Why don’t African nations trade with one another? An investigation…

News about African economies is usually delivered in a neat package of cautious optimism. You’ve heard the stories of growing GDPs, increased economic diversity, a reduction in the reliance on oil and gas resources, more youth empowerment, coupled with doubts about the long-term prospects of each positive development.
It’s true that African economies have, on the whole, seen GDP spike as interaction with developed nations increases. Economies are increasingly open and diversified. Sub-Saharan Africa, in particular, has become a leader in a specific type of technological innovation, particularly mobile. It’s also true that much of the growth, while more sustainable than it may have been even a decade ago, still doesn’t represent a viable long-term solution to the continued economic disparity, poverty, corruption and economic intransigence that persists on the continent.
One economic consideration that seems to permanently reside in Africa’s blind spot is intra-continental commerce. Many African nations, especially those which belong to the African Growth Opportunities Act (AGOA), established during the Clinton administration to increase commerce with the U.S. and other developed nations, have an effective and at times prosperous relationship with foreign entities. However, rarely do these relations extend to their continental neighbors.
In fact, only 10 percent of African commerce happens among countries on the continent, as opposed to 40 percent among North American nations and a whopping 63 percent in the European Union. Why is this the case? It seems an obvious missed opportunity, but a closer look shows multiple impediments to neighborhood interaction.
The major issue is that, unlike NAFTA or the EU, trade is not encouraged or facilitated between African nations. In some cases, it is actively or passively discouraged, with checkpoints, intimidation, lack of infrastructure or byzantine trade agreements halting trade between neighbors. Corruption has also long held Africa on the back foot, with politicians and business leaders spreading the wealth only among a small sliver of the population, rendering it nearly impossible for the wealth to trickle down.
In addition, many African nations are torn asunder by tribal, cultural and religious differences, which not only threaten civilian safety but also the national economy. The economic impacts of extremism are felt across Africa, and often they extend to intra-African commerce, a phenomenon that can be seen in Nigeria’s northeast region, where Boko Haram pose as great threat to commerce as they do to democratic values and religious freedoms.
Despite all the impediments to regional trade, there is overwhelming empirical evidence that a continent in which the countries work together and trade together will be better off than one who remains divided. Not only will it help empower Africans to thrive economically, it will allow the continent to start removing itself from outdated and lopsided trade agreements with nations like the U.S. and China. Despite everything developed nations have done to help Africa, sustainable growth will never happen without African nations buying in to a collective agreement.
One way to move past this intransigence is through low-pressure, proactive interactions between the nations. Summits like New York Forum AFRICA (NYFA), organized by the strategic consultancy Richard Attias & Associates, are an example of this kind of forum. NYFA will hold its fourth annual gathering Aug. 29–31, 2015, in Libreville, Gabon, a three-day summit of debates, panels, marketplace events and youth empowerment initiatives, the conference is committed to building a sustainable continent using all the resources of the African continent — talent, youth, expertise, resilience — not just the natural ones.
It may be a while yet before Africa realizes the opportunities missed by refusing regional trade, but this dynamic cannot last forever. Through initiatives like NYFA coupled with the regional trade unions across the continent, Africa is slowly realizing its potential must work from inside out, and not the other way around.