For years, trade conversations in Africa have revolved around tariffs. Negotiations are framed as victories or losses depending on percentage points gained or conceded. Announcements about zero-duty access dominate the headlines, especially under the African Continental Free Trade Area (AfCFTA) Agreement. Yet, for most African businesses engaged in cross-border trade, tariffs are no longer the biggest challenge.
The real obstacles are more practical and more costly. Weak markets, inefficient logistics and underdeveloped services now matter more than tariff rates in determining who trades successfully and who does not.
Tariffs are falling, but trade remains difficult
Across Africa, average applied tariffs are not insignificant, but they are also not the decisive barrier that many assume them to be. Nigeria’s average applied MFN tariff is about 12 percent, Ghana’s is also around 12 percent, Kenya’s is approximately 14.8 percent, while South Africa’s average is about 7.5 percent (WTO, 2025).
Under AfCFTA, up to 90 percent of tariff lines are scheduled for liberalization, with additional flexibility for sensitive products (African Union, 2023). On paper, this should dramatically improve intra-African trade.
In practice, however, African exporters often lose contracts not only because a tariff is 10 or 15 percent, but mostly because goods arrive late, standards cannot be proven quickly, buyers are unreliable, or financing collapses midway through the transaction. These real-world frictions often cost more than the tariff itself.
Markets fail long before tariffs bite
ALSO READ Nigeria’s domestic trade challenge is bigger than informality, By Aremu Fakunle, PhD
Tariff preferences only matter if real markets exist on the other side of the border. Markets are not created by policy declarations alone. They require buyers, distributors, information, trust and predictable demand.
Take the case of processed food and consumer goods that are moving between Ghana and Nigeria. Under the ECOWAS Common External Tariff, many finished goods fall within the 20 percent band, while some protected items reach 35 percent (ECOWAS, 2013). Yet Ghanaian producers consistently report that their biggest struggle in Nigeria is not the tariff band but market access in practice. Securing shelf space, finding dependable distributors and meeting supermarket specifications are far more decisive than the nominal duty rate.
Imported products from outside Africa often dominate the shelves not because they face lower tariffs, but because they arrive in consistent volumes, with reliable branding, packaging and after-sales support.
For African businesses, this highlights a hard truth. Production alone does not create competitiveness. Without structured buyer linkages, aggregation & financing systems and transparent demand signals, tariff reductions remain theoretical.
Logistics acts as Africa’s hidden tariff
If markets are the first barrier, logistics is the most expensive one. In many African countries, logistics costs account for 30 to 40 percent of the final price of goods. This is far higher than in advanced economies. Every delay at a port, border post or checkpoint quietly adds an invisible tax to trade.
Nigeria offers a clear illustration. Studies of Lagos ports continue to document long processing and clearance delays, with Apapa frequently cited among the most congested ports (Mbachu et al., 2024). In March 2024, average vessel turnaround time stood at 5.16 days (Nigerian Ports Authority, 2024). Each additional day increases demurrage, storage fees and inventory costs, all of which are eventually paid indirectly by businesses and consumers.
For exporters of perishables or time-sensitive goods, the impact is even harsher. A Kenyan horticulture exporter that is shipping to North Africa may face an average tariff of around 14.8 percent (WTO, 2025), but a one-week delay due to port congestion or documentation issues can wipe out the margins entirely. In response to this, most buyers do not negotiate around delays; they simply switch to another supplier.
UNCTAD reports that average port waiting times in developing economies rose from 10.2 hours in late 2023 to 10.9 hours by March 2024 (UNCTAD, 2025). For businesses, predictability is just as critical as cost. Inconsistent and opaque market processes, such as fluctuating clearance times, create barriers to efficient planning and also discourage sustained participation. For trade to serve as a reliable driver of economic development, processes must be streamlined and transparent. Unpredictable environments increase the risk of losses, deter investment and undermine development impact. Policymakers, development partners and trade groups have a vital role in fostering stability and trust in trade systems through policy reforms & the willpower for their implementation, infrastructure support and regulatory consistency.
Services determine who can compete
Modern trade is no longer just about moving goods. It depends on services, finance, logistics, certification, insurance, ICT and after-sales support. In Africa, these services are often scarce, expensive or unevenly distributed.
Food exporters across East and West Africa frequently encounter this problem. Even where tariffs are moderate or preferential, shipments are delayed or rejected because exporters cannot access accredited laboratories quickly, or certification is not recognized across borders. Importers then choose suppliers from the countries with stronger service ecosystems, even if tariffs are higher.
South Africa’s clothing sector demonstrates another side of the issue. While the country’s overall average applied tariff is about 7.5 percent, apparel duties can reach around 40 percent in specific categories (International Trade Administration, 2024). Even when preferential access exists, apparel exporters still require reliable logistics, strict compliance systems and trade finance to meet buyers’ expectations. Without these services, tariff relief alone does not translate into competitiveness.
Trade finance remains one of the most binding constraints. Many African exporters secure buyers but fail to deliver because they cannot finance raw materials, production or shipping, while they might also need to wait for 60 to 90 days for payment. This financing gap quietly excludes firms from regional and global value chains.
Why tariffs alone cannot drive African industrialization
Industrialization depends on speed, scale and reliability. Tariffs can offer temporary protection, but they cannot compensate for weak logistics, fragmented markets or missing services. A factory shielded by tariffs but operating within a slow and uncertain trade environment will struggle to survive. Conversely, firms in countries with efficient ports, predictable borders and strong service sectors often outperform more protected competitors.
This explains why some African countries with more open and predictable trade systems attract manufacturing investment, while others with high tariffs and complex regulations do not. Investors and buyers prioritize smooth execution over protective trade barriers
What focusing beyond tariffs looks like in practice
For Africa, shifting the trade agenda requires practical choices.
First, logistics performance must be treated as a core economic indicator. Port turnaround times, border clearance hours and corridor reliability should be measured, published and managed with the same seriousness as inflation or exchange rates.
Second, markets must be built deliberately. Governments and trade agencies should invest in buyer-seller linkages, sector-specific standards and aggregation systems that allow SMEs to meet volume and quality requirements.
Third, trade-enabling services should be treated as productive infrastructure. Accredited laboratories, digital certification systems, logistics platforms and trade finance mechanisms often deliver competitiveness gains which are equivalent to large tariff cuts.
Finally, AfCFTA implementation must be judged by business outcomes, not policy milestones. The agreement’s ambition to liberalize 90 percent of tariff lines is important (African Union, 2023), but firms will measure success by faster clearance, fewer surprise charges and predictable delivery across borders.
Conclusion
Tariffs still matter, especially in sensitive sectors. But in today’s African trade environment, they are no longer the main battlefield. Markets, logistics and services now determine who trades, who grows and who is left behind.
If Africa wants AfCFTA to deliver jobs, industrial growth and lower prices for consumers, the focus must move decisively from negotiating tariff schedules to fixing how trade actually works. When goods move faster, markets function better, and services support businesses effectively, tariff reductions will finally translate into real economic transformation.
Dr Aremu Fakunle John is a Senior Agricultural Economist, Management consultant and Public Policy Expert whose work spans climate-smart agriculture, nutrition, sustainable business and development economics. He is based in Abuja and can be reached via fakunle2014@gmail.com +2348063284833
