Raising the intra-African trade share: Afreximbank vouches for small business

Afreximbank is committed to empowering African small businesses to become key players in intra-African trade. We recognize the immense potential of small and medium-sized enterprises (SMEs) in driving intra-African trade, even if intra-African trade currently stands at only 15%-18% of total African trade compared to Europe’s 65%.

Raising the contribution of SMEs to 29% could unlock a staggering $532 billion in trade opportunities. However, businesses need the right knowledge and tools to thrive in the African Continental Free Trade Area (AfCFTA).

That’s why we partnered with the International Trade Centre (ITC), to launch the "How to Export with the AfCFTA" training programme. Since its launch in December 2020, the programme has been implemented by 15 African countries; registered over 10,000 learners; certified 1,500 participants; and skilled almost 220 trainers.

Afreximbank is indeed committed to accelerating Africa's industrialization by supporting these strategic sectors. In 2020, the Bank launched its Automotive Strategy under the AfCFTA to promote regional value chains, provide tailored financing solutions, and support policy development and capacity building.

The Bank has provided $1 billion to address limited access to capital, underdeveloped infrastructure, and fragmented markets across Africa. In collaboration with the AfCFTA Secretariat and African Association of Automotive Manufacturers, we developed a Continental Automotive Strategy and additionally, supported a comprehensive study on African automotive value chains, which was validated by AfCFTA Trade Ministers in 2024. 

Committed to expanding access to trade, investment and market information to raise the intra-African trade share of total African trade to a near-term goal of 25%, Afreximbank launched the biennial Intra-African Trade Fair (IATF) in partnership with the African Union Commission and the AfCFTA secretariat. Considered the pan-African AfCFTA marketplace, the IATF platform connects businesses, policymakers, and financiers, fostering trade and investment opportunities for various sectors, including Creatives, Automotive, Agriculture, Infrastructure, and Financial Services.

The African diaspora, designated by the African Union as Africa’s 6th region, is vital to driving Africa’s economic transformation. Afreximbank’s Intra-African Trade Strategy, therefore, incorporates a diaspora strategy which has redefined intra-African trade to include trade among all Africans, regardless of location.

The Bank has played a pivotal role in strengthening economic ties among Africa, the Caribbean, and the global African diaspora. Consequently, 12 CARICOM member states have signed partnership agreements with Afreximbank.

In a major milestone in the relationship, Afreximbank established its CARICOM Office in Bridgetown, Barbados in 2023, to help deepen trade and investment flows between Africa and the Caribbean.

A major barrier to efficient intra-African trade has been relying on third-party currencies for cross-border transactions, which leads to high costs, delays, and foreign exchange risks. With over $5 billion in intra-African trade settlements processed through correspondent banks outside Africa each year, Afreximbank, in collaboration with the African Union, developed the Pan-African Payment and Settlement System (PAPSS) to streamline payments across the continent.

A centralized, secure, and instant payment system, PAPSS enables businesses, SMEs and individuals to conduct transactions in local currencies, eliminating the need for foreign intermediaries, significantly reducing transaction costs—by up to 50%—and processing times, from an average of 3–5 days to just seconds.