Exporters decry Africa’s low trade performance despite AfCFTA

Exporters decry Africa’s low trade performance despite AfCFTA

The difficulties of trading within Africa are a stark reality, despite the continent's proximity. Exporters and stakeholders are facing numerous logistics and policy barriers that make it more challenging to trade within Africa than with other continents. Nigeria's export statistics for the third quarter of 2024 paint a telling picture - only 12.13% of total exports went to Africa, while Europe and Asia accounted for 45.07% and 25.31%, respectively.

The numbers are even more striking when you look at the top export destinations. Spain alone accounted for 11.07% of total exports, while other non-African countries like the US, France, Netherlands, and Italy collectively accounted for 40.79% of total exports. In contrast, African countries like Ivory Coast, South Africa, and Togo received significantly less, with N1.54tn worth of exports going to countries under the Economic Community of West African States.

So, what's behind these challenges? According to Bosun Solarin, CEO of Dasun Integrated Farms Limited, logistics is a major hurdle. She noted that it's often cheaper and faster to export goods to Europe or the US than to other African countries. For instance, she's been able to send goods to Liverpool in just 24 hours, while it takes seven working days to get them to Ghana.

The African Continental Free Trade Area was supposed to simplify trade within the continent, but it seems there's still a long way to go. In fact, a report by the UNCTAD highlights that intra-African trade accounts for only around 15.2% of total trade, compared to 67% in Europe and 61% in Asia ¹. To boost intra-African trade, it's essential to address these logistics and policy challenges, and make it easier for businesses to trade within the continent.