Infrastructure Is Crucial To Intra-African Trade

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Infrastructure Is Crucial To Intra-African Trade

29 août 2023 11:57

According to the Africa Export Import Bank Africa Trade Report 2021, the value of intra-African trade reached US$169.73 billion in 2021, representing growth of 18.23 per cent. However, trade between the continent and other countries globally grew by 29.54 per cent, reaching US$1.01 trillion in 2021. Generally, Algeria, Botswana, Cote d’Ivoire, Democratic Republic of Congo, Ghana, Mali, Namibia, Nigeria, South Africa and Zimbabwe are considered leaders in intra-Africa trade, registering high export and import volumes to and from states within the continent. Despite the huge potential and a vast market of about 1.2 billion people, intra-African trade is still low compared to trade with the outside world. The poor state of infrastructure is the bane of Africans doing business within Africa as poor transport infrastructure continue to impede market access. Roads, railways and telecommunication infrastructure to connect one country to another are largely insignificant. Physical infrastructure are critical amenities that facilitate flow of goods across borders and support overall productivity. These amenities include transport networks, energy generation and supply, and telecommunications systems. As each African country endeavours to pursue physical infrastructure enhancement programs, the danger lies in the failure to promote connectivity with other surrounding states or towns at border posts. Even within Regional Economic Communities (RECs) like CEMAC, ECOWAS etc, the level of intra-regional trade is still wanting. This is partially blamed on the lack of necessary infrastructure and other trade barriers such as tariffs impediments. Physical infrastructure connectivity in the Continent requires substantial financial commitments from member states....