Poor Infrastructure Continues to Weigh Down Intra-African Trade and Regional Integration

Poor and in some cases completely missing infrastructure continues to hold back intra-African trade and slow down regional integration efforts across the continent, according to a new report by the African Export-Import Bank (Afreximbank). The situation has led to significantly higher logistics costs in Africa compared to other regions of the world.

The report highlights that logistics expenses in Africa account for about 25 to 30 percent of total trade value, far higher than the 8 to 10 percent recorded in OECD countries and 12 to 14 percent in Asia. This cost gap is making African exports less competitive and limiting the growth of trade between African countries, with over 80 percent of the continent’s trade still directed outside Africa.

Afreximbank notes a growing shift toward “corridor-based integration,” where countries are increasingly investing in shared transport routes rather than isolated national projects. In West Africa, this approach is visible in the Abidjan–Lagos Highway Corridor, a major 1,028-kilometre trade route connecting five countries, which reached a key milestone in 2026 with the launch of a dedicated corridor management authority. Supporting infrastructure such as Nigeria’s Lagos–Kano railway extension and the Sèmè–Kraké One-Stop Border Post has also helped reduce border delays from several days to under 12 hours.

Beyond road and rail improvements, the report points to progress in energy and logistics systems that are helping regional trade flow more smoothly. Solar-powered cold-chain facilities are now supporting the movement of perishable goods, strengthening cross-border agricultural trade and improving regional supply chains across West Africa.

In other parts of the continent, similar but varied progress is unfolding. East Africa is advancing through digital trade systems that reduce border bottlenecks, while Central Africa is shifting toward industrial transformation under regional bodies like ECCAS and CEMAC. New initiatives such as the Africa Trade Competitiveness and Market Access Programme (ATCMA), launched in March 2026, are helping countries like Gabon and Cameroon move from raw material exports to value-added production, supported by better infrastructure and improved energy access.

source: The Guardian