Digital Trade to Unlock Africa’s Economic Growth – AfCFTA

The Secretary-General of the African Continental Free Trade Area, Wamkele Mene, says Africa’s digital economy could become a major catalyst for trade expansion, financial inclusion and investment growth as the continent accelerates efforts to remove cross-border payment barriers and deepen economic integration.

According to him, ongoing implementation of the AfCFTA Digital Trade Protocol and the Pan-African Payments and Settlement System is laying the foundation for faster, cheaper and more seamless transactions across African markets using local currencies.

Speaking at a private high-level luncheon organised by the French-Africa Foundation during the Africa Forward Summit, Mr. Mene said digital trade reforms are expected to significantly improve market access for African businesses operating under the AfCFTA framework.

He explained that one of the biggest obstacles to intra-African trade has been payment fragmentation and dependence on foreign currencies for settlements between African countries.

However, he said new digital payment systems being introduced under PAPSS are helping to reduce transaction friction, improve efficiency and support direct cross-border settlements in local currencies.

“The implementation of the Digital Trade Protocol and PAPSS is creating opportunities for seamless cross-border transactions,” he stated.

According to him, the reforms have the potential to transform the way African businesses trade by lowering transaction costs, shortening settlement periods and improving access to regional markets.

Mr. Mene stressed that strengthening digital payment infrastructure would be critical to unlocking the full economic potential of the continent, especially as Africa seeks to increase intra-African trade and reduce reliance on external markets.

He further noted that broader access to affordable trade finance remains essential if African businesses are to fully benefit from continental integration.

Particular emphasis, he said, must be placed on supporting small and medium-sized enterprises (SMEs), which continue to form the backbone of most African economies.

Mr. Mene observed that SMEs account for a substantial share of employment creation and economic activity across the continent, making their participation central to Africa’s long-term growth ambitions.

He warned that without targeted financing support and stronger digital infrastructure, many smaller businesses could struggle to take advantage of opportunities emerging under the AfCFTA regime.

The AfCFTA Secretary-General therefore called for stronger collaboration between governments, commercial banks, development finance institutions, fintech firms and private investors to accelerate implementation of digital trade systems and expand financial access across African economies.

He said Africa’s broader economic transformation agenda would depend heavily on how effectively the continent integrates its financial systems, digital infrastructure and trade networks over the coming decade.

Mr. Mene added that deeper economic integration under AfCFTA could help position SMEs as a major engine of growth, industrialisation and job creation by 2035.

Analysts say the growing focus on digital trade reflects increasing recognition that Africa’s future competitiveness will depend not only on physical infrastructure, but also on the ability to build efficient digital payment ecosystems capable of supporting cross-border commerce at scale.

The AfCFTA Digital Trade Protocol forms part of wider continental efforts to harmonise digital commerce regulations, improve interoperability between payment systems and create a more unified African market for goods and services.

Meanwhile, PAPSS, which was launched to facilitate instant cross-border payments across African countries, is expected to reduce dependence on correspondent banking systems and significantly lower the cost of intra-African transactions.

The latest remarks by the AfCFTA Secretariat come as African governments and policymakers intensify efforts to position digital trade, fintech innovation and regional integration as key pillars of the continent’s next phase of economic growth and industrial transformation.