Trade facilitation in Africa: Challenges and Possible Solutions

Abstract

Africa's economic development partly depends on reduction of trade transaction costs, which are currently unacceptably high. Therefore, many African governments, working together with international organisations like the United Nations Conference on Trade & Development (UNCTAD), the World Bank, World Customs Organization (WCO) and the World Trade Organization (WTO), have in recent years implemented initiatives that have led to improvement of trade facilitation. In this regard, customs reform and modernisation initiatives in Africa inevitably include elements of trade facilitation. In addition to government initiatives, the private sector has recently organised itself to address the challenges of trade facilitation in Africa. Entry of the private sector requires a convergence of interests with government so as to reduce the existing disconnect in government-private sector relations. This article highlights the progress made in trade facilitation, existing challenges, and customs compliance management imperatives for businesses operating in Africa.