By Shivank Goel, an Indo-Africa Corridor Specialist at RMB (www.RMB.co.za)
At GTR Africa 2025, a diverse panel of experts – including representatives from the Reserve Bank of India’s research wing, MSME chambers and leading financial institutions – explored the question of how India can double its export trade to reach the government’s target of $2 trillion by 2030. In 2024, India’s exports of goods and services were estimated at over $800 billion, up 5.6% year on year. Yet services continue to outpace goods, with an eight-percentage-point lead in growth.
For India to achieve a more balanced export profile and reach its national targets, boosting merchandise exports is imperative. Africa stands out as a significant factor in helping India achieve its ambitious goals, particularly as a market for Indian merchandise exports. Financial institutions have a substantial role to play in supporting this trade and unlocking the opportunities within the India-Africa corridor.
A growth market with strategic alignment
Africa is home to some of the fastest-growing economies in the world. Across sectors such as infrastructure, pharmaceuticals, automotive components, agriculture, and consumer goods, Indian products are already gaining traction. Shared cultural and historical ties, a largely English-speaking business environment, and similar developmental goals in education, technology, healthcare, and infrastructure position the two regions as natural trade partners.
With the establishment of the African Continental Free Trade Area (AfCFTA), Africa is poised to become more integrated with an addressable market of 1.2 billion people, $3.4 trillion in GDP, and reduced intra-continental tariffs. This transforms the way Indian exporters can approach the region, moving from fragmented country-specific strategies to viewing Africa as a unified, high-growth destination, not only for trade but also for embedding into the region as a way to participate in the global value chain.
Financial and structural hurdles to overcome
Although this opportunity is promising, Indian exporters, particularly micro, small and medium enterprises (MSMEs), face several challenges in navigating African markets. One of the most significant hurdles is logistical complexity, including infrastructure constraints in certain regions, which can disrupt supply chains and increase the cost and time of moving goods across borders.
Another key concern is partner and counterparty risk. In many cases, assessing the creditworthiness of potential trading partners is difficult, and this uncertainty can deter Indian firms from entering new markets. Exporters must also contend with foreign exchange volatility and concerns about the timely and secure repatriation of funds, which can further complicate trade with certain African countries.
In addition, many exporters – particularly newer or smaller firms – struggle to access the working capital and trade finance required to scale operations or explore new markets. These financing gaps can limit their ability to take advantage of the growing opportunities presented by Africa’s expanding consumer base and regional trade integration.
Overcoming these barriers requires a holistic financial approach that combines a deep understanding of local markets with tailored credit solutions, risk mitigation tools, and long-term partnership models.
Digitisation is a critical enabler of trade finance
As global trade becomes increasingly volatile due to shifting tariffs, regulatory uncertainty, and tightening cycles, efficiency and agility are critical. Digital transformation plays a pivotal role in reducing costs and improving access to finance.
Innovations such as e-bills of lading, blockchain-based guarantees, and the use of machine learning and AI for document verification and compliance checks can reduce delays and human error in cross-border trade processes. While traditional trade finance cycles can take 60 to 90 days, digital solutions allow exporters to respond quickly to market changes and manage cash flow more effectively.
Banks and financiers investing in African-led digitisation efforts are well placed to support Indian exporters entering or expanding in the region. By building digital platforms that align with local regulatory environments and business norms, financial partners can help unlock a new era of trade connectivity between the two regions.
Leveraging AfCFTA for regional and global value chains
One of the most powerful tools available to Indian exporters is the ability to use Africa not just as an end market but also as a base for regional and global value chain participation. With AfCFTA aiming to eliminate trade barriers between African nations, a company that invests or establishes operations in one country could potentially access the entire continent tariff-free.
This opens new opportunities to move up the value chain through manufacturing, technology transfer, and joint ventures that foster local capacity while increasing India’s global trade footprint. It also encourages long-term thinking and investment in the corridor, for shared prosperity, rather than short-term export opportunism.
The need for skills and inclusive innovation
Export growth cannot happen in a vacuum. Both India and Africa need to invest in upskilling and reskilling their workforces, particularly in fields like engineering, logistics, manufacturing, and infrastructure. Encouraging more people to pursue careers in these sectors is essential in building long-term trade resilience.
Technology must be made accessible and inclusive, with tools and training offered in local languages and tailored to diverse educational backgrounds. The goal is not to replace people with machines, but to empower people to work more effectively with technology, enhancing efficiency, accuracy, and productivity, particularly in the areas of financing and trade compliance.
The role of diplomacy
India’s growing diplomatic and economic engagement with Africa is already yielding results. During its presidency of the G20 in 2023, India championed the inclusion of the African Union as a permanent member, highlighting its ambition to serve as a voice for the Global South.
Today, India is collaborating with African nations on digital infrastructure, payment platforms, energy projects, naval cooperation, and more. From tech stack adoption in countries like Ghana and Angola, to partnerships between Indian public sector firms and African energy providers, the bilateral relationship is rapidly deepening.
To accelerate trade, policy frameworks on both sides must evolve to support openness, competition, and innovation. Incentives for exporters, joint R&D investments, streamlined customs procedures, and predictable regulations will all play a critical role.
Building a corridor for shared prosperity
The India–Africa trade corridor represents one of the most promising frontiers for growing Indian merchandise exports in the coming decade. The geopolitical environment is increasingly supportive, and there is significant scale and numerous synergies that can be leveraged for expansion.
By investing in digital transformation, financial access, skills development, and long-term policy alignment, stakeholders across the trade ecosystem, from governments and banks to MSMEs and large corporates, can build a corridor that delivers shared growth and resilience. Africa is not just a market to be tapped; it has the potential to become a strategic partner for India in shaping the future of global trade.
Distributed by APO Group on behalf of Rand Merchant Bank.
About the Author:
Shivank Goel is an Indo-Africa Corridor Specialist at RMB. He was a panellist at GTR Africa 2025, contributing to the discussion on policy and finance strategies to accelerate India’s merchandise exports and strengthen the India–Africa trade corridor.