Nassau, Bahamas – June 12, 2024 – The African Export-Import Bank (Afreximbank) unveiled its 2024 African Trade Report and African Trade and Economic Outlook Report at its annual meeting in Nassau, Bahamas.
The African Trade and Economic Outlook Report predicts African economies will grow at an average of 3.8% in 2024, exceeding the global projection of 3.2%. This growth is expected to climb to 4% in 2025. Titled “A Resilient Africa: Delivering Growth in a Turbulent World,” the report analyzes economic environments, trade patterns, and future projections for the continent.
However, Dr. Yemi Kale, Afreximbank’s Chief Economist, acknowledges ongoing global challenges impacted African trade in 2023. Trade contracted by 6.3%, following a strong expansion of 15.9% in 2022. Despite this, intra-African trade remained positive, growing by 3.2%.
Dr. Kale highlights the report’s findings: “This resilience showcases Africa’s economic strength and the potential of the African Continental Free Trade Area (AfCFTA) as a tool to shield the continent from global shocks.” The report also identifies untapped potential in intra-African trade, particularly for machinery, electricity, vehicles, and food products.
While the outlook is positive, the report acknowledges downside risks. These include rising sovereign debt, volatile political environments, high commodity prices, and potential food insecurity.
The 2024 African Trade Report, titled “Climate Implications of the AfCFTA Implementation,” explores the free trade area’s potential impact on climate change. Dr. Kale acknowledges differing viewpoints: “Some believe increased trade will worsen emissions, while others see reduced extra-African trade leading to lower emissions through shorter shipping distances.”
