Canada-Africa trade remains meager compared to other regions 

Africa is becoming a key player in global trade, but Canada is falling behind. Its trade with Africa has barely grown in the last 20 years. Meanwhile, China and Europe expanded their trade with Africa. Since 2005, Canada’s total imports from Africa have declined as a share of total imports. Canada is missing a vital opportunity.

Africa currently accounts for a tiny portion of Canada’s total trade. In 2023, Canada exported CA$6.7 billion in goods to Africa, less than 1% of total exports. Canadian imports from Africa totaled CA$12.4 billion in 2023, less than 2% of total imports. Canada’s trade with Africa lags far behind its trade with other regions. For comparison, Canada trades 15 times more with Asia than with Africa.

Why is Canada’s trade with Africa falling short of its potential? One reason is that Canada doesn’t have free trade deals or strong economic ties with most African countries. Even though Canada gives many African exports duty-free access, it hasn’t backed that up with trade missions or promotion, unlike competitors like China or the EU. And Canadian exports, particularly in manufacturing, fall well short of what economic models predict—even in large, fast-growing African economies—pointing to untapped potential that cannot be explained by geography or market size alone.

But there are business cases that prove success is achievable on a larger scale. Algeria, Ghana, and Morocco already buy Canadian wheat. Canada’s auto industry has developed significant niche markets in Ghana, Mauritania, Senegal, and Togo.

Canada imports mainly minerals and agri-food products from Africa (agri-foods are anything that comes from a farm and ends up as food or beverages for consumption). South Africa and Morocco, for example, are both important suppliers of fruits and nuts to Canada. Côte d’Ivoire supplies cacao. And Morocco provides fertilizers that Canadian farmers use to grow food.

Africa has the foundations to be a much stronger trade partner with Canada. The implementation of the African Continental Free Trade Area (AfCFTA) could unlock the world’s largest free trade area and market, potentially boosting the region’s income by $450 billion by 2035. And Canada already has strong links with Africa. It shares two widely spoken languages, English and French. It doesn’t have a colonial legacy on the continent. And its growing African diaspora can help build stronger business ties. Canada’s first-ever Africa Strategy recognizes this opportunity; its implementation can make it a reality.

Canada’s missed export opportunity 

Currently, Canadian businesses are missing out on CA$1.7 billion in potential export earnings. This gap will grow to CA$2.7 billion by 2030 without dedicated efforts to address it. The map below shows the African countries with the most export (and import) potential. Horizontal lines within the hexagons indicate existing trade agreements with Canada.

Some Canadian products show particular potential:

• Ethiopia is the world’s third largest consumer of peas. Canada is among the world’s top producers.
• Africa’s consumption of plastic and rubber is expected to surpass North America and Europe by 2035, presenting an opportunity for Canadian exporters. In addition, Canada could support Africa with plastic waste management given Canada’s international leadership in the sector.
• Rice consumption is expected to significantly increase in several African countries over the next decade. That includes in Madagascar (+36.3%), Nigeria (+32.6%), and Egypt (+16.7%). That opens possibilities for Canada to diversify its rice exports away from the US.

Canada’s missed import opportunity 

Canada could purchase more of its imports from Africa. This is a simple, mutually beneficial move that would enable Canada to diversify its suppliers while supporting the economic transformation of African countries. Right now, Canada is missing out on about CA$2.3 billion in trade. If nothing changes, that gap could grow to CA$3.3 billion by 2030. That’s as much as the total aid Canada provided to Africa in 2023-24. Foreign aid still matters, but deepening economic ties and buying more from African businesses could reduce the need for aid over time.

With Canadian consumers and importers looking to pivot away from US products to avoid US-imposed tariffs, African countries could offer solutions for specific products, including:

• Orange juice: Canada relies heavily on Florida for orange juice imports, but countries like Egypt, Morocco, and South Africa have growing juice industries that could serve as alternative suppliers.

• Chocolate and cacao: Despite producing nearly 50% of the world’s cacao, Côte d’Ivoire and Ghana capture only a fraction of the global chocolate market’s value. Canada imports most of its chocolate from the US (56%), which imports raw beans, processes them, and exports finished products. Canada could help shift value chains by sourcing more value-added chocolate directly from African producers.

• Coffee: 61% of Canada’s roasted coffee imports come from the US, even though the beans originate in other countries. That includes African countries like Ethiopia and Uganda. By building direct supply chains with African coffee exporters, Canada can support greater value capture at origin and reduce dependency on US intermediaries.

