Despite the formation of regional economic groupings such as ECOWAS, EAC, and SADC to foster regional integration, intra-African trade accounts for a relatively small percentage of the continent's total commerce. Which of the following factors represents the primary structural challenge hindering trade expansion among African nations?
- Low economic complementarity among nations that predominantly export similar raw primary commoditiesAnswer
- BA strict prohibition on overland transport connectivity between ECOWAS and SADC member countries
- CThe complete classification of all West African nations as landlocked states lacking maritime access
- DThe existence of a unified single monetary currency legally binding across all African economic groupings
Answer
Low economic complementarity among nations that predominantly export similar raw primary commodities
The primary structural obstacle to intra-African trade is low economic complementarity. Because many African countries share similar ecological zones and resource endowments, they produce similar primary agricultural goods and mineral resources aimed at export markets outside Africa, rather than goods required by neighboring African economies.
Step-by-Step Solution
Key Concept
Structural barriers and economic complementarity in intra-African trade