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Give 4 limitations to Intra-Africa trade


Give 4 limitations to Intra-Africa trade



Lack of economic diversification: Many African countries specialize in the same products as their neighbors, especially commodities like oil and gas. With few complementary goods to exchange with each other, these countries cannot exploit the gains to be made via comparative advantage.

Conflict: Political tension, conflict and violence also diminish the capacity for African states to engage in intra-continental trade. These factors lead to low levels of economic growth, destroy needed export infrastructure, and slow and reverse regional integration.

Infrastructure: Infrastructure is and has always been a major issue for Africa, especially for Sub-Saharan countries. Like conflict, infrastructural deficiencies reduce economic growth and productivity, and raise transportation costs.

Border Issues: Africa’s notoriously bad customs environment poses yet another impediment to intra-African trade. The high fees that custom offices charge is part of the problem.

francis1897 answered the question on January 12, 2023 at 13:17

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