Africa strengthened its economic resilience in 2025, recording faster economic growth despite rising geopolitical tensions, slowing global demand and continued supply chain disruptions, according to the latest2026 African Trade Report published by African Export-Import Bank.
The report, titled “Leveraging Geopolitics for Trade and Industrialisation in Global Africa,” shows that the continent’s real GDP growth accelerated to 4.5% in 2025, up from 3.4% in 2024, outperforming the global economy, which expanded by 3.4% and is forecast to slow further to 3.1% in 2026.
African Trade Reaches $1.5 Trillion
According to the report, Africa’s merchandise trade increased by 6.1% year-on-year, reaching approximately $1.5 trillion in 2025.
The continent also experienced a significant decline in inflation, with the average rate falling from 21.6% in 2024 to 13.1% in 2025, reflecting improving macroeconomic stability across many African economies.
Trade Finance and Logistics Remain Key Challenges
Despite stronger economic performance, Afreximbank estimates that Africa continues to face a trade finance gap of approximately $74 billion, limiting the ability of businesses to expand international trade.
The report also highlights ongoing challenges including limited foreign exchange liquidity, declining correspondent banking relationships, rising freight costs and longer shipping times caused by changing global logistics routes.These issues continue to affect industries that rely heavily on imported industrial inputs and international export markets.
AfCFTA and Digital Payments Seen as Growth Drivers
Afreximbank identifies faster implementation of the African Continental Free Trade Area as one of the continent’s highest priorities for sustaining long-term growth.The report also emphasizes expanding the Pan-African Payment and Settlement System, which is designed to reduce cross-border transaction costs and lessen dependence on foreign currencies for intra-African trade.
Industrialization Remains Central to Africa’s Future
Commenting on the report, Dr. Yemi Kale said Africa is at a critical moment as geopolitical shifts reshape global trade.He noted that strengthening regional value chains, expanding manufacturing capacity, improving access to trade finance and accelerating continental integration will be essential for building a more resilient and competitive economy.
According to Afreximbank, the bank disbursed $17.5 billion in financing during 2024 and is working to double intra-African trade finance by 2026.The report concludes that Africa’s long-term industrialization will depend on stronger manufacturing ecosystems, increased intra-African trade, improved transport and logistics infrastructure, greater foreign investment, and wider adoption of digital payment systems as global supply chains continue to evolve.
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