Africa’s participation in the global trading system remains limited, accounting for only 3% of global trade. Despite the establishment of the African Continental Free Trade Area (AfCFTA), African economies continue to face structural barriers, weak industrial capacity, and trade frameworks that favour advanced economies. These challenges hinder the continent’s ability to integrate into global value chains, attract investment, and transition from a commodity-exporting region to a competitive manufacturing and trade hub. Addressing these issues is essential not only for Africa’s economic growth but also for global supply chain resilience, diversified production networks, and sustainable trade expansion.

This policy brief examines how the G20 can build upon its existing initiatives, including the Compact with Africa, the Initiative on Supporting Industrialisation in Africa, and the Trade and Investment Working Group, to enhance Africa’s trade competitiveness. While these initiatives have laid important groundwork, they must be expanded and institutionalised to produce lasting economic transformation.

This policy brief outlines three key policy recommendations. First, the G20 can play an active role in advancing Africa’s industrial development by urging its members and regional blocs to expand preferential trade frameworks, forge voluntary technology partnerships, and invest in industrial hubs and special economic zones. These efforts will help reduce the continent’s reliance on raw material exports and support its shift towards value-added production. Second, improving trade related infrastructure through multilateral development banks and blended finance mechanisms is essential to lowering transport costs and modernising ports, trade corridors, and customs processes. Third, to further integrate African enterprises into global value chains, the G20 should support trade facilitation reforms by simplifying customs procedures, expanding trade finance accessibility, and aligning G20 trade policies with Africa’s economic priorities. A stronger, more competitive Africa will enhance global trade resilience, open new investment markets, and reduce economic asymmetries in the multilateral trading system. The African Union’s permanent G20 membership must move beyond symbolism to drive meaningful reforms supporting Africa’s economic transformation. As the world seeks more sustainable, diversified, and inclusive growth, ensuring Africa’s full participation in a reformed global trading system is not just an African priority – it is a global opportunity.