’s trade
Too many barriers are choking free trade between African countries given that most countries do more trade with China and the West than their next door neighbors. According to the Institute of Economic Affairs, such barriers are curtailing growth in Africa,hailed by many as a resource-rich continent.
During the forthcoming African Union (AU) summit to be held in Addis Ababa over the weekend, leaders will be seeking for ways on how intra-African trade can be doubled in the next ten years, from the current 10% to more than 25%. Over 40% of trade in North America is done between regional partners while that of Western Europe stands at 63%.
Tariff barriers, poor infrastructure especially railways and roads, lack of product diversification and reliance on export of unprocessed goods are some of the nagging factors that hinder trade within the continent.
According to the director of the Institute of Economic Affairs, a Kenyan policy group, Kwame Owino, it takes only 10 days for a ship to cruise from Asia to Kenya. However, it takes two weeks for it to be cleared. It takes another three weeks for the goods to be transported from the port of Mombasa to the Ugandan capital Kampala.
Kwame added that if infrastructure development is not coordinated , trade volume and the potential to exploit trade between African countries will still be limited. Cost of transport in Africa is 63% higher than in developed countries due to poor infrastructure.
Africa imports most of its goods from outside the continent. In the recent years,China has particularly been keen on establishing stronger economic ties with Africa, one of the largest emerging markets in the world.
