World Bank report: Domestic costs hinder intra-African trade

A report by the World Bank and the Agence française de développement (AFD) indicates that high domestic trade costs, rather than tariffs, are the primary obstacle to economic integration in Africa. Approximately 60% of trade costs within the continent originate behind national borders due to customs delays, inefficient logistics, fragmented regulatory frameworks, and inadequate infrastructure.

While intra-African trade is more diversified and manufacturing-intensive than exports to external markets, it currently accounts for only 15–20% of the continent's total trade. The report suggests that deeper liberalization of services—including transport, telecommunications, and financial services—could increase intra-AfCFTA services trade by 60–64% by 2035.

To facilitate growth, the authors recommend prioritizing “deep” trade agreements that establish enforceable rules for technical standards and investment, noting that such agreements can increase exports by up to 56%. The study also suggests using “coalitions of the willing” to pilot regional public goods, such as shared energy grids and digital payment platforms, to bypass political delays.