Intra-African trade surged to $220.3 billion in 2024, marking a 12.4% increase, as momentum builds around the Africa Continental Free Trade Agreement (AfCFTA).
This growth trend is detailed in the newly released Afreximbank African Trade Report 2025, presented by Chief Economist Dr. Yemi Kale, under the theme “African Trade in a Changing Global Financial Architecture.”
The report credits the rising trade volumes to wider adoption and implementation of AfCFTA, describing the agreement as a transformative force for industrialization, digital innovation, and economic self-determination across the continent.
Despite a forecasted slowdown in global GDP growth from 3.3% in 2024 to 2.8% in 2025, Africa recorded a GDP growth rate of 3.2%, driven by public investments and strong commodity prices, particularly in gold, cocoa, and coffee.In total, African trade grew by 13.9% in 2024, reaching $1.5 trillion.
Exports jumped 21% to $758 billion, while imports rose 7.6% to $769 billion, resulting in a modest trade deficit of $11 billion.
However, the report warns of a persistent $100 billion trade finance gap that continues to limit small and medium-sized enterprises (SMEs) from fully capitalizing on regional trade opportunities.
In response, Afreximbank disbursed $17.5 billion in 2024 through counter-cyclical lending and plans to scale intra-African trade financing to $40 billion by 2026.
The report also emphasizes the importance of strengthening Africa’s financial ecosystem, calling for urgent recapitalization of Development Finance Institutions (DFIs) and accelerated investment in regional payment infrastructure.
The Pan-African Payment and Settlement System (PAPSS), which now connects 16 African central banks, is cited as a key tool enabling local currency trade settlements.
Dr. Kale further criticized the use of international credit rating models that unfairly inflate borrowing costs for African countries.
He pointed out that such ratings often overlook structural and contextual realities, labeling them as “biased assessments” that contribute to higher capital costs and restrict economic growth.
The report concludes with a call for coordinated financial reforms, enhanced AfCFTA implementation, and targeted strategies to unlock Africa’s demographic advantage and resource potential, positioning the continent for greater resilience and self-reliance in the global trade landscape.