On 25 June 2025, the African Export-Import Bank (Afreximbank) released its Africa Trade Report for 2025. The report offered both encouraging and concerning insights. The good news is that intra-African trade surged by 12.4% to US $220.3 billion, reversing a 5.9% decline in 2023. The report also forecasts continued trade growth—5.1% in 2025—with intra-African trade projected to grow at an average annual rate of 6.6% through to 2030. Furthermore, it notes that intra-African trade could potentially double by 2035 if the African Continental Free Trade Area (AfCFTA) is fully implemented.
However, the report also highlighted worrying findings. Despite the optimism, Africa still accounts for just 3.3% of global exports, underscoring the pressing need for industrialisation and deeper integration into global value chains. This persistent marginalisation demands urgent policy and structural reforms to enhance the continent’s resilience and competitiveness in global trade. I propose five broad policy reforms.
First, accelerating the implementation of the AfCFTA is fundamental. The AfCFTA remains the single most transformative framework for boosting intra-African trade, which currently represents only 15–17% of the continent’s total trade. Full operationalisation—through harmonised customs procedures, removal of non-tariff barriers, and alignment of product standards—could double intra-African trade by 2035.
Second, deepening financial integration is essential to address the persistent trade finance gap, estimated at over US $100 billion annually. This gap disproportionately affects small and medium-sized enterprises (SMEs), which are crucial for industrialisation and value addition. National governments must take deliberate steps to strengthen domestic financial institutions, support credit guarantee schemes, and expand access to local currency trade finance. Scaling up the Pan-African Payment and Settlement System (PAPSS)—which facilitates cross-border payments in local currencies—is a strategic move to reduce reliance on the US dollar in inter-African trade.
Third, Africa must pursue strategic industrialisation and value addition. The continued export of raw materials keeps the continent at the periphery of global value chains. To reverse this trend, governments must adopt policies that support local processing industries, invest in industrial parks, and create incentives for private-sector investment in manufacturing.
Fourth, Africa must assert a stronger voice in global financial and trade governance. The continent should make full use of its membership in the G20 as a platform to advocate for reforms such as more equitable allocation of Special Drawing Rights (SDRs) and the revision of unfair credit rating practices. These changes are crucial to unlocking long-term funding for infrastructure, energy, and trade development.
Finally, African countries must coordinate policies at both regional and continental levels. Fragmentation has weakened Africa’s bargaining power and market integration. Through institutions such as the African Union, regional economic communities, Afreximbank, EADB, and the AfDB, countries must align macroeconomic policies, enforce trade agreements, and champion Africa-led multilateral financing mechanisms.
In conclusion, the Africa Trade Report 2025 provides a strategic roadmap for transforming Africa’s challenges into opportunities. By accelerating AfCFTA implementation, strengthening trade finance systems, embracing local currencies and reforming global financial structures, the continent can build a stronger, fairer and more resilient economic future.
🔴 Elly Manjale is an economic, business and management consultant based in Arusha who writes on economic, business, social and political issues.
📧 Email: emanjale@gmail.com
