The Dismal State of Intra-Regional Trade Within Africa

According to a report presented at the UNECA Conference of Ministers of Finance, Planning and Economic Development (COM2024), trade amongst African countries has declined to 13.7% of total trade in 2022. This, compared to intra-continental trade of continents like Asia which is at 60% and Europe at 70% (Brookings, 2024) leaves much to be desired. It remains that trade amongst member nations of a geographical entity, is one of the most important facets of sustainable development. In that regard, a lack of intra-continental trade can be seen as one of the reasons for Africa's economic woes.

More should and could be done to alleviate the circumstances in which intra-African trade has found itself. From improving logistics processes and logistics infrastructure, to increasing trade integration amongst the member states of the African Union. Surely, there is progress on that front as the African Continental Free Trade Agreement (AfCTFA) has seen many developments in recent years. Yet, the push must not only come from national governments and continental governing bodies, there ought to be a concerted effort from the private sector to that end.

It is commonplace to hear amongst private sector stakeholders that they pride themselves for their business relations and contacts in Asia, Europe or North America. This veil of prestige and pedigree can be seen blinding some private sector actors from looking deeper within Africa and discovering opportunities for trade and commerce. Although this article may sound like a critique of such business practices, it is intended as a wakeup call to the private sector. It will take much work and will require much dedication, but considering the volumes of trade moving out of Africa, the author can not help but wonder what opportunities are being missed by not looking inward.