World Trade Organization (WTO) Director-General, Dr. Ngozi Okonjo-Iweala, has called for urgent reforms to unlock Africa’s trade potential, revealing that it currently costs 20% more for African nations to trade with one another than with countries outside the continent.
Speaking during an interview with CNN’s Christiane Amanpour, Okonjo-Iweala lamented that such inefficiencies undermine the purpose of the African Continental Free Trade Area (AfCFTA), which was designed to boost intra-African commerce and industrial integration.
“It costs 20% more for us to trade with each other on the continent than with others externally. Something is wrong with that. We need to bring our average costs down,” she said.
Structural bottleneck stifles growth
She noted that despite Africa’s enormous potential, including 30% of the world’s mineral resources and 67% of its arable land, structural bottlenecks such as weak infrastructure, high logistics costs, and inadequate electricity supply continue to stifle economic growth.
“We have to deal with several challenges. Investing in infrastructure is certainly one of them. Lack of infrastructure — ports, electricity, connectivity — is the number one issue,” she explained.
Okonjo-Iweala highlighted that Africa’s economy is projected to grow by about 4% in 2025, one percentage point above global growth, but said the continent must do far more to harness its human capital.
Population projection
By 2050, Africa will be home to 2.5 billion people and 22% of the world’s working-age population, a demographic advantage that could transform the global economy if the youth are well educated and technologically skilled.
“You can’t just say we have people, therefore we are rich. They’ve got to be skilled. We’ve got to be up with technology and AI,” she cautioned.
Innovation in fintech
She expressed optimism about the growing innovation among Africa’s youth, especially in fintech, agritech, and creative industries, describing them as the continent’s greatest asset.
“Young people in fintech are inventing new things. In agritech, we have companies helping farmers do better. In health tech and the creative industries, African music and creativity are flourishing,” she said. “If we have young people who are this creative, how do we support them better?”
Despite current headwinds, Okonjo-Iweala reaffirmed her belief in Africa’s resilience and the potential for inclusive growth.
“I’m not trying to run away from challenges, Christian. I’m just excited to be African and to be Nigerian because of what I see,” she said.
What you should know
In the second quarter of 2025, Nigeria recorded an upswing in its external trade position as the country’s trade surplus widened by 44.3% to N7.46 trillion, up from N5.17 trillion in the previous quarter.
- This is according to the latest Foreign Trade in Goods Statistics report by the National Bureau of Statistics (NBS).
- Nigeria’s total exports stood at N22.75 trillion in Q2, a 10.5% increase from Q1 and 28.4% higher than the same period in 2024. Imports, by contrast, slipped marginally by 0.9% quarter-on-quarter to N15.29 trillion. This dynamic created the wider surplus that has boosted Nigeria’s external account.
