Follow Us on Google
From Adanna Nnamani, Abuja
The African Export-Import Bank (Afreximbank) has warned that Africa risks missing out on the full potential of its $3.4 trillion market unless urgent steps are taken to remove digital barriers.
Group Chief Economist and Managing Director of Research at Afreximbank, Dr. Yemi Kale, stated this on Thursday during an engagement session in Abuja themed “Unlocking Nigeria’s Trade and Investment Potential Through Digital Innovation and the Abuja Africa Trade Centre (AATC).”
Kale said the African Continental Free Trade Area (AfCFTA) had created the world’s largest new trading bloc, with a combined population of over 1.3 billion and a GDP exceeding $3.4 trillion. Yet intra-African trade still lags between 15 and 18 per cent, far below Europe’s 60 per cent and Asia’s 40 per cent.
He identified market fragmentation, high logistics costs, poor trade data and cross-border payment hurdles as the main factors stalling Africa’s trade growth.
Highlighting the role of technology, Kale said digital tools such as automated customs systems, e-commerce platforms, AI-driven market intelligence, end-to-end supply chain systems, and digital payments are already reshaping global trade.
He cited Rwanda’s digital single-window system and the rapid expansion of mobile money as examples of successful innovation on the continent.
Other News
Kale also mentioned Afreximbank’s Pan-African Payment and Settlement System (PAPSS) as a platform projected to save billions of dollars in currency conversion costs.
According to him, digital innovation empowers small and medium-sized businesses, especially young entrepreneurs, by providing wider market access. He noted that Nigeria, with 65 per cent of its population under 25, is well-positioned to lead Africa’s digital trade revolution.
“This integration is more than symbolic. It is a strategic platform capable of redefining how African economies produce, trade and compete globally. If Africa must rise to its true economic stature, we must confront these obstacles with clarity, urgency and innovation.
“Digital transformation is one of the most powerful tools available to us. Our young innovators are creating solutions, founding start-ups, and shaping new industries. Strengthening skills, regulation, finance and collaboration will accelerate this impact. This building is more than a physical structure. It is a catalytic platform for integration, innovation and investment,” he said.
Kale also outlined Afreximbank initiatives such as the African Trade Gateway (ATG), trade intelligence services, and the AfCFTA Adjustment Fund, saying these tools enable businesses to operate effectively in an integrated continental market.
Participants at the session also witnessed live demonstrations of Afreximbank’s Trade Intelligence Solutions, ATG and TRADAR, and explored how AATCs can enhance trade and investment across the continent.
