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Why Shipping Between African Countries Is More Expensive Than Trading With Europe or Asia

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It costs more to ship a container from Nigeria to Ghana than it does to ship one from China to Nigeria. For many African entrepreneurs and traders, this is not only frustrating but also a significant barrier to growth. Despite being neighbours, many African nations face higher costs and longer delivery times when doing business with each other than with countries thousands of kilometres away.

This counterintuitive problem lies at the heart of Africa’s trade challenges, and it continues to hinder the promise of the African Continental Free Trade Area (AfCFTA), an agreement aimed at boosting intra-African trade.

A Trade System Built for Europe, Not Africa

The issue is rooted in Africa’s colonial past. The infrastructure was built to extract resources and export them to Europe, not to promote trade between African nations. That legacy is still haunting Africans.

As a result, most African railways and ports are geared toward external trade. Roads and transport networks are designed to move goods from mines and farms to the coast, not across borders to neighbouring countries. It is not uncommon for goods shipped from one African country to another to first pass through Europe or the Middle East before being redirected back into Africa.

Shipping a standard 20-foot container from Shanghai (China) to Lagos (Nigeria) by sea costs approximately $2,500–$3,000, with a turnaround time of 30 days.

In contrast, shipping the same container from Lagos to Accra (Ghana), a distance of less than 500 km, can cost $4,000–$5,000 and take 7 to 10 days or more, depending on border clearance.

It makes no sense that one can get TVs from China more cheaply and more predictably than from Ghana. This kills regional trade.

Despite the AfCFTA’s vision of a single market, customs delays, tariffs, and bureaucratic red tape continue to plague intra-African trade. Trucks are often stuck at border posts for days, waiting for clearance or negotiating bribes to expedite the process. In some regions, security issues such as banditry or illegal roadblocks further increase costs.

Moving goods across borders should be simple. But in reality, exporters are dealing with paperwork, unpredictable regulations, and barely usable roads.

Africa lacks a robust network of regional shipping routes. The few that exist are dominated by foreign carriers, who prioritise high-volume global trade routes over short-haul, intra-African trips. As a result, shipping a container from Mombasa to Dar es Salaam may cost twice as much as shipping to Dubai.

This lack of regional capacity also means less competition, which further drives up prices. According to the African Union, transport costs in Africa are among the highest in the world, accounting for up to 75 per cent of the value of goods in some regions.

Despite these hurdles, change is underway. African logistics startups, such as Kobo360 and Lori Systems, are utilising technology to match truckers with cargo, reduce wait times, and enhance efficiency. Meanwhile, large infrastructure projects, including the LAPSSET Corridor in East Africa, aim to create faster and cheaper transportation channels.

The AfCFTA also holds long-term promise, offering a framework to harmonise customs procedures, remove tariffs, and build a truly continental trade network.

Until then, African businesses and consumers will continue paying the price. Whether it’s tomatoes from Burkina Faso rotting at a border post or electronics in Kinshasa costing double the global average, the impact is clear.

Trade is the engine of growth. If Africa cannot trade efficiently within itself, it cannot prosper.

For Africa to thrive, it must trade with itself efficiently and affordably. That will require more than just political agreements; it will demand roads, railways, ports, and policies that connect the continent not only to the world, but also to itself.

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