AFRICA saw a significant increase in exports in 2023, with a growth rate of 16.8 percent compared to the previous year, bringing the continent’s total exports to $665.4bn. This growth was primarily fuelled by the booming sectors of minerals and IT services, according to the Africa Export Competitiveness Report 2023.
The report, jointly published by the African Capacity Building Foundation (ACBF), the Arab Bank for Economic Development in Africa (BADEA), and other partners, highlights the continent’s economic progress as the global economy recovered from the Covid-19 pandemic. While global merchandise exports surged to $7.2 trillion in 2023, Africa’s share remains modest at less than 3 percent of the total.
South Africa, Morocco, and Nigeria emerged as Africa’s top exporters, with Asia—particularly China—overtaking Europe as the primary destination for African exports. The report also revealed a remarkable 30 percent increase in African export services in 2023, outpacing global growth rates for the same period.
Despite the positive export trends, Africa’s foreign direct investment (FDI) experienced a sharp decline. After reaching a record $80bn in 2021, FDI inflows dropped to $44bn in 2022, highlighting ongoing challenges in attracting international investments.
The report further noted that Africa’s merchandise exports continue to be dominated by mining, agricultural, and extractive products. In 2021, minerals made up 39.57 percent of all exports, followed by precious stones at 17.82 percent and agricultural products at 12.91 percent.
The Africa Export Competitiveness Report 2023 provides valuable insights into the continent’s economic landscape, offering a deeper understanding of the factors driving Africa’s export growth and the complexities of enhancing intra-African trade. As the continent continues to strengthen its export performance, there remains a significant opportunity to increase its share of global trade through strategic investments and diversified growth sectors.
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