Despite the significant progress made under the African Continental Free Trade Area (AfCFTA), payment systems across the continent still require major improvements to fully support intra-African trade, a trade expert has said.
Speaking during a webinar organised by LIMA Partners under the theme “Unlocking Opportunities Across Africa: Harnessing AfCFTA for Business Growth,” Chinedu Ezomike, Partner and Head of Commercial Practice at Andersen, Nigeria, said that while AfCFTA’s benefits — such as tariff reductions and customs reforms — are clear, logistical and financial infrastructure challenges continue to hamper seamless business across borders.
However, he pointed to significant hurdles in areas such as air travel and payment systems, which complicate efforts to expand trade across Africa.
“We know there are serious challenges in air movement. I want to book a flight to another country on the continent, you will have to end up in Europe before you can book the flight back to the African country. Those issues are there, and it is time to look at how to continue to improve them.
“The payment system needs to be improved. I want to do business in Ghana, for example, I have to convert to the Dollar and then convert to Cedis, which doesn’t make any sense. Those kinds of infrastructure improvements are now going on, and I am sure it will get to a time when it will be sorted out,” he stated.
He expressed optimism that with ongoing improvements, Africa’s vast market potential could be fully unlocked, saying: “Africa is huge and that is a whole market that I believe, the incentives of making business is clear.”