Ghana and Côte d’Ivoire recorded the highest trade surpluses of approximately $4.1 billion and $2 billion respectively in West Africa in 2024.
According to advisory firm, Bridgewater Advisors, West Africa’s trade balances, however, exhibited significant negative variation across its countries, driven by commodity price fluctuations, exchange rate volatility, and domestic economic policies.
The region posted an overall trade balance of US$1.6 billion, representing 0.2% of its Gross Domestic Product (GDP).
While Nigeria and Togo reported the largest trade deficits of $1.8 billion and $1.1 billion, respectively.
The report added that East and West Africa are projected to have the largest current account deficits mainly driven by Burundi and Liberia respectively.
North Africa is projected to have the least deficit of 1.6% in 2025 but worsens to 2.26% in 2026.
Central Africa is also project to have a deficit of 2.3% in 2025 but improve to 2.1% in 2026 led by Gabon and Central African Republic.
Africa’s Trade Environment
Meanwhile, Africa’s trade environment stands at a critical juncture, marked by both significant challenges and transformative opportunities.
With a combined GDP of $3.4 trillion, vast natural resources, and a young, rapidly growing population, the continent holds immense potential. Africa’s export trade reached $624 billion in 2024 with a trade deficit of $88 billion.
While China remains the largest trading partner of Africa, Bridgewater Advisors said countries like India, the United Arab Emirates, and Turkey are emerging as key players, offering new economic collaborations and investment opportunities.
Africa’s exports are dominated by raw materials such as oil, minerals, and agricultural products, making economies vulnerable to price volatility and external shocks. Significant gaps in infrastructures such as poor transport networks, inadequate ports, and limited digital connectivity hinder trade efficiency and increase costs.
Similalry, complex customs procedures, inconsistent standards, and bureaucratic red tape continue to impede crossborder trade. Despite these hurdles, Africa’s trade environment is ripe with opportunities.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
