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Unpredictability in the global trade system and within bilateral as well as multilateral ties is prompting African nations to create regional trade activity to buffer their economies against broader global headwinds, according to DHL’s “Global Connectedness Report 2026″.Bremer Pauw, chief commercial officer and MD for the Middle East & Africa DHL Supply Chain, told Business Times that African economies are confounding the notion that they have no appetite to increase ties as a regional trading bloc.“From a macroeconomic perspective, many markets continue to navigate currency volatility, inflationary pressures and economic uncertainty,” he said. ”These factors influence the cost of doing business and create additional pressure across supply chains.“At the same time, there is growing momentum around regional trade, trade blocs and intra-continental trade. We are seeing more discussions around how neighbouring countries can source from one another and how regions can strengthen economic integration.”According to the Trade Law Centre, the African continent showed pockets of resilience in trade despite global headwinds between 2023 and 2025. South Africa saw an 11.6% surge in exports, from $58.8bn (about R974bn) in 2023 to $65.6bn in 2025, driven by Southern Africa’s expansion into the North American market. However, 2024 saw an 8.1% contraction in intra-African exports.Pauw said that in many ways turbulence has become the status quo since the Covid pandemic and subsequent global lockdown. Customers are increasingly looking for resilience and optionality within their supply chains.“When we speak about trade, it is important to look at the data. DHL’s latest ‘Global Connectedness Report’ projects that global goods trade will continue to grow at an average annual rate of approximately 2.6% through 2030, despite rising uncertainty and geopolitical tensions.”Pauw said progress was being made in enhancing intra-Africa trade through interventions like the African Continental Free Trade Area (AfCFTA). Collaboration and better electronic systems for logistics would help, although this would take a while, he added.“Sometimes we underestimate the complexity of what AfCFTA is trying to achieve. Standardising elements such as central banking frameworks, customs processes, regulations and trade systems across so many countries is a significant undertaking. It took the EU decades to standardise this, and hopefully Africa can do it faster.”He said bottlenecks are being identified and the sector is engaging governments on the continent about these. “In response to the geopolitical tensions and businesses experiencing disruption in one market because of geopolitical events, climate-related challenges or supply constraints, businesses need alternative sourcing options and alternative routes to market. Building and maintaining those relationships is critical.”DHL Supply Chain was seeing businesses actively build contingency plans into their operations, he said.“DHL is well positioned to support this because of our global footprint and the experience we have gained across multiple markets. We help customers build flexibility into their supply chains and respond to changing conditions.”Pauw encouraged governments and regulators on the continent to promote the competitiveness of Sub-Saharan African countries.Meanwhile, the African Export-Import Bank (Afreximbank) announced this week that it has successfully priced a $1.5bn dual-tranche senior unsecured benchmark Eurobond, marking its first US dollar public bond issuance since July 2021 and its largest bond issuance to date.The bond was issued in two tranches, with $750m of a 5.5-year tenor, maturing in January 2032, and $750m with a 10-year tenor, maturing in July 2036. The transaction attracted demand from investors across the UK, Europe, Asia and the US, with the order book peaking at $3.8bn.Chandi Mwenebungu, Afreximbank’s MD of treasury & markets and group treasurer, said the issuance was approximately two times oversubscribed, with demand evenly split between the two tranches.“This successful issuance shows the confidence that investors continue to place in Afreximbank and in Africa’s growth story,” he said. ”For us, this is a clear sign that the market continues to believe in Afreximbank’s work and in Africa’s economic prospects. Our role remains to connect capital to the opportunities that will drive trade, industrialisation and growth across the continent.”Supported by robust demand, Afreximbank tightened pricing by 37.5 basis points per tranche, resulting in final yields of 6.25% for the 5.5-year tranche and 7.125% for the 10-year tranche.Business Times
