A new analysis shows African trade is larger and more dynamic than previously thought — especially in South-South markets. What this means for exporters and importers across the continent.
Africa’s role in global merchandise trade may be significantly larger than conventional statistics suggest, challenging assumptions about the continent’s export and import performance. Recent insights highlight that trade flows between Africa and developing economies — so-called South-South trade — have expanded rapidly, reshaping export destinations and import sources in ways that could change long-term strategy for African businesses and policymakers.
More than half of Africa’s exports now go to developing markets, reflecting a shift away from traditional OECD partners toward emerging economies across Asia, Latin America and the Middle East. This trend underscores the importance of diversifying trade relationships and expanding competitiveness in non-traditional markets, especially for agricultural and industrial exports such as processed foods, minerals, and light manufacturing goods.
For importers, this shift also represents opportunities: sourcing from other developing regions can deliver cost relief and faster logistics. However, it also raises questions about industrial competitiveness, as cheaper imports compete with domestic production in sectors ranging from poultry to electronics. Policymakers must balance these forces — building export capacity while supporting industries vulnerable to import competition.
In practical terms, exporters should explore emerging South-South corridors and emerging markets where demand for African products is growing, aided by trade facilitation measures and regional agreements. Meanwhile, importers and value chain managers need strategies to mitigate exposure to volatile global supply chains by diversifying sources and investing in regional logistics integration.
