Trade and Market Integration In Africa

	Regional Economic Communities' (REC) Intra and Inter-Regional Trade
	Arab Maghreb Union (AMU)
	Community of the Sahel-Saharan States (CEN-SAD)
	Common Market for East and Southern Africa (COMESA)
	East African Community (EAC)
	Economic Community for Central African States (ECCAS)
	Economic Community of West African States (ECOWAS)
	Inter-Governmental Authority on Development (IGAD)
	Southen African Development Community (SADC)

Conferences, Workshops and Events on Trade and Market Integration In Africa

International trade theory makes some profound assertions about the welfare of countries in a trading relationship, more so in the case of Africa: 

   • Trade provides an avenue to exchange surplus national production for the products of other countries.

   • It encourages resource allocation based on perceived comparative advantage.

   • It acts as an engine of economic growth.

   • It provides welfare gains even to countries at an absolute disadvantage.

 Trade theory recognizes, however, that while free commodity exchange among countries can generate global growth, there is no guarantee that the aggregate benefits will be equitably distributed among trading partners. Some countries may benefit from the trading relationship, and others may lose. Or the trading partners may all gain, albeit in different ways or to different degrees. In practice, many factors determine the benefits a country can derive from a trading relationship—terms of trade, international exchange rates, and the market characteristics of a country’s exportable goods.

 For most African countries, the structure of trade over the past 40 years can be characterized as follows:

   • A commodity structure of exports dominated by primary products in Standard International Trade Classification (SITC) categories 0–4

   • More than 80% of export earnings from primary commodities

   • A commodity composition of imports heavily weighted in manufactured goods in SITC product categories.

   • A heavy concentration of exports (more than 80%, mostly primary commodities) and imports (a similar share) in markets in Europe, Asia, and North America.

Standard International Trade Classification Categories(SITC) include:

Since the beginning of their modern existence, African countries have produced and exported primary commodities in exchange for manufactured goods. If Africa has any chance of diversifying its production and trade away from dependence on agricultural products and on the northern hemisphere, an integrated continental market offers the best hope for large-scale manufacturing. Developing physical infrastructure, removing commercial obstacles to the free movement of goods and productive resources, and harmonizing monetary, fiscal, and financial policies across the African sub-regions will vastly improve the operating environment for foreign investors.