With African leaders now calling for a continental free trade area by 2017 to boost trade within the continent, a new World Bank report shows how African countries are losing out on billions of dollars in potential trade earnings every year.
This is said to be the result of high trade barriers with neighboring countries, and that it is easier for Africa to trade with the rest of the world than with itself.
According to the new report De-Fragmenting Africa: Deepening Regional Trade Integration in Goods and Servicesregional fragmentation could become even more costly for the continent with new World Bank forecasts suggesting that economic slowdown in the Eurozone could shave Africas growth by up to 1.3 percentage points this year.
As the authors write, while uncertainty surrounds the global economy and stagnation is likely to continue in traditional markets in Europe and North America, enormous opportunities for cross-border trade within Africa in food products, basic manufactures and services remain unexploited.
The reports says this situation deprives the continent of new sources of economic growth, new jobs, and sharply falling poverty, factors which accompanied significant trade integration in East Asia and other regions.
The cross-border production networks that have spurred economic dynamism in other regions, especially East Asia, have yet to materialize in Africa.
“It is clear that Africa is not reaching its potential for regional trade, despite the fact that its benefits are enormousthey create larger markets, help countries diversify their economies, reduce costs, improve productivity and help reduce poverty”, says Obiageli "Oby" Ezekwesili, The World Banks Vice President for Africa, and a former Nigerian Minister of Extractive Industries.
Yet trade and non-trade barriers remain significant and fall most heavily and disproportionately on poor traders, most of whom are women.
African leaders must now back aspiration with action and work together to align the policies, institutions and investments needed to unblock these barriers and to create a dynamic regional market on a scale worthy of Africas one billion people and its roughly $2 trillion economy."
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Cybercrime ringleader, 10 others remanded in custody
2 minutes -
Gov’t to expand student loans to all tertiary institutions – Education Minister
3 minutes -
WaterAid Ghana, Guinness Ghana commission water project in Upper West Region
7 minutes -
Energy levy: ‘You can’t continue pouring water into a leaking bucket’ – COPEC warns
9 minutes -
Rising Star: Yvonne Dadson’s groundbreaking research earns international recognition
12 minutes -
Suicide bomber killed in Uganda on Christian holy day, army says
32 minutes -
Journalists urged to champion nutrition and public health advocacy
36 minutes -
Mindset Transformation Initiative marks 10 Years since June 3 Disaster, calls for national accountability
1 hour -
Ghana urged to prioritise maternal mental health amid rising postpartum depression cases
1 hour -
High Court showdown: Bright Simons demands 38-fact admissions of Ibrahim Mahama
1 hour -
Volta Region records decline in child immunisation coverage – Health officials
1 hour -
Majority Leader backs “1 litre, GH¢1 levy to end dumsor”
1 hour -
Tricycle operators in Techiman rally as gov’t moves to legalise ‘Okada’ trade
2 hours -
NASPA Coordinating Secretary slams NSA over ‘undue interference’ in A/R elections
2 hours -
CEO of NEIP supports Solomon Akugru, a survivor of the June 3 disaster
2 hours