Intra-African trade hits Sh28.8tr, but AfCFTA rollout lags

Trade PS Alfred Kombudo during the KNCCI, Exporters’ Forum, aimed at strengthening Kenyan exporters’ participation in AfCFTA in Serena hotel on March 13, 2025. [File, Standard]

Africa is being urged to speed up implementation of the AfCFTA as trade within the continent hits a record high, with experts warning that weak infrastructure, remaining tariffs and poor policy coordination could undermine its benefits.

Intra‑African trade surged to an estimated $220.3 billion (Sh28.5 trillion) in 2024, representing a roughly 12.4 per cent increase from the previous year, according to Afreximbank’s African Trade Report.

Despite the growth, intra‑regional commerce still accounts for only 15 to 18 per cent of Africa’s total trade, well below Europe and Asia.

By comparison, Africa’s total merchandise trade including dealings with the European Union, China and other external partners stood at about $1.5 trillion (Sh194 trillion) in 2024, highlighting the continent’s continued reliance on global markets even as regional commerce grows.

Speaking to The Standard, DHL Express CEO John Pearson, said the rise in trade connectivity signals progress but stressed that governments must now move from commitment to execution.

“If Africa is trading more with itself, then some of that success can be attributed to the Africa Free Trade Agreement,” he said. “But it is a long journey, and there is still a lot of coordination required to make it work.”

John noted that Africa is increasingly visible in global trade rankings. “Of the 20 fastest‑growing countries on the Global Connectedness Tracker, 12 are from Africa,” he said, pointing to expanding trade networks across the continent.

Kenya’s intra‑Africa trade performance has also strengthened in recent years, with total exports and imports with African partners rising significantly. In 2024, Kenya’s total trade with other African countries exports plus imports was valued at $5.14 billion (Sh 665 billion), a 29 per cent increase from the previous year, according to the Kenya Intra‑Africa Trade Update 2024.

Of this, exports were $3.13 billion (Sh405 billion) and imports stood at $2.01 billion (Sh260 billion).

Kenya ranks among the top intra‑African traders, leveraging its status as a regional logistics hub via the Port of Mombasa and the Northern Corridor, which supports trade flows to Uganda, Rwanda, South Sudan and beyond.

Despite these gains, there have been recent signs of pressure on export earnings when measured in local currency.

John said governments must prioritise its infrastructure, digitalisation, seaport, rail, airport and handling reforms to make countries easier to trade with.