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•Poor infrastructure in terms of roads make it difficult to transport goods to the markets/it is expensive to transport goods to markets and this marginalizes the profits.
•Smuggling of goods imposes unfair competition from people who have imported correctly/traders have to sell at lower prices also minimizing the profits.
•Insecurity in some trading areas where traders lose their goods and profits.
•High tariffs from government and local government authorities’ taxation.
•Scarcity of some goods due to adverse weather conditions e.g. prolonged drought/depletion of mines.
•Inadequate capital forces traders to incur loans that charge higher interest rates limiting the traders’ profits.
gideon1 answered the question on October 4, 2017 at 11:44
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