Africa is making bold strides to unlock a projected $712 billion digital trade market by 2035, leveraging the framework of the African Continental Free Trade Area (AfCFTA) to transform its digital economy, boost intra-continental commerce, and achieve economic sovereignty.
Speaking at the 2025 Afreximbank Annual Meetings (AAM2025) in Abuja, Wamkele Mene, Secretary General of the AfCFTA Secretariat, emphasized that the newly adopted Protocol on Digital Trade is a cornerstone of Africa’s vision to lead in digital commerce, data infrastructure, and innovation.
“This emerging market presents boundless opportunities for young African entrepreneurs, for the development of smart infrastructure like data centers, and for the commercial movement of data across borders,” Mene said.
A central pillar of this transformation is the Pan-African Payment and Settlement System (PAPSS), a collaboration between AfCFTA and Afreximbank. PAPSS enables real-time payments in local African currencies, reducing reliance on the US dollar and slashing transaction costs for cross-border trade.
“It is no longer sustainable for African countries to trade in third-party currencies. We must prioritise our currencies, build sovereignty, and protect our economies from global payment disruptions,” Mene declared.
Between May 2024 and May 2025, PAPSS transaction volumes surged by over 1,000%, according to Dr. Yemi Kale, Group Chief Economist at Afreximbank. The dramatic increase reflects rising confidence in the platform and growing demand for homegrown financial solutions.
To back the rollout of the AfCFTA and its adjustment mechanisms, over $10 billion has been mobilized under the AfCFTA Adjustment Fund, with an initial $1 billion disbursement. This fund is designed to support countries adapting to new trade protocols and revenue structures.
In addition, a $1 billion AfCFTA Automotive Fund is now active, targeting investment in vehicle assembly and automotive component manufacturing. If properly leveraged, the sector could contribute up to $46 billion to Africa’s GDP by 2035.
AfCFTA is also rolling out critical digital infrastructure to streamline trade and reduce friction at borders:
- AfCFTA E-Tariff Platform: Provides real-time tariff data.
- Rules of Origin Manual: Helps traders understand product qualifications for preferential treatment.
- Transit Guarantee System: Set to launch soon, this system will reduce delays in transporting goods across borders.
“We’ve moved from political declarations to a legally enforceable, rules-based African trading system,” Mene said. “Our protocols on investment, competition policy, and digital trade are laying the foundation for Africa’s economic autonomy.” he added.
Despite major achievements, Mene cautioned that the road to full implementation is fraught with challenges. These include:
- Inefficient customs processes
- High trade costs limiting SME access
- Political instability in several regions
- Food insecurity that excludes rural farmers from markets
“Conflict, particularly in rural areas, continues to shut millions of African farmers out of market opportunities. We cannot talk about inclusive trade without tackling these core issues,” Mene warned.
He called for coordinated action between policymakers and development financiers, including Afreximbank, to address infrastructure gaps, enhance trade facilitation, and ensure rural populations are not left behind.
What This Means for Africa
The AfCFTA is fast evolving from a continental trade pact into a strategic economic engine, capable of propelling Africa into the digital age on its own terms. With youth entrepreneurship, fintech innovation, and policy reform at its core, Africa is now poised not just to trade with the world but to trade with itself at scale.
If executed effectively, the protocol on digital trade, along with PAPSS and AfCFTA’s wider frameworks, could reshape Africa’s economic narrative from fragmented markets to a connected digital powerhouse by 2035.
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