African CEOs express optimism, but credit risk and policy gaps hinder intra-African trade
PAFTRAC's survey of 2,500 business leaders reveals that four in five expect their cross-border activity to increase over the next twelve months, despite AfCFTA implementation hurdles and financing constraints.
The 2026 PAFTRAC Africa CEO Trade Survey presents a mixed outlook on African intra-trade, as expressed by senior executives at the WTO Public Forum in Geneva. While 81.3% anticipate growth in cross-border activity over the next year, intra-African commerce remains behind China, Europe, and the United States, making up only 15-18% of total exports.
Despite the rollout of the African Continental Free Trade Area (AfCFTA), this share has shown little change. A $31 billion financing barrier, attributed to risk ratings from Western credit agencies, is identified as a major obstacle. Professor Patrick Utomi, Chairperson of PAFTRAC, explained that this risk premium is unjustified, as African economies often face higher financing costs than those in war.
The survey also highlights challenges in accessing trade finance for cross-border transactions, with 57% of executives finding it difficult or very difficult. Additionally, awareness of AfCFTA-related mechanisms such as the Pan-African Payment and Settlement System (PAPSS), E-Tariff Book, and African Trade Observatory is low, indicating a gap between commercial optimism and practical execution.
The full 2026 PAFTRAC Africa CEO Trade Survey Report is expected in October 2026, providing a detailed analysis of trade barriers, AfCFTA implementation progress, and financing constraints, along with policy recommendations from over 2,500 African executives.
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