The report, titled “African Trade Report 2025: African Trade in a Changing Global Financial Architecture”, was launched during the bank’s Annual Meetings and presents a sobering analysis of the continent’s trade dynamics amid shifting global economic currents.
Trade Finance: A Barrier to SME Participation
Afreximbank identified limited access to trade finance as a critical bottleneck, particularly for small and medium enterprises (SMEs), which account for up to 90 percent of businesses on the continent.
“Africa faces about US$100 billion annual trade finance gap. This severely limits the ability of small and medium enterprises… to engage in regional trade,” the report stated.
Despite the AfCFTA's mission to expand intra-African trade, only 18 percent of trade finance portfolios of African banks currently support regional transactions, signaling a systemic bias toward external markets.
The report attributes this shortfall to high borrowing costs and restrictive global banking regulations, notably the Basel IV framework, which imposes capital constraints that disproportionately affect SMEs.
Afreximbank Interventions and the Road Ahead
Afreximbank pointed to its ongoing interventions such as $17.5 billion in trade finance disbursements and the Pan-African Payment and Settlement System (PAPSS) as steps toward narrowing the gap. However, the bank stressed that broader, continent-wide access to affordable credit and harmonised financial regulations are crucial to sustaining the AfCFTA’s momentum.
“The AfCFTA is designed to boost intra-African trade, but its success hinges on closing this gap,” the report noted.
Geopolitics and Africa’s Shrinking Export Share
The report also highlighted the impact of geopolitical tensions and global protectionism on Africa’s role in global trade. Between 2009 and 2023, the continent’s share of global exports fell from 3.5% to 3.2%, a decline driven by external shocks and shifting global alliances.
“The rivalry between the United States and China over semiconductors and critical minerals disrupts supply chains, limiting Africa’s participation in high-value sectors like electronics,” the report explained.
Furthermore, policies such as the EU’s Carbon Border Adjustment Mechanism and new tariffs from the US were cited as threats to Africa’s already fragile export performance.
While Africa boasts some of the world’s richest deposits of critical minerals like cobalt and lithium, Afreximbank warned that the continent risks becoming trapped in extractive partnerships that offer minimal local value addition.
Building Resilience Through Infrastructure and Value Chains
The report calls for a renewed focus on African-led value chains, investment in infrastructure, and the expansion of digital finance ecosystems to build resilience against external shocks and promote inclusive growth.
The flagship report was formally unveiled by Prof. Benedict Oramah, President and Chairman of Afreximbank’s Board, alongside Nigerian Vice President Kashim Shettima (represented by Mr. Tope Fasua), Senior Executive Vice President Denys Denya, and other top officials during the bank’s Annual Meetings.
The AfCFTA, a core initiative under the African Union’s Agenda 2063, was adopted in 2012 to strengthen intra-African trade, industrialisation, and socio-economic development. Its success, however, now hinges on overcoming one of the continent’s most persistent and complex challenges: trade finance accessibility.