Free Africans for global trade

In reality, in Africa most governments and their bureaucracies are stifling, not protecting, the people and the economy.

Entrepreneurs cannot freely do business and develop their nation.

A glance at the Doing Business report of the World Bank shows the administrative cost of launching a company in sub-Saharan Africa is about 100 per cent of per capita income.

A construction permit?

Nearly 2,000 per cent: 20 years of income.

So most entrepreneurs are forced into so-called informal markets.

This lack of legal status prevents economic development, legal contracts, bank loans, letters of credit and foreign trade.

No wonder then that in Africa what is decried as globalisation seems to benefit only the ruling cliques and big business: amid such cronyism only big companies, often international ones, are able to pay the high price of doing business — giving the impression of doing what they want. Poorer people are excluded by cost.

Yet many Africans would like to have a formal business and to benefit, at last, from global markets.

But in many countries they are not allowed to.

Hence the figures: exports of goods and services from Africa represent 2,87 per cent and 2,52 per cent of global trade.

And trade within Africa is no better: agricultural products from other African countries face an average 34 per cent import duty and 21 per cent on manufactured goods.

No wonder less than 10 per cent of African trade is within Africa.

Removing these obstacles could unleash regional trade worth $1.2 billion.

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