The value of trade within Africa grew by 5.5 per cent in 2025 to reach $213.8 billion (Sh27.6 trillion), reflecting a growing resilience despite geopolitical tensions and an uncertain global economy.
The latest African Trade Report 2026 by the African Export-Import Bank (Afreximbank) shows African economies are becoming more integrated as governments strengthen macroeconomic management, expand regional cooperation and increase cross-border investments.
The report says Africa's real Gross Domestic Product (GDP) growth accelerated to 4.5 per cent in 2025, up from 3.4 per cent in 2024, making the continent one of the fastest-growing regions in the world and ahead of global economic growth.
It says stronger domestic reforms and regional integration helped African economies weather a difficult global trading environment marked by geopolitical conflicts, supply chain disruptions and rising trade barriers.
The report notes that the world economy is undergoing profound structural changes driven by geopolitical rivalries, economic fragmentation and shifting supply chains.
These developments have increased trade costs and created uncertainty for exporters and investors.
However, Africa is increasingly benefiting from companies seeking to diversify production away from traditional manufacturing centres.
The report says the continent has an opportunity to position itself as a competitive destination for manufacturing, industrial production, digital innovation and green industries.
Technology is also emerging as a major driver of Africa's trade transformation.
Freximbank says rapid advances in artificial intelligence are improving customs administration, trade logistics and the organisation of global value chains, making cross-border trade more efficient and reducing transaction costs.
Despite the encouraging performance, the report warns that Africa continues to face significant structural obstacles that could slow the pace of industrialisation.
Among the biggest challenges are inadequate trade finance, poor transport infrastructure and limited value addition, with many African countries still exporting raw materials instead of processed goods.
The bank argues that these weaknesses continue to deny the continent higher export earnings, jobs and industrial growth.
It says the continent should take advantage of the ongoing restructuring of global supply chains to attract more investments into manufacturing and value-added industries rather than remaining a supplier of primary commodities.
The report identifies the implementation of the African Continental Free Trade Area (AfCFTA) as one of the most important policy priorities for accelerating regional trade and industrial development.
It calls on member states to fast-track implementation of tariff schedules, harmonise rules of origin and improve national coordination to unlock the full benefits of the continental free trade agreement.
The bank also wants African governments to strengthen regional development finance institutions through higher capitalisation and advocate for reforms to global financial regulations that currently limit access to affordable financing.
Another recommendation is the expansion of digital payment infrastructure through the Pan-African Payment and Settlement System (PAPSS) to reduce reliance on foreign currencies in cross-border trade.
According to the report, wider adoption of PAPSS would lower transaction costs, reduce foreign exchange bottlenecks and improve the efficiency of intra-African commerce.
Afreximbank further urges African countries to continue pushing for reforms of the global financial architecture, including changes to international debt restructuring mechanisms and global financial rule-making, to create a more equitable environment for developing economies.
The report concludes that geopolitical tensions are likely to continue reshaping global trade and investment flows in the coming years.
Rather than viewing these disruptions as a threat, Africa should seize the opportunity to strengthen industrial ecosystems, expand regional value chains and deepen economic integration.
It says sustained investments in transport infrastructure, trade finance, manufacturing and digital payment systems will be critical in building resilient supply chains capable of supporting long-term industrial growth.
Ultimately, Afreximbank argues that Africa's future competitiveness will depend on adaptive policies, strategic trade positioning and stronger foreign direct investment aimed at expanding productive capacity across the continent.
The report says the window of opportunity is open, but governments must act with urgency to accelerate industrialisation, boost value-added exports and transform Africa into a globally competitive trading and manufacturing hub.
