AITCR POLICY INSIGHT ON TRADE TRANSPARENCY, REGULATION AND BUSINESS RESPONSIVENESS IN AFRICA

Introduction

This policy brief presents findings from Africa International Trade and Commerce Research’s (AITCR) February 2025 survey on “Trade Policy and Regulation in Africa.” The survey assessed stakeholder perceptions across four key dimensions: transparency of trade policies, effectiveness of national trade regulations, predictability of cross-border trade rules, and responsiveness of trade policies to business needs. These dimensions are crucial for Africa’s economic integration and development, particularly in the context of the African Continental Free Trade Area (AfCFTA). Despite progress in regional integration efforts, structural and institutional barriers continue to impede the realisation of trade governance goals across many African economies.

Key Findings

1. Trade Policies Transparency
   • 70% of respondents believe trade policies are either slightly transparent or not transparent at all
   • Only 18% consider trade policies highly transparent, with 12% finding them moderately transparent
   • This lack of transparency undermines public trust, weakens policy uptake, and complicates the implementation of regional trade agreements
2. Effectiveness of National Trade Regulations
   • 67% of respondents view national trade regulations as barely effective or ineffective
   • No respondents rated regulations as “very effective,” while 33% viewed them as “somewhat effective”
   • Weak regulatory performance creates bottlenecks at borders and discourages private sector participation in formal trade
3. Predictability of Cross-Border Trade Rules
   • 84% of respondents rated trade rules as either slightly predictable or unpredictable
   • Only 16% found trade rules to be highly or moderately predictable
   • This unpredictability increases transaction costs and operational risks for traders, particularly SMEs
4. Responsiveness to Business Needs
   • 56% of respondents indicated that trade policies only “partially address” business needs
   • 31% said policies “barely address” business needs, while 13% felt they “strongly address” them
   • This reveals a disconnect between policy design and practical business realities

Recommendations

1. Commit to Trade Policy Transparency
   • Publish trade policies, tariffs, and customs procedures in user-friendly formats across digital platforms
   • Ensure inclusive and regular public consultations with stakeholders during policy formulation and review
2. Invest in Regulatory Capacity and Coordination
   • Implement targeted capacity-building programs for national trade and customs authorities
   • Foster inter-agency collaboration between trade, customs, standards, and investment bodies
3. Foster Predictability through Harmonised and Digital Trade Systems
   • Harmonise trade-related regulations and digitise customs procedures
   • Adopt regional best practices to build business confidence and attract cross-border investment
4. Tailor Trade Policy to Business Realities
   • Institutionalise structured public-private dialogue platforms
   • Craft policies based on concrete evidence and feedback from the business community
5. Champion Regional Integration through Practical Commitments
   • Actively implement agreed AfCFTA protocols and mutual recognition of standards
   • Support member states with technical assistance, peer learning, and monitoring frameworks

Conclusion

The February 2025 Trade Poll Survey reveals significant dissatisfaction with Africa’s trade governance across all measured dimensions. While some progress has been made, particularly in partial responsiveness to private sector concerns, the overall picture shows fragmented implementation, limited institutional capacity, and weak policy coherence. These deficiencies pose serious risks to the success of regional trade integration efforts under the AfCFTA and limit trade’s potential to drive inclusive economic transformation. To maximise the continent’s trade and development potential, African governments and regional bodies must institutionalise reforms that promote accountable, inclusive, and harmonised trade governance.

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Author: AITCR 3