…Launches investment-backed strategy to power Africa’s economic integration
By Seun Ibiyemi
Africa is making a strategic push to tap into a projected $712 billion digital trade market by 2035 through the African Continental Free Trade Area (AfCFTA), marking a significant shift toward tech-enabled growth, economic integration, and financial independence.
Speaking at the 2025 Afreximbank Annual Meetings in Abuja, Wamkele Mene, Secretary General of the AfCFTA Secretariat, described the Protocol on Digital Trade as a cornerstone of the continent’s broader strategy to unlock the potential of Africa’s digital economy.
“We aim to seize this enormous opportunity that includes support for young entrepreneurs, investment in data centres, data exchange, and the establishment of digital public infrastructure,” Mene stated.
Afreximbank is at the heart of this effort, offering financial infrastructure and trade financing tools vital to the execution of AfCFTA.
Mene made clear that trade-boosting measures such as green industrialisation and tariff reduction cannot succeed without the bank’s continued involvement.
One of the key innovations already driving this transformation is the Pan-African Payment and Settlement System (PAPSS), which enables cross-border transactions in local currencies. This initiative is cutting costs and reducing dependence on the US dollar.
According to Afreximbank’s Chief Economist, Dr Yemi Kale, PAPSS transaction volumes have surged by over 1,000% between May 2024 and 2025.
“To secure the continent’s economic autonomy and shield it from volatile global geopolitical shifts that disrupt financial systems, we must gradually reduce our reliance on foreign currencies in intra-African trade,” Mene noted.
Backing this momentum is a substantial financial commitment. Mene disclosed that $10 billion has been raised under the AfCFTA Adjustment Fund, with $1 billion already disbursed.
A separate $1 billion AfCFTA Automotive Fund has also been launched to support local component manufacturers and vehicle assembly operations—a sector forecast to generate $46 billion by 2035.
Further efforts to streamline trade include the development of platforms such as the AfCFTA E-Tariff tool, a Rules of Origin Manual, and a forthcoming Transit Guarantee System, all aimed at enhancing regulatory clarity and encouraging intra-African commerce.
“We have moved from political rhetoric to establishing a binding and operational multilateral trade framework on the continent,” Mene added, referring to newly ratified protocols on investment, competition, and digital trade.
However, he acknowledged that key hurdles persist. High transaction costs, cumbersome customs procedures, limited access for small and medium-sized enterprises, and regional instability continue to obstruct full market integration.
Mene called for stronger partnerships between African governments and development finance institutions to tackle these issues and ensure AfCFTA delivers on its transformative potential.