Only 14–17% of Africa’s trade is within Africa. Roads, visas and payments, not distance, keep African markets apart.
Only around 14 to 17% of Africa’s trade happens between African countries. In Europe, about 70% of trade stays within Europe. Africa sells raw goods to the world and buys finished goods back, instead of building markets with its neighbours.
What we found
Distance is not the main barrier. Three things are: roads and railways that run to the coast instead of across borders; visas that stop traders and engineers from moving; and payment systems that make it hard to pay a supplier in the next country. Aliko Dangote once needed 35 visas to travel the continent on his Nigerian passport.
What is already changing
- The African Continental Free Trade Area entered into force in 2019, and trading under it began in 2021, with 54 countries working towards one market.
- Kenya opened visa-free entry for African travellers.
- Corridors such as Addis Ababa–Djibouti and Lobito are connecting inland regions to ports and to each other.
What can be done
- Visa-free or visa-on-arrival entry for all African passport holders.
- Build roads and rail across borders, not only to the sea.
- Make it as easy to pay a supplier in Accra from Lagos as one in the same city.
Take this with you
- Trade agreements do not build markets; roads, visas and payments do.
- Every border opened is a market made bigger for every African business.