By – Dr Mohammad Jibrin Ngala
Over the past five to seven years, Africa has begun to reshape one of the key features of its economic profile, For decades, African economies were heavily focused towards exporting raw materials to Europe, Asia, and North America while importing finished goods. There is a growing change taking place today. African nations are increasing their trade with one another , This shift is promoting economic resilience, industrialisation, and shared prosperity throughout the continent. It is primarily being driven by policy reforms, private sector involvement, and the implementation of the African Continental Free Trade Area (AfCFTA) and COMESA framework.
A Measurable Shift in Trade Patterns
Intra-African trade reached approximately $220.3 billion in 2024, marking a significant double digit 12.4% increase from the previous year (1). This follows a steady upward trend: in 2023, intra-African trade was about $192 billion, representing 15% of total African trade, up from 13.6% in 2022 (2). While still modest compared to intra-regional trade in Europe or Asia, the trajectory is positive.
This growth is particularly linked to the African Continental Free Trade Area (AfCFTA), which officially came in to effect in 2021 and aims to create a single market of over 1.3 billion people with a combined GDP of around $3.4 trillion (3). By removing tariffs on up to 97% of goods and other bureaucratic barriers, the agreement is laying the groundwork for a more integrated continental economy.
Leading Economies Driving Integration
Several countries are at the forefront of this intra-African trade expansion; specifically, Republic of South Africa $42 billion and Egypt $10.5 billion.
Nigeria has significantly increased intra-African trade to over $5.2 billion, supported by industrial projects such as the Dangote Refinery, which supplies refined petroleum products to neighbouring countries (1).
Egypt in particular has been a major promoter of AfCFTA and COMESA; to promote economic integration through trade and is making strategic reforms and investments; such as the Lake Victoria–Mediterranean (VIC-MED) waterway project to facilitate trade along the Nile; focusing on in manufactured goods, fertilizers, chemicals, pharmaceuticals and processed foods; to enhance logistical links with East Africa that bring the likes of Uganda to have further regional integration of East and central African Countries, (South Sudan, Congo, Burundi, Rwanda) following the streamlining of customs procedures and boost cross-border trade flows.
Egypt is also investing in road and transport networks, including a 1,700km highway towards Chad, to link with central Africa (Congo and Central African republic) to boost trade.
Reform and Growth: Emerging Success Stories
Beyond the continent’s largest economies, a group of reform-oriented countries are demonstrating how governance improvements can unlock trade and growth. Rwanda, for example, has consistently ranked among Africa’s top performers in ease of doing business, supported by digital governance reforms and investment in logistics infrastructure.
Similarly, Ivory Coast and Senegal have implemented macroeconomic reforms, improved fiscal management, and invested in transport corridors and ports. These efforts have translated into sustained GDP growth rates often exceeding 5–6% annually in recent years, positioning them as regional trade hubs.
Tunisia, despite political and economic challenges, continues to leverage its industrial base and proximity to Europe while increasingly engaging in African markets through trade agreements and investment initiatives.
These reform-driven economies illustrate a broader trend: intra-African trade is not merely increasing in volume but also becoming more diversified, moving beyond primary commodities toward manufactured goods and services.
Economic and Social Impact
The expansion of intra-African trade is already yielding tangible economic benefits. Trade within the continent tends to involve more value-added products than exports to the rest of the world, which are often dominated by raw materials. This shift supports industrialisation, enhances productivity, and creates more skilled employment opportunities.
The AfCFTA and COMESA alone are projected to significantly boost incomes and lift millions out of poverty by enabling countries to specialise and participate in regional value chains (3). Increased trade also stimulates small and medium-sized enterprises (SMEs), which form the backbone of many African economies.
Importantly, economic growth and job creation are closely linked to conflicts and migration patterns. As domestic opportunities expand, the economic pressures that drive illegal migration to Europe and the Middle East are likely to diminish. While migration is influenced by multiple factors, stronger local economies provide viable alternatives for young people seeking employment and stability.
Persistent Challenges
Despite this progress, there are significant obstacles; such as infrastructure deficits; estimated at over $100 billion annually; continue to hinder efficient trade flows (4). Border delays, inconsistent regulations, and reliance on external currencies for payments increase transaction costs and reduce competitiveness.
Moreover, intra-African trade still accounts for only about 15–18% of total trade, compared to much higher levels in other regions (5). This highlights the untapped potential that remains.
The Way Forward: Policy Priorities
To sustain and accelerate the growth of intra-African trade, governments across the continent must pursue a coordinated set of reforms:
1.Infrastructure Development
Investment in roads, railways, ports, and digital infrastructure is critical to reducing transport costs and improving connectivity.
2.Trade Facilitation and Harmonisation
Simplifying customs procedures, harmonising standards, and reducing non-tariff barriers will make cross-border trade more efficient.
3.Financial Integration
Expanding systems such as African Payments and Settlement System can reduce reliance on foreign currencies and lower transaction costs.
4.Industrial Policy and Value Chains
Governments should promote regional value chains in manufacturing, agriculture, and services to increase value addition within Africa.
5.Regulatory Stability and Governance
Transparent policies, minimising corruption, and predictable regulatory environments are essential further facilitating more trade growth.
6.Support for SMEs (small and medium enterprises)
Facilitating access to finance and markets for small businesses will ensure that the benefits of trade are widely shared.
7.Human Capital Development
Investing in education and key skills will enable African workers to participate in more sophisticated industries.
Conclusion
Africa’s shift toward greater intra-continental trade represents one of the most promising economic developments of the past decade. While challenges remain, the steady rise in trade volumes, the leadership of key economies such as South Africa, Egypt and Nigeria, and the reform momentum in countries like Rwanda and Senegal all point to a continent increasingly looking inward for growth.
If supported by sustained policy commitment and regional cooperation, this transformation has the potential not only to boost economic performance but also to reshape livelihoods—creating jobs, reducing poverty, and offering millions of Africans a more prosperous future in Africa instead of going to Europe and the Middle East as menial labour.
- Dr Mohammad Jibrin Ngala (PhD, MSc) – Email: ngalamj@gmail.com
References
1.Intra-African trade reached $220.3 billion in 2024 – ExportFocus Africa
2.Afrikaverein der deutschen Wirtschaft – englisch | Afrika-Verein der deutschen Wirtschaft e.V.
3.Business Tech Africa Insights | Latest News Updates & Analysis
4.https://www.reuters.com/world/africa/we-are-our-own-africa-looks-within-weather-growing-global-tariff-turmoil-2025-07-18/
5.https://www.gulfafricareview.com/intra-african-trade-hits-220-3-billion-but-afcfta-rollout-still-lags/
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