Africa’s $1.5tn Trade Gap Signals Opportunity

Africa’s merchandise trade totaled around $1.5 trillion in 2025, while intra-African trade amounted to merely $203.8 billion. This significant disparity between overall trade and regional trade signals a massive untapped commercial potential on the continent, according to Elizabeth Ofosu-Adjare, Minister for Trade, Agribusiness and Industry.

Recounting her remarks at the 2026 Africa Thought Leadership Series with the theme “Reimagining African SMEs Financing, Trade, Governance and Economic Development Goals in the Next Decade: Any Hope for Agenda 2063?”, Ofosu-Adjare emphasized that while Africa has always had a vision, the challenge has been translating that vision into tangible opportunities for businesses and citizens.

She highlighted that micro, small and medium-sized enterprises (MSMEs) are pivotal to Africa’s economy, supporting sectors from agriculture to trade and services, yet they consistently face difficulties accessing financing to expand their operations. Ms. Ofosu-Adjare noted that a processor might have buyers but lack the machinery to boost production, while a manufacturer might secure a substantial order but be short on working capital to meet it.

She revealed that both the Ghana Enterprises Agency and the Ghana Export Promotion Authority are actively fostering enterprise development and market access, as well as efforts underway to establish the Women’s Development Bank to empower women and youth entrepreneurs. The Ghanaian Minister affirmed Ghana’s leadership role in implementing the African Continental Free Trade Area (AfCFTA) agreement, stating that the value of AfCFTA would be measured by the actual achievements of businesses under the agreement.

She stressed that even with a trade agreement in place, products must adhere to required standards, have competitive transport costs, efficient border processes, and dependable payment systems. Furthermore, Ofosu-Adjare questioned Africa’s readiness to capitalize on the continental market if it continues to export raw materials without sufficient processing.

She expressed concern that substantial quantities of agricultural and natural resources have been leaving the continent with limited processing. In response, the government is reinforcing the connection between agriculture and industry. Through Executive Instrument 2025, President John Dramani Mahama realigned the Ministry to include Agribusiness to promote value addition.

The 50 Industrial Hubs Programme aims to link agriculture and local raw materials to production, while policies covering investment, value addition, automobiles, garments, textiles, and agribusiness have been approved by the Cabinet. Ms. Ofosu-Adjare also noted initiatives like the 24-Hour Economy and the Accelerated Export Development Programme to enhance productivity, along with improved macroeconomic stability and a more predictable cedi to support businesses.

Addressing trade barriers, Ofosu-Adjare identified non-tariff barriers as critical obstacles to intra-African trade and called for intensified efforts to overcome them. The Executive Secretary of the African Capacity Building Foundation, Mamadou Biteye, urged Africa to shift from agenda to action by building integrated production systems, enhancing state capability, and becoming creators of technology rather than mere consumers.

Liberian Foreign Minister Sara Beysolow Nyanti emphasized that SMEs constitute the economy itself and called for fairer access to capital, elimination of border friction, stronger institutions, and greater inclusion of women and young people.