00:05As government leaders and private investors convene in Nairobi for the Africa Commerce
00:10and Industry Summit, the core item on the agenda is a persistent challenge.
00:15Why does cross-border commerce across the continent remain so difficult when other regions
00:20seem to be thriving?
00:21The potential is certainly there.
00:24Africa has a market of 1.4 billion people and a combined economic output exceeding $3
00:30trillion.
00:32Yet African economies still conduct the vast majority of their business with Europe, Asia
00:37and North America, and rarely with each other.
00:40For the African continent with such a big market, we are only at 16%.
00:46And so we have to look at those barriers that are really making us not trade among ourselves.
00:51Is it the issue of our borders?
00:53Is it the issue of our NTBs?
00:55Is it the issue to do with trust?
00:57So we really need to have that conversation as an African continent and move away from
01:02just screaming Africa is rising, but really make sure that we actually rise by ensuring
01:07that intra-Africa trade works for us.
01:10While goods entering from global markets often clear customs swiftly via automated cargo tracking,
01:16African businesses regularly encounter duplicative inspections, extensive paperwork, and prolonged
01:23border clearance times.
01:24I think the countries that border each other may work towards having just one sort of unified,
01:32you know, cross-border routines and regimes.
01:38Instead of having, you know, you're having to go through a certain regime in Kenya when
01:43you cross in Uganda, you have to do the same thing there.
01:46I think if we are one border, if we are one unit, one area, we should just harmonize the regimes.
01:53Beyond logistical bottlenecks at border post, tariff barriers and non-tariff charges continue
01:59to erode profit margins.
02:00While the African continent or free trade area aims to phase out import duties, transport overheads
02:07driven by volatile fuel prices in complete railway networks and road infrastructure gaps continue
02:13to inflate shipping costs.
02:15Then there is the issue of payments.
02:17With more than 40 separate national currencies in use across the continent, cross-border settlements
02:23often depend on third-party reserve currencies like the U.S. dollar or the euro.
02:28That process exposes importers and exporters to double currency conversion costs and regional foreign exchange
02:35liquidity crunches.
02:36Look, we could learn from what Europe has done.
02:39You know, we do not, you know, we need to learn from the mistakes that they made.
02:44Whether we are going to go straight to a single currency or we are going to use any other platform.
02:50Solutions like digital payment systems, single border post and lower tariffs are some of the key issues
02:56delegates are seeking to address.
02:58The $3 trillion economic potential is evident, but for African enterprises to capitalize on it,
03:04business leaders stressed that policy agreements must now deliver practical results, which includes
03:10streamlined customs corridors, efficient payment rails and interconnected logistics routes across the region.
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