Africa stuck at 3.3%: ZimTrade says continent punches far below its weight in global trade

CLOUDINE MATOLA

Africa continues to punch far below its weight in global commerce, accounting for just 3.3% of global exports despite a strong rebound in total merchandise trade to US$1.5 trillion in 2024, ZimTrade has said, underscoring the continent’s persistent struggle to move up the value chain.

Speaking at the Zimbabwe–Uganda Business Forum in Harare yesterday, ZimTrade chief executive officer Allan Mujuru said Africa remains locked in a low-value export model, dominated by raw commodities that are processed outside the continent, depriving economies of critical value and earnings.

“According to Afreximbank, in 2025, Africa’s total merchandise trade rose by 18.9% to US$1.05 trillion after a contraction in 2023. Yet, Africa still accounts for only 3.3% of global exports,” Mujuru said.

“While we have seen an increase in participation in global trade, much of that participation remains concentrated in low-value exports and externally processed commodities. As a result, the continent captures only a fraction of the full value embedded within its resources.”

Mujuru stressed that the real issue is no longer the volume of trade, but its composition, warning that without a deliberate shift towards value addition, African economies will remain marginal players in global markets.

“What matters now is the composition of trade — the extent to which Zimbabwe and Uganda can export processed goods and services, contribute to regional value chains, and increase intra-African commerce,” he said.

“That is where durable gains in jobs, productivity, foreign currency earnings, and industrial resilience will come from.”

He noted that trade between Zimbabwe and Uganda has remained subdued over the past four years, averaging around US$1 million — a figure he described as both concerning and full of untapped potential.

“I think our bilateral trade has been very low. For the past four years, total trade between the two countries has been around US$1 million, if I’m not mistaken. But as much as that is a challenge, it also presents an opportunity for us to change the narrative,” Mujuru said.

The forum, he added, should serve as a catalyst to deepen economic ties and unlock new trade corridors between the two nations.

Mujuru further observed that shifting geopolitical dynamics are forcing countries to rethink their trade strategies, placing greater emphasis on resilience over mere participation in global markets.

“The current geopolitical tensions shaping the global economy have forced us to strategically recalibrate. Resilience has become more important than sufficiency, and our economies must move beyond passive participation in global trade to engaging one another with greater purpose and intent,” he said.

Minister of Home Affairs and Cultural Heritage Kazembe Kazembe, standing in for Foreign Affairs and International Trade Minister Amon Murwira, echoed similar sentiments, acknowledging that trade between Zimbabwe and Uganda remains significantly underdeveloped.

“While the potential for cooperation between our two economies is considerable, the current level of trade between Zimbabwe and Uganda remains below its full potential. This Forum therefore provides an opportunity for us to reflect on practical measures that can unlock this potential,” Kazembe said.

He emphasised that the private sector will be central to driving this transformation, urging businesses from both countries to seize the moment and forge strategic alliances.

“Indeed, the true drivers of this transformation will be the private sector. Governments can create the enabling environment, but it is businesses that ultimately drive trade, investment, innovation and job creation,” he said.

“I therefore encourage companies from both Zimbabwe and Uganda to use this Forum to explore joint ventures, identify complementary value chains, and establish durable business partnerships that will unlock shared prosperity.”