Africa Sets Sights on $712 Billion Digital Trade Boom by 2035 with AfCFTA
Africa is strategically aligning itself to tap into a projected $712 billion digital trade market by 2035 through the African Continental Free Trade Area (AfCFTA). At the 2025 Afreximbank Annual Meetings in Abuja, AfCFTA Secretary General Wamkele Mene highlighted the centrality of the Protocol on Digital Trade to the continent’s economic transformation. This move aims to unlock opportunities in data infrastructure, entrepreneurship, and digital commerce across African nations.
Mene emphasized the indispensable role of Afreximbank in providing the necessary financial mechanisms for AfCFTA’s success. The bank supports tariff reduction, industrial development, green trade, and sustainability initiatives. A cornerstone of this collaboration is the Pan-African Payment and Settlement System (PAPSS), designed to facilitate intra-African payments in local currencies. This shift is intended to reduce dependence on the US dollar and reinforce Africa’s economic sovereignty amidst global financial volatility.
To support AfCFTA implementation, $10 billion has been raised under the Adjustment Fund, with a $1 billion initial disbursement. In addition, the establishment of a $1 billion AfCFTA Automotive Fund is set to spur vehicle component manufacturing and assembly, a sector that could contribute $46 billion to the continent’s GDP by 2035. These funds are designed to accelerate industrial growth and job creation across African economies.
Further initiatives include the AfCFTA E-Tariff platform, Rules of Origin Manual, and a Transit Guarantee System, all aimed at streamlining trade processes. Mene stressed that Africa has moved from lofty political ambitions to constructing a concrete, rules-based trading framework that now includes digital trade, competition policy, and investment protocols.
Despite these advances, challenges remain. Mene warned that poor customs systems, high trade costs, political instability, and food insecurity still hinder progress, especially for smallholder farmers and SMEs. He called for sustained collaboration among governments, financiers, and stakeholders to overcome these barriers and ensure inclusive growth. Notably, Afreximbank’s Yemi Kale revealed that PAPSS transaction volumes surged over 1,000 percent between 2024 and 2025, signaling growing confidence in Africa’s digital trade ecosystem.
Source: Business day