Yemi Kale, Group Chief Economist and Managing Director of Research at Afreximbank, said in the report’s foreword that more than a trade agreement, AfCFTA serves as an economic stabilisation mechanism in a fragmenting world. The official further explained that by expanding intra-African trade and reducing tariff barriers, the continent can decrease its exposure to external shocks (especially geopolitics), while building regional value chains in sectors like agro-processing, pharmaceuticals, and digital services.

Kale, while interacting with Nigerian NewsDirect, emphasised that integration alone is insufficient without adequate trade finance, which he described as a critical transmission channel for real-sector expansion.

He highlighted that African firms, especially small and medium-sized enterprises (SMEs), remain disproportionately affected by trade finance gaps.

“Bridging these gaps is essential for industrialisation and employment generation, making the strengthening of the continent’s financial architecture a high macroeconomic priority,” he said.

The Afreximbank report sees the overall continental trade growing by 10% in 2026, and despite global geopolitical tensions and trade tariff-related headwinds, African economies have shown significant resilience.

“The continent’s output expanded by 4.2% in 2025, up from 3.4% in 2024, supported by robust domestic demand, strong export performance, service sector growth, and renewed infrastructure investments. However, the economic landscape remains vulnerable due to an overdependence on commodities, which exposes the continent to price volatility,” the report noted.

“Data shows that total trade in 2025 reached USD 1.4 trillion, with intra-African trade accounting for approximately 18% of that figure, bolstered by the ongoing integration efforts under AfCFTA. Africa is well-positioned to enhance its growth prospects through a gradual recovery from recent global shocks. GDP growth is expected to rise marginally to 4.3% in 2026 before expanding to 4.4% in the medium term,” Afreximbank concluded.

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