Africa’s economy strengthens amid global shifts, Afreximbank report shows
African Export-Import Bank (Afreximbank)
Nike Popoola
The African Export-Import Bank (Afreximbank) has launched the 2026 edition of its African Trade Report, presenting an optimistic outlook for the continent’s economic trajectory despite ongoing global uncertainties. Titled “Leveraging Geopolitics for Trade and Industrialisation in Global Africa,” the report highlights how shifting geopolitical dynamics, supply chain realignments, and rapid technological transformation are reshaping global trade and creating new opportunities for Africa.
According to the report obtained today, Africa’s economic performance strengthened significantly, with real GDP growth rising from 3.4 percent in 2024 to 4.5 percent in 2025, outpacing global averages. Inflation across the continent also eased notably, declining from 21.6 percent to 13.1 percent, with several countries recording single-digit inflation as low as 3 percent. Merchandise trade expanded by 6.1 percent to approximately US$1.5 trillion, while intra-African trade grew by 5.5 percent, reaching about US$213.8 billion.
The report attributes this progress to improved macroeconomic management, stronger institutions, expanding regional cooperation, and rising cross-border investment flows. It notes that African economies are increasingly demonstrating resilience in the face of global shocks, even as fragmentation in world trade and geopolitical tensions continue to disrupt supply chains and raise trade costs.
Technological innovation, particularly in artificial intelligence, was identified as a major driver of change in global commerce. The report highlights AI’s growing role in transforming logistics, customs administration, and global value chain management, enabling more efficient trade processes and improved competitiveness.
Despite these gains, the report warns that Africa continues to face structural constraints, including limited trade finance, inadequate infrastructure, and low levels of value addition in key sectors. However, it stresses that these challenges also present significant opportunities as global firms seek diversified and resilient production hubs.
To capitalise on these shifts, the report calls for urgent policy action, including stronger capitalization of African development finance institutions, accelerated implementation of the African Continental Free Trade Area (AfCFTA), expansion of digital payment systems, and reforms to the global financial architecture. It also emphasizes the importance of enhancing the Pan-African Payment and Settlement System (PAPSS) to reduce transaction bottlenecks.
The report concludes that Africa’s ability to transform geopolitical disruption into sustainable growth will depend on coordinated industrial policies, expanded intra-African trade, and sustained investment in infrastructure and innovation. It calls for urgent and decisive action to position Africa as a competitive hub for manufacturing, digital innovation, and green industrialisation.
