By African View Reporter | July 2025
Africa’s intra-continental trade is steadily gaining momentum, thanks to the African Continental Free Trade Area (AfCFTA). What was once around 15% of total African trade in 2020 has climbed to 18% in 2022, with projections estimating a 45% increase by 2045 if momentum is sustained.
The Power of PAPSS
The Pan-African Payment and Settlement System (PAPSS) is transforming trade by enabling payments in local currencies. With over 150 banks across 15 countries, PAPSS cuts transaction costs from up to 30% to just around 1%, potentially saving Africa $5 billion annually tradeunionsinafcfta.org+11reuters.com+11afreximbank.com+11.
Challenges on the Road
Real obstacles remain, particularly border delays, visa restrictions, and fragmented transport networks. As one logistics expert noted, “The biggest barriers aren’t tariffs, they’re trucks stuck at borders.”
Still, efforts are underway: the Trans-African Highway, Lobito Corridor railway, and expansion of the Single African Air Transport Market are starting to break down old silos.
Scaling Integration
By late 2024, 37 countries were trading under AfCFTA customs rules. Pilot programs like the Guided Trade Initiative, covering Ghana, Kenya, Rwanda, Egypt, and more, are facilitating trade in key goods like tea, batteries, coffee, and processed food.
The Tripartite Free Trade Area (TFTA), uniting COMESA, EAC, and SADC since mid‑2024, underpins broader continental integration reddit.comen.wikipedia.org.
Private Sector & Finance
The African Union Private Sector Forum in 2024 emphasized digital trade, financial access, and freedom of movement as keys to unlocking AfCFTA’s potential. Meanwhile, the Fund for Export Development in Africa (FEDA) is stepping up to address a $110 billion trade finance gap facing SMEs.
What Comes Next
AfCFTA Secretary-General Wamkele Mene highlighted the urgency:
“We’re not just building trade routes, we’re building economic unity. But the clock is ticking.”
Africa is on the cusp of transformation. With stronger infrastructure, policy alignment, and private-sector engagement, trade within the continent could exit its nascent stage and become a robust engine of prosperity.
Visual context: The map above displays current intra-African trade corridors and hotspots—eastern and southern Africa are leading, but national and regional blocks are gradually aligning. Source: visualcapitalist.com
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