By Okeoghene Akubuike
Abuja, June 25, 2025 (NAN) – Africa’s economy recorded a modest growth rate of 3.2% in 2024, despite headwinds in the global financial landscape, according to the 2025 African Trade and Economic Outlook (ATEO) report by Afreximbank.
Dr. Yemi Kale, Group Chief Economist at Afreximbank, presented the report during the bank’s 32nd Annual Meetings (AAM2025) in Abuja. He noted that while the 2024 figure marks a recovery from previous years, it still falls below the continent’s pre-pandemic growth rate of 5%.
“Africa’s growth in 2024 was driven by increased public investment, high global prices for commodities like gold, cocoa, and coffee, and early gains from diversification strategies,” said Kale.
However, growth remained uneven, with resource-dependent economies facing greater pressure amid global volatility.
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📈 Trade Rebounds but Inflation Rises
Africa’s merchandise trade surged by 13.9% in 2024 to hit $1.5 trillion, recovering from a 5.4% contraction in 2023.
• Exports: $758.01 billion
• Imports: $769.01 billion
• Trade Balance: Deficit of $11 billion
Notably, intra-African trade rebounded by 12.4% to $220.3 billion, a sharp reversal from the 5.9% decline recorded in 2023.
However, inflation rose to 20.1% in 2024 from 18.2% in 2023, highlighting macroeconomic pressures across several African nations.
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🌍 AfCFTA Gains, But Global Trade Share Shrinks
The report, titled “African Trade in a Changing Global Financial Architecture,” reveals that:
• Africa’s share of global exports fell slightly, from 3.5% in 2009 to 3.3% in 2024
• Intra-African trade still accounts for only 14.4% of total trade
• The AfCFTA continues to offer a foundation for greater regional resilience and diversification
Kale highlighted new global shifts that could benefit Africa, including:
• Increased shipping traffic around the Cape of Good Hope
• Strategic mineral demand
• Greater investment from Gulf and Asian countries
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💰 Financing the Future: Afreximbank and PAPSS
Africa continues to grapple with a $100 billion annual trade finance gap, limiting SME participation in regional value chains.
In 2024:
• Afreximbank disbursed $17.5 billion, with plans to double intra-African trade finance by 2026
• The Pan-African Payment and Settlement System (PAPSS) linked over a dozen central banks, reducing dependence on USD and EUR
“Financial sovereignty, digital integration, and coordinated diplomacy are essential to turn global fragmentation into a platform for inclusive, resilient African growth,” Kale stated.
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📌 Strategic Recommendations
Kale outlined several priorities to boost Africa’s economic resilience:
• Capitalize African development finance institutions
• Accelerate AfCFTA implementation (tariff schedules, rules of origin)
• Expand digital payment infrastructure
• Leverage Africa’s G20 seat to reform SDR allocation, debt restructuring, and global financial rules
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Reporting by Naija247news in Lagos, Nigeria.
