This link has been bookmarked by 1 people . It was first bookmarked on 16 Sep 2008, by Dripa B.
-
16 Sep 08
Dripa BDespite the liberalisation of trade over more than two decades, the level and composition of Africa’s exports have not substantially changed, according to the 2008 report by the United Nations Conference on Trade and Development (UNCTAD) on economic development in Africa.
-
Intraregional trade accounted for only eight percent of total African exports in 2006 -- a much lower figure than in other regions.
This can be explained by the fact that products from African countries tend to be similar in nature, thereby limiting the complimentarity of exports. Second, the infrastructure for intra-African trade is often poor, which leads to high transaction costs.
And third, despite the many regional agreements in place, these are generally slow to be implemented. There is also little private sector involvement, compared with their equivalents in Europe, Latin America or Asia. -
The report identifies Africa’s weak supply response as the most important impediment to the continent’s export performance. Export policies should focus more on ways to increase production for export.
-
tackling supply-side constraints with bigger incentives to encourage investment in agriculture.
-
governments have to develop programmes that promote diversification towards higher value added products. These will enable African countries to increase their gains from agricultural production and trade. It will also permit governments to reduce their vulnerability to commodity price volatility.
-
promote regional economic cooperation and South-South trade
-
Would you like to comment?
Join Diigo for a free account, or sign in if you are already a member.