How technology companies are driving growth, efficiency, and regional collaboration in Africa’s in intra-African trade.
Intra-African trade is experiencing a paradigm shift, driven by the rise of innovative digital firms leveraging technology to address longstanding challenges. These companies are providing solutions that streamline logistics, enhance transparency, and facilitate regional economic integration. Their impact is reshaping the trade landscape, enabling businesses to navigate complexities and seize new opportunities across borders.
The African Continental Free Trade Area (AfCFTA), while ambitious and transformative in its goals, faces significant challenges that could undermine its effectiveness. The primary issue lies in the execution and implementation of its policies. Despite the promise of facilitating seamless intra-African trade, the initiative has struggled to establish the necessary systems and infrastructure to support its objectives.
“It’s [AfCFTA] something we’ve all been looking forward to, but the execution has been very disappointing. It’s an amazing initiative, but we need the implementation,” says Segun Adeyemi, CEO and Co-founder of Anchor. Anchor helps companies to build, launch and scale banking and payment products.
Bridging Infrastructure Gaps with Technology
One of the most significant barriers to intra-African trade has been inadequate infrastructure, particularly in logistics and communication. Digital firms are stepping in to fill these gaps. By providing real-time tracking, digital payment solutions, and predictive analytics, they are making it easier for businesses to transport goods, coordinate supply chains, and manage operations effectively. For instance, e-commerce platforms now connect sellers and buyers across the continent, fostering a seamless trade experience that was previously hindered by inefficiencies.
Companies like Waza are offering finance and payment options for a wide range of African businesses, while Shekel Mobility operates solely in the auto industry, “”There are businesses that provide trade financing for specific sectors. One will pick the auto industry, because they understand that sector from end-to-end and can provide finance and settlement. Another will choose pharmaceuticals, so you have comprehensive sector-specific service,” says Seyi Ebenezer, CEO of Payaza, an online payments firm. Ebenezer’s comments highlight the fractured, yet growing, availability of funding.
Boosting Transparency and Trust
Transparency has long been a challenge in cross-border trade, with opaque systems deterring investment and hindering progress. Digital platforms are now providing tools to enhance trust by offering end-to-end visibility in trade transactions. Blockchain technology is a key enabler, allowing parties to verify the authenticity of goods and documentation. This fosters confidence among trading partners, accelerates trade processes, and minimizes disputes, all of which are crucial for sustainable growth.
Empowering SMEs and Entrepreneurs
Small and medium-sized enterprises (SMEs) are at the heart of Africa’s economy, yet they face significant obstacles in accessing regional markets. Digital firms are empowering these businesses by providing affordable solutions tailored to their needs. From online marketplaces to mobile-based financial services, these innovations are breaking down barriers, enabling SMEs to scale and compete in the broader African market. The African Continental Free Trade Area (AfCFTA) has amplified this potential, with digital firms playing a pivotal role in facilitating compliance and market entry for smaller players.
Enhancing Collaboration Across Borders
The integration of digital tools is also fostering greater collaboration between African nations. By streamlining customs processes and improving data sharing, these technologies help harmonize trade regulations and reduce friction at borders. The result is a more cohesive and efficient regional trading ecosystem that promotes economic growth and reduces dependency on external markets.
Ola Oyetayo, Co-founder and CEO of Verto, a cross-border payments platform, said, “We’ve seen significant growth in intra-Africa cross-border payments from customers in three markets—Nigeria, Kenya, and South Africa. We’re probably one of the only firms that help to do this, but we are seeing that growth.”
Looking Ahead: A Digital-Driven Future
As digital firms continue to innovate, their role in advancing intra-African trade will only grow. By addressing key barriers and fostering regional connectivity, these companies are setting the stage for a more integrated and prosperous Africa. Governments and stakeholders must support this digital transformation by investing in infrastructure and creating policies that enable technology to thrive, ensuring long-term benefits for the continent.
By leveraging technology, Africa is unlocking its trade potential, proving that innovation is not just a tool for development but a cornerstone of economic empowerment. Digital firms are the key to realizing this vision, paving the way for a more connected and resilient future.
For more stories of African trade and business, visit our dedicated archives.