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by kolikotime
2731 days ago
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The big issue for many African countries is that their trade flow is still configured to suit colonial trade flows. Port cities situated on the coast optimized to trade outwards, maybe connected by a few roads or a moribund colonial era rail to a resource extractive region in the interior. The issue though is that this prevents intra-regional trade, which is the dominant form of trade for North America as well as Eurasia, and which helps to facilitate viable regional economies. Infrastructure is the first part of solving this puzzle. In East Africa in particular a lot of focus has been put on creating modernized rail systems, the construction of new modern freeways, and in particular with the EAC(East African Confederation) a strong focus on harmonizing business laws and trade regulations through the region. Movement is also being made on enacting the AFCTA (African Continental Free Trade Agreement) as well, which would construct a continental sized free trade market area, and help to smooth trade between the countries of the continent. In reflection on the West African examples shown in this article, it reflects on the need for ECOWAS (West Africa's form of the EU) to move forward on becoming a serious supranational organization that gets tougher on business harmonization and regional economic integration. It has done exceptionally well on ensuring that freedom of movement is possible between the 15 states within its union but has stagnated since then. It is in great danger of staying a bored lame talking shop of corrupt enfeebled bureaucrats who ignore corrupt governments and repression, and do nothing to foster actual growth. I am quite optimistic of the future though on the whole. The whole continent won't lift off, but enough countries are on the right trajectories towards becoming middle income countries. |
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In developed countries the containers are multimodal: port/rail/transport truck
The oceanbound part is the cheapest. Without modern container ports it is very difficult to prosper.
Internal trade is also important, but I think your disregard for the ports is misplaced.