Trade facilitation in Africa: A review of concepts and empirical facts

Economic theory suggests that trade is a key driver of economic growth and prosperity. However, high trade transaction costs and border inefficiencies caused by tariffs and non-tariff barriers at entry points, as well as weak institutional structures at border agencies, can stymie trade flows, particularly in an increasingly globalised and interconnected world in which intermediate goods and final products cross borders several times before final consumption. As a result, improving trade facilitation measures can simplify, harmonise, standardise, and streamline trade procedures, ensuring the efficient and timely flow of cross-border trade. Against this backdrop, this chapter explores the context and conceptual issues surrounding cross-border trade in Africa to provide an in-depth understanding and empirical insights into the critical issues and policies necessary to improve trade facilitation in Africa. Specifically, the chapter explores the conceptual definition and measurement of trade facilitation, the cost and benefits, the theoretical framework, the descriptive analysis of empirical facts, and an assessment of previous WTO and African Continental Free Trade Area (AfCFTA) Trade Facilitation Agreements towards the achievement of Agenda 2063 and Sustainable Development Goals. The chapter concludes with recommended policy reforms for efficient trade facilitation in Africa.