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Africa’s trade landscape is facing renewed pressure as global economic shifts—including U.S. tariff hikes and uncertainty over the renewal of the African Growth and Opportunity Act (AGOA)—threaten to reshape export pathways.
But according to Prof. Patrick Utomi, Chairperson of the Pan-African Private Sector Trade and Investment Committee (PAFTRAC), this challenge presents a historic opportunity: deepening intra-African trade through the African Continental Free Trade Area (AfCFTA).
Speaking on the findings of the 2025 Africa CEO Trade Survey Report, Prof. Utomi noted that African economies are feeling the ripple effects of global protectionist policies despite relatively low levels of engagement with international markets.
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Recent U.S. tariff increases have hit several African countries hard, with South Africa, Lesotho, Madagascar, Botswana, and Mauritius among the worst affected.
Adding to the uncertainty is the looming September 30, 2025 deadline for the renewal of AGOA, which grants eligible African nations preferential access to U.S. markets. With the Trump administration’s protectionist stance and waning support for multilateral trade, expectations of renewal remain low. As of January 2024, 32 countries were officially listed as AGOA beneficiaries.
Prof. Utomi emphasised that these developments make it urgent for African nations to diversify markets and reduce external dependency. He pointed to the AfCFTA as a powerful mechanism to unlock regional value chains, boost industrialisation, increase trade in services, and drive investment in technology.
“The AfCFTA presents a unique opportunity for Africa to trade with itself more effectively, build resilient regional value chains, and cushion the continent against global trade shocks,” he stated.
The PAFTRAC report, which surveyed over 2,000 business leaders across the continent, revealed that nearly 50% of respondents believe AfCFTA is critical to safeguarding Africa’s trade interests in the current global climate.
The report provides strategic insights into how African businesses are navigating an evolving trade environment and identifies both operational challenges and opportunities for growth.
Survey responses came from across the continent, with Egypt (11.61%), Ethiopia (9.69%), and Nigeria (7.68%) leading participation. Algeria and Tunisia followed with 4.43% each, while Senegal (4.25%) and Kenya (4.16%) also featured prominently.
Countries such as Ghana, Morocco, Mozambique, Côte d’Ivoire, Angola, Cameroon, and the DR Congo each recorded response rates above 3%. Notably, input also came from non-African countries, including the United Kingdom, Germany, Qatar, France, the Philippines, Saudi Arabia, the United States, Bahrain, and Jordan, reflecting broad international engagement.
Respondents represented diverse sectors, including banking & financial services, agriculture & agribusiness, tech & telecom, transport & logistics, manufacturing, mining, and pharmaceuticals, as well as education, government, arts & culture, legal services, and engineering.
A striking insight from the survey is the dominance of small businesses.
- 45.87% of respondents were SMEs with 1–10 employees and annual revenues below $1 million.
- 22.46% were large companies with over 500 employees.
- Only 8.48% reported revenues above $1 billion, with 8.65% between $101 million and $1 billion.
This mirrors the broader structure of African economies, where SMEs make up about 90% of all businesses and employ 80% of the workforce, according to the World Bank.
Nearly half of respondents (49.62%) do not currently export goods or services, but 39.99% export within Africa, with the remainder trading with Europe, North America, Asia, and the Gulf States.
Among African export destinations, the top five were:
- South Africa (22.51%)
- Kenya (20.39%)
- Egypt (18.73%)
- Nigeria (17.98%)
- Algeria (17.07%)
Import trends mirrored these patterns, reflecting the role of Africa’s largest economies as regional trade hubs.
The report also explored the effectiveness and awareness of mechanisms like the Pan-African Payment and Settlement System (PAPSS) and the African Trade Observatory (ATO). It highlighted growing attention to digital technologies and sustainability, which are shaping future trade strategies across the continent.
Prof. Utomi concluded that the current global economic landscape demands bold, coordinated action from African governments and the private sector.
“Africa must seize this moment to look inward, leverage AfCFTA, and build trade systems that are less vulnerable to external shocks. This is not just an economic necessity—it is a strategic imperative for the continent’s future,” he asserted.
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