Okeoghene Akubuike
The African Export-Import Bank (Afreximbank) says digital transformation is critical to unlocking trade and investment potential under the African Continental Free Trade Area (AfCFTA).
Dr Yemi Kale, Group Chief Economist and Managing Director, Research, Afreximbank, stated this at an engagement event on “Unlocking Nigeria’s Trade and Investment Potential Through Digital Innovation and the Abuja Africa Trade Centre (AATC)” on Thursday in Abuja.
Kale said the AfCFTA had created the world’s largest new trading bloc, representing a unified market of over 1.3 billion people and a combined GDP of more than 3.4 trillion dollars.
“This integration goes beyond a symbolic milestone.
“It is a strategic platform capable of redefining how African economies produce, trade and compete in a rapidly changing global economy,” he said.
He noted that regional integration presented a once-in-a-generation opportunity to expand value chains, reduce dependence on primary commodities, accelerate industrialisation and strengthen Africa’s position in global markets.
Kale, however,expressed concern that intra-African trade still averages between 15 and 18 per cent, compared with 60 per cent in Europe and 40 per cent in Asia.
He identified market fragmentation, high logistics costs, gaps in trade data and cross-border payment challenges as factors limiting trade growth across the continent.
“If Africa must rise to its true economic stature, we must confront these obstacles with clarity, urgency and innovation.
“We must do so using one of the most powerful accelerators available to us and that is digital transformation.”
He explained that digital technologies such as end-to-end supply chain systems, automated customs services, e-commerce platforms, AI-driven market intelligence and digital payments were changing the structure of global trade.
Kale cited Rwanda’s digital single-window model and the growth of mobile money platforms as evidence of successful innovation
He noted that Afreximbank’s Pan-African Payment and Settlement System (PAPSS) was projected to save the continent billions in currency conversion costs.
According to him, digital innovation supports small and medium-sized businesses, including young entrepreneurs who can now access wider markets using online platforms.
He said that Nigeria’s large youth population gave the country a strategic advantage to lead Africa’s next phase of digitally-enabled trade.
“With 65 per cent of Nigeria’s population under 25, our young innovators are creating solutions, founding start-ups and shaping new industries.
“ Strengthening skills, regulation, finance and collaboration will accelerate this impact,” he said.
He said Afreximbank was supporting this growth through the African Trade Gateway (ATG), trade intelligence services, and the AfCFTA Adjustment Fund among other initiatives.
“The ATG integrates trade information, due diligence, secure payments, and market insights, which are precisely the tools required for African businesses to compete effectively in an integrated continental market.
“ It is, therefore, encouraging that Nigeria has taken a leadership role in advancing these priorities.”
Kale added that the Abuja Afreximbank Africa Trade Centre (AATC) represented the bank’s commitment to modernise trade by providing facilities that integrate information services, exhibition spaces, a business hotel and access to digital trade tools.
According to him, the centre is the first in a network of one-stop trade hubs being developed across Africa and the diaspora.
Kale said the AATC would help businesses access financing, partners, market intelligence, logistics support and technology services within a single space, reducing barriers and transaction costs.
“This building is more than a physical structure. It represents a catalytic platform for integration, innovation and investment,” he said.
He urged stakeholders to work together to drive digital transformation and build a continent where entrepreneurs can compete globally.
“This is not a distant dream. It is a future within our reach if we embrace innovation and collaboration,” he said.
The News Agency of Nigeria(NAN) reports that participants at the event were shown a live demonstration of Afreximbank’s Trade Intelligence Solutions- ATG and TRADAR and explored the role of AATCs in promoting trade and investment.
The event brought together financial institutions, trade organisations, investors and business owners.(NAN)
Edited by Vivian Ihechu
