Strategic intra-regional trade in Sub-Saharan Africa: Lessons from Southeast Asia

Despite starting with comparable economic conditions in the mid-20th century, Southeast Asia (SEA) and Sub-Saharan Africa (SSA) have followed different economic trajectories. SEA has emerged as a widely recognised model of successful economic integration, driven largely by strong intra-regional trade, while SSA continues to face economic division and low intra-regional trade. This article explores why SEA’s approach to trade integration has consistently succeeded and considers how SSA might leverage similar strategies to increase its own intra-regional trade integration under the African Continental Free Trade Agreement (AfCFTA). SEA’s experience shows how regional cooperation, especially in higher-value sectors, can drive sustained economic growth. By examining SEA’s success in building strong trade ties across borders, this study highlights practical ways in which SSA could strengthen its regional trade integration, identifying specific strategies that could help turn the AfCFTA’s goals into lasting outcomes for the region.
The study analyses trade data from 2018 to 2022, using selected elements of the Decision Support Model (DSM), to investigate how intra-regional trade potential has been utilised in both regions. The findings show that SEA has successfully utilised its trade potential, particularly within higher value-added sectors. In contrast, SSA shows significant untapped and underutilised trade opportunities, pointing to ongoing structural and policy constraints that continue to impede regional integration and economic growth. The study offers actionable insights for SSA, recommending improvements in policy coherence, reduction of trade barriers, and the adoption of targeted industrial policies, based on the untapped trade opportunities identified, to foster higher value-added production. SSA should also focus on building institutional capacity and aligning national development plans with the AfCFTA objectives to unlock its untapped trade potential and promote sustainable regional trade integration.

Link: https://journals.co.za/doi/full/10.31920/2634-3649/2025/v15n2a9