The African Export-Import Bank (Afreximbank) has called for deeper regional integration, increased infrastructure investment and expanded trade finance to strengthen Africa’s resilience in an increasingly uncertain global economy.
In its latest Trade and Development Finance Brief, titled “Africa’s Trade and Investment Landscape,” the continental lender examines the structural challenges affecting Africa’s trade performance and investment prospects, while outlining measures needed to unlock the continent’s economic potential.
The report highlights that many African economies remain heavily dependent on the export of raw materials, including agricultural commodities, crude oil, natural gas and minerals, while continuing to rely on imports of manufactured goods, machinery and industrial products.
According to Afreximbank, this trade structure leaves African countries vulnerable to external shocks such as commodity price fluctuations, geopolitical tensions and disruptions to global supply chains.
The bank warned that continued dependence on primary commodity exports exposes countries to unfavourable terms of trade, limiting economic diversification and reducing resilience to international market volatility.
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Against this backdrop, the report identifies the African Continental Free Trade Area (AfCFTA) as a critical instrument for transforming Africa’s trade landscape.
Afreximbank said the AfCFTA, together with the African Union’s Agenda 2063, provides a framework for integrating fragmented markets, strengthening regional value chains and boosting industrial development across the continent.
The report projects that intra-African exports could increase by more than 20 percent within the next decade as implementation of the free trade agreement progresses.
Analysts have long argued that greater intra-African trade could help reduce dependence on external markets while creating opportunities for industrialisation, job creation and economic diversification.
The report also emphasises the importance of expanding investment in infrastructure to support trade and economic growth.
Key areas identified include energy generation, transportation networks, communications systems, ports and logistics infrastructure.
According to Afreximbank, improving infrastructure would reduce the cost of doing business, facilitate cross-border trade and enhance Africa’s competitiveness as an investment destination.
The bank noted that strategic infrastructure investments could accelerate industrialisation, encourage regional specialisation and strengthen production capacity across multiple sectors.
Beyond physical infrastructure, the report highlights the need for policy reforms and stronger institutions to create a more attractive environment for trade and investment.
Priority areas include regulatory harmonisation, improved access to finance for small and medium-sized enterprises (SMEs), economic diversification and wider adoption of digital financial technologies.
Afreximbank said both domestic and foreign investment are increasing in many African countries, although foreign direct investment continues to dominate overall capital flows.
The report noted that financial technology, or fintech, is playing an increasingly important role in supporting domestic investment and expanding access to financial services.
However, investment flows remain uneven across the continent.
According to the report, Eastern and Southern Africa continue to attract a larger share of foreign direct investment compared with Western and Central Africa, highlighting the need for policies that promote more balanced regional development.
The findings reinforce the importance of coordinated efforts to expand trade finance and strengthen Africa’s economic integration agenda.
Afreximbank Group Chief Economist and Managing Director of Research, Yemi Kale, said regional development finance institutions are playing a growing role in supporting trade and investment across the continent.
He pointed to several Afreximbank initiatives designed to facilitate regional commerce, including the Intra-African Trade Fair, the Pan-African Payment and Settlement System (PAPSS), the AfCFTA Adjustment Fund, the Border Markets Initiative and the Collaborative Transit Guarantee Scheme.
These programmes aim to reduce trade barriers, improve payment systems and support businesses seeking opportunities across African markets.
Despite the progress being made, the report concludes that significant gaps remain.
Afreximbank said addressing these challenges will be essential to increasing investment, strengthening competitiveness and unlocking Africa’s full trade and investment potential.
The bank stressed that sustained reforms, stronger institutions and continued investment in infrastructure and industrial capacity will be critical if Africa is to build a more resilient, diversified and globally competitive economy in the years ahead.
