Africa is demonstrating growing economic resilience despite an increasingly uncertain global environment, according to the latest African Trade Report released by the African Export-Import Bank (Afreximbank), which says the continent is well positioned to transform geopolitical challenges into long-term trade and industrial growth.
The 2026 report, titled Leveraging Geopolitics for Trade and Industrialisation in Global Africa, shows that Africa’s real gross domestic product (GDP) expanded by 4.5% in 2025, outperforming global economic growth of 3.4%. While global growth is expected to slow further in 2026, the report suggests Africa’s improving economic fundamentals continue to support stronger long-term prospects.
The report also found that Africa’s merchandise trade increased by 6.1% during 2025, reaching approximately US$1.5 trillion. At the same time, inflation across the continent eased significantly, declining from 21.6% in 2024 to 13.1% in 2025. According to Afreximbank, these gains reflect stronger macroeconomic management, ongoing policy reforms and support from development finance institutions.
Despite this progress, the report warns that significant structural challenges continue to limit the continent’s trade potential. A trade finance gap estimated at US$74 billion remains one of the biggest obstacles facing African businesses, compounded by reduced correspondent banking relationships, foreign exchange shortages and persistent disruptions to global shipping and logistics networks.
These constraints continue to increase transport costs, lengthen delivery times and reduce the competitiveness of African exporters, particularly for countries that remain heavily dependent on imported production inputs and international markets.
Dr Yemi Kale, Group Chief Economist and Managing Director of Research and Trade Intelligence at Afreximbank, said the changing global trade landscape presents Africa with an opportunity to strengthen its economic position by expanding regional value chains and accelerating industrial development.
He said the continent should prioritise increased investment in manufacturing, improve access to trade finance and strengthen regional economic integration to build a more competitive and resilient economy.
The report identifies the accelerated implementation of the African Continental Free Trade Area (AfCFTA) as one of the most important priorities for unlocking future growth. It also highlights the need to expand the Pan-African Payment and Settlement System (PAPSS), which is designed to facilitate cross-border payments using local currencies while reducing dependence on foreign exchange.
Afreximbank said it is continuing to support these objectives through increased trade finance. The bank disbursed US$17.5 billion during 2024 and aims to double financing for intra-African trade by 2026 as part of broader efforts to strengthen regional commerce.
According to the report, Africa’s long-term success will depend on coordinated policy reforms, stronger industrial ecosystems, improved transport and logistics infrastructure, expanded digital payment systems and greater investment in value-added manufacturing.
As global supply chains continue to evolve in response to geopolitical uncertainty, Afreximbank believes Africa has an opportunity to position itself as a more competitive manufacturing and trading hub, provided governments move quickly to implement reforms that support industrialisation and regional integration.