Structure, Composition, and Trends in African Trade

While Africa’s trade has grown significantly from about USD163 billion in 1990 to over an estimated USD1 trillion in 2021, existing narrative suggests that the structure and composition of the trade have remained natural resources and commodity driven—perhaps in perpetuation of the colonial legacy which made the African colonies providers of raw materials to service the demands and needs of industries in the Metropolis. In a context of zero-sum game, where global trade is dominated by manufactured goods, Africa has perennially been on the wrong side of recurring commodity terms of trade shocks—a source of concern, especially for a continent endowed with enormous resources and potential to accelerate its development and transformation process. This chapter highlights the African Continent Free Area (AfCFTA) as the single most important intervention by the continent—with the capacity to alter the narrative and set Africa on an accelerated growth path and facilitate the structural transformation of its economies.