Bangladesh targets $4bn trade as Africa emerges as strategic growth partner

With growth slowing in traditional markets such as the United States and the European Union, Bangladesh is stepping up efforts to expand economic ties with Africa, where bilateral trade is approaching the $4 billion mark.

Data from the Export Promotion Bureau, Bangladesh Bank and the National Board of Revenue show that African exports to Bangladesh reached $3.76 billion in FY23, before easing to $2.84 billion in FY24 and $2.90 billion in FY25. During July–January of FY26, imports from Africa totaled $2.01 billion.

Bangladesh’s exports to the continent have steadily increased, rising from $367 million in FY23 to $386.5 million in FY24 and $417.7 million in FY25. In the first seven months of FY26, exports stood at $271 million.

Key African trading partners include Morocco, South Africa, Benin, Burkina Faso, Cameroon, Côte d’Ivoire, Egypt, Mali and Algeria.

Business leaders say Africa offers stronger long-term growth prospects compared to saturated markets in North America and Europe, especially in IT-enabled services, pharmaceuticals and ready-made garments.

South Africa gains strategic importance

South Africa has emerged as a pivotal partner in Bangladesh’s diversification strategy. Bangladesh’s High Commissioner to South Africa, Shah Ahmed Shafi, said Pretoria is becoming increasingly important as Dhaka seeks to broaden its economic footprint.

With a population of around 63 million and a GDP exceeding $400 billion, South Africa is the continent’s most industrialised economy. The province of KwaZulu-Natal, the second-largest contributor to GDP after Gauteng, has expressed interest in attracting Bangladeshi pharmaceutical investment.

Bangladesh’s exports to South Africa rose from $119 million in FY23 to $124.2 million in FY25, while South African exports to Bangladesh reached $176 million in FY25. Total formal economic engagement between the two countries, including trade and remittance flows, surpassed $800 million in FY25.

Remittances reach record highs

Remittance inflows from Bangladeshi expatriates in South Africa have surged. In FY25, they sent home more than $402.9 million. During July–January of FY26 alone, remittances nearly reached $395.4 million, setting a new record.

Officials estimate that as much as 30 percent of remittances may be flowing through informal channels. Between 400,000 and 500,000 Bangladeshis are believed to live in South Africa, many engaged in small and medium-sized businesses.

Bankers suggest that with supportive policies and incentives, total economic engagement between Bangladesh and South Africa could reach $1 billion in 2026.

Expanding multilateral engagement

Nana Akufo-Addo, chair of the Commonwealth Observer Group and former president of Ghana, recently invited Bangladesh to invest in Africa’s jute sector.

Meanwhile, South Africa’s High Commissioner to Bangladesh, Anil Sooklal, emphasised the need to strengthen trade visibility and people-to-people connections, identifying pharmaceuticals, education, culture, sports and private sector collaboration as priority areas.

Honorary Consul Md Solaiman Alam Seth said Bangladesh’s steady economic growth, women’s empowerment in the garment industry and resilience in disaster management position the country well to deepen engagement with Africa’s emerging economies.