Nigeria and other African economies could turn rising global trade tensions and supply chain disruptions into an opportunity for stronger economic growth, industrialisation and greater trade resilience, according to a new report by the African Export-Import Bank (Afreximbank). The report comes as geopolitical tensions, shifting trade policies and rising global uncertainty continue to put pressure on economies across the continent.
Despite the challenges, Africa’s economy has shown surprising resilience. Afreximbank’s latest African Trade Report revealed that the continent’s real GDP growth increased from 3.4 per cent in 2024 to 4.5 per cent in 2025, even as global economic growth slowed. Africa’s merchandise trade also expanded by 6.1 per cent to about $1.5 trillion, while average inflation fell significantly from 21.6 per cent in 2024 to 13.1 per cent in 2025.
However, the report warned that Africa still faces major obstacles that could slow this progress. A trade finance gap estimated at about $74 billion in 2025, limited foreign exchange liquidity and declining correspondent banking relationships are making it harder for businesses to finance and expand international trade. Rising freight costs, changing shipping routes and disruptions to global supply chains are also increasing the pressure on African businesses that depend heavily on imported goods and production inputs.
Afreximbank Group Chief Economist and Managing Director of Research and Trade Intelligence, Yemi Kale, said the continent is at a critical turning point. He noted that while geopolitical tensions and economic fragmentation are changing the global trading system, they could also create an opportunity for Africa to build a more competitive and resilient economy. For Nigeria, this could mean using the changing global trade environment to strengthen local industries, expand exports, attract investment and reduce excessive dependence on imported products.
The report therefore recommends faster implementation of the African Continental Free Trade Area (AfCFTA), wider adoption of digital payment systems such as the Pan-African Payment and Settlement System (PAPSS), and reforms to the global financial architecture. With the right policies and stronger regional cooperation, Africa could turn today’s trade disruptions into long-term economic opportunities, creating more jobs, expanding businesses and positioning countries such as Nigeria as stronger players in the evolving global economy.
source: The guardian
