Trade in Sub Saharan Africa Short Answers

The level of intra-regional trade in Sub Saharan Africa is much lower than for advanced, high income countries. What is meant by intra-regional trade. Explain two ways in which intra-regional trade in Sub Saharan Africa might be increased

What is meant by intra-regional trade

• Intra-regional trade is the exchange of virtually identical products between countries within the same region.
• For example in Sub Saharan Africa, nations might each trade similar products such as copper or cocoa beans.
• Intra-regional trade is measured as a % of the total value of trade.

Explain two ways in which intra-regional trade in Sub Saharan Africa might be increased

• Intra-regional trade is often held back by a lack of export diversification and inadequate infrastructure and residual tariff and non-tariff barriers
• SSA might increase intra-regional trade by attracting inward FDI to help build improved transport/logistics infrastructure such as improved motorways and high-speed rail links.
• This will lower the cost of getting products to markets within the continent.
• Diversification through pro-manufacturing policies - is important to establish new areas of comparative advantage.
• For example, Asia is building complex and large supply chains and trading more within the region as a result - with intra-regional trade climbing above 51% in 2013.