PAFTRAC Survey Reveals Trade Challenges for African Businesses

The 2026 PAFTRAC Africa CEO Trade Survey, presented at the World Trade Organisation (WTO) Public Forum in Geneva, indicates that African businesses are increasingly interested in expanding across the continent. However, high financing costs and limited access to trade finance pose significant challenges.

The survey found that 81.3% of executives anticipate an increase in cross-border business activities over the next year, yet 57% reported difficulties in accessing trade finance for these transactions. The survey, which included over 2,500 business executives, highlights that intra-African commerce is now the preferred expansion destination, surpassing China, Europe, and the United States.

Despite this, intra-African merchandise trade constitutes only 15 to 18% of Africa’s total exports. A major issue is the estimated $31 billion in excess financing costs faced by African borrowers due to the pricing of African risk.

This situation particularly affects small and medium-sized enterprises (SMEs), which struggle to secure affordable credit, with the IFC estimating a financing gap of over $331 billion for SMEs in Africa.