The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has raised concerns over the high cost of trading within Africa, revealing that intra-African trade is about 20 percent more expensive than trade with countries outside the continent.
Speaking at a recent forum on African trade integration, Okonjo-Iweala noted that the high cost of doing business among African nations continues to undermine the continent’s growth potential despite the establishment of the African Continental Free Trade Area (AfCFTA).
“It costs roughly 20 percent more for African countries to trade with each other than to trade with countries outside the continent,” she said. “This is unacceptable if we want to unlock the full potential of AfCFTA and build resilient regional value chains.”
The WTO chief attributed these excessive costs to poor infrastructure, inefficient logistics, multiple trade barriers, and fragmented payment systems across the continent. She called on African leaders to work together to address these bottlenecks, invest in transport and digital infrastructure, and harmonize customs procedures.
Okonjo-Iweala emphasized that reducing trade costs within Africa would boost industrialization, job creation, and regional economic integration, helping African economies become more competitive globally.
“If we can bring down trade costs within Africa, we will see a surge in regional production and economic resilience,” she added.
Experts believe her remarks highlight the urgent need for African policymakers to accelerate AfCFTA implementation and create a more seamless trading environment. For countries like Nigeria, analysts say these reforms could unlock significant opportunities for exporters, manufacturers, and small businesses looking to expand across regional markets. Visit www.jocomms.com for more news.
