Okonjo-Iweala urges Africa to tackle logistical issues hindering inter-continental trade
African policymakers must urgently address the logistical and payment infrastructure issues that make cross-border trade prohibitively expensive, World Trade Organisation Director-General Ngozi Okonjo-Iweala stated at Semafor’s Next 3 Billion summit.
The former Nigerian finance minister used Lesotho’s textile industry as a striking example of the continent’s trade inefficiencies. The southern African nation exports approximately $200 million worth of textiles—about 10% of its GDP—to the United States, while Africa collectively imports $7 billion of similar textiles annually.
“Why should Lesotho sell $200 million of textiles to the US and be worrying about reciprocal tariffs when Africa spends about $7 billion importing textiles, some of the same textiles they’re producing in Lesotho?” Okonjo-Iweala questioned. “Why can’t they sell it to the rest of the continent?”
The concern is particularly acute given US President Donald Trump’s sweeping tariff regime. Okonjo-Iweala noted that if reciprocal tariffs are implemented on Lesotho, the country could lose almost half a percentage point of its GDP growth—a devastating impact for a least-developed country that imports only about $3 million worth of goods from the US.
The WTO chief warned that some African countries have become overdependent on the US market for exports and China for critical supplies, leaving them vulnerable to external policy shifts beyond their control.
Despite these challenges, Okonjo-Iweala emphasised that the global trading system has demonstrated “strong resilience at the core” in the face of Trump’s unilateral tariff actions, with approximately 72% of world trade still operating under WTO terms.
However, she stressed that Africa’s position remains precarious. The continent contributes only 3% to global trade, and intra-African trade remains between 16% and 20%—significantly lower than other regions like Asia and Europe.
“We cannot trade more externally, where our trade is only 3 percent of world trade, or internally, where intra-Africa trade is 16 to 20 percent,” she stated, calling for accelerated implementation of the African Continental Free Trade Area (AfCFTA), launched in 2021.
Okonjo-Iweala outlined specific requirements for unlocking intra-African trade, including efficient logistics networks, streamlined customs procedures, and improved payment systems that currently make cross-border transactions cumbersome and expensive.
The WTO has projected modest global trade growth of just 3.3% in 2025, making regional integration even more critical for African economies seeking sustainable development pathways less dependent on unpredictable external markets.
