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From Adanna Nnamani, Abuja
The African Export Import Bank (Afreximbank) has identified a rare opportunity for Africa to become a major player in global trade, saying the continent can benefit from shifting geopolitical and economic alliances by expanding industrial capacity and deepening intra-African trade.
This position was highlighted in its 2026 African Trade Report, which noted that the global economy is entering a new era marked by geopolitical rivalry, supply chain diversification and shifting trade alliances, creating an unprecedented opportunity for Africa to reposition itself in international commerce.
While many economies view geopolitical fragmentation as a threat, Afreximbank believes Africa can turn the disruption into an advantage by leveraging its vast natural resources, growing workforce and expanding consumer market.
According to the report, multinational companies are increasingly seeking alternative production locations as they reduce dependence on traditional manufacturing centres and diversify supply chains. This trend, often referred to as “friend-shoring” and “near-shoring”, is opening new opportunities for emerging economies capable of supporting industrial production and exports.
Afreximbank noted that Africa’s strategic location, resource endowment and demographic advantages place it in a strong position to capture a larger share of global manufacturing and investment flows.
The bank, however, warned that the continent must act decisively to avoid missing the opportunity. It said African countries need to accelerate industrialisation efforts and develop the infrastructure required to support large-scale production. Without such investments, the continent risks remaining a supplier of raw materials while other regions reap the benefits of value addition and industrial processing. The report identified industrialisation as the most critical factor in determining whether Africa can successfully take advantage of evolving global trade patterns.
For decades, many African economies have depended heavily on exports of crude oil, minerals and agricultural commodities.
While these exports generate foreign exchange earnings, they often leave countries exposed to volatile commodity prices and limit job creation.
Afreximbank argued that processing these resources locally and expanding manufacturing activities would enable African economies to retain more value, create employment opportunities and strengthen economic resilience.
The report also highlighted the growing importance of the African Continental Free Trade Area (AfCFTA), describing it as a cornerstone of the continent’s economic transformation agenda.
According to the bank, the free trade agreement provides African countries with a unique platform to build larger markets, attract investment and create regional value chains capable of competing globally.
The report noted that stronger intra-African trade can help reduce dependence on external markets at a time when geopolitical tensions and protectionist policies are disrupting traditional trade relationships.
Afreximbank said the continent’s long-term success will depend on how effectively African countries integrate their economies and remove barriers that limit cross-border trade.
The bank pointed to persistent infrastructure deficits as one of the biggest obstacles to achieving these goals.
Inadequate transportation networks, congested ports, unreliable electricity supply and limited digital connectivity continue to raise the cost of doing business across many parts of the continent.
According to the report, addressing these infrastructure gaps would significantly improve competitiveness, reduce logistics costs and encourage greater participation in regional and global value chains.
The report also called for stronger support for small and medium-sized enterprises (SMEs), which account for a large share of businesses and employment across Africa.
Many SMEs continue to face difficulties accessing finance, particularly trade finance needed to support import and export activities.
Afreximbank said narrowing the continent’s trade finance gap is essential for expanding export capacity and enabling more businesses to participate in cross-border trade.
The report urged governments, financial institutions and development partners to collaborate in creating innovative financing solutions that support exporters, manufacturers and entrepreneurs.
Digital technology was identified as another key driver of future trade growth.
According to the report, digital trade platforms, electronic payment systems and improved connectivity have the potential to transform commercial activities across the continent by reducing transaction costs and improving efficiency.
Afreximbank highlighted the role of the Pan-African Payment and Settlement System (PAPSS) in facilitating trade using local currencies and reducing reliance on hard currencies for intra-African transactions.
The report further observed that global economic uncertainty is likely to persist amid rising geopolitical tensions, supply chain disruptions and shifting investment patterns.
However, it maintained that Africa’s prospects remain positive if policymakers focus on structural reforms that encourage investment, improve productivity and support industrial growth.
It stressed that economic diversification will be crucial for long-term sustainability, particularly for countries that remain heavily dependent on a narrow range of export commodities.
By broadening their production base and developing competitive manufacturing sectors, African nations can strengthen resilience against external shocks and position themselves for stronger growth.
Afreximbank concluded that the changing global economic order presents Africa with a historic opportunity to reshape its role in international trade.
The bank said the continent’s ability to seize this moment will depend on bold policy choices, sustained investment in productive sectors and deeper regional cooperation.
