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World Bank Identifies Domestic Inefficiencies as Major Barriers to African Trade

A new World Bank report, Integrating Africa: From Threads to Hubs, reveals that 60% of trade costs in Africa originate from within countries rather than at border crossings. The study identifies domestic institutional constraints—such as regulatory misalignment, customs inefficiencies, and poor infrastructure—as primary hurdles to regional integration. The World Bank emphasizes that mere tariff reduction is insufficient, urging policymakers to prioritize the interoperability of systems to facilitate the movement of goods, capital, and data across jurisdictions. Nigeria remains a key focus, recently launching the AfCFTA Simplified Trade Regime to address similar procedural bottlenecks for small-scale traders.

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