AFRICA’S growing population, abundant resources, and advancing technologies could be the keys to unlocking sustainable economic growth, according to the Economic Commission for Africa (ECA). The call came during the opening session of the Expert Segment at the 2025 Conference of African Ministers of Finance, where experts emphasised the importance of deepening intra-African trade and industrialisation to overcome global and internal challenges.
Speaking at the event, Hanan Morsy, Deputy Executive Secretary (Programmes) and Chief Economist of the ECA, highlighted that while Africa faces increasing global trade restrictions and supply chain disruptions, its internal strengths position it well for future prosperity.
‘Africa’s young and growing population, combined with its rich natural resources, provides a solid foundation for sustainable and inclusive development,’ Morsy told delegates. ‘By embracing technology, the continent has the potential to leapfrog legacy challenges and drive transformational change.’
Intra-African trade lagging but holds promise
Morsy pointed out that intra-African trade currently accounts for only 15.8 percent of the continent’s total trade volume—a figure significantly lower than in other regions. However, she noted that the quality of intra-continental trade was encouraging.
‘Within Africa, 46 percent of traded goods are manufactured products, compared to just 24 percent of Africa’s trade with the rest of the world, which remains dominated by raw commodities like fuel, ores, and metals,’ she said.
This higher share of manufactured goods signals an opportunity for Africa to strengthen value chains, generate higher-wage jobs, and foster more inclusive growth.
Potential gains from deeper integration
According to Morsy, greater regional integration and industrialisation could have significant economic benefits. She projected that deeper trade ties could lead to a 45 percent increase in intra-African trade, boost the continent’s GDP by 1.2 percent, and increase exports and imports by 7.3 percent and 6.9 percent, respectively.
‘Simply reducing restrictive regulations could lead to a 21.5 percent increase in intra-African digital trade,’ she added, stressing the role of digital solutions in creating more connected and competitive markets.
Pan-African payment systems as a game changer
Morsy also highlighted the growing impact of pan-African payment systems, which allow cross-border transactions in local currencies. Despite only six countries currently adopting the system, it is already estimated to save $5bn annually in transaction costs.
‘There is immense potential for expansion,’ she said, noting that a broader adoption could facilitate trade and reduce reliance on foreign currencies for intra-African commerce.
Strengthening African development finance
To support the growth of trade and industrialisation, Morsy stressed the importance of well-capitalised African development finance institutions (DFIs). She called for more investment to empower DFIs to provide the necessary funding for infrastructure, innovation, and enterprise development.
Calls for action from delegates
Delegates at the conference echoed Morsy’s remarks and urged the removal of non-tariff barriers, illegal trade practices, and dumping. They also emphasised the importance of mainstreaming technology, enhancing digital trade frameworks, and strengthening capital markets to ensure long-term economic stability and resilience.
As Africa navigates both global economic headwinds and domestic challenges, experts believe that maximising intra-African trade and leveraging technology are essential strategies for driving inclusive growth. The 2025 Conference of Ministers of Finance concluded its Expert Segment with a resounding call for African nations to deepen integration, advance industrialisation, and embrace digital innovation to unlock the continent’s vast economic potential.
