The ongoing dispute between Ghanaian and Nigerian traders, which is involving their respective governments as well, is now threatening to curb intra ECOWAS trade volumes as a whole as manufacturers and traders in West Africa’s two largest economies have started looking to importation sources and export markets in other parts of Africa as duty-free trade across the entire continent is set to commence from January 2021.
Until now, goods manufactured in ECOWAS member states could be exported to other members of the sub-regional grouping without import duties being charged whereas exports to countries in the rest of Africa have been subject to import duties.
This has made intra-ECOWAS trade preferable to trade between ECOWAS members and the rest of Africa. However, the impending commencement of the African Continental Free Trade Agreement (AfCTA) will remove this cost advantage. Read More…
