Africa’s intra-continental trade volume rose significantly to $220.3 billion in 2024, representing a 12.4 per cent share of the continent’s overall trade activity, as the implementation of the African Continental Free Trade Agreement (AfCFTA) continues to deepen regional integration and economic transformation.
This was revealed in the Afreximbank African Trade Report 2025, launched on Thursday and presented by the bank’s Chief Economist, Dr. Yemi Kale. Themed “African Trade in a Changing Global Financial Architecture”, the report offers a strategic overview of Africa’s trade evolution amid global economic uncertainties and outlines a bold agenda to accelerate sustainable growth and industrialisation on the continent.
According to the report, Africa defied global economic headwinds in 2024, recording 3.2 per cent GDP growth. This was largely supported by increased public investment, robust commodity prices — particularly for gold, cocoa, and coffee — and early dividends from ongoing diversification and value addition initiatives.
Overall African trade rose by 13.9 per cent, reaching $1.5 trillion in 2024. Exports spiked by 21 per cent to $758 billion, while imports grew moderately by 7.6 per cent to $769 billion. This resulted in a relatively narrow trade deficit of $11 billion, a figure analysts say is manageable within the current macroeconomic context.
The AfCFTA, which was formally launched in 2021, has become a cornerstone for Africa’s economic policy, serving as a vital platform for industrialisation, digital transformation, and economic sovereignty. The agreement, now in its operational phase, is encouraging countries to reduce tariff and non-tariff barriers, strengthen cross-border infrastructure, and harmonize trade standards — all of which have contributed to the sharp rise in intra-African trade.
Yet, despite the progress, the report highlighted persisting challenges. Notably, Africa still faces a $100 billion annual trade finance gap, a critical bottleneck that particularly hampers the ability of small and medium-sized enterprises (SMEs) to engage in cross-border trade.
To address this, Afreximbank disbursed $17.5 billion in 2024 through its counter-cyclical lending programmes and has committed to scaling up intra-African trade finance to $40 billion by 2026. The report also called for the recapitalisation of African Development Finance Institutions (DFIs) and the expansion of regional financial infrastructure.
One major innovation already reshaping the landscape is the Pan-African Payment and Settlement System (PAPSS), which has reduced dollar dependence by facilitating local currency settlements across 16 African central banks. This system is designed to ease liquidity constraints and mitigate foreign exchange volatility — a significant issue for intra-African transactions.
The report further highlighted the urgent need for Africa to capitalise on its strategic advantages — including its demographic dividend, mineral resources, and digital innovation potential — to negotiate more equitable terms in global financial governance. The African Union’s inclusion in the G20 was cited as a timely opportunity to advocate for fairer credit rating mechanisms, special drawing rights (SDR) reallocations, and climate finance arrangements that reflect Africa’s unique developmental realities.
Dr. Kale also used the occasion to criticise global credit rating agencies for relying on outdated and externally biased models that inflate perceived risk and drive up borrowing costs for African nations. “These models don’t account for the real policy frameworks, local risks, or macroeconomic improvements happening on the ground,” he said.
Kale explained that the inflated risk ratings increase the cost of capital for African banks, which then transfer the higher costs back to governments and businesses, perpetuating a cycle of constrained growth.
As the global economy braces for a potential slowdown — with global GDP projected to fall from 3.3 per cent in 2024 to 2.8 per cent in 2025 and merchandise trade expected to shrink by 0.2 per cent — Africa is being urged to stay the course on its integration agenda and act with urgency to define its economic destiny.
The Afreximbank’s latest report makes it clear that AfCFTA implementation is yielding tangible results for African economies, but unlocking the continent’s full potential will require closing trade finance gaps, improving access to capital, and leveraging regional cooperation to build a resilient and inclusive trade ecosystem.