Trade barriers cause huge financial losses to Africa | Infrastructure news

According to a new World Bank report, African farmers have the potential to grow a sufficient amount of food to feed the entire continent and avoid future food shortage crises if countries do away with cross-border food trade restrictions.

It was also stated that the continent would generate an extra $20 billion annually should the existing trade barriers be removed.

With more and more people moving to African cities and away from the countryside, the World Bank predicts that the demand for food could double by the year 2020.

According to the new report entitled Africa ‘Can Help Feed Africa: Removing barriers to regional trade in food staples’ rapid urbanization will challenge the ability of farmers to ship their cereals and other foods to consumers when the nearest trade market is just across a national border. Countries south of the Sahara, for example, could significantly boost their food trade over the next several years to manage the deadly impact of worsening drought, rising food prices, rapid population growth, and volatile weather patterns.

The report also suggested that if the leaders of the various African states embrace dynamic inter-regional trade, more jobs in services such as distribution could be created. There could also be a large financial saving on expensive food imports.

Africa’s production of staple foods is worth at least US$50 billion a year.

Additional Reading?

Request Free Copy