World Trade Organization Director-General Dr. Ngozi Okonjo-Iweala, has urged swift reforms to unlock Africa’s trade potential, noting that it costs about 20 per cent more for African countries to trade with each other than with nations outside the continent.

In an interview with CNN’s Christiane Amanpour, Okonjo-Iweala warned that these inefficiencies weaken the objectives of the African Continental Free Trade Area, which aims to enhance intra-African trade and promote industrial integration.

“It costs 20% more for us to trade with each other on the continent than with others externally. Something is wrong with that. We need to bring our average costs down,” she said.

She observed that although Africa possesses immense potential, with 30 per cent of global mineral resources and 67 per cent of the world’s arable land, persistent challenges such as inadequate infrastructure, high transportation costs, and unstable electricity supply continue to constrain its economic growth.

“We have to deal with several challenges. Investing in infrastructure is certainly one of them. Lack of infrastructure, ports, electricity, connectivity, is the number one issue,” she explained.

Okonjo-Iweala noted that Africa’s economy is expected to grow by around 4 per cent in 2025, about one percentage point higher than the global average, but emphasized that the continent must better harness its human capital.

She added that by 2050, Africa will host 2.5 billion people, representing 22 per cent of the world’s working-age population, a demographic edge that could reshape the global economy if the continent’s youth are well educated and technologically equipped.

“You can’t just say we have people, therefore we are rich. They’ve got to be skilled. We’ve got to be up with technology and AI,” she noted.

She expressed optimism about the rising wave of innovation among Africa’s youth, particularly in fintech, agritech, and the creative industries—describing them as the continent’s most valuable asset.

“Young people in fintech are inventing new things. In agritech, we have companies helping farmers do better. In health tech and the creative industries, African music and creativity are flourishing,” she said. “If we have young people who are this creative, how do we support them better?”

Despite present challenges, Okonjo-Iweala reiterated her confidence in Africa’s resilience and its potential for inclusive growth.

“I’m not trying to run away from challenges, Christian. I’m just excited to be African and to be Nigerian because of what I see,” she said.