By Nellyana Mmanyi, Corporate Banking Director, Absa Bank Tanzania
Global trade is being reshaped by geopolitics, as supply chains fragment and new alliances redraw the map of commerce. For Africa, this is not simply disruption—it is a strategic opening.
In this pivotal decade, as companies diversify their sourcing and rethink trade routes, the continent, particularly East Africa, is emerging as a critical connector between global markets.
Turning this moment into meaningful growth will depend on reducing friction, improving access to trade finance and enabling businesses to move with speed and certainty. This is where banks can play a fundamental role.
FROM EFFICIENCY TO RESILIENCE
As geopolitical shifts disrupt traditional patterns of trade, there is a palpable move from prioritising efficiency to building resilience.
Corporates are diversifying their supply chains and reducing dependence on a single country, including China. They are increasingly favouring nearshoring and friendshoring while expanding sourcing relationships across Southeast Asia and India.
Trade routes are becoming more regional and complex, with multiple sourcing and transit options built into supply chains to help manage geopolitical risks.
More corridor-based trade routes are emerging, with proximity to geopolitical markets increasingly influencing where and how businesses trade.
Africa is increasingly acting as both a production base and a trade connector between the Middle East and Asia. This is evident across agriculture, business, manufacturing and transit trade, supported by improving port infrastructure and growing regional integration.
EAST AFRICA: A STRATEGIC TRADE BRIDGE
East Africa is no longer simply a future opportunity—it is already emerging as a strategic trade bridge, with the region firmly positioned as one of the continent’s key growth hubs.
The growing interest from major international and regional banks seeking to establish or expand their presence in East Africa is a clear indication of where Africa's growth momentum lies.
From a logistics and trade perspective, East Africa plays a pivotal gateway role.
The Port of Dar es Salaam, for example, is a critical entry point supporting landlocked markets such as the Democratic Republic of Congo, Zambia, Uganda and Rwanda.
This importance is further reinforced by ongoing investments in key transport corridors, including Tanzania’s Central Corridor and Kenya’s Northern Corridor, which continue to enhance regional connectivity and facilitate trade.
BARRIERS THAT MUST BE ADDRESSED
Despite this momentum, pragmatic barriers continue to prevent businesses from fully capitalising on emerging trade opportunities.
The main constraints include logistical inefficiencies, regulatory fragmentation, non-tariff barriers across African markets, customs inefficiencies and inconsistent policies across East Africa.
The slow operational implementation of the African Continental Free Trade Area (AfCFTA) remains a concern, while foreign exchange volatility and limited access to trade finance—particularly for SMEs—continue to present significant obstacles.
Although there is growing demand for African goods, many businesses struggle with execution across borders.
Infrastructure challenges, including port congestion, rail inefficiencies, poor road conditions and limited paved road networks, coupled with high inland transportation costs, continue to hinder the successful movement of goods.
These are not simply infrastructure challenges. They directly affect the competitiveness of African businesses and their ability to participate effectively in regional and global value chains.
BANKS MUST MOVE BEYOND TRANSACTIONS
Financial institutions have an important role to play in helping clients navigate these complexities.
To succeed in an increasingly competitive market, banks must differentiate themselves by moving beyond individual transactions towards end-to-end trade enablement.
At Absa, we are seeing growing demand from corporates for integrated cross-border banking support that combines trade finance, foreign exchange solutions and regional market expertise.
Clients are looking not only for funding, but also for banking partners that can help them navigate increasingly complex trade corridors with speed and certainty.
Banks must therefore offer more than traditional letters of credit or overdraft facilities. They need to provide flexible trade finance and structured trade solutions tailored to the evolving needs of businesses.
Speed is a critical differentiator. Ultimately, the bank that moves fastest wins the client.
FIVE PRIORITIES FOR AFRICA’S NEXT PHASE OF GROWTH
Looking ahead, several factors will determine whether Africa successfully captures this opportunity or misses what could be a golden moment.
1. ACCELERATE AFCFTA IMPLEMENTATION
The implementation of AfCFTA is paramount. Africa must move from policy commitments to actual trade flows while reducing non-tariff barriers that make cross-border commerce more difficult and costly.
2. DELIVER EFFICIENT INFRASTRUCTURE
Investment in ports, railways and energy must translate into greater efficiency—not simply increased capacity.
3. BRIDGE THE TRADE FINANCE GAP
Access to capital must be improved, particularly for SME-sized corporates seeking to expand across regional markets.
4. PRIORITISE INDUSTRIALISATION
Africa needs to move beyond exporting raw materials towards value-added production, while strengthening regional supply chains and increasing the participation of African businesses in them.
5. STRENGTHEN INSTITUTIONAL COORDINATION
Alignment between governments, banks and the private sector is critical. Policy consistency and investor confidence will be essential in attracting and sustaining the investment required to unlock Africa’s trade potential.
THE OPPORTUNITY IS REAL—BUT IT WON’T WAIT
Africa, and East Africa in particular, has a remarkable opportunity to strengthen its position in global trade—not only because of the strength of its existing markets, but also because of its potential to become a major connector and production hub.
Success, however, will not be automatic.
It will depend on the speed of execution, access to capital and the ability of banking institutions to actively enable clients across the trade value chain.
The opportunity is real. But it won’t wait.
ABOUT THE AUTHOR
Nellyana Mmanyi is Corporate Banking Director at Absa Bank Tanzania.
This OPED is based on her presentation at GTR East Africa, held on 12–13 May 2026 in Nairobi, Kenya. GTR East Africa brings together key stakeholders across trade, supply chains, commodities, infrastructure and export financing.
As a Gold Sponsor of the event, Absa CIB reinforces its commitment to supporting trade and economic growth across the region.
ABOUT ABSA BANK TANZANIA
Absa Bank Tanzania Limited is one of Tanzania’s leading financial institutions, offering an integrated range of products and services across Corporate and Investment Banking, Business Banking with solutions for SMEs, and Retail Banking.
Backed by its 21-year legacy in Tanzania and inspired by the people it serves, Absa is committed to finding local solutions to uniquely local challenges, with everything it does focused on bringing possibility to life.
Absa Bank Tanzania is part of Absa Group Limited, one of Africa’s largest diversified financial services groups. The Group employs approximately 40,000 professionals across South Africa, Zambia, Botswana, Mozambique, Seychelles, Mauritius, Kenya, Tanzania, Uganda and Ghana.
The Group also has representative offices in Nigeria, Namibia, London and New York, as well as insurance operations in Botswana, Kenya, Mozambique, South Africa, Tanzania and Zambia.
Absa is a truly African brand, inspired by the people it serves and determined to be the financial services group Africa can be proud of.
For more information about Absa Bank Tanzania, visit: www.absa.co.tz
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