The ongoing establishment of the world’s largest single market, the African Continental Free Trade Area (AfCFTA), has led to a remarkable increase in intra-continent trade, rising by over US $50 billion in just four years, according to a new report.
The African Trade Report 2024: Climate Implications of the AfCFTA Implementation, published by Afriexim Bank, reveals that intra-continent trade jumped to US$192.2 billion in 2023, up from US$137 billion in 2020.
Intra-continent exports, which make up the largest share of this trade, have surged from US$72.8 billion in 2020 to US$110.3 billion in 2023, driven by the efforts of regional trading blocs. Intra-Africa trade now constitutes 14.9% of total African trade in 2023, a rise from 13.6% in 2022.
Southern Africa dominates with 41.1% of total intra-continent trade, solidifying its role as the leading driver in 2023. West Africa follows as the second-largest trading sub-region with 25.7%, while East Africa accounts for 14.1%. North and Central Africa represent approximately 12.4% and 6.6%, respectively.
African countries primarily trade in industrial and value-added goods, including fuels, machinery, vehicles, ores, slag and ash, and iron and steel.
From the Afriexim Bank report, here is a compiled list of the ten largest exporting countries to other African economies and the key products they trade across borders.
- South Africa (US$29.61 Billion)
South Africa’s main exports to other African countries include light oils, bituminous coal, chromium ores, electrical energy, goods vehicles, and non-agglomerated iron ores. The main destination markets for these exports were Mozambique, Botswana, Namibia, Zimbabwe, and Zambia, which collectively imported 67% of South Africa’s intra-African exports. More than 29.6% of South Africa’s total exports in 2023 were sent to African markets.
- Cote d’Ivoire (US$11.38 Billion)
In Côte d’Ivoire, exports accounted for 55.6 %t of total sales within the West African Economic and Monetary Union (WAEMU). Mali and Burkina Faso are the primary destinations for Ivorian exports – which include cocoa and its derivatives, petroleum products, raw gold, and natural rubber, collectively constituting 70.1% of total exports.
- Egypt (US$6.61 Billion)
Egypt’s exports to Africa are primarily driven by marble, cement, polyethylene, and phosphate fertilisers. Egypt’s largest export partners on the continent are largely within North Africa -Algeria, Libya, Morocco, and Sudan- but exports to Côte d’Ivoire, Ghana, Kenya, and Nigeria have been on the rise.
- Ghana (US$6.02 Billion)
Top export products include Gold; Kitchenware; hose pipes & tubes; and crude petroleum oils, among others. Top 10 of its the country’s products accounts for 79% of total the economy’s intra-Africa exports. South Africa and BurkinaFaso are Ghana’s top export markets on the continent.
- Nigeria (US$5.63 Billion)
Around 5.1 % of Nigeria’s exports are directed to African countries, with Côte d’Ivoire, South Africa, and Senegal emerging as the top three destinations for Nigerian products within the continent.
- Morocco (US3.78 Billion)
The main African destination markets for Moroccan products – largely fertilisers, and prepared or preserved fish- are Ivory Coast, Djibouti and Senegal.
- DR Congo (US$3.34 Billion)
Democratic Republic of the Congo primarily exports inorganic chemicals, precious metals, copper, and vehicle parts to South Africa, Tanzania and Zambia.
- Zambia (US$3.17 Billion)
The Country mainly exports sulphur, electrical energy, sulphuric acid, non-alcoholic beverages and cement to other African countries. Some 74% of Zambia’s intra-African exports are destined for DRC and Equatorial Guinea. Zambia’s main destination markets are COMESA and SADC members, except for Equatorial Guinea.
- Namibia (US$3.15 Billion)
Namibia’s exports -diamonds, gold, petroleum oils , fish fillets and other fish meat, frozen fish and copper ores and concentrates are mainly directed to South Africa Botswana Zambia and the Democratic Republic of Congo.
- Tanzania(US$3.13 Billion)
South Africa, Congo, Burundi, Uganda, Rwanda and Kenya top’s list of countries where Tanzania exports its goods – mainly gold, copper and agricultural commodities like coffee, cashew nuts, tobacco, and cotton.
Conrad Onyango, bird story agency