Intra-Africa trade surges to record $220bln as top economies recover
This surge, coming after a 5.9 percent contraction in 2023, signalled a turnaround driven by economic recovery across key economies on the continent, fuelling both consumption and production.
The upward trend bodes well for millions of Africans who are banking on enhanced intra-continental trade to create jobs and improve livelihoods.
According to data from the African Export-Import Bank (Afreximbank), the remarkable growth was primarily propelled by stronger performances in Africa's largest economies: South Africa, Nigeria, and Morocco – all leading players in intra-African commerce.'In 2024, intra-African trade demonstrated a gradual yet consistent advancement toward deeper continental integration, even amid global economic uncertainties,' noted Afreximbank in its annual trade report for 2025.
The report highlighted that this 'robust growth' directly contrasts with the contraction experienced in 2023, with the strong showing from Nigeria and Morocco offsetting weaker performances in Ethiopia and Côte d'Ivoire.
In 2023, intra-African trade dipped to $196 billion from $208 billion in 2022, a period marked by sluggish demand and production, compounded by a 'cocktail of economic challenges,' including tariff barriers and geopolitical tensions. Most of these difficulties have now eased, fostering a more conducive environment for cross-border trade.
In a significant shift, Nigeria overtook the Democratic Republic of Congo (DRC) to become the second-leading intra-African trading nation. Nigeria more than doubled its trade with the continent to $18.4 billion, now representing 8.3 percent of the total.
DRC, despite being a regional powerhouse, now ranks third continent-wide. It posted a modest 6 percent growth in its African trade last year, reaching $11.4 billion from $10.8 billion in 2023.
Afreximbank attributes the DRC's strong performance to its geographical centrality, sharing borders with at least nine countries, including Uganda, Rwanda, Burundi, Tanzania, and South Sudan, alongside improved rail transport links.'Democratic Republic of Congo's geographical centrality and vast borders with nine African countries have made it a vital player in cross-border trade,' Afreximbank noted.
South Africa remains the DRC's principal trading partner within the region, with trade flows boosted by improved rail connectivity via the Durban and Dar es Salaam corridors.
Within the East African region, Uganda stands out as the only country among the top 10 intra-African traders, securing ninth position in 2024 with total trade of $7.6 billion – a 28 percent rise from $5.9 billion in 2023.
Kenya follows at position 14 with $5.7 billion in intra-African trade in 2024, ahead of Tanzania ($5.28 billion), Rwanda ($2.59 billion), South Sudan ($1 billion), Somalia ($600 million), and Burundi ($440 million).
Beyond economic recovery, increased diversification of export commodities is also fuelling the trade surge. While primary commodities like mineral fuels and agricultural products still dominate, there is a growing exchange of manufactured goods.
Afreximbank noted: 'While energy products remain a foundational pillar of Africa's intra-regional trade, ongoing efforts to strengthen industrial value chains, enhance logistics connectivity, and boost manufacturing capacities are gradually shifting the trade profile toward higher value-added and technology-intensive products.'The surge in intra-African trade rekindles optimism for the accelerated adoption and implementation of the African Continental Free Trade Area (AfCFTA).
This ambitious initiative envisions a continent free of trade barriers, promising to create 14 million jobs, lift 50 million Africans from poverty, and boost the continent's economy by an estimated $450 billion annually at full implementation.
Despite the positive momentum, both exports and imports within Africa remain significantly below their estimated potential, highlighting substantial room for further growth.
In 2024, intra-African exports fell short of potential by an estimated $77 billion, which could have elevated total intra-African trade to $296.3 billion – nearly 20 percent of Africa's total trade last year.
The bank identifies key product categories with the greatest untapped export potential within Africa, including machinery, electricity, motor vehicles and parts, food products, minerals, beauty products, chemicals, plastic and rubber, ferrous metals, pearls and precious stones, and fertiliser. Realising this potential will be crucial for Africa's continued economic transformation.
© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
32 minutes ago
- Zawya
India hits back at Trump's threat over Russian oil purchases
India's ruling party and main opposition condemned on Tuesday a threat by U.S. President Donald Trump to raise tariffs on goods from India over its Russian oil purchases, in a show of political unity as a trade rift deepens with Washington. Trump had already in July announced 25% tariffs on Indian imports, and U.S. officials have cited a range of geopolitical issues standing in the way of a U.S.-India trade accord. Manish Tewari, a member of parliament and leader of the opposition Congress, said Trump's "disparaging remarks hurt the dignity and self-respect of Indians". "The time has come to call out this constant bullying and hectoring," he added. BJP Vice President Baijayant Jay Panda quoted Henry Kissinger - the most powerful U.S. diplomat of the Cold War era - in a post on X: "To be an enemy of America can be dangerous, but to be a friend is fatal." India's Foreign Ministry said the country was being unfairly singled out over its purchases of Russian oil, and highlighted continued trade between Moscow and both the United States and the European Union, despite the war in Ukraine. "It is revealing that the very nations criticising India are themselves indulging in trade with Russia," it said in a statement issued late on Monday. "It is unjustified to single out India," the ministry said. It said the EU conducted 67.5 billion euros ($78.02 billion) in trade with Russia in 2024, including record imports of liquefied natural gas (LNG) reaching 16.5 million metric tons. The United States, the statement said, continues to import Russian uranium hexafluoride for use in its nuclear power industry, palladium, fertilisers and chemicals. It did not give a source for the export information. The U.S. embassy and the EU's delegation in New Delhi did not immediately respond to a request for comment. Both the United States and EU have sharply scaled back their trade ties with Russia since it launched a full-scale invasion of Ukraine in February 2022. In 2021, Russia was the EU's fifth-largest trading partner, with goods exchange worth 258 billion euros, according to the EU executive European Commission. SUDDEN RIFT India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources. It has faced pressure from the West to distance itself from Moscow since Russia invaded Ukraine. New Delhi has resisted, citing its longstanding ties with Russia and economic needs. India's National Security Adviser Ajit Doval is likely to travel to Russia this week on a scheduled visit, two government sources said. Foreign Minister S Jaishankar is expected to visit in the coming weeks. The sudden rift between India and the U.S. has been deepening since July 31, when Trump announced the 25% tariff on goods being shipped to the U.S. and for the first time threatened unspecified penalties for buying Russian oil. Trump has said that from Friday he will impose new sanctions on Russia as well as on countries that buy its energy exports, unless Moscow takes steps to end the war with Ukraine. The trade tensions have caused concern about the potential impact on India's economy. The equity benchmark BSE Sensex .BSESN closed down 0.38%, while the rupee dropped 0.17% versus the dollar.
