Why Should Africa Trade More with Africa? Because the Future of the Continent Depends on It

By Dishant Shah

It is a simple question – but one that cuts to the heart of Africa’s economic future.

Right now, most African countries trade more with the rest of the world than with each other. Just 14.4 percent of Africa’s exports stay within the continent, compared to over 60 percent in Europe and nearly 58 percent in Asia (UNCTAD).

This means Africa is more integrated with distant economies than with itself.

Raw materials leave the continent for processing abroad – only to return as finished goods at inflated prices. The result? Value is created overseas while Africa mostly provides the raw inputs.

But the potential for intra-African trade is enormous. According to the African Development Bank, such trade could grow by more than 50 percent if tariffs are lowered and infrastructure improved.

That’s where the African Continental Free Trade Area (AfCFTA) comes in – the largest free trade agreement by number of participating countries, designed to unlock this potential.

Trading more within the continent allows African businesses to source locally, build regional value chains, and reduce reliance on imports. In short: it keeps economic value within Africa.

Stronger regional ties also mean greater resilience. During the pandemic and the global shocks caused by the Russia-Ukraine war, African nations reliant on food and fuel imports from abroad were left vulnerable.

A stronger internal market would allow African countries to support one another in times of crisis.

Building a Resilient and Self-Sufficient Economy

Intra-African trade also creates jobs – not just in agriculture or low-wage sectors, but across manufacturing, logistics, finance, technology, and services.

Of course, there are real challenges: infrastructure gaps, non-tariff barriers, currency differences, and political complexities. But these are not dead ends – they are hurdles to overcome.

Every new cross-border highway, every digitized customs process, every emerging regional supply chain proves that progress is possible.

Consider this: 90 percent of Africa’s food is imported from outside the continent. Yet Africa has the land, water, and human capital to feed itself – and even export surplus.

The issue isn’t scarcity; it’s connection.

The future of African trade may not lie in linking the continent to the world – but in first connecting Africa to itself.

Dishant Shah is a partner at Legion Exim, a company specializing in facilitating the export of high-quality engineering products directly sourced from manufacturers in India to Africa. His areas of expertise include new business development and business management.