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Market Brief - Africa Economic Financial Brief 15-19 April 2013

20-Apr-2013

Despite the impressive economic performance recorded over recent years, Africa still lags in the area of trade competitiveness. Transport costs in Africa are among the highest in the world and harm the continent’s productivity and competitiveness on local and international trade markets. For instance, in the recent World Bank’s Logistics Performance Index for 2012, Sub-Saharan Africa scored poorly and less than any other region of the world1 . According to the report, high transport costs in Africa are partly due to insufficient affordable and reliable transport and logistics services.

On average, transport costs in Africa are 63% higher than in developed countries. Transport costs represent between 30% and 50% of the continent’s total value of exports, compared to an average of about 17% of the value of exports in other developing countries2 . For landlocked African countries, transport costs are significantly higher and may constitute about three quarters of the total value of exports.

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