Africa’s $3.4 Trillion Market at Risk: Afreximbank Urges Digital Trade Innovation
Africa could lose out on the full potential of its $3.4 trillion market unless urgent steps are taken to remove digital barriers, the African Export-Import Bank (Afreximbank) has warned. Dr. Yemi Kale, Afreximbank’s Group Chief Economist and Managing Director of Research, highlighted the issue during an engagement in Abuja focused on “Unlocking Nigeria’s Trade and Investment Potential Through Digital Innovation and the Abuja Africa Trade Centre (AATC).”
The African Continental Free Trade Area (AfCFTA) has created the world’s largest new trading bloc, with a combined population of over 1.3 billion and GDP exceeding $3.4 trillion. Yet, intra-African trade remains low, between 15 and 18 percent, far below Europe’s 60 percent and Asia’s 40 percent. Dr. Kale cited market fragmentation, high logistics costs, poor trade data, and cross-border payment hurdles as the main obstacles holding back growth.
Technology, Kale explained, could be a game-changer. Digital tools like automated customs systems, e-commerce platforms, AI-driven market intelligence, end-to-end supply chain solutions, and digital payments are already reshaping global trade. He pointed to Rwanda’s digital single-window system and Africa’s booming mobile money ecosystem as examples of successful innovation on the continent.
Afreximbank’s initiatives, including the Pan-African Payment and Settlement System (PAPSS), the African Trade Gateway (ATG), trade intelligence services, and the AfCFTA Adjustment Fund, are designed to reduce trade costs and increase efficiency. “Digital transformation empowers small and medium-sized businesses, especially young entrepreneurs, giving them wider market access,” Kale said, highlighting Nigeria’s youth-driven potential with 65 percent of the population under 25.
The engagement also featured live demonstrations of Afreximbank’s Trade Intelligence Solutions, ATG, and TRADAR, showcasing how Abuja Africa Trade Centres can boost trade and investment across the continent. “Digital innovation is more than a tool; it’s a strategic platform for integration, competitiveness, and global economic influence,” Kale concluded, urging Africa to confront barriers with urgency, clarity, and collaborative action.
source: The sun