How African Countries Are Missing Out on Making Over $30 Billion Through Intra-Trade

The map of Africa looks like a very big question mark at the end of a very big question still unanswered. We cannot leave this question for the next generation to answer. I think now is the best time to answer that question. Africa is a continent of more than 1 billion people, yet Africa has very little to no say at all when it comes to trade agreements especially at the international market.

Our colonial masters drew meaningless lines separating us and left us separated forever but as we all know, our separation only benefits our colonial masters and keeps us in bondage to the point where we find it so difficult even trading with our own brothers and sisters in Africa. We find it difficult trading with countries within Africa.

We trade with Europe and America but the sad thing is that, we find it very difficult trading with our own African brothers and sisters, why, because our colonial masters drew several lines dividing us calling some Kenyans, some Ghanaians, some Nigerians, etc. making us feel we are different people. Our colonial masters made us feel we are so incapable of finding solutions to our own problems to the point where we need to look up to Europe, America and somewhere else for solutions to problems we face here in Africa.

Trade is actually an engine of growth and development but the sad thing is that, our beloved continent is yet to learn how to trade. Africa is a continent of great business opportunities and hope, why? because every young person in Africa is eager to work. Because Africa is a continent full of natural resources and an affordable labor force.

However, despite the enormous opportunities to do business in Africa, every year Africa loses huge sums of money to “meaningless” high trade costs, why? because Africa is yet to reach her business potential especially when it comes to intra-Africa trade and markets.

A major problem we can easily remove just by liberalising trade within Africa. Just around 10% of Africa’s trade occurs within Africa compared to over 60% in Europe and other parts of the world. Trade with Europe benefits Europeans more. The same thing applies to trade with America. However, trade within Africa would benefit Africa as a whole.


This would also give Africa a major say at the international markets. In other words, if the intra-Africa trade improves from the around 10% to say 50%, Africa would need not force cheap goods and services on Europe or America and would have a major say when it comes to determining the market prices of our oil and other raw materials.

Someone may ask, why can’t African countries trade peacefully with other African countries? There are several hidden answers to this question. If you read one article I posted recently here on about how the World Bank, the IMF and co destroy Africa, you may get to know one or two of several such reasons.

Once the intra-Africa market trade goes up, Africa’s inter-continental trade goes down and because of that, several factors are working very hard to keep the intra-Africa trade level at all-times low. Here is an example. The Republic of Ivory Coast is the major producer of cocoa beans in the world today followed by Ghana.

Ivory Coast exports these cocoa beans at very cheap prices to chocolate-producing countries in Europe, America, and other parts of the world. The chocolate-producing countries then convert Ivory Coast’s cocoa beans into finished goods such as chocolate bars and then sell these chocolate bars at very expensive prices to poor countries including Ivory Coast and make more profit.

If Ivory Coast distributes a greater portion of her cocoa beans to chocolate-producing countries within Africa, these chocolate-producing countries in Africa would be able to produce chocolate on large scale and then exports those chocolate bars to Europe and other parts of the world and make more profit.

In other words, this would create more job opportunities in Africa and also improve Africa’s economy as a whole compared to the current situation whereby Europe and America benefit the most from Ivory Coast’s cocoa beans. Because the external benefits go down, external factors work very hard together to help keep Africa’s internal trade at all-times low.

That is another major reason why African countries find it difficult trading with other African countries compared to trading with western countries such as those in Europe.

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Written by PH

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