Abuja: Africa recorded a growth rate of 3.2 per cent in 2024, despite the challenging global environment, says Afreximbank Research Report. Dr Yemi Kale, Group Chief Economist, Afreximbank, disclosed this while presenting the 2025 African Trade and Economic Outlook (ATEO) Report at the Afreximbank 32 Annual Meetings (AAM2025) in Abuja on Wednesday.
According to News Agency of Nigeria, Kale noted that the growth rate was still below the pre-pandemic growth rate of five per cent. He attributed this performance to stronger public investment, high commodity prices, notably of gold, cocoa, and coffee, and the early success of diversification strategies. However, he pointed out that growth on the continent remained uneven, with resource-dependent countries facing greater challenges.
The report highlighted that Africa’s merchandise trade recovered in 2024, rebounding by 13.9 per cent to reach 1.5 trillion dollars, a significant increase from the decline of about 5.4 per cent recorded in 2023. Africa’s merchandise imports grew to 769.01 billion dollars in 2024, while exports increased to 758.01 billion dollars, resulting in a merchandise trade deficit of 11 billion dollars.
Intra-African trade showed a remarkable upturn in 2024, increasing by 12.4 per cent to reach 220.3 billion dollars, rebounding from a decline of 5.9 per cent in 2023. However, inflation rose from 18.2 per cent in 2023 to 20.1 per cent in 2024. This positive trend is expected to continue, supported by the ongoing implementation of the African Continental Free Trade Area (AfCFTA), which is emerging as a foundation for the continent’s trade resilience.
The 2025 report titled ‘African Trade in a Changing Global Financial Architecture’ indicates that Africa is at a pivotal juncture. As global trade routes and rules evolve, Africa’s share of world exports has seen a slight decline from 3.5 per cent in 2009 to 3.3 per cent in 2024. Intra-African trade accounts for a mere 14.4 per cent of the region’s formal trade, underscoring continued dependence on external demand and exposure to commodity shocks. However, fragmentation brings new opportunities: increased shipping traffic around the Cape, growing investment in Africa by the countries of the Persian Gulf and Asia, and heightened demand for Africa’s critical minerals.
Kale emphasized that unlocking this potential required closing the 100 billion-dollar annual trade-finance gap, which constrains most African small and medium enterprises from participating in regional value chains. Gradually, Africa’s financial architecture is restructuring and beginning to respond to the new economic realities. Afreximbank disbursed 17.5 billion dollars in 2024 and aims to double intra-African trade finance by 2026.
The Pan-African Payment and Settlement System (PAPSS) is gaining traction, with over a dozen central banks now linked, reducing transaction costs and reliance on the US dollar and euro. Kale stressed the urgent need for Africa to transform global fragmentation into a catalyst for resilient, inclusive growth and value-added trade. He advocated for strengthening African development finance institutions with more capital and fairer global regulation, as well as accelerating AfCFTA implementation, especially around tariff schedules, rules of origin, and national coordination.
Kale also highlighted the need to expand digital payment infrastructure to reduce currency and logistics bottlenecks and use Africa’s G20 seat to push for reforms in the reallocation of special drawing rights, debt restructuring, and global financial rulemaking. Together, financial sovereignty, digital integration, and coordinated diplomacy must form the foundation for Africa to overcome global disruption and build a more sustainable, shock-resistant, and opportunity-rich trade future.
The 2025 edition of the African Trade Report, published by Afreximbank, examines trade and economic development in Africa and other parts of the world during 2024. It explores how a fragmented global economy, characterized by geopolitical tensions and industrial rivalries, is impacting Africa’s trade dynamics amidst its push for industrialization and deeper intra-African trade integration.
