Africa's total exports are expected to reach $952 billion by 2035, a recent study has projected.
A timely implementation of the African Continental Free Trade Area (AfCFTA) would catalyse the growth even more, Standard Chartered's study titled "Future of Trade: Africa Report" shows.
"AfCFTA, once fully implemented, has the potential to increase this figure ($952 billion) by a further 29%. This represents an annual growth rate of 3% from now until 2035," the October 2023 report said.
"Intra-Africa trade is expected to reach $140 billion by 2035, equating to 15% of Africa's total exports," the report added.
The study projects that the East Africa-South Asia corridor will emerge as the fastest-growing major corridor, at 7.1% per annum through to 2035.
Hindrances
"The Middle East-North Africa and the Middle East-East Africa corridors will also be substantial, with their combined trade volume expected to reach almost $200 billion by 2035."
Some of the key trade challenges highlighted by the respondents – more than 100 business leaders in Africa – include "complex and uncertain trade rules", "underdeveloped transportation infrastructure", "ineffective trade facilitators", and "limited access to capital."
The respondents were optimistic that implementation of AfCFTA, increasing technical sophistication, and digitalisation of trade would help Africa grow its business potential.
Africa's leading exports are natural resources including petroleum, gold, diamonds, natural gas and coal.
Agricultural commodities such as tea, coffee, and cotton also find large markets internationally.
