African countries have experienced relatively high levels of terrorism. Terrorism has been linked to the theory of deprivation, but the extent to which terrorism is an economic good can be explained using a rational choice model of economic agents. Terrorism is also possibly motivated largely by existential other-worldly goals. If terrorism reflects a solution to a problem with identifiable costs and benefits that accord with the behavior assumed in economic theory, then it may be possible to contain terrorism by altering those costs and benefits. Terrorism as a manifestation of conflict could be a historically persistent phenomena with roots in the past. This chapter examines the causes and consequences of terrorism in Africa, and considers the extent to which existing evidence rationalizes the various explanations for it, and its implications for counterterrorism policy in Africa.