Africa’s trade challenges

This report by the Institute for Security Studies examines the structural and systemic barriers to trade within Africa, highlighting the impact of high tariffs, non-tariff barriers, and the continent's historical exclusion from global and regional value chains.

• Trade within Africa is characterized as complex and expensive, driven by high tariff rates and non-tariff barriers such as poor infrastructure, logistics systems, and customs procedures. These inefficiencies hinder cross-border trade flows and encourage the growth of a shadow economy and smuggling of high-value items like cigarettes and petroleum.
• In the Maghreb region, regional trade integration could potentially increase growth rates by an average of one percentage point. However, with the exception of Morocco, trade openness has steadily declined in every country in that region, despite potential benefits such as attracting foreign direct investment (FDI) and improving resource allocation.
• Africa has historically failed to develop regional value chains, leaving it excluded from the global value chains in services and goods that emerged between Europe, North America, and Asia since the 1990s. This lack of integration is cited as a major obstacle to economic growth and diversification.
• Global trade trends are shifting toward regional value chains as companies prioritize proximity to markets over cheap labor to reduce carbon emissions and respond to geopolitical tensions. This trend is being intensified by the second Trump presidency's approach to trade and multilateralism, which may create opportunities for Africa due to its growing consumer base and population.

APA

Chipanda, B., & Cilliers, J. (2026). Africa’s trade challenges. Institute for Security Studies. https://futures.issafrica.org/thematic/guide.pdf?thematic=08-afcfta&topic=03-africa-trade-challenges

Chicago

Chipanda, Blessing, and Jakkie Cilliers. Africa’s trade challenges. Institute for Security Studies, 2026. https://futures.issafrica.org/thematic/guide.pdf?thematic=08-afcfta&topic=03-africa-trade-challenges.

Wikipedia

{{cite report |last1=Chipanda |first1=Blessing |last2=Cilliers |first2=Jakkie |title=Africa’s trade challenges |publisher=Institute for Security Studies |date=29 March 2026 |url=https://futures.issafrica.org/thematic/guide.pdf?thematic=08-afcfta&topic=03-africa-trade-challenges |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chipanda2026africas, author = {Chipanda, Blessing and Cilliers, Jakkie}, title = {{Africa’s trade challenges}}, institution = {Institute for Security Studies}, year = {2026}, month = mar, url = {https://futures.issafrica.org/thematic/guide.pdf?thematic=08-afcfta&topic=03-africa-trade-challenges}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }