Africa recorded a 3.2 per cent economic growth rate in 2024, despite global challenges, according to the 2025 African Trade and Economic Outlook (ATEO) Report presented by Afreximbank.
Dr Yemi Kale, Group Chief Economist at Afreximbank, revealed this during the Afreximbank 32nd Annual Meetings (AAM2025) held in Abuja on Wednesday.
He noted that while the figure falls short of the pre-pandemic average of five per cent, it reflects progress driven by stronger public investment, high prices of gold, cocoa and coffee, as well as early successes in diversification strategies.
However, he added that growth remained uneven, with resource-dependent economies facing more difficulty.
The report also showed that Africa’s merchandise trade rebounded by 13.9 per cent in 2024, rising to $1.5 trillion after a 5.4 per cent decline in 2023. Imports grew to $769.01 billion, while exports reached $758.01 billion, resulting in a trade deficit of $11 billion.
Intra-African trade improved significantly, rising 12.4 per cent to $220.3 billion, recovering from a 5.9 per cent decline the previous year. Nonetheless, inflation across the continent rose from 18.2 per cent in 2023 to 20.1 per cent in 2024.
Kale said the positive momentum was supported by the implementation of the African Continental Free Trade Area (AfCFTA), which is becoming a key driver of trade resilience.
“The 2025 report, titled ‘African Trade in a Changing Global Financial Architecture,’ positions Africa at a critical point,” he said.
According to the report, Africa’s share of global exports declined slightly from 3.5 per cent in 2009 to 3.3 per cent in 2024, with intra-African trade accounting for only 14.4 per cent of formal trade. The report attributed this to continued dependence on external markets and vulnerability to commodity price shocks.
Kale, however, noted opportunities arising from shifting global trade patterns, such as increased maritime activity around the Cape of Good Hope, heightened investment interest from Persian Gulf and Asian nations, and global demand for critical minerals.
He stressed that Africa must close its $100 billion annual trade-finance gap to enable small and medium enterprises (SMEs) to participate in regional value chains.
He said Afreximbank disbursed $17.5 billion in 2024 and aims to double intra-African trade finance by 2026. He also highlighted the success of the Pan-African Payment and Settlement System (PAPSS), which now links over a dozen central banks and reduces transaction costs and dependence on foreign currencies.
Kale called for strengthened African development finance institutions, more equitable global financial rules, and acceleration of AfCFTA implementation, particularly regarding tariff schedules, rules of origin, and national coordination.
He added that expanding digital payment infrastructure and leveraging Africa’s G20 seat to advocate reforms in special drawing rights allocation, debt restructuring, and global financial governance were also critical.
“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,” he said.
The ATEO report also assessed how rising geopolitical tensions and industrial rivalries are affecting Africa’s trade amid ongoing efforts to industrialise and deepen regional integration.
(NAN)