Africa’s ambition to deepen trade among its own economies is running into a familiar problem: moving money across borders remains too complicated and expensive.
Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat, has renewed calls for stronger payment systems, more efficient borders and better infrastructure to help businesses fully benefit from the continental market.
Speaking to project professionals at the Project Management Institute’s Global Summit Series in Cape Town, Mene highlighted the practical challenges that continue to stand between AfCFTA’s trade ambitions and the businesses expected to drive them.
His intervention placed particular attention on cross-border payments, where African companies can still face significant costs when trading with one another.
Africa’s Trade Ambitions Face Payment Hurdles
Mene illustrated the problem with a transaction involving businesses in Ghana and Kenya.
Although both companies are operating within Africa, completing the transaction may require them to purchase a third currency, typically the US dollar, before payment can be made.
That additional step creates another layer of cost for businesses that are already dealing with logistics, customs procedures and other expenses associated with cross-border trade.
Mene estimated that currency conversion costs linked to such transactions could amount to approximately US$5 billion annually across the continent.
The figure underscores the financial burden created by fragmented payment arrangements and explains why improving the mechanics of intra-African trade has become an important part of the AfCFTA implementation agenda.
“We all have a contribution to creating a single integrated market,” Mene said.
The objective, therefore, extends beyond signing a continental trade agreement. Businesses must be able to use that agreement without facing unnecessary costs and administrative obstacles every time they enter another African market.
PAPSS Offers Route Around Third-Currency Costs
Against this backdrop, the Pan-African Payment and Settlement System (PAPSS) has emerged as one of the practical tools supporting AfCFTA implementation.
Developed by Afreximbank in collaboration with the AfCFTA Secretariat, PAPSS enables cross-border payments in local currencies.
The system is designed to reduce dependence on third currencies and make transactions between African businesses more direct.
Its relevance becomes more apparent when viewed against the Ghana-Kenya example highlighted by Mene. A payment mechanism that allows businesses to settle transactions through local currencies could reduce the need for additional currency conversions and the costs associated with them.
That could become increasingly important as African economies seek to increase trade with one another and reduce their exposure to external payment channels.
The wider challenge, however, is ensuring that businesses can actually access and use the systems being developed.
Customs And Infrastructure Still Matter
Payment systems represent only one part of the AfCFTA equation.
Mene stressed that governments must also align national policies with continental commitments while customs authorities need to apply agreed rules more effectively.
Efficient borders are essential because cheaper payments alone cannot solve delays caused by cumbersome customs procedures or inadequate transport infrastructure.
Infrastructure investment therefore remains central to the continent’s integration efforts.
Mene called for greater attention to project preparation and trade infrastructure, alongside investment in digital systems.
The Digital Trade Protocol was also highlighted as an important component in creating conditions for investment in emerging technologies and data centres.
Such investments require coordination across several institutions and countries. Roads, ports, customs platforms, payment systems and digital infrastructure must work together if businesses are to experience the benefits of a genuinely integrated market.
Protecting Businesses As Markets Open
The expansion of continental trade also raises concerns about how domestic industries will cope with increased competition.
Mene acknowledged these concerns and pointed to safeguards contained within the AfCFTA framework.
“We have rules that protect infant industries in a country,” he said.
He also emphasised the importance of assessing potential losses and providing support to businesses that may experience disruption as markets become more open.
That approach places domestic reforms alongside continental cooperation. Businesses need opportunities to reach larger markets, but they also require the capacity, infrastructure and policy support needed to compete effectively.
Project Professionals Become Critical To AfCFTA
The summit also connected Africa’s trade ambitions with the growing need for professionals capable of delivering complex projects across institutional and national boundaries.
Asamani argued that the success of continental integration depends partly on whether professionals can translate policy commitments into systems that businesses can actually use.
“A continental agreement becomes meaningful when a business can use it,” said Asamani.
“That depends on people who can coordinate institutions, manage risk, deliver reliable systems and keep the intended benefit in view. Project management provides the discipline to carry a policy commitment through to a service that businesses can use.”
Asamani
That responsibility cuts across infrastructure, agriculture, construction, services, customs and technology.
“Africa needs more project professionals equipped to deliver across these boundaries,” Asamani added.
“Investing in their capabilities strengthens our ability to build infrastructure, implement digital systems and make public institutions more effective. It also gives African talent a greater role in delivering the projects that will shape the continent’s future.”
Asamani
AfCFTA’s Commercial Test Lies Ahead
The success of AfCFTA will ultimately be experienced at the level of individual businesses.
A manufacturer seeking customers in another African country, a farmer looking for a regional market or a service provider expanding across borders will need more than preferential trade rules. They will need payments that work, customs procedures that are efficient and infrastructure capable of moving goods and services reliably.
Mene’s focus on PAPSS therefore places payment efficiency at the heart of Africa’s broader integration ambitions.
Reducing the estimated US$5 billion annual currency conversion burden could give businesses more room to trade, invest and expand across the continent. But achieving that outcome will depend on how effectively payment systems are combined with customs reforms, infrastructure development, digital investment and stronger project delivery.
The push now is to ensure that AfCFTA moves beyond an agreement on paper and becomes a practical platform through which African businesses can access new markets at lower cost and with fewer administrative barriers.
READ ALSO: Semenyo Earns Player of the Month Nomination
