This datastory provides an overview of Africa’s external positions
and flows with the rest of the world, as recorded in the current account
and international investment position, including detailed analysis of
trade flows, international reserves, and external debt.
Africa’s current account deficit had been widening since 2004,
primarily driven by South Africa, and by Algeria and Egypt from 2014.
The chart below shows country-level breakdowns of the current account
balance as a percentage to GDP, averaged since 2010. Many countries
current accounts are driven by the goods and services trade balance.
Africa maintained a positive trade balance with the rest of the world between 2000 and 2013, but the balance has turned negative since then - up to the recently.
This is particularly accounted for by Eastern and Northern Africa.
The deterioration of trade balances is mostly due to increased trade
with emerging markets and developing economies, particularly in Asia and
the Middle East.
In the middle of the 2010’s, Asia overtook the EU as Africa’s largest
trading partner region. Inner-African trade is also on the rise, and is
expected to rise further with the implementation of AfCFTA (See also a
recent IfW
study on the potential effects of AfCFTA).