Ghana and Côte d’Ivoire recorded the highest trade surpluses in West Africa in 2024, with surpluses of approximately $4.1 billion and $2 billion respectively, according to a new report by Bridgewater Advisors.
Despite these positive performances, the region experienced wide disparities in trade balances, largely influenced by fluctuating commodity prices, exchange rate instability, and divergent domestic economic policies.
Overall, West Africa posted a modest trade surplus of $1.6 billion, representing just 0.2% of the region’s GDP. However, Nigeria and Togo stood out for their trade deficits, $1.8 billion and $1.1 billion respectively, making them the region’s worst performers on that front.
The report also offered projections across the continent, noting that East and West Africa are likely to record the largest current account deficits in the coming year, driven largely by weak external positions in countries such as Burundi and Liberia.
In contrast, North Africa is expected to maintain the smallest current account deficit, estimated at 1.6% of GDP in 2025, although it is projected to worsen to 2.26% in 2026.
Central Africa’s deficit is forecast at 2.3% in 2025 but could improve slightly to 2.1% by 2026, buoyed by countries like Gabon and the Central African Republic.
Africa’s broader trade environment remains at a pivotal moment, shaped by both significant hurdles and promising opportunities. With a combined GDP of $3.4 trillion, abundant natural resources, and a youthful population, the continent holds vast economic potential.
In 2024, Africa’s total exports reached $624 billion, but the continent still recorded a trade deficit of $88 billion. China remains Africa’s largest trading partner, though countries such as India, the United Arab Emirates, and Turkey are becoming increasingly influential economic allies.
The continent’s export profile remains heavily skewed toward raw materials, such as oil, minerals, and agricultural products, making it vulnerable to external price shocks.
Infrastructure challenges, from poor transport systems to limited digital connectivity, continue to drive up trade costs.
Additionally, inconsistent customs procedures and bureaucratic inefficiencies are significant barriers to seamless cross-border trade.
Despite these obstacles, the report highlights Africa’s readiness to capitalize on emerging trade opportunities, especially with the implementation of the African Continental Free Trade Area (AfCFTA) and increased global interest in African markets.
