Africa Trades Less With Itself Than Almost Any Other Region

Africa is home to 54 countries and a vast consumer market, yet much of the continent's trade still happens with the rest of the world rather than between African countries. As AfCFTA seeks to change that, the question is how much economic opportunity could be unlocked if Africans traded more with one another.

Africa is a continent full of products, businesses, resources and consumers. It produces minerals, agricultural products, manufactured goods, energy, clothing, food and services.

Its cities are growing, its young population is expanding and its entrepreneurs are creating businesses across almost every sector. Yet much of Africa's trade still happens outside the continent.

In 2025, only a relatively small share of Africa's exports went to other African countries. By comparison, 67% of Europe's exports stayed within Europe and 63% of Asia's exports stayed within Asia. While Africa remains much more dependent on markets outside the continent.

UN Trade and Development puts intra-African trade at around 16% of Africa's total exports. It also notes that more than half of the continent's imports and exports are connected to just five economies outside Africa.

Why does that matter?

What Africa sells and buys matters

A significant part of Africa's trade with the rest of the world involves commodities and primary products. Africa exports raw materials and agricultural products to international markets, while importing many finished or processed products.

The result is that value can be created outside the continent before products return to African consumers at a higher stage of processing.

Increasing trade between African countries creates the possibility of developing more regional supply chains. A farmer in one country could supply a food processor in another. A manufacturer could source components from a neighbouring country. A technology company could sell its services across several African markets. A clothing producer could source materials within the continent and sell finished products regionally. Trade therefore does more than move products. It connects economies.

South Africa already plays a major role

South Africa is one of the continent's major intra-African traders, particularly within the Southern African Development Community. Its businesses sell manufactured products, machinery, vehicles, food and other goods into neighbouring markets.

This creates an important example of what regional trade can look like. But South Africa is also operating within a continent where many markets remain fragmented.

A business that wants to sell across borders may encounter different regulations, currencies, customs procedures, transport costs and other barriers. For a large company, these challenges can be expensive. For a small business, they can make regional expansion appear impossible.

The opportunity is bigger than trade

When businesses trade with one another, the benefits can extend beyond the transaction. A successful exporter may employ more people. A growing manufacturer may need more suppliers. A food producer may purchase from more farmers. A logistics company may create new routes. A financial institution may gain new business customers. Trade can therefore create a chain of economic participation.

The more businesses that participate in regional markets, the more connected those markets become.

Can AfCFTA change the picture?

The African Continental Free Trade Area is intended to create a single continental market for goods and services and reduce many of the barriers that make cross-border trade difficult.

Its full implementation could create an African market valued at around $3.4 trillion, according to UN Trade and Development. But achieving that potential will require more than removing tariffs. Africa also needs better transport, energy and digital infrastructure, stronger production capacity, simpler customs processes and greater access to finance.

The challenge is therefore not simply to sign agreements. It is to make it easier for businesses—especially smaller businesses—to actually use them.

A market waiting to connect

Africa already has the people, businesses and resources required to trade more with itself. The challenge is connecting them. A business cannot sell into a market it cannot reach. A buyer cannot purchase from a supplier it cannot find. And an entrepreneur cannot expand across borders if the cost and complexity of doing so are greater than the opportunity.

The future of African trade may therefore depend on how effectively the continent can turn its many separate economies into a more connected marketplace.

The question is no longer whether Africa has a market. It does. The question is whether Africa can make that market work more effectively for Africans.

Key Takeaway

Africa has a major opportunity to increase trade within the continent. Greater regional trade could help businesses access larger markets, strengthen supply chains, create jobs and keep more economic value circulating within Africa. But unlocking that opportunity will require businesses, governments and institutions to make cross-border participation easier.

Questions Worth Asking

• What would your business sell to another African country?

• What prevents small businesses from trading across borders?

• What products does Africa currently import that could be produced within the continent?

• What would need to change for "Made in Africa" to become a truly continental market?