Intra-African trade to double as AfCFTA gains ground

Intra-African trade to double as AfCFTA gains ground

Professor Benedict Oramah, President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), has forecasted a significant increase in intra-African trade, expecting it to double from the current 15–17% within the next decade. This projection is largely attributed to the ongoing implementation of the African Continental Free Trade Area (AfCFTA).

Speaking at the launch of the second volume of his book Foundations and Evolutions of Structured Trade Finance—held during the 32nd Annual Meetings of Afreximbank in Abuja—Oramah emphasized the shift in Africa’s trade patterns. He noted that while trade with advanced economies has dropped below 50%, trade between Africa and other developing countries has risen from 23% in 1995 to an estimated 68% in 2024.

He explained that traditional structured trade finance models, originally designed for North–South trade with OECD countries, are now being challenged by the growth of South–South trade and intra-African commerce. This shift raises new questions about how to manage payment and country risks among developing nations.

Oramah also identified key developments shaping the future of trade finance in Africa, such as the discovery of new natural resources, the growing importance of reserve-based lending, and a reversal of Africa’s de-industrialization. He stressed the need to rethink conventional trade finance, which has been commodity-focused, in favor of supporting manufacturing, regional value chains, and SMEs.

His newly released book volume, published by Globe Law and Business in London, discusses these evolving trends and offers innovative financing strategies drawn from his 33 years of experience in trade finance, especially at Afreximbank.