Zawya
an hour ago
- Zawya
Pan-African challenge opens for fintech entrepreneurs
Applications have opened for the seventh edition of the Mest EST Africa Challenge (MAC 2025), a startup pitch competition focused this year on financial technology. The initiative, led by the Meltwater Entrepreneurial School of Technology (Mest Africa) in partnership with Absa, aims to support early-stage fintech startups across the continent. Startups have until 26 September 2025 to apply. Twenty semi-finalists will be selected for virtual pitch rounds, with ten finalists invited to compete in person at the Grand Finale in Cape Town in November. The winner will receive a $50,000 equity investment and the opportunity to pilot their solution with strategic partners. Focus on FinTech innovation in Africa This year's challenge highlights startups that are reshaping how money is moved, insured or managed on the continent. Eligible startups must be no older than three years, with a minimum recurring monthly revenue of $5,000 and total funding raised under $1m. Operations must be active in at least one of Absa's key markets: Botswana, Uganda, Mauritius, Seychelles, Kenya, Mozambique, Zambia, or Ghana. Applications must include a three-minute pitch video and can be submitted via Mest's online portal. Strategic partnership with Absa Backed by Mest's experience investing in over 90 African startups, the 2025 challenge is supported by Absa to align with its broader digital finance strategy. Both organisations say the initiative is intended to deepen innovation ecosystems and connect startups with capital, mentorship, and product testing opportunities. 'This partnership is about connecting with startups that can drive meaningful digital transformation,' said Muhammad Ali Bhikhan, chief information officer at Absa Regional Operations. The competition forms part of Mest and Absa's shared goal to support inclusive growth and fintech development across Africa's emerging markets. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Khaleej Times
2 hours ago
- Khaleej Times
EU still expects turbulence in trade relations with US
The European Union still expects turbulence in trade relations with Washington, but it believes it has a good insurance policy thanks to a framework deal that covers most goods it exports to the U.S. by a maximum 15% tariff, an EU official said. On Tuesday, the EU announced the suspension of its retaliatory tariffs on US goods worth 93 billion euros ($107 billion) after Brussels struck a deal with Washington last month. "The commission has today adopted the necessary legal procedures to suspend the implementation of our EU countermeasures, which were due to kick in on August 7," EU trade spokesman Olof Gill said. With the new rates set to enter into force in a couple of days, the 27-nation bloc, which is the U.S.'s biggest trading partner, is still waiting for executive orders that would bring down the tariff on some products, including cars and car parts, down to the agreed 15% rate. A senior EU official said he expected that to happen "very soon". "We do expect further turbulence, but we have a clear insurance policy - the 15% tariff across the board. If the U.S. administration does not stick to that, we have the means to react to that," the official told reporters. "The situation requires management, we have not solved everything in one go, but we have a solid foundation, we have changed fundamentally the approach with the U.S. Others are in a far worse position," the official said. The EU-U.S. agreement leaves many questions open. Talks on a joint statement with the U.S. that will spell out more details are very advanced, with the text broadly ready and the EU waiting for a response from Washington to finalise things, the official said. He declined to give a timeline for its release. The 15% tariff that European Union goods face when entering the United States is all-inclusive, unlike the deals some other countries have struck with Washington, the EU official said. For instance, while cheese exported to the U.S. from the EU will face a 15% tariff, UK cheese, once all tariffs are included, will face a tariff of more than 24%, he said. 'Best available' "What we have obtained in our deal is the best available treatment," the EU official told reporters, while adding that the 27-nation bloc was not celebrating the 15% rate, but that it considered it was a very good deal compared to others. Tariffs on pharmaceuticals and semiconductors are currently zero, but if they rise as a result of a U.S. probe into imports of those products, they will not exceed the 15% ceiling. Discussions on steel are taking longer due to the need to address volume-related issues, he said. The EU is also working to finalise a list of essential products that will be exempt from U.S. tariffs, a process the official said will take some time. The EU is trying to get as many products as possible into the list of tariffs exemption, at a zero-for-zero rate. The head of France's beverage exporters federation said he was still hoping for a U.S. tariffs exemption on those products. "We are 48 hours away from a decision, and we have not lost hope that wines and spirits can be exempted," Gabriel Picard, head of the FEVS wines and spirits exporters federation, told France Inter radio on Tuesday. Investor sentiment in the euro zone unexpectedly tumbled in August in one of the first indications that the business community is unimpressed with the EU's trade deal, a survey showed on Monday. Meanwhile, German engineering orders fell 5% in June compared with a year earlier, with dips in both domestic and foreign demand reflecting uncertainty caused by the trade tensions, engineering association VDMA said. France and Germany are among EU countries that have said the bloc had been too weak during trade negotiations with the United States and it should become stronger.
