
(3 Minutes Read)
According to a report released by the African Export-Import Bank (Afreximbank) on Wednesday, June 25, 2025, Africa’s total merchandise trade witnessed a substantial rebound in 2024, growing by 13.9% to reach a value of USD 1.5 trillion. This marks a strong recovery following a 5.4% contraction in 2023, highlighting renewed momentum in the continent’s trade activities.
A notable aspect of this resurgence is the increase in intra-African trade, which expanded by 12.4% to reach USD 220.3 billion. This improvement is attributed largely to the early impact of the African Continental Free Trade Area (AfCFTA), which is beginning to lower trade barriers and promote the movement of goods and services across African borders. Afreximbank highlighted the AfCFTA as a crucial driver for deepening regional integration and enhancing trade resilience across the continent.
Despite these encouraging figures, the report underlined enduring structural weaknesses in Africa’s trade framework. Notably, Africa’s share of global exports has slipped slightly, from 3.5% in 2009 to 3.3% in 2024, revealing a continued dependence on the export of raw materials rather than processed or value-added goods. This trend underscores the pressing need for African nations to accelerate industrialization and diversify their economies, enabling deeper participation in global value chains and fostering more sustainable regional trade growth.
The report also identified a significant trade finance gap on the continent, estimated at around USD 100 billion annually. To mitigate this shortfall, Afreximbank disbursed over USD 17.5 billion in trade finance in 2024. Furthermore, the bank plans to scale up this support to USD 40 billion by 2026, aiming to strengthen the financial infrastructure necessary to support expanding trade volumes.
Another critical development highlighted in the report is the rising influence of the Pan-African Payment and Settlement System (PAPSS). This system is designed to facilitate cross-border payments in local currencies, thereby reducing dependence on foreign currencies such as the U.S. dollar and euro. PAPSS is expected to play a pivotal role in enabling smoother and more efficient transactions across African markets.
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In conclusion, while Africa’s trade performance in 2024 shows promising signs of recovery and growing regional cohesion, Afreximbank emphasised that structural transformation and continued investment in trade infrastructure are essential. Advancing initiatives like AfCFTA and PAPSS will be key to building a resilient and self-sustaining African trade ecosystem in the years ahead.