Africa’s merchandise trade expanded by 6.1% to approximately $1.5 trillion in 2025, according to the 2026 African Trade Report released by the African Export-Import Bank (Afreximbank). The report, titled Leveraging Geopolitics for Trade and Industrialisation in Global Africa
, indicates that intra-African trade also rose by 5.5%, reaching about $213.8 billion.
Africa’s Merchandise Trade Reaches $1.5 Trillion
This growth coincides with an acceleration in the continent’s real Gross Domestic Product (GDP) growth, which rose from 3.4% in 2024 to 4.5% in 2025, surpassing global growth levels. Additionally, aggregate inflation moderated from 21.6% to 13.1%, with some nations recording rates as low as 3%.
Afreximbank attributed these gains to strengthening institutions, expanding regional cooperation, improving macroeconomic management, and increased cross-border investments.
Regional Integration and the AfCFTA
A central driver for this economic momentum is the African Continental Free Trade Area (AfCFTA), which holds an estimated market potential of $3.4 trillion. Bremer Pauw, MD for the Middle East & Africa DHL Supply Chain, noted that progress is being made through AfCFTA interventions, though he added that enhancing logistics through better electronic systems would take time.
To fully realize the benefits of regional integration, Afreximbank stressed that Africa must urgently accelerate the implementation of AfCFTA. The bank also highlighted the need to expand intra-African trade finance and deepen digital payment systems via the Pan-African Payment and Settlement System (PAPSS).
Other regional efforts include the continued cooperation between the South African Development Community (SADC), the East African Community (EAC), and the Common Market for East and Southern Africa (COMESA).
Navigating Global Headwinds and Supply Chain Shifts
The rise in intra-continental commerce comes as African nations seek to buffer their economies against global headwinds. According to DHL’s Global Connectedness Report 2026, unpredictability in global trade and bilateral ties is prompting a shift toward regional trade activity.
While the Trade Law Centre noted that South Africa saw an 11.6% surge in exports—growing from $58.8 billion in 2023 to $65.6 billion in 2025—intra-African exports experienced an 8.1% contraction in 2024.
DHL reports that businesses are actively building contingency plans and seeking alternative sourcing options and routes to market due to:
- Geopolitical tensions and geoeconomic fragmentation
- Climate-related challenges
- Supply constraints and currency volatility
- Inflationary pressures
Infrastructure and Industrialization Requirements
Despite the growth, officials and economists emphasize that significant gaps remain. Ghana’s Vice President, Dr. Mahamudu Bawumia, has called for signature solutions
to deepen trade, specifically citing the need for smart investments in arteries for trade.
These include:
- Physical Infrastructure: Rail, roads, and energy.
- Digital Infrastructure: Data centers to facilitate digital transformation.
- Financial Infrastructure: Integration of financial markets.
Dr. Bawumia further advocated for transforming Africa into a manufacturing zone to facilitate the trade of value-added products, suggesting that Public-Private Partnerships (PPPs) are essential for delivering these projects. This aligns with the Afreximbank report, which noted that while Africa faces infrastructure deficits and limited value addition, these challenges provide opportunities for green industrialization and digital innovation.
International Trade Reforms
External partnerships are also evolving to support these continental goals. On July 10, the UK unveiled trade reforms to simplify access to its market. These include upgrades to the Developing Countries Trading Scheme (DCTS) with simplified rules of origin.
These rules allow countries such as Nigeria to source inputs from across Africa and export finished goods to the UK tariff-free. According to UK Minister for Development Jenny Chapman, these rules aim to make it easier for developing countries to trade more closely with the UK. In 2023, more than £3.2 billion worth of goods imported from African countries into the UK benefited from preferential terms under development trading arrangements.
