Driving intra-African trade goals – CNBC Africa

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The Intra-African Trade Fair (IATF) 2025 is poised to redefine the continent’s economic landscape at a pivotal time when trade dynamics are deeply entwined with global geopolitics. The event arrives at a moment when traditional multilateralism is being challenged, with many countries opting for protectionist measures that complicate international trade relations. This shift has notable implications for Africa, a continent with enormous potential yet often constrained by historical and geopolitical forces.

In an insightful exchange, NBC Africa’s Kennedy Bomo engaged with Professor Benedict Oama, the president and chairman of the board of directors at Afreximbank, to illuminate the current economic discourse. Professor Oama underscored the pressing need to reimagine trade strategies amidst increasing geopolitical tensions. He noted that globalization, which once heralded an era of expansive trade networks and economic buoyancy, is now perceived differently by various stakeholders due to its uneven benefits across the globe.

Globalization, according to Oama, has faced backlash from segments of the populace, including blue-collar workers in the West who attribute job displacements and economic redistribution to its policies. The resultant clamor for ‘friend-shoring’—where nations prefer trade deals with close allies—illustrates a critical shift towards economic nationalism. This retrenchment towards localized production not only blunts the edge of global supply efficiency but also hits smaller economies hardest, many of which are in Africa.

Historically, African economies, which are predominantly small and open, have been beneficiaries of globalization, enjoying increased production scales and improved welfare derived from global market access. Unfortunately, as protectionist barriers rise, these economies, fragmented by the colonial past and compartmentalized into 55 countries, face heightened economic vulnerabilities.

Professor Oama advocates a restructuring of economic strategies, a philosophy he describes as ‘Africa-shoring.’ This approach capitalizes on Africa’s intrinsic strengths—its young, growing population, diverse resources, and burgeoning market potential. With over 2 billion people of African descent worldwide and an estimated GDP exceeding $4 trillion, the capacity for intra-African trade and self-sufficiency is substantial.

Africa’s future, Oama suggests, lies in reversing the divisive legacies of colonialism by fostering regional integration and creating robust local markets. The continent must leverage its youthful demographic, which stands in stark contrast to the aging populations elsewhere, to fuel future growth.

As African nations gather at the IATF 2025, they are encouraged to embrace the vision of unity through economic collaboration. The emphasis on producing, consuming, and trading within the African community is proposed as a pathway to economic resilience and autonomy.

The Intra-African Trade Fair serves as a beacon of hope for the continent, symbolizing a collective stride towards overcoming historic fragmentation by forging common ground in trade partnerships. It is a call for African nations to harness their shared heritage and economic synergies to navigate the complexities of modern geopolitics and secure a prosperous, self-reliant future.

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