Excluding refined petroleum, one or more African countries have a comparative advantage in products that account for about 5 percent of regional imports. If Africa does not develop export capacity in key machinery and transport equipment, the region will continue to depend heavily on third countries for those exports. Dependence on non-African suppliers would seemingly reduce the likelihood of regional arrangements succeeding. However, machinery and transport equipment are normally manufactured using capital-intensive production techniques and Africa has no comparative advantage in those goods. Attempts to use such equipment would undercut the competitive position of Sub-Saharan African exporters in global markets.
Evidence shows a strong positive association between lower trade barriers and economic growth.
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