Economic fragmentation in African trade is just as harmful as political tribalism. Both phenomena divide opportunities and decimate growth. Layers of customs and administrative procedures caught in red tape, high transport costs, narrow markets, misallocation of labor and capital, and mismatch of supply and demand have been paralyzing the development of an ignored continent. African commerce represents only 2 percent of international trade when the continent actually holds 12 percent of the world’s population.

It is for these reasons that the United Nations Conference on Trade and Development (UNCTAD) urged that regional integration be a top priority for African countries. The UNCTAD has recently published its report entitled Economic Development in Africa 2009.

Some of the observations are: Africa trades more easily with the rest of the world as itself, despite the existence of fourteen economic groupings (COMESA, CFA, UMA, UEMOA, CFA, SADC, etc.); its regional exchanges represent only 9 percent of its total trade; and the regional capital weighs only 13 percent of total foreign investment, as against 30 percent in Asia.

The benefits of the establishment of integrated regional areas are not only quantitative. Studies show that African countries export to the rest of the world mainly raw materials (oil, minerals, fiber, wood) with no added value. But when they trade among themselves in terms of manufactured goods, revenue streams increase for producers and savings are achieved for consumers.

Finally, the UNCTAD report points out that intermigration has contributed to poverty reduction. The agency stressed the need to reduce the obstacles to this movement that is often hampered by xenophobia and political handicap that restrict employment to local workers.

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Via UNCTAD