Why isnβt there more trade between African countries?
The African Continental Free Trade Agreement came into effect this year. Itβs worth trillions of dollars for the continent β so whatβs holding things up?
The African Continent Free Trade Agreement came into force this year with the aim of creating a borderless market for services, goods and commodities worth trillions of dollars for the region.
Itβs a high ambition for the 54 nation bloc and the World Bank estimates that the new trade regime could unlock growth in income of up to four-hundred and fifty billion dollars.
It is expected to boost intra-African trade, generating millions of jobs for the continentβs youthful population.
But little trade currently goes on between African countries and Bogolo Kenewendo, a former minister for trade in Botswana, says itβs not just tariffs that have hindered the process. She says itβs also about such things as product standard associations which are closely linked to colonial systems. She says for a country like Botswana it makes it easier to accept standard approved products from countries like the United Kingdom than it is from Uganda.
The former minister says that this means that βinstead of seeing each other as allies, weβve seen competing sectors as just that, competingβ.
In Africa Daily Alan Kasujja looks at why more trade isnβt being done between African countries and what needs to change.
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Africa Daily
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