The bulk of West African foreign trade is directed away from Africa to Europe and America. What are the reasons for this?
Concept. West African countries trade far more with Europe and America than with one another. The pattern is largely a legacy of colonial economic relationships and the structure of their economies.
Reasons why West African trade is directed to Europe and America rather than within Africa.
Colonial ties. Historical links established under colonial rule created lasting trading relationships, currencies, and preferences oriented toward the former colonial powers.
Similar products among West African states. Neighbouring countries produce similar primary goods (cocoa, groundnuts, timber, oil), so they compete rather than complement each other and have little to exchange.
Demand for primary products abroad. Europe and America have large industries that need the raw materials and agricultural produce West Africa exports.
Need for manufactured goods. West Africa lacks a strong industrial base and must import machinery, vehicles, and finished goods that only the developed economies produce.
Poor transport links within the region. Roads, railways, and shipping lines were built to move goods to the coast for export overseas, not between African states, so intra-African trade is difficult.
Currency and payment differences. Different, sometimes non-convertible currencies make trade between West African states harder than trade with hard-currency areas.
Better credit, shipping, and marketing facilities exist for trade with Europe and America.
Trade agreements and aid (for example associations with the European market) tie the region's trade to those partners.
Examination takeaway. Organise the reasons around structure (similar exports, need for manufactures) and history/infrastructure (colonial ties, transport, currency); this shows the examiner you understand both the economic and the historical causes.
Concept. West African countries trade far more with Europe and America than with one another. The pattern is largely a legacy of colonial economic relationships and the structure of their economies.
Reasons why West African trade is directed to Europe and America rather than within Africa.
Colonial ties. Historical links established under colonial rule created lasting trading relationships, currencies, and preferences oriented toward the former colonial powers.
Similar products among West African states. Neighbouring countries produce similar primary goods (cocoa, groundnuts, timber, oil), so they compete rather than complement each other and have little to exchange.
Demand for primary products abroad. Europe and America have large industries that need the raw materials and agricultural produce West Africa exports.
Need for manufactured goods. West Africa lacks a strong industrial base and must import machinery, vehicles, and finished goods that only the developed economies produce.
Poor transport links within the region. Roads, railways, and shipping lines were built to move goods to the coast for export overseas, not between African states, so intra-African trade is difficult.
Currency and payment differences. Different, sometimes non-convertible currencies make trade between West African states harder than trade with hard-currency areas.
Better credit, shipping, and marketing facilities exist for trade with Europe and America.
Trade agreements and aid (for example associations with the European market) tie the region's trade to those partners.
Examination takeaway. Organise the reasons around structure (similar exports, need for manufactures) and history/infrastructure (colonial ties, transport, currency); this shows the examiner you understand both the economic and the historical causes.