Africa is being positioned to emerge as a major destination for investment, manufacturing and industrial development as global firms seek alternative production hubs amid shifting geopolitical dynamics and evolving supply chains, the African Export-Import Bank (Afreximbank) has said.
According to Afreximbank’s 2026 African Trade Report titled “Leveraging Geopolitics for Trade and Industrialisation in Global Africa,” changing global trade pattern is presenting Africa with an opportunity to reposition itself as a dynamic centre of production, trade, innovation and growth.
The report noted that global geopolitical shifts, technological transformation and changing patterns of trade and investment are redefining the international economic landscape, are creating fresh opportunities for the continent.
It further noted that while these developments pose challenges, they also offer Africa the chance to strengthen its position in global value chains. “Yet these challenges also underscore the scale of the opportunity before us. As global supply chains diversify and the search for resilient production hubs intensifies, Africa is increasingly well-positioned to emerge as a competitive destination for investment, manufacturing, digital innovation, and green industrialisation,” the report said.
The Afreximbank report noted that the continent’s improving economic fundamentals are helping to support this transition, with Africa’s real GDP growth accelerating from 3.4 per cent in 2024 to 4.5 per cent in 2025, outpacing global growth.
The report also revealed that aggregate inflation moderated significantly from 21.6 per cent to 13.1 per cent, while merchandise trade expanded by 6.1 per cent to approximately $1.5 trillion. Intra-African trade equally grew by 5.5 per cent to about $213.8 billion.
According to the bank, these outcomes reflect improving macroeconomic management, stronger institutions, expanding regional cooperation and the determination of African countries to sustain growth despite a challenging global environment.
The report, however, acknowledged that significant hurdles remain, including trade finance constraints, infrastructure deficits and limited value addition across many sectors. To fully harness emerging opportunities, Afreximbank stressed the need for accelerated implementation of the African Continental Free Trade Area (AfCFTA), expanded intra-African trade finance, improved transport and logistics infrastructure and deeper digital payment integration through the Pan-African Payment and Settlement System (PAPSS).
The bank emphasised that the stakes go beyond trade figures, noting that decisions taken today would shape opportunities for Africa’s rapidly growing youth population and determine the continent’s competitiveness in future industries and value chains.
It stated that industrialisation, regional integration, beneficiation and value addition are not merely policy objectives but are critical to building prosperity, resilience and economic sovereignty across the continent.
Reaffirming confidence in Africa’s prospects, the report declared: “Africa’s underdevelopment is not destiny, nor should it ever be accepted as permanent.” It added that the continent possesses vast natural resources, entrepreneurial talent, creativity and human capital capable of driving competitive industries, creating jobs and restoring Africa to a stronger position in the global economy.