Deepening Regional Integration to Eliminate the Fragmented Goods Market in Southern Africa

Abstract

This note summarizes new studies that identify the most restrictive barriers to regional goods trade in Southern Africa. It also illustrates the costs associated with these barriers using information gathered from some of the largest firms engaged in cross-border trade. The note concludes by providing practical policy recommendations to deepen regional integration in the goods market and increase competitiveness. A recent and important trend in global trade has been the proliferation of Regional Trade Agreements (RTAs), and Southern Africa is no exception. Regional integration efforts in Southern Africa, have all sought to liberalize trade between countries so as to increase bilateral trade flows, diversify exports by overcoming the limits of small markets, and deepen specialization through achieving economies of scale. Harnessing regional integration more effectively, for both goods and services, would help all countries lower their cost base thereby enhancing global competitiveness.

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