Cape Town’s conference moves to boost intra-African $220bn trade

For decades, Africa has lagged in global trade despite the continent’s rich endowment with natural resources, home to more than 1.3 billion people and possessing a combined economic output estimated at about $3.4 trillion leveraging on the African Continental Free Trade Area Agreement (AfCTA). Yet despite these advantages, Africa’s footprint in global trade remains abysmally […]

For decades, Africa has lagged in global trade despite the continent’s rich endowment with natural resources, home to more than 1.3 billion people and possessing a combined economic output estimated at about $3.4 trillion leveraging on the African Continental Free Trade Area Agreement (AfCTA).

Yet despite these advantages, Africa’s footprint in global trade remains abysmally small. The continent accounts for roughly three per cent of world trade, while trade among African countries themselves remains limited.

According to the African Export–Import Bank (Afreximbank), in 2024, the value of intra-African trade rose to an estimated US$220.3 billion, marking a robust 12.4 percent growth and effectively rebounding from a contraction of 5.9 percent recorded in 2023.

But this is considered a far-cry compared to the estimated $3.4 trillion GDP projected under the AfCTA. This is why experts say the African nations have barely even scratched the surface in unlocking intra-African trade.

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Against this backdrop, policymakers, bankers, trade experts and business leaders are gathering in Cape Town, South Africa this week for the 2026 edition of the Africa Trade Conference (ATC), an initiative designed to accelerate the continent’s integration into global commerce while strengthening intra-African trade.

The conference, organised by Access Bank Plc, comes at a time when Africa is attempting to convert long-standing promises about economic integration into tangible outcomes. With the implementation of the African Continental Free Trade Area (AfCFTA) gradually moving from policy commitments to practical execution, the meeting in Cape Town is intended to focus on the real barriers that have historically slowed trade across the continent.

According to Seyi Kumapayi, Executive Director for African Subsidiaries at Access Bank, there are three challenges that continue to impede trade within the continent. These, he stated, include limited access to affordable capital, lack of reliable information, and weak trust among trading partners.

Speaking ahead of the conference, Kumapayi described these barriers as structural issues that have kept Africa’s trade volumes far below their potential.

“Africa must begin to trade more with itself,” he said, noting that intra-African trade currently accounts for only about 16 per cent of the continent’s total trade, a figure significantly lower than Europe and Asia where regional trade dominates economic activity.

The Africa Trade Conference seeks to bring together decision-makers across the trade ecosystem — including policymakers, exporters, importers, financiers, logistics providers and regulators — to identify practical solutions that can unlock these barriers.

 

Bridging the Financing Gap

One of the most pressing challenges confronting African businesses is the difficulty of accessing affordable financing.

Across the continent, many businesses, particularly small and medium-sized enterprises, struggle to obtain the capital required to expand operations or participate in cross-border trade. Even when financing is available, the cost of borrowing is often prohibitively high, making it difficult for companies to compete internationally.

According to Kumapayi, this financing gap remains one of the most significant obstacles to trade on the continent.

“How do you enhance finance for the entrepreneur in Ghana who wants to buy goods from a supplier in Cameroon?” he asked. “This problem of access to capital is a huge obstacle to trade in Africa. What is needed is a financial services sector that enables businesses to access capital to invest in growth as well as innovation, and the capacity needed to take their business to other countries. It is up to the African banks to help create solutions.”

Without access to working capital, trade finance instruments, and risk guarantees, many businesses are unable to execute cross-border transactions. This limitation not only affects individual firms but also weakens regional supply chains that could otherwise drive economic integration.

Access Bank, for instance, has worked with global partners such as the International Finance Corporation, the African Development Bank and the Africa Finance Corporation to mobilise more than $2 billion in financing for lending across the continent.

These funds are expected to support projects and businesses that strengthen trade capacity and create economic opportunities in multiple sectors.

 

Closing the Information Gap

Beyond the issue of financing, African businesses also face a significant deficit in access to market information.

Many companies across the continent lack the business intelligence required to identify opportunities in other African countries. They often have limited knowledge of market conditions, regulatory requirements, or demand patterns beyond their national borders.

