A new World Bank report has
revealed that African countries are losing out billions of dollars in potential
trade earnings every year because of high trade barriers with neighboring
countries.
A news release from the World Bank on Tuesday announcing the
publication of the 191-page report entitled “De-Fragmenting Africa: Deepening
Regional Trade Integration in Goods and Services” states that it is easier for
Africa countries to trade with the rest of the world than among themselves.
The report is published
at a time when African leaders are calling for a continental free trade area by
2017 to boost trade within the continent.
Barriers
to intra-Africa trade include trade permits, export taxes, import licenses, and
bans, all of which are persistent.
According to the new
report, regional fragmentation could become even more costly for the continent
as World Bank forecasts suggest that economic slowdown in the Eurozone could cut
off Africa’s growth by up to 1.3 percentage points this year.
