Why transport costs in #Africa, and in developing countries, are so high? About 90 percent of the global volume of cargo is currently transported by sea. Maritime trade has benefitted in the latest 70 years from a continuous growth in the tonnage of container ships, which have now reached a carrying capacity of about 24,000 containers or more. This growth in transported volumes has enabled a significant reduction of costs for this mode of transport, which have declined by up to 39 percent by weight and 62 percent by value since the 1960s. Unfortunately, this reduction has not been uniform across countries. For instance, a shipment from a low-income country to the United States costs almost twice as much as a shipment from a high-income country. On the other hand, for what concerns South-South trade, in contrast to developed countries, developing countries predominantly use road transportation as main transport modality, a mode of transport that is notoriously more expensive than maritime shipping, despite being more flexible, as it allows for door-to-door deliveries. A new #WorldBank report analyses the factors that cause these disparities, showing that the cost of trading within developing countries is between 3 and 14 times higher than in the United States, a situation that is also common to Africa.
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Africa correspondent for De Telegraaf and awarded video journalist for the Voice of America and other channels
11moThen the proposed Lobito corridor from Angola to Zambia via DRC is not yet included