February 5, 2026Boosting Trade and Economic Integration Across Europe and Africa

REMARKS BY IMF MANAGING DIRECTOR KRISTALINA GEORGIEVA, ALGERIA

February 5, 2026

Let me begin by expressing my deep appreciation to our hosts in Algeria: Prime Minister Sifi Ghrieb and Governor Mouatassem Boudiaf, and all those who have worked to bring us together in beautiful Algiers-a city that has long been a crossroads of cultures. I am delighted to be here for the first time. It is a privilege to join you today.

We meet at a moment of profound global transformation. Geopolitical tensions are rising, trade and financial flows are being re-wired, supply chains reconfigured, and energy systems reimagined. All this when technology is advancing at remarkable speed, in particular the role of AI. So, it is no surprise that uncertainty remains elevated and is likely to be the new normal.

It is precisely at such moments that cooperation is needed the most. And this is what I'd like to speak to you about today.

North Africa has a significant opportunity-an opportunity to deepen its cooperation, trade and integration with sub-Saharan Africa and Europe, and to offer greater growth and prosperity for its people.

Of course, the region already has a history of such economic links with trade routes and investment flows with Europe-and more recently, greater engagement with its southern neighbors. The signing of Africa's continental free trade agreement is just such an example. It holds the promise of becoming one of the drivers of integration across the continent, with benefits not only for its own people but also for Europe.

My message to you is this: supercharge this integration.

Today, Europe is looking to expand its trade partnerships. Sub-Saharan Africa is looking for avenues to tap the potential of its vast resources and people. And North Africa offers numerous opportunities for investment and partnership.

Think of manufacturing hubs that source raw materials or intermediate goods from sub-Saharan Africa. Or, joint infrastructure projects-such as cross-regional railways or digital connectivity platforms. These could unlock economies of scale and improve logistical efficiency across the continent.

Energy is another powerful example. With abundant solar and wind resources, North Africa can power industries at home and abroad-supporting Europe's energy transition, alleviating Africa's electricity gaps, and accelerating technology transfer across regions. In Sub-Saharan Africa still today 600 million people lack access to electricity-something that the rest of us simply cannot imagine living without.

Algeria, in fact, is showing the way with its dual energy advantage-by advancing hybrid solar-gas projects in the Sahara, expanding power interconnections with Europe, and investing in green hydrogen for export.

So, how should policymakers supercharge this integration?

First, reduce barriers to trade. Average North African import tariffs standing at 7 percent are higher than those in many ASEAN, GCC, EU and sub-Saharan Africa economies. While Europe accounts for most of North Africa's trade, trade between North and sub-Saharan Africa is negligible, representing only 4 percent of exports and just 1 percent of imports. We can do more.

Second, implement reforms that strengthen the trade and business environment. Efficient trade logistics, a predictable business and regulatory environment, strong governance-these are all essential for investment and exports. For example, modernizing ports and customs systems, and investing in cross-border corridors like the Trans-Maghreb and Cairo-Dakar highways-can dramatically improve connectivity and competitiveness. For new engines of growth to flourish, the region must become a hub where goods, services and capital flow more freely and businesses thrive.

Finally, focus on people, the backbone of any economy. North Africa already possesses strong human capital, but there is an opportunity to take that to the next level. Investments in technical and vocational education, enhancing workforce skills including in AI, investments in health - these can all support inclusive, productivity-driven growth.

The potential benefits of these reforms are significant. In a new IMF report we published today, we show that a comprehensive package of reforms that increase North Africa's economic linkages with Europe and sub-Saharan Africa could boost the level of North Africa's exports by 16 percent and GDP by over 7 percent-increasing economic output by 67 billion dollars. There would also be meaningful benefits for both sub-Saharan Africa and Europe through greater supply-chain participation and investment, and greater resilience and growth in neighboring regions.

Let me conclude.

When I was preparing for this conference, I learned this Arabic saying: "El yed el wahda ma tsaffeq"-which translates as one hand does not clap.

It is a fitting metaphor for our task. Because in times of sweeping transformations, cooperation is not optional, it is essential.

That is why I am so pleased to see participants from across North Africa, sub-Saharan Africa and Europe here today to discuss ways to supercharge their integration and collaboration.

From Algiers to Alexandria and Lagos to Lisbon. Working together, we can bring prosperity and opportunity to millions of people. Thank you.