Deepening and expanding agricultural trade patterns require institutional and infrastructural investments that have to compete with other country and regional priorities such as expenditure on poverty alleviation and adaptation to, and mitigation of, the effects of climate change. As a result, arguments for expenditure on trade facilitation and on trade infrastructure need to be evidence-based. In this article we provide an overview of the wide range of challenges facing the Southern African region, then present two case studies that illustrate the benefits of investment in trade infrastructure. A reduction of 25% in the cost of regional trade in maize benefits producers and consumers, while reducing the cost of exporting citrus from South Africa leads to a 4.1% annual gain in revenue to producers.

Food prices in Africa respond in familiar ways to changes in the global environment, but there are a number of unique characteristics that have to be accounted for in understanding how these prices play out in domestic markets. African countries are price takers in global agricultural commodity markets, and face high farm gate to consumer costs, which are a major driver of food price inflation. Furthermore, the uncertainty that accompanies poor policy formulation and implementation distorts markets and results in the skewing of investment to mitigate the negative impacts of policy uncertainty rather than to build future opportunities. Finally, the high levels of poverty as well as of inequality distort consumer markets, which are fragmented by these extremes, and which compete with informal markets and with own consumption. In this paper, we address the role that these factors play in understanding trends in food prices across a spectrum of commodities in Ghana, Kenya, South Africa and Zambia. These characteristics make it difficult to find relevant and timely data to help understand what is really going on in the real world.