The African Export-Import Bank (Afreximbank) has called for the accelerated implementation of the African Continental Free Trade Area (AfCFTA). The bank warned that the continent risks missing a historic economic opportunity if it continues to delay trade integration and the development of digital infrastructure.
Speaking at the Afreximbank Accelerator Programme Demo Day, Dr. Yemi Kale, the bank’s Group Chief Economist and Managing Director of Research, stated that Africa’s future economic competitiveness will depend entirely on how quickly the continent can build integrated trade systems, interoperable payment platforms, and technology-enabled logistics infrastructure. Delivering a keynote address titled “Why Now? The Macroeconomic Shifts Driving Africa’s Trade-Tech and Innovation Economy,” Dr. Kale described the AfCFTA as one of the most significant economic integration projects in modern history and a critical platform for allowing African businesses to expand across borders.
According to Dr. Kale, decades of fragmented national markets, a lack of regulatory harmonization, currency inefficiencies, and weak cross-border infrastructure have heavily constrained African commerce and weakened the growth potential of indigenous businesses. However, he emphasized that the AfCFTA’s combined market of more than 1.4 billion people and a Gross Domestic Product exceeding 3 trillion dollars presents an unprecedented opportunity to unlock economies of scale, industrial competitiveness, and regional value chains.
The Chief Economist noted with regret that Africa currently accounts for less than three percent of global trade, while intra-African trade remains below 15 percent of total African commerce, which is significantly lower than the levels recorded in Europe and Asia. He identified fragmented payment systems, high logistics and transportation costs, border delays, and limited access to finance as the major barriers undermining African trade competitiveness. He explained that these issues are not merely operational inefficiencies but are macroeconomic constraints because they suppress productivity, weaken competitiveness, and limit Africa’s ability to fully integrate into emerging global value chains.
Nevertheless, Dr. Kale pointed out that trade-tech innovations are now playing a central role in overcoming these challenges. He noted that digital payment systems, artificial intelligence-driven logistics platforms, and supply-chain technologies are actively helping African businesses reduce friction in cross-border trade and improve market access, declaring that trade-tech is becoming the operating system of African commerce. He highlighted the strategic importance of the Pan-African Payment and Settlement System (PAPSS) launched by Afreximbank, describing it as foundational infrastructure for trade integration.
Historically, a significant share of intra-African payments had to be settled through correspondent banks outside the continent using foreign currencies such as the US dollar and the euro, creating delays, liquidity pressures, and high transaction costs. By enabling local currency settlement across African markets, PAPSS is expected to reduce dependence on external currencies, lower transaction costs, and strengthen intra-African trade competitiveness.
Dr. Kale described the current period as “Africa’s build decade,” urging policymakers to prioritize regulatory harmonization, digital connectivity, and energy infrastructure to support AfCFTA implementation. He concluded with a call to action for Africa’s entrepreneurs, encouraging them to think continentally and build boldly for scale, noting that the future global economy is still being written and Africa must not merely adapt to it but help shape it.
