M a r k e t N e w s
East Africa: Intra-African Trade Rises As Market Access Between Blocs Improves
Posted on : Tuesday, 1st September 2015
Intra-African trade increased by 50 per cent to $61 billion between 2010 and 2013, according to recent data released by the African Development Bank.
The rise is attributed to improved market access and a strong growth in re-exports among African countries.
The increase marks a strategic shift in internal trade on the continent, which was previously relatively low compared with trade flows from the European Union and China, observers say.
Poor quality roads and highways connecting national borders; non-tariff barriers and insecurity are blamed for the weak growth posted by intra-African trade in the past.
Recorded trade flows within the East African Community have grown by an average of less than 15 per cent per annum since 2005 compared with an average growth rate of 20-25 per cent per year in trade activity between the bloc and the Eurozone, research shows.
Africa's trade with Europe grew to $430 billion between 2010 and 2013 while the value of trade flows with China increased to $210 billion during the same period, AfDB data shows.
Source : allafrica.com
