Roundtables Discussion Part II

Driving Trade & Integration

Despite its vast economic potential and natural resource wealth, Africa’s share of global trade has remained stubbornly low for decades - accounting for less than 3% of the global total. Limited regional integration has also kept intra-African trade levels well below the global average at around 16%, well behind regions such as Asia (59%) and Europe (68%).

This has significant implications for economic development across the continent, stifling investment and growth, and hindering job creation and poverty reduction. With the global economic and political order in the midst of rapid and profound change, this might be about to change. 

Africa finds itself at the nexus of these trends. Home to many of the world’s fastest-growing economies, a young and fast-growing population, and vast resource wealth, the continent’s importance to, and influence on global events is increasing. New partnerships and trading relationships are transforming the economic landscape, representing an unprecedented opportunity for the continent to become a more influential player in shaping world affairs. 

The recent admission of the African Union to the G20, and the inclusion of three African countries in the expanded BRICS group are reflective of the potential to move the continent from the margins of decision-making towards a meaningful seat at the table.

All of this comes amid progress towards implementation of the African Continental Free Trade Area (AfCFTA), which could have a transformative impact on the continent’s regional and international trade.