This information gap discourages businesses from exploring new markets and restricts their ability to participate effectively in regional trade.

Kumapayi believes that technology and collaboration among institutions can help address this challenge.

“There are numerous businesses in Africa that do not have access to the information needed to make informed decisions about opportunities outside their countries,” he said.

To overcome this barrier, financial institutions, governments and trade organisations must prioritise the sharing of reliable data and market insights. Digital platforms, trade portals and fintech solutions can play a critical role in helping businesses analyse opportunities and connect with potential partners across the continent.

 

Building trust across borders

Perhaps the most complex challenge facing African trade is the deficit of trust among trading partners.

Historically, trade relations between many African countries have been shaped by regulatory inconsistencies, political tensions and weak institutional frameworks. Differences in standards, customs procedures and trade policies often create uncertainty for businesses seeking to operate across borders.

“When there is a lack of trust, people do not trade with each other,” Kumapayi explained.

These trust deficits are reflected in issues such as inconsistent product standards, unpredictable regulatory decisions and concerns about payment security. For businesses, such uncertainties increase risk and discourage investment in cross-border trade relationships.

Addressing this challenge requires a combination of policy reforms and institutional cooperation. Harmonised standards, transparent regulations and effective dispute resolution mechanisms are essential to building confidence among traders and investors.

This is where initiatives like AfCFTA are expected to make a significant difference. By reducing tariffs, standardising trade rules and eliminating non-tariff barriers, the agreement aims to create a single African market that facilitates easier movement of goods and services.

However, while the policy framework exists, its successful implementation will depend on sustained collaboration among governments, businesses and financial institutions.

The Africa Trade Conference is designed to provide a platform where these stakeholders can engage directly and develop actionable strategies.

Building on the momentum of its maiden edition, which convened senior decision-makers from 28 countries, the 2026 conference with the theme “Turning Vision into Velocity: Building Africa’s Trade Ecosystem for Real-World Impact”, will have the keynote address delivered by Kennedy Mbekeani, Director General, Southern Africa Region, African Development Bank (AfDB), alongside Kwabena Ayirebi, Managing Director, Banking Operations at the African Export-Import Bank.

Their joint keynote will address the evolving financing landscape for African trade and the strategic pathways for unlocking continental prosperity.

The welcome address will be delivered by Roosevelt Ogbonna, CEO/GMD, Access Bank Plc, who will set the tone for discussions centered on trade transformation, financial inclusion, and regional competitiveness, while Tolu Oyekan, Managing Director & Partner at Boston Consulting Group, will deliver insights on “Africa Trade Outlook 2026”, examining emerging macroeconomic trends, supply chain shifts, and growth opportunities across key sectors.

The CEO of Pan-African Payment and Settlement System, Mike Ogbalu, will be engaging the conference participants on the topic, “Building a Connected Africa Through Trade, Payments & Technology”, focusing on how payment interoperability and digital infrastructure can accelerate the African Continental Free Trade Area (AfCFTA) agenda.

Their discussions will focus on how Africa can strengthen its trade ecosystem by improving logistics, modernising payment systems and expanding access to capital.

The conference also reflects a broader ambition by Access Bank to position itself as a key facilitator of trade across Africa. Over the past several years, the bank has pursued an aggressive expansion strategy, acquiring financial institutions and establishing operations in multiple markets across the continent.

Today, Access Bank operates in 24 countries globally, including 16 in Africa, giving it a network that can support cross-border financial transactions and trade flows.

For African economies, particularly Nigeria, the benefits of deeper regional trade integration could be substantial. Expanded trade networks would create new markets for manufacturers, farmers and service providers while generating employment and stimulating industrial development.

Equally important is the need to move beyond the export of raw materials and focus on value addition. Processing commodities such as cocoa, minerals and crude oil within Africa could significantly increase the continent’s share of global value chains.

Financial institutions, policymakers and development partners are therefore exploring strategies that encourage industrialisation and local manufacturing as part of the broader trade agenda.