Intra-African trade is gaining momentum as countries seek to strengthen regional economic integration, expand domestic markets and reduce dependence on markets outside the continent. In 2024, intra-African trade increased by 2.4% to reach USD 220.3 bn, highlighting the growing scale of commerce between African economies. However, the African Union estimates that about 85.0% of Africa’s trade still takes place with countries outside the continent. The gap highlights the significant opportunity to deepen regional trade and retain more economic value within Africa.
The African Continental Free Trade Area (AfCFTA) provides an important framework for achieving this objective. However, accelerating intra-African trade will require countries to move beyond policy commitments and focus on practical measures that make cross-border commerce easier, faster and more predictable.
Effective implementation of AfCFTA remains one of the most important steps towards expanding intra-African trade. Although the agreement provides the foundation for a single African market, businesses continue to encounter differences in tariffs, product standards, customs procedures and regulatory requirements.
Governments can support greater trade by harmonizing regulations, reducing non-tariff barriers and simplifying customs procedures. These measures would particularly benefit small and medium-sized enterprises (SMEs), which often lack the resources required to navigate complex cross-border regulations. Greater consistency in trade rules would also give businesses more certainty when planning investments, establishing supply chains and entering new markets across the continent.
Efficient infrastructure is another critical requirement for expanding intra-African commerce. Poor transport networks, lengthy border processes and high freight costs can make it expensive to move goods between African countries.
Investment in roads, railways, ports and air transport can reduce transportation costs and improve connections between major production and consumption centres. Better logistics would also support the development of regional supply chains by making it easier for businesses to source raw materials, manufacture products and distribute them across multiple markets.
The African Union and World Bank have identified infrastructure and regional public goods as important components of creating more interconnected African markets. Continued investment in these areas could therefore improve the competitiveness of African producers.
Access to affordable trade finance remains another constraint, particularly for SMEs engaged in cross-border commerce. Businesses often require financing to purchase goods, manage inventories and fulfil export orders, yet limited access to credit can restrict their ability to take advantage of opportunities in regional markets. Expanding trade-finance facilities through partnerships between banks, governments and development-finance institutions could help address this challenge.
Digital payment infrastructure can also reduce some of the friction associated with cross-border transactions. Systems such as the Pan-African Payment and Settlement System (PAPSS) can facilitate payments between African countries while reducing some of the costs and complexities associated with currency conversion.
Africa can also increase intra-African trade by developing stronger regional value chains and expanding local production. Many African economies continue to export raw materials while importing finished products, limiting the amount of value retained within the continent.
Regional value chains can provide an alternative by allowing different countries to specialize in stages of production based on their resources, skills and competitive advantages. Businesses can source inputs from one African market, manufacture in another and distribute finished products across the region. Such integration could support industrialization, create employment and increase the economic value generated within African economies.
Accelerating intra-African trade will require coordinated action across governments, businesses and financial institutions. AfCFTA implementation, improved infrastructure, harmonized regulations, accessible trade finance and efficient digital payment systems can collectively reduce the barriers that currently limit cross-border commerce.
At the same time, stronger regional value chains can help African economies move beyond the export of raw materials and develop more integrated production systems. Overall, the opportunity for greater intra-African trade remains significant. Turning that opportunity into sustained growth will depend on moving from policy commitments to practical implementation. By reducing the cost of doing business across borders and improving access to markets, finance and infrastructure, African economies can build a more integrated and competitive continental market.
