For many African economies, promoting trade is a priority. Rightfully so, considering its potential snowball effect. When trade flourishes, it sets off a virtuous circle, a country’s goods enjoy ready market, producers and the entire value chain benefit and growth spreads out.

However, turning this vision into a reality is a challenge. Trade remains depressed below optimum levels despite sustained investment in smoothening movement of goods. Over the years, billions of dollars have gone into interconnecting the continent by expanding existing roads, railways, air and waterways while building new ones.

The rollout of infrastructure has been backed by sustained diplomatic efforts under the auspices of regional trade blocs to ease movement of goods and people, as well as free trade protocols, such as the East African Community common market.

These recently climaxed with the proposed African Continental Free Trade Area (ACFTA) that is being ratified and is expected to be a game-changer in unlocking intra-African trade.

All these notwithstanding, the higher cost of goods made in Africa has rendered them uncompetitive on the global market.

Source: Business Daily

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