Trade Barriers In Africa

6. Barriers of trade in Africa

A. Tariff Barriers Tariffs are the main limitations to trade in Africa. Countries hold various customs and border tariffs that make trade between countries which facilitates strain in the exchange of commodities between countries.

However it is imperative to note that, regional cooperation amongst states in Africa has degraded the barrier and tariff systems such as embargos on commodities.

A great example can be the inclusion of Rwanda and Burundi into the East African community has facilitated the movement of commodities from the Mombasa and Dar es Salaam ports in Kenya and Tanzania respectively, hence growth of these nations. The two developing countries are land locked and this cooperation was partially

Collective Bargaining

African countries should work closely with other developing countries in order to increase their ability to negotiate.

They should strengthen other developing countries’ pressure groups that could be instrumental for their bargains at the trade fairs.

It is also imperative that trade within be enhanced between developing states. This is possible if trade barriers are dissolved and their ability to trade is as well nurtured. I vehemently state that there should be programmes for diplomats and trade ministers to strengthen their negotiating skills. This is to ensure collaboration between countries and successful negotiations. B. Regional integration

Regional integration is important for trade growth for the continent. In trade, the major objective of the African Union is to “accelerate the political and socio-economic integration of the continent.

“About twenty years ago, African governments had recommended that African Economic Community would be in place by 2000 in order to ensure the economic, social and cultural integration of the continent”. (Mshomba, 2009) pg.

This could lead to the actualization of an African Common Market in future.

C. Development of infrastructure

There is need by African countries to develop their communications and transportation infrastructure. This generally explains the current role of east and Chinese penetration into African development. Poor roads, dysfunctional ports, poor rail systems and underdeveloped water transport system augment costs for trade and this discourages investors and interested business parties from investing into the continent. It is also imperative that energy infrastructure is developed in the continent.

To Gu (2009), there is a lot of energy potential but many African governments are reluctant to exploit these resources. Frequent power failure hinders industrial development that is critical to trade. It is a challenge to the governments and private sector to put in place reliable and viable infrastructure.

D. Augment Africa’s trade