{"id":466,"date":"2014-07-02T12:00:21","date_gmt":"2014-07-02T11:00:21","guid":{"rendered":"https:\/\/blog.iese.edu\/africa\/?p=466"},"modified":"2016-10-28T14:41:45","modified_gmt":"2016-10-28T13:41:45","slug":"intra-african-trade-and-transportation","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/africa\/2014\/07\/02\/intra-african-trade-and-transportation\/","title":{"rendered":"Intra-African trade and transportation"},"content":{"rendered":"<p>When I wrote about <a href=\"https:\/\/blog.iese.edu\/africa\/2014\/06\/04\/intra-africa-business-travel\/\">intra-Africa business travel<\/a> a few weeks ago, Charles Ivenco \u2013 one of my friends from <a href=\"http:\/\/www.lbs.edu.ng\/\">Lagos Business School<\/a> \u2013 left a comment in which he told us about the <strong>improvements in air transportation<\/strong> over the last decade, and how this is <strong>related to the increased levels of intra-African trade.<\/strong><\/p>\n<p>According to <a href=\"http:\/\/www.uneca.org\/sites\/default\/files\/page_attachments\/issues_affecting_intra-african_trade_proposed_action_plan_for_biat_and_framework_for_the_fast_tracking_of_a_cfta_-ts6622_en_original.doc.pdf\">data from the African Union Commission<\/a>, <strong>transport costs are 63% higher in African countries than the average in developed countries.<\/strong> The data are from 2012 but it doesn&#8217;t look like there&#8217;s been a dramatic change over the last two years.<\/p>\n<figure id=\"attachment_470\" aria-describedby=\"caption-attachment-470\" style=\"width: 300px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/2014-06-09-12.13.38.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-470\" src=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/2014-06-09-12.13.38-300x225.jpg\" alt=\"Trucks waiting to be loaded at the Accra, Ghana port area\" width=\"300\" height=\"225\" srcset=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/2014-06-09-12.13.38-300x225.jpg 300w, https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/2014-06-09-12.13.38-1024x768.jpg 1024w, https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/2014-06-09-12.13.38-624x467.jpg 624w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-470\" class=\"wp-caption-text\">Trucks waiting to be loaded at the Accra, Ghana port area<\/figcaption><\/figure>\n<p>And averages are averages. While there&#8217;s a clear need to improve transport infrastructure across the continent, there are some <strong>pockets of well-integrated transportation systems<\/strong> (as a reminder, <a href=\"https:\/\/blog.iese.edu\/africa\/about-me\/\">this blog <\/a>focuses on Sub-Saharan and Southern Africa):<\/p>\n<ul>\n<li><a href=\"http:\/\/www.ecowas.int\/\">Economic Community of West African Countries (ECOWAS):<\/a> this has a relatively <strong>well-linked road network<\/strong> through the Trans-West African Highway system, and the <strong>most integrated maritime transport<\/strong> (with seven ports for three landlocked countries). Also, there&#8217;s a <strong>plan to connect national railway lines<\/strong>;<\/li>\n<li><a href=\"http:\/\/www.eac.int\/\">East African Community (EAC)<\/a>: this has the <strong>most integrated inland waterways system,<\/strong> which links Kenya, Uganda, and Tanzania (the largest of five member countries) through <strong>Lake Victoria<\/strong>;<\/li>\n<li><a href=\"http:\/\/www.au.int\/en\/recs\/eccas\">Economic Community of Central African States (ECCAS):<\/a> five of its 10 member countries are serviced through the <strong>Congo River<\/strong> \u2013 this is the <strong>second most integrated inland waterways system<\/strong>;<\/li>\n<li><a href=\"http:\/\/www.google.com\/url?url=http:\/\/www.sadc.int\/&amp;rct=j&amp;frm=1&amp;q=&amp;esrc=s&amp;sa=U&amp;ei=FBOxU7m8LsbZPdbfgegF&amp;ved=0CBQQFjAA&amp;sig2=RlXe7Tu_4XlqZ0r6IchTtA&amp;usg=AFQjCNFFZ8W2lHA9kPjMS9JPnk833nW3VA\">Southern Africa Development Community (SADC)<\/a>: this offers the <strong>most integrated air transport<\/strong> through South Africa.<\/li>\n<\/ul>\n<figure id=\"attachment_468\" aria-describedby=\"caption-attachment-468\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/20140424_085316.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-468 size-medium\" src=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/20140424_085316-e1404114568866-300x156.jpg\" alt=\"20140424_085316\" width=\"300\" height=\"156\" srcset=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/20140424_085316-e1404114568866-300x156.jpg 300w, https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/20140424_085316-e1404114568866-1024x532.jpg 1024w, https:\/\/blog.iese.edu\/africa\/files\/2014\/06\/20140424_085316-e1404114568866-624x324.jpg 624w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-468\" class=\"wp-caption-text\">New railway station close to Nairobi<\/figcaption><\/figure>\n<p>During colonial times, t<strong>he Western countries did a good job of connecting the coasts of Africa to Europe but they did not establish intra-Africa connections.<\/strong> Making up for the lost years will require <strong>substantial investment efforts<\/strong>. <strong>Careful planning<\/strong> to ensure the most efficient way to connect the various regions is also needed, taking into account both Africa&#8217;s geography and the departure point of each region. For instance, there&#8217;s <strong>potential to physically integrate the railway system across some regions<\/strong>: <a href=\"http:\/\/www.eac.int\/\">EAC<\/a>, <a href=\"http:\/\/www.sadc.int\/\">SADC<\/a>, and <a href=\"http:\/\/www.maghrebarabe.org\/en\/\">UMA<\/a> (<em>Union du Maghreb arabe <\/em>or Arab Maghreb Union) use a uniform gauge, and their railway networks are the ones with greatest integration potential.<\/p>\n<p><strong>Anyone experienced with\u00a0intra-African\u00a0goods transportation?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When I wrote about intra-Africa business travel a few weeks ago, Charles Ivenco \u2013 one of my friends from Lagos Business School \u2013 left a comment in which he told us about the improvements in air transportation over the last decade, and how this is related to the increased levels of intra-African trade. According to [&hellip;]<\/p>\n","protected":false},"author":1654,"featured_media":472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[492,77626],"tags":[80774,352,45502,121,18362,80751,80773,19445,1469],"class_list":["post-466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-entrepreneurship-in-africa","tag-african-economic-regions","tag-business","tag-east-africa","tag-economic-growth","tag-integration","tag-internacionalization","tag-southern-africa","tag-transportation","tag-west-africa","megacategoria-mc-africa"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.1.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"According to data from the African Union Commission, transport costs are 63% higher in African countries than the average in developed countries. 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