As Africa Trade Landscape Enters Decisive Phase
Monrovia, Liberia – The CEO of UBA Africa, Chioma Mang, has stated that trade in Africa is going to enter a critical phase with rising volumes but minimal internal integration. According to World Trade Organization (WTO) estimates, the continent generated an anticipated US$1.5 trillion in overall trade in 2024, but it still only makes up around 3.3% of world trade.
Even though intra-African trade has grown to approximately US$220 billion, it still only accounts for 15% to 18% of total trade, which is much less than that of Europe and Asia. Additionally, intra-African trade increased from roughly 11% to 12% in early to mid-2024, according to current WTO statistics, highlighting the continent’s unrealized regional potential.
Mang emphasized that boosting economic activity both within the continent and with international partners is more important than simply raising trade volumes. She cited the United States, whose total products and services trade reached about US$104.9 billion in 2024, and the United Kingdom, where exports and services trade continue to rise, albeit from a lesser base, as examples of expanding trade connections with large countries.
She did pointed out that ineffective payment methods continue to be a major obstacle to expansion. “Trade cannot thrive where payments are slow, costly, or uncertain, highlighting the need for robust financial infrastructure to support cross-border commerce,” she narrated.
The implementation of the Pan-African Payment and Settlement System (PAPSS), which permits immediate cross-border payments in local currencies and lessens dependency on foreign exchange, has been an important development. Moreover, UBA, operating in 20 African countries and key global financial centers, is among the first banks to integrate the system, expanding its reach across the continent.
According to Mang, UBA has created products like Africash, Afritrade, and UBA Connect to make payments easier, increase company liquidity, and let clients conduct business in several African marketplaces. She emphasized that effective payment systems, regulatory confidence, and robust financial institutions that can connect domestic and international markets are essential to Africa’s trade aspirations, particularly under the African Continental Free Trade Area (AfCFTA).
“Africa’s trade future will not be unlocked by policy alone. It requires payment systems that work, institutions that connect markets, and innovation at scale,” Mang said.
In order to increase intra-African trade and strengthen economic relations with international partners, which would ultimately accelerate the continent’s growth, she concluded that enhancing payment systems and lowering transaction friction will be crucial.
Reported by: Prince Saah
