Germany Unlocking Trade and Customs Potential in Africa

Abstract

Aid for Trade is an initiative that assists developing and, in particular, least-developed countries to integrate into the multilateral trading system by boosting their capacity to export goods and services. It encourages developing and least-developed countries’ governments and donors to recognise the role that trade can play in enhancing economic growth and development. According to the World Trade Organization (WTO), since the initiative was launched in 2005 in Hong Kong, Aid for Trade commitments from donors — governments, international and regional development institutions — reached USD41.5 billion in 2011, up 57 per cent from 2005. The initiative is an example of the WTO’s mandate to achieve ‘coherence in global economic policymaking’. Aid for Trade is particularly important for Africa as it has the highest number of least-developed countries facing a myriad of supply-side trade-related infrastructure challenges which constrains their ability to engage in international trade. This paper seeks to highlight the significant contribution that Germany has made to bolstering trade and customs capacity in Africa, particularly in the regions of Economic Community of West African States (ECOWAS), East African Community (EAC) and South African Development Community (SADC).