Trade and Investment

The Challenge

Sub-Saharan Africa faces inherent trade problems. A lack of infrastructure, high concentration of land-locked nations, and dependence on the export of raw materials (such as minerals and agricultural products) all present serious challenges for expanding African trade. African products also face barriers such as high tariffs which make it difficult to compete in important international markets. On top of this, rich countries often pay their farmers to produce agricultural products through subsidies, which can push prices down and make African products less competitive.

The Opportunity

Economic growth, driven by trade and investment, is the critical engine that will end poverty in sub-Saharan Africa, as it provides a sustainable source of income over the long-term that can enable poor countries to fund their own development agendas.

Donors have an important role to play in expanding trade and investment in Africa. By eliminating their own subsidies and dropping duties and quotas on African products, donors could enable more African products to compete in international markets and raise a vital source of income for many sub-Saharan African countries. Moreover, development assistance for infrastructure, telecommunications, and the strengthening of regional trade entities could help sub-Saharan Africa overcome many of the inherent barriers producers face in getting their products to local, regional and international markets and in attracting investment into the region.

Learn more, read the full Trade Issue Brief...