14th January 2026
African policymakers and market participants are increasingly leveraging digital payment systems to accelerate intra-continental trade, aiming to transform the African Continental Free Trade Area (AfCFTA) from a legal framework into a fully operational commercial ecosystem. Historically, cross-border trade in Africa has been slowed by multiple currency conversions, reliance on correspondent banks outside the continent, and long settlement times. Interoperable digital payment platforms, including wallet-based services, blockchain-enabled trade finance, and automated compliance tools, are now being positioned as strategic enablers to reduce these frictions, enhance transparency, and keep value circulating within Africa.
Central banks have actively supported platforms that enable local currency transactions, while initiatives such as the Pan-African Payment and Settlement System (PAPSS) facilitate instant or near-instant settlement across member countries. Traders, particularly small and medium-sized enterprises (SMEs), benefit from faster payments, reduced currency risk, and improved trade predictability. Large corporates are also integrating digital payment solutions into their treasury operations to manage suppliers, reduce foreign-exchange exposure, and comply with local regulations, which may foster deeper regional supply chains in agriculture, consumer goods, and light manufacturing.
While challenges remain—including regulatory misalignment, uneven platform interoperability, cyber-security risks, and uneven digital inclusion—the momentum behind digital trade finance is strong. Formalization of payments for informal cross-border traders could expand access to credit, insurance, and logistics services. Regional development institutions estimate that effective implementation of continent-wide digital trade systems could generate tens of billions of dollars in additional income over the medium term, driven by increased trade volumes, lower transaction costs, and faster capital turnover.