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From VOA Learning English, |
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this is the Economics Report. |
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The African Union has held |
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countless meetings and conferences |
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on how to increase trade between African countries, |
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the United Nations Economic Commission for Africa (UNECA) |
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has organized similar gatherings. |
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Yet these efforts have failed |
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to lead to a increase in intra-Africa trade. |
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Currently, African countries |
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do only 11 percent of their foreign trade |
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with other countries on the continent. |
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By comparison, Asian countries do 50 percent |
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of their trade with Asian countries. |
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Last year, the world bank reported that |
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Africa loses billions of dollars every year |
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because of trade barriers. |
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This past July, a U.N. report urged |
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African governments to provide more support |
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to private businesses, |
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reduce trade barriers and expand public services. |
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The slow progress makes it difficult for companies |
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to do business in surrounding countries. |
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Jittu Horticulture PLC |
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is Ethiopia's biggest exporter of horticulture products. |
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The company's General Manager Jan Prins says |
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Ethiopia has huge possibilities for trade, |
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but he says there are too many difficulties |
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when attempting to trade with neighboring countries. |
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"The major challenge is to reach these markets. |
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And it can either be logistic problems |
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like over flooded border areas, bad roads or no roads, |
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trade barriers, political issues or security issues. |
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For Ethiopia it is very difficult |
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to reach the markets in the surrounding countries." |
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Problems getting visas, corruption |
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and high transportation costs are some of the barriers |
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companies face when they attempt to trade within the continent. |
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A truck in Africa will travel, on average, |
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just nine kilometers an hour |
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because of the many security or inspection stations. |
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As a result, 40 percent of the cost of product is for transportation. |
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Intra-Africa trade, both imports and exports, |
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totaled $131 billion in 2011. |
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African Union countries have agreed |
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to make the continent a free trade zone by 2017. |
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Treasure Maphanga is the Director of the AU's Trade and Industry Department, |
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she says governments must make that goal |
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of a continental free trade area a reality. |
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"I see that in many countries there is political will |
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that exists at a certain level. |
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Intra-Africa trade does not just depend on one ministry, |
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it does not just depend on the head of state. |
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It depends on the whole government machinery. |
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And coordinating toward a specific goal." |
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The African Union will hold another conference |
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on increasing Intra-Africa trade at the end of October. |
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That is the Economics Report from VOA Learning English, |
