Abuja: The African Export-Import Bank (Afreximbank) emphasizes the significance of digital transformation in unlocking trade and investment potential under the African Continental Free Trade Area (AfCFTA). Dr. Yemi Kale, Group Chief Economist and Managing Director, Research, at Afreximbank, highlighted this during an engagement event titled ‘Unlocking Nigeria’s Trade and Investment Potential Through Digital Innovation and the Abuja Africa Trade Centre (AATC)’ held in Abuja.
According to News Agency of Nigeria, Kale pointed out that the AfCFTA has established the world’s largest new trading bloc, representing a unified market of over 1.3 billion people and a combined GDP exceeding 3.4 trillion dollars. He noted that this integration represents more than just a symbolic milestone but serves as a strategic platform that can redefine African economies’ production, trade, and competition in the global economy. The regional integration presents an opportunity to expand value chains, reduce dependence on primary commodities, accelerate industrialization, and solidify Africa’s position in global markets.
However, Kale expressed concern over the current state of intra-African trade, which averages between 15 and 18 percent, in stark contrast to 60 percent in Europe and 40 percent in Asia. He identified several challenges hindering trade growth across the continent, including market fragmentation, high logistics costs, trade data gaps, and cross-border payment issues. Kale emphasized the need for Africa to address these obstacles with clarity, urgency, and innovation, leveraging digital transformation as a powerful accelerator.
Digital technologies such as end-to-end supply chain systems, automated customs services, e-commerce platforms, AI-driven market intelligence, and digital payments are transforming global trade structures, Kale explained. He cited Rwanda’s digital single-window model and the rise of mobile money platforms as successful examples of innovation. Afreximbank’s Pan-African Payment and Settlement System (PAPSS) is projected to save the continent billions in currency conversion costs.
Digital innovation is also crucial for supporting small and medium-sized businesses, including young entrepreneurs who can now access wider markets through online platforms. Kale noted that Nigeria’s large youth population, with 65 percent under the age of 25, gives the country a strategic advantage in leading Africa’s next phase of digitally-enabled trade. He emphasized the importance of strengthening skills, regulation, finance, and collaboration to accelerate this impact.
Afreximbank is supporting this growth with initiatives such as the African Trade Gateway (ATG), trade intelligence services, and the AfCFTA Adjustment Fund. The ATG integrates trade information, due diligence, secure payments, and market insights, providing African businesses with the tools needed to compete effectively in an integrated continental market. Kale commended Nigeria’s leadership role in advancing these priorities.
The Abuja Afreximbank Africa Trade Centre (AATC) further demonstrates the bank’s commitment to modernizing trade by offering facilities that integrate information services, exhibition spaces, a business hotel, and access to digital trade tools. Kale highlighted that the AATC is the first in a network of one-stop trade hubs being developed across Africa and the diaspora, designed to help businesses access financing, partners, market intelligence, logistics support, and technology services within a single space.
In conclusion, Kale urged stakeholders to collaborate and drive digital transformation to build a continent where entrepreneurs can compete globally. He emphasized that this is not a distant dream but a future within reach if innovation and collaboration are embraced.
Participants at the event witnessed a live demonstration of Afreximbank’s Trade Intelligence Solutions- ATG and TRADAR, exploring the role of AATCs in promoting trade and investment.