Areas for strategic collaboration

Trade benefits both trading partners. Canada and African countries should work together where economic and climate goals align, including:

• Critical minerals: Canada and numerous African countries hold vast reserves of the minerals essential to the global green energy transition. Africa is home to 55% of the world’s cobalt, 48% of its manganese, 22% of its graphite, and 6% of global copper and nickel. Canada, meanwhile, has deposits of 34 critical minerals, including lithium, zinc, and rare earth elements, and is a global hub for mining investment. These shared strengths offer strong potential for strategic co-investment and supply chain integration. However, Canadian mining companies must go beyond extraction and support local value-addition and industrial development in African countries.

• Farm equipment and technology: As African countries invest in their agricultural sectors, there is growing demand for tools that make farming more productive. Canada could export or co-produce equipment like irrigation systems, food processing machinery, and equipment used in packaging and cold storage. The Democratic Republic of Congo, Morocco, South Africa, and Tunisia have strong or growing capabilities in manufacturing or agri-food processing. With the right investments and partnerships, Canadian firms could help strengthen both African food systems and manufacturing capacity.

How To Make Greater Canada-Africa Trade a Reality 

To grow its trade with African countries, Canada should look to deepen and improve existing trade policies. On paper, Canada already offers favorable market access to many African economies:

• Under the Least Developed Country Tariff program, most goods from 33 African countries can enter Canada duty-free.

• Under the General Preferential Tariff program, another 10 African countries benefit from reduced or duty-free tariffs on approximately 80% of imported goods.

Canada has also signed Foreign Investment Promotion and Protection Agreements (FIPAs) with seven African countries, with another nine in negotiations. These treaties offer legal protections for Canadian investors—including safeguards against expropriation and guarantees of fair treatment. FIPAs have faced criticism for favoring Canadian interests, however, particularly in the extractives sector. For instance, South Africa declined to sign a FIPA with Canada, citing terms that did not adequately reflect its national priorities. Any future trade or investment agreements must be fair, reciprocal, and aligned with African development goals.

While FIPAs are sometimes stepping stones, they are not a substitute for full Free Trade Agreements (FTAs). Canada currently has 15 FTAs in force covering 51 countries, but none with an African country.

Canada’s trade with Africa remains far below expected levels despite these favorable trade policies. This suggests that market access alone is not enough. Addressing the trade shortfall will require a more deliberate strategy.

To make progress, Canada needs to act on three fronts:

1. Send strong political signals that Canada is ready for trade with Africa, setting the tone from the highest levels:

   • The Prime Minister should commit to visiting the African continent during his first year in office.
   • The Minister of Trade should be mandated to organize a trade mission to one or more African countries in 2025-2026.
   • Global Affairs Canada should establish a specific, measurable five-year implementation plan of its recently released Canada-Africa Strategy.

2. Encourage more business ties with the continent and remove roadblocks to increase trade:

   • Mandate Export Development Canada to increase its engagement on the African continent and dedicate a section of the new CA$25 billion export credit facility outlined in the Liberal Party platform to support businesses to expand into new African markets, with a specific emphasis on African-Canadian diaspora-led businesses.
   • Mandate Immigration, Refugees and Citizenship Canada—in cooperation with Global Affairs Canada—to produce a study reviewing the economic and social impact of visa restrictions on visitors from the African continent that can create roadblocks to greater businesses ties. In addition, identify and reduce bottlenecks to visa applications.
   • Establish a new financing and policy mechanism to increase the risk capital available to Canadian firms operating in African markets.
   • Use a portion of the CA$5 billion Trade Diversification Corridors Fund to establish a new trade facility in the St. Laurent Valley to boost Trans-Atlantic trade, including with African markets.

3. Support Africa’s economic transformation. Several factors are undermining Africa’s potential as a key Canadian trade partner. They include: high debt payments, high costs of capital, and unreliable electricity, which hinder private sector growth. Canada can help African countries address these roadblocks by:

   • Leveraging Canada's 2025 G7 presidency to review and improve the processes for restructuring African countries’ debt.
   • Supporting a G20 Roadmap on the Cost of Capital to help address the inflated interest rates paid by African governments and private sector investors.
   • Increasing concessional financing and exploiting innovative financial instruments. The African Development Fund, which is seeking a crucial but challenging replenishment this year, will be especially important.
   • Launching a new Canada-Africa Electricity Partnership to support African countries to expand access to electricity to power economic growth on the continent.

The African region offers Canada a strategic opportunity to diversify its trade and deepen economic partnerships. Canada must shift its approach and engage African countries as equal partners, not just as aid recipients or sources of raw materials. It should build partnerships based on respect and shared benefit. At a time when other G7 nations are introducing new tariffs or attaching strict conditions to cooperation, Canada can be a strong business partner that champions a more open, respectful, and partnership-driven model of economic engagement. It would be a win-win for both Canada and Africa.