In other words, developing countries' poor performance is the consequence of their ‘underdevelopment’ (UNCTAD, 2004). Transaction costs (trade facilitation, communication, transport and energy costs) tend to be systematically higher in developing countries. For example, in Africa, total freight costs represent more than 10% of imported value, as compared to an average of 8.8% for all developing countries and 5.2% for developed countries (UNCTAD, 1999).