Africa’s effort to build a regional market faces bottlenecks inside national economies, where the World Bank traces roughly three-fifths of estimated trade costs to unilateral, or behind-the-border, factors.
In its Aug. 28 report, Integrating Africa: From Threads to Hubs, the Bank points to customs administration, costly logistics, transport restrictions, fragmented standards, service-sector barriers and weak infrastructure. It says governments can reduce many of these frictions through national policy changes; progress does not depend on another round of regional negotiations. The report frames these domestic conditions as central to whether firms can trade across borders consistently.
The World Bank estimates that services trade within the African Continental Free Trade Area (AfCFTA) could be about 60% to 64% higher by 2035 if members ease rules affecting transport, telecommunications, financial and professional services.
The wider trade picture shows the scale of the integration challenge. The United Nations Conference on Trade and Development (UNCTAD) put the share of trade occurring between African economies at 16% in 2022. Its Economic Development in Africa Report 2024 listed 68% for trade within Europe and 59% within Asia.
Architect and entrepreneur Felix O. Arome, in an Oct. 23 opinion article for BusinessDay, urged governments to adapt useful practices from other economies while developing their own institutions and capabilities. He called on firms to look beyond national markets and policymakers to lower cross-border obstacles. Arome also points to wealthy countries as a precedent, arguing that institution-building there took persistence and successive reforms, often after setbacks; he names no examples.
The World Bank sees potential for firms to expand cross-border business and for employment to improve in both quantity and quality. It does not estimate how gains or costs would be distributed among companies, workers or consumers. At the report’s release, Ndiamé Diop, the World Bank’s vice president for Eastern and Southern Africa, said, “The focus is now implementation.”
For progress checks, the Bank suggests watching firms’ participation in regional supply chains, private investment, acceptance of professional credentials and standards, border wait times and the cost of moving goods. It also points to progress in removing non-tariff obstacles, but has set no timetable for reviewing these measures.
