African Trade Reaches Record One Point Five Trillion Dollars as Continent Outpaces Global Growth

Africa’s total merchandise trade reached a record $1.5 trillion in 2024, growing 13.9% after a contraction the previous year, Afreximbank reported Thursday. The continent outpaced global trade growth due to stronger economic performance and rising intra-African trade, with projections showing continued expansion through 2028, according to Afreximbank’s *African Trade Report 2025*.

Africa’s merchandise exports rose about 21% to $758 billion in 2024, while imports increased 7.6% to $769 billion, resulting in a trade deficit near $11 billion, according to Afreximbank’s *African Trade Report 2025*. The report, released June 25, 2025, by Afreximbank Chief Economist Dr. Yemi Kale, attributes the rebound to improved global economic conditions and growing regional integration. Intra-African trade climbed 12.4% to $220.3 billion, representing roughly 12.4% of the continent’s total trade, up from $196 billion in 2023, reflecting early gains from the African Continental Free Trade Area (AfCFTA), Afreximbank data show.

Africa’s merchandise exports rose about 21% to $758 billion in 2024, while imports increased 7.6% to $769 billion, resulting in a trade deficit near $11 billion, according to Afreximbank’s African Trade Report 2025.

Despite this progress, Africa’s share of global exports remains modest at about 3.3%, underscoring its relatively small but fast-growing role in world trade, according to Afreximbank figures cited by multiple outlets, including the Guardian and Ecofin Agency. Joint projections by the International Monetary Fund and Afreximbank anticipate Africa’s trade will grow at an average rate of 5.1% annually through 2026 and 5.4% through 2028, outpacing the global forecast of 3.3% annual growth. These projections foresee total trade volumes reaching approximately $1.7 trillion by 2030, with the trade-to-GDP ratio rising from 45.6% in 2024 to an expected 52.7%.

Afreximbank’s 2026 economic report, summarized by secondary sources, notes that Africa’s GDP grew about 4.5% in 2025, up from 3.4% the previous year, surpassing global growth rates. This economic expansion has supported resilience in trade, which rebounded sharply in 2024 after a 5.4% contraction in 2023. Dr. Kale highlighted that trade between African countries increased by 12.4% in 2024, reversing a 5.9% decline in 2023, signaling strengthening regional commerce underpinned by AfCFTA tariff reductions and early implementation steps.

However, analysts caution that intra-African trade remains below levels seen in other regions, estimated at 15–18% of Africa’s total trade, compared with higher integration in Europe and Asia. Challenges such as weak infrastructure, port inefficiencies, non-tariff barriers, and incomplete harmonization of customs procedures continue to constrain the full benefits of AfCFTA, according to policy experts cited in Afreximbank and related reports. Inflation rates near 10% in several African economies also pose risks to competitiveness and purchasing power, while geopolitical uncertainties and external demand volatility threaten to disrupt trade momentum.

Afreximbank identifies a persistent trade-finance gap estimated at about $100 billion, limiting many African exporters’ and importers’ access to affordable funding. To address this, the bank plans to increase trade-finance support to $40 billion by 2026, aiming to close financing shortfalls that hamper cross-border commerce. The bank’s strategy includes boosting trade finance availability alongside efforts to improve infrastructure and deepen regional integration.

Structural drivers behind Africa’s trade growth include regional integration initiatives, infrastructure improvements, and a more stable commodity price environment that supports diversification beyond raw materials. The AfCFTA, which creates a single market for goods and services and lowers tariffs among member states, is credited as a central factor in expanding intra-continental trade. Experts also emphasize the potential of digital trade under AfCFTA, which will require significant investments in payment systems, digital identity frameworks, cybersecurity, broadband connectivity, and data centers to realize its full benefits.

Public-private partnerships and blended finance models are recommended to scale up trade-related infrastructure and digital systems, supporting sustained growth beyond the current $1.5 trillion trade benchmark. Mobile-first and affordable e-commerce and payment solutions targeting micro, small, and medium enterprises, particularly women traders, are seen as critical to expanding Africa’s participation in both regional and global trade.

Overall, Afreximbank’s *African Trade Report 2025* and related analyses underscore that while Africa’s trade growth is robust and outpaces global averages, structural challenges and policy implementation gaps remain significant. Continued efforts to enhance infrastructure, harmonize trade regulations, and expand trade finance will be essential for maintaining the continent’s upward trajectory in merchandise trade and economic integration.