The African Continental Free Trade Area (AfCFTA) Secretariat has disclosed that Africa loses approximately $5 billion annually through foreign exchange (FX) transactions, a challenge that continues to increase the cost of doing business across the continent. This financial drain, according to the Secretariat, poses a serious barrier to Africa’s economic growth and competitiveness, limiting the ability of businesses and governments to maximize the benefits of regional trade.
Speaking at the 2nd International Conference on Environment, Social, Governance (ESG) and Sustainable Development of Africa (ICESDA 2025) in Accra, Dr. Tsotetsi Makong, AfCFTA’s Director for Coordination and Programmes, revealed that similar inefficiencies exist in digital transactions. He noted that the Secretariat is working to develop measures to reduce these losses and promote more efficient, integrated systems that support the goals of a unified continental market.
Dr. Makong further emphasized the importance of resource consolidation and market integration among African nations to attract large-scale investments. He argued that individual countries, due to their relatively small markets, cannot achieve sustainable development or attract the level of investment required for transformative growth. By uniting through AfCFTA to create a single continental market, African nations can enhance their global competitiveness and unlock greater economic opportunities.