CBN decries Africa’s three per cent global GDP contribution

Central Bank of Nigeria (CBN) has expressed concern about Africa’s low contributions to the global Gross Domestic Product (GDP).

CBN noted that despite having nearly 20 per cent of the world’s population, Africa’s share of Global GDP is still less than three per cent.

This was disclosed at the weekend in Lagos by the Deputy Governor, Economic Policy, Muhammad Sani Abdullahi, at the two-day 2025 Regtech Africa Conference with the theme: “Unlocking Africa’s Cross Border Payments, Trade and Investment Opportunities through Public Private Partnerships.”

Abdullahi, represented by the CBN Director of Statistics, Dr Usman Okpanachi, noted that as of 2024, Africa’s combined GDP was around $2.8 trillion (less than the economy of Germany alone @ c4.9trn) with the top five economies South Africa, Nigeria, Egypt, Algeria, and Ethiopia accounting for roughly half of the GDP.

According to him, 32 of the 44 countries identified by the United Nations (UN) as Least Developed Countries (LDCs) are from Africa with the level of poverty higher in sub-Saharan Africa than anywhere else.

According to him, several reasons could be adduced for Africa’s precarious position, including its over-reliance on commodities making African economies susceptible to commodity price changes and serving as suppliers of raw materials with no value added.

Another major issue, listed by the CBN chief was the lack of connectivity between African economies. He said it had been estimated that only about 16 per cent of trade in Africa was intra-African.

Stressing the importance of technology, Abdullahi said the African cross-border payments market was projected to experience significant growth, fueled by the continent’s accelerating digital transformation. He said the key drivers will include increasing Internet penetration, the proliferation of remittance and cross-border payment start-ups, and favourable regulatory developments.

Anticipating the future, the CBN deputy governor, urged the government to create an enabling environment for private sector investment, while ensuring that the benefits of growth are equitably shared.

He challenged the private sector to innovate with purpose, developing solutions that address the needs of the poor and marginalised.

On his part, Technical Advisor to the President on economic and financial inclusion, Dr Nurudeen Abubakar Zauro, said the current state of intra-African trade, remained relatively low compared to other regions, historically held back by factors like small, fragmented national markets, low industrialisation, poor infrastructure and weak governance.

In his opening remarks, the Chairman, Organising Committee, RegTech Africa Conference & Awards, Cyril Okoroigwe, said this year’s theme, spoke directly to the transformative potential.

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