WorldStage Newsonline– Despite a year of global economic uncertainty, Africa recorded a 3.3% GDP growth in 2024, while trade across the continent expanded significantly by 13.9%, according to the newly released 2025 Africa Trade Report by the African Export-Import Bank (Afreximbank).
Presenting the report at the Bank’s 32nd Annual Meetings (AAM2025), Afreximbank’s Group Chief Economist, Dr. Yemi Kale, attributed this performance to stronger domestic consumption, increased investment inflows, and deepening trade integration—particularly under the African Continental Free Trade Area (AfCFTA).
Intra-African trade rebounded with a 12.4% increase in 2024, reversing the decline seen in the previous year. Dr. Kale said the recovery reflects the continent’s improving internal demand and the growing impact of AfCFTA-driven integration.
Looking ahead, Africa’s economy is projected to grow by 4% in 2025, outpacing the global average. Notably, 41% of African countries are expected to grow by 5% or more.
Inflation, which averaged around 90% in 2023, is expected to drop sharply to approximately 15% in 2025, supported by tighter monetary policy, efforts at price stabilization, and easing supply chain constraints.
Africa’s debt-to-GDP ratio is also projected to decline modestly—from 67.2% to 65% in 2025. Meanwhile, African trade is forecast to grow by 5.1%, exceeding global trade projections. Between 2025 and 2028, African trade is expected to grow at an average annual rate of 6.6%, propelled by AfCFTA implementation, macroeconomic stability, and a shift toward green energy initiatives.
Dr. Kale emphasized that Africa must move beyond simply weathering economic shocks to undertaking structural transformation. This includes diversifying exports beyond raw materials, building industrial capacity, adding value to goods, and investing in infrastructure, human capital, and innovation.
He also stressed the urgent need to address Africa’s estimated $420 billion trade finance gap by strengthening development finance institutions. “The trade finance gap is not just a result of demand outpacing supply,” he said. “We must build tailored solutions that reflect Africa’s unique market realities.”
To bridge this gap and build a resilient foundation for intra-African trade, the report recommends three key strategies: Developing local currency financing solutions, Innovating alternative financing structures suited to African markets, and Expanding digital platforms to improve trade efficiency and accessibility
The report also highlights the importance of strengthening local currency settlement systems, such as Afreximbank’s Pan-African Payment and Settlement System (PAPSS), which helps reduce foreign exchange risk and transaction costs. Currently, 15 African central banks are part of the PAPSS network.
Finally, the report calls for African countries to have a stronger voice in shaping global financial rules that impact trade finance, and to deepen AfCFTA implementation beyond ratification, with a stronger focus on trade facilitation.
