Why has trade between African countries been limited?

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Trade between African countries has historically been limited by several structural, economic, and historical factors.

  • Colonial Legacy: Transport networks were originally designed by colonial powers to move goods from the interior to seaports for export to Europe, rather than to facilitate connections between African regions. This resulted in fragmented infrastructure, including incompatible railway gauges and systems that remain costly to integrate.12
  • Economic Structure: Commerce is often hindered by a lack of complementary products, as many economies rely on similar primary commodities, and by the limited development of local manufacturing industries.3
  • Logistical Barriers: Inadequate means of transport and communication, combined with difficult terrain and vast unpopulated areas, further impede the movement of goods.13
  • Trade Orientation: Trade has historically remained concentrated within common-currency areas and trade zones established during the colonial era, with a strong orientation toward commodity trade with former administering countries.13
  • Data and Informal Trade: Official statistics often understate intra-African trade because a significant portion of traditional border commerce occurs through unrecorded smuggling.3