African business leaders are optimistic about the outlook for cross-border trade, with 81.3 per cent expecting their international activities to increase over the next 12 months.

However, limited access to trade finance, credit-risk perceptions and gaps in the implementation of the African Continental Free Trade Area (AfCFTA) continue to constrain the expansion of intra-African commerce.

This is contained in the preliminary findings of the 2026 PAFTRAC Africa CEO Trade Survey, presented at the World Trade Organisation (WTO) Public Forum yesterday.

The survey, conducted by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC), showed that intra-African commerce has emerged as the leading destination targeted by African executives, ahead of China, Europe and the United States.

Despite the growing interest, merchandise trade within Africa remains low, accounting for between 15 and 18 per cent of total exports, with little significant movement recorded despite the operational rollout of AfCFTA.

Now in its sixth year, the survey has expanded from 400 respondents in 2021 to more than 2,500 business leaders in 2026, making it one of the broadest assessments of African private-sector sentiment on trade.

The findings suggest that while African businesses are increasingly willing to pursue regional markets, the financial and institutional systems required to support that ambition remain inadequate.

At the heart of the challenge is the cost and availability of finance for cross-border transactions.

According to an analysis by the International Finance Corporation (IFC), African sovereign and institutional borrowers attract risk ratings from Western credit agencies that result in an estimated excess financing premium of $31 billion annually.

Chairman of PAFTRAC, Prof. Patrick Utomi, described the situation as a “prejudice premium”, arguing that perceptions of risk continue to affect the cost of capital available to African economies.

He added that the financing challenge was also being felt directly by businesses, with 57 per cent of executives surveyed describing access to trade finance for cross-border transactions as difficult or very difficult.

The IFC estimates Africa’s financing gap for small and medium-sized enterprises (SMEs) at more than $331 billion.

Beyond financing, the survey identified shortcomings in the practical implementation and awareness of AfCFTA mechanisms as another major obstacle to increased intra-African trade.

While 70.2 per cent of respondents said AfCFTA-related reforms had already had a tangible operational impact on their businesses, awareness of some of the agreement’s key implementation mechanisms remained low.

More than half of the executives surveyed said they were unfamiliar with the Pan-African Payment and Settlement System (PAPSS), established to reduce dependence on dollar clearing in intra-African transactions.

Awareness of other AfCFTA trade-facilitation mechanisms, including the E-Tariff Book, the African Trade Observatory and the agreement’s non-tariff barrier reporting tools, was similarly limited.

The preliminary findings were presented publicly for the first time at the WTO Public Forum.