Policy recommendations

 

  • In order to boost sub-Saharan Africa’s participation in international trade, policies need to address the exceptionally high intra-national trade costs that increase the cost of transferring goods and resources throughout the country and to and from ports and borders.
  • Policies aimed at reducing the costs of trade should not solely focus on improving the quality or availability of roads. Other factors need to be addressed, such as restricted market competition in logistics, inferior technology of transport vehicles, and under-utilisation of trucks and roads.
  • It is important to address policies governing infrastructure, such as restrictions on competition, standards and licensing, and border inspections that reduce the efficiency of highways. Reducing delays at ports and border crossings is critical to improving the cost-efficiency of transport.
  • Policies to reduce the high costs of intra-national trade to ensure a more equal distribution of the gains from globalisation should be implemented. Lower intra-national trade costs could lead to reduced regional inequalities and benefit economic growth in remote areas.