The African Export-Import Bank (Afreximbank) has called for accelerated implementation of the African Continental Free Trade Area (AfCFTA), warning that Africa risks missing a historic economic opportunity if trade integration and digital infrastructure development are delayed.

Speaking at the Afreximbank Accelerator Programme Demo Day, Group Chief Economist and Managing Director, Research, Afreximbank, Dr Yemi Kale, said Africa’s future economic competitiveness would increasingly depend on how quickly the continent builds integrated trade systems, interoperable payment platforms and technology-enabled logistics infrastructure.

Delivering a keynote titled, ‘Why Now? The Macroeconomic Shifts Driving Africa’s Trade-Tech and Innovation Economy’, Kale described AfCFTA as one of the most significant economic integration projects in modern history and a critical platform for scaling African businesses across borders.

According to him, decades of fragmented national markets, regulatory divergence, currency inefficiencies and weak cross-border infrastructure have constrained African commerce and limited the growth potential of indigenous businesses.

He noted that AfCFTA’s combined market of more than 1.4 billion people and GDP exceeding $3 trillion presented an unprecedented opportunity to unlock economies of scale, industrial competitiveness and regional value chains.

Kale regretted that Africa currently accounts for less than three per cent of global trade, while intra-African trade remains below 15 per cent of total African trade, significantly lower than levels recorded in Europe and Asia.

He identified fragmented payment systems, high logistics costs, border delays and limited access to finance as some of the major barriers undermining African trade competitiveness.

“These are not merely operational inefficiencies; they are macroeconomic constraints because they suppress productivity, weaken competitiveness and limit Africa’s ability to
fully integrate into emerging global value chains,” Kale said.

The Chief Economist stressed that trade-tech innovation is now becoming central to overcoming those challenges. He noted that digital payment systems, AI-driven logistics platforms, supply-chain technologies and embedded finance solutions are helping African businesses reduce friction in cross-border trade and improve market access. “Trade-tech is becoming the operating system of African commerce,” he declared.

Kale 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, he noted, 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 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.

“Its implications are not merely technical; they are macroeconomic and strategic because economic integration ultimately depends not only on trade agreements, but also on the infrastructure that allows businesses to transact seamlessly across borders,” he said.

The Chief Economist also referenced the Africa Trade Gateway, which he said is designed to connect trade facilitation, financing, market intelligence and business connectivity into a unified digital commercial ecosystem.

According to him, the next generation of globally competitive African companies would likely emerge from enterprises built for continental scale rather than isolated national markets.

“Large markets attract capital. Capital accelerates innovation. Innovation enhances productivity. Productivity drives industrialisation and competitiveness,” he said.

Kale argued that Africa must move beyond being a passive consumer of imported technologies and build indigenous capabilities in digital infrastructure, AI governance, cybersecurity, software engineering and innovation financing.

He said Afreximbank is increasingly expanding its mandate beyond traditional trade finance into digital transformation, logistics systems, innovation ecosystems and continental integration mechanisms aimed at reducing friction across African commercial systems.

Describing the current period as ‘Africa’s build decade,’ he urged policymakers to prioritise regulatory harmonisation, digital connectivity, energy infrastructure and institutional credibility to support AfCFTA implementation.

“To Africa’s entrepreneurs, I encourage you to think continentally and build boldly for scale. The future global economy is still being written and Africa must not merely adapt to it but help shape it,” he said.