Navigating global headwinds: Africa's trade landscape and growth opportunities

Michael Chui, Leonardo Gambacorta, Emanuel Kohlscheen and Han Qiu

No 109, BIS Bulletins from Bank for International Settlements

Abstract: Africa is not immune from trade challenges. Its direct exposure to new US tariffs is relatively limited, but indirect effects through slower global demand and financial conditions may be larger. Strengthening regional trade integration through initiatives like the African Continental Free Trade Area (AfCFTA) can help build regional supply chains and reduce reliance on commodity exports. Africa's young workforce, digital innovation and rich natural resources provide longer-term growth tailwinds. Unlocking these opportunities requires investment in skills, infrastructure and financial integration to boost trade and value-added.

Pages: 8 pages
Date: 2025-07-18
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