WTO Chief Warns: Trading Within Africa Costs 20% More Than Deals Abroad

Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization, has spotlighted a stubborn barrier holding back Africa's economic potential. She revealed that moving goods between African countries racks up expenses roughly 20% higher than shipping them to markets outside the continent.

This eye-opening statistic underscores the urgent need to slash trade hurdles across the region. Okonjo-Iweala made her comments while addressing a high-level gathering focused on boosting intra-African commerce.

The extra costs stem largely from outdated infrastructure, cumbersome border procedures, and a web of non-tariff barriers that snag shipments at every turn. These inefficiencies not only inflate prices for businesses but also stifle the African Continental Free Trade Area (AfCFTA), a flagship initiative designed to unite the continent's markets.

Experts argue that tackling these issues head-on could unlock billions in growth. Streamlining customs, upgrading roads and ports, and harmonizing regulations would make cross-border trade smoother and more affordable.

Okonjo-Iweala urged leaders to double down on reforms, noting that lower internal trade costs would empower local industries, create jobs, and reduce reliance on foreign imports. Her call aligns with broader efforts to turn AfCFTA from promise into reality, potentially transforming Africa into a powerhouse of self-sustained trade.

As global supply chains evolve, the continent's ability to trade freely among itself could determine its competitive edge in the years ahead.