An old African proverb says: “When the lion does not hunt, the hyena will feed”. In many African economies, this proverb vividly captures a reality familiar to anyone who lives or works on the continent: when formal employment opportunities in the manufacturing or service sectors (the “lion”) are scarce, people turn to trade a primary source of income. This dynamic, which can be described borrowing a term from development economics as “trade fallback”, lies at the heart of Africa’s expanding informal economy.

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Intra-African trade has historically been constrained by a combination of infrastructural, institutional, and policy factors rooted in the colonial period. Despite abundant natural resources and significant market potential, African nations have remained largely dependent on trade with external partners. This contrasts sharply with Europe and Asia, where cross-border economic linkages are far more developed. Understanding the historical origins of these trade patterns is essential for designing policies that foster regional integration and inclusive economic development (keep reading on our blog)