Africa Outpaces Global Growth Trends Amid Shifting Trade Networks

Merchandise trade across the continent climbed to approximately $1.5 trillion, bolstered by a significant drop in inflation from 21.6% in 2024 to 13.1% last year. These gains reflect improved macroeconomic management and targeted interventions by development finance institutions. Dr. Yemi Kale, Group Chief Economist at Afreximbank, emphasizes that the current fragmentation of international commerce offers a rare window for African nations to prioritize regional value chains and shift toward more competitive, inclusive economic models.

Despite this momentum, structural barriers remain. The $74 billion trade finance deficit, coupled with shrinking correspondent banking relationships and rising logistics costs, continues to impede industrial expansion. To mitigate these risks, the bank urges an accelerated rollout of the African Continental Free Trade Area (AfCFTA) and the scaling of the Pan-African Payment and Settlement System (PAPSS). With Afreximbank having disbursed $17.5 billion in 2024, the focus remains on doubling intra-African trade finance by 2026 to ensure the continent can sustain its growth trajectory in a volatile global landscape.