CHAPTER 9: TRADE

TRADE

​It is the exchange of goods and services between people or countries 

​Methods of trade  

Barter trade

• Is the exchange of goods for goods
• Emerged from the natural needs of the people
• In some areas a form of `silent’ barter trade was practiced between communities who could not communicate in the same language

Disadvantages of barter trade

• The physical character of some of the items used for barter made them in convenient to handle
• It was not always easy to agree on the valves of some of products
• The traders found themselves stranded whenever they lacked double coincidence of wants
• Some of the products were not easily divisible into smaller quantities

Currency trade

• Involves use of money
• Items used as currencies as in pre–colonial Africa were gold dust, cloth, copper rods, iron and cowries shells 

Advantages of currency trade
   Is a store of value and wealth
   Is a convenient medium of exchange
   Is easily divisible into smaller units
   Is used as a measure of value of both goods and services
   International recognized currencies includes

• Us dollar
• Japanese yen
•  The euro
• The British sterling pound 

​Types of trade 

• Local trade
• International trade
• Regional trade 

​Local trade 

• ​Involves the exchange of goods between people within the same geographical area

Origin development and organization

• Took place between group of people who produced different goods mainly because of varying ecological conditions
• Sometimes trade extended beyond the local community to the immediate neighbors e.g. abagusii and Luo

Impact of local trade

• Each region developed its own market places which specialized in certain items
• Helped to strengthen the bond between people in the same locality
• Satisfied the requirements of the communities in terms of tools, foodstuff medical herbs e.t.c
• Enhanced the acquisition of new products
• Led to improvement of transport routes
• Led to development of towns and market centers’
• Many people were brought together through trade
• Encouraged communities to expand production
• Contributed to the improvement of peoples living conditions

​Regional trade  

• Involves between two distinct geographical region
• Include participation of

1. People who specialize mainly in trade as their means of livelihood
2. Traders who acts as middle men  between the producers of goods and the buyers

• Involves a large volume of commodities as compared to local trade

Examples of regional trade include

• The trans-Saharan trade - carried out between the peoples of the Sudan belt of west   Africa and North Africa
• The long –distance trade – carried between the peoples of east Africa interior and the Waswahili of Arabs of the east African coast 

​International trade 

• ​Involves the exchange of goods between different countries in one continent and even beyond the continent e.g. involves the exchange of goods across the Sahara
• Involved the exchange of goods between the peoples of North Africa (Berbers and Tuaregs)
• Products from south Sudan were in high demand among the North Africans 

Factors that facilitated for the development of trans-Saharan trade

• Availability of capital
• Local trade existed among them giving them good foundation on which trade could thrive
• Existence of various trade commodities
• Demands for goods
• Existed a lot of cooperation between the Berbers and Tuareg who guided the caravans to the market centers’ in the Sudan belt
• Tuaregs also provided the requisite security and maintained some water points
• Existence of pack animals such as horses, camels 
• The caravan trade was boosted by the emergence of strong kings who encouraged the emergence merchants in their activities and offered protection to the traders 
• Existence of well established trade routes
• Some activities taking place outside the continent also favoured the development of trade

​Trade goods 

From western Sudan  

• Gold – originate from wangara region, Bornu upper Senegal and Niger
• Slaves
• Kola nuts and feathers – Kano region  
• Hides and skins – hausaland
• Ivory – cot d`voire
• Gum – Mauritania and Senegal
• Dyed cloth and pepper  

From North Africa

• Tanghaza, taodeni, bilma and ghadames
• Horse – Tripoli
• Glassware
• Beads
• Mirrors
• Perfumes
• Spices 
• Dried fruits
• Firearms
• Daggers
• Cowries shells​

​Organization of trans-Saharan trade 

​Involves the exchange of goods between goods between people who lived a great distant apart