PayAngel stresses the need for strong payment infrastructure to support the AfCFTA’s goals, boosting intra-African trade and driving economic growth.
The African Continental Free Trade Area (AfCFTA) has been hailed as a transformative initiative that will boost intra-African trade and economic integration. However, to fully realize its potential, there is a pressing need for a robust and reliable payment infrastructure. Joseph Elvis Lamptey, Director of Growth for PayAngel, a leading African-focused remittance platform, underscores the pivotal role that such infrastructure plays in achieving AfCFTA’s objectives.
The Importance of Payment Infrastructure for AfCFTA
AfCFTA’s goal of creating a unified African market, fostering trade, and removing barriers across the continent depends heavily on efficient payment systems. According to Lamptey, inadequate payment infrastructure remains a significant bottleneck in facilitating seamless cross-border trade across Africa. By improving payment systems, businesses will be able to engage in faster and more secure transactions, which will enhance economic collaboration between African nations and the global market. “Payment platforms are essential for business success, enabling smooth transactions and ensuring timely payments for goods delivered,” Lamptey said, speaking on the sidelines of the AfCFTA Business Forum (branded Biashara Afrika 2024), held from October 9-11 at the Kigali Convention Centre. The theme was “Dare to Invent the Future of the AfCFTA”.
Enhancing Financial Inclusion
A strong payment infrastructure can also drive financial inclusion in Africa. Lamptey notes that access to efficient digital payment platforms can open up new opportunities for entrepreneurs and small businesses, which often face challenges in accessing financial services. “At PayAngel, we have the expertise and use cases in cross-border payments from the African diaspora back into Africa, making trade more efficient,” he added. By enabling easier access to financial tools, a well-developed payment ecosystem can support the growth of micro, small, and medium-sized enterprises (MSMEs), which are vital to AfCFTA’s success.
PayAngel’s Role in Supporting Cross-Border Trade
PayAngel has established itself as a key player in advancing financial solutions tailored for African economies. The company offers remittance services that help Africans in the diaspora send money back home securely and affordably. This service directly supports the liquidity of local businesses, allowing them to engage in cross-border trade more effectively. By focusing on secure and efficient payment solutions, PayAngel contributes to the broader mission of strengthening Africa’s economic integration under AfCFTA.
Looking Ahead: Opportunities and Challenges
While payment infrastructure improvements are critical, they come with their own set of challenges. PayAngel emphasizes the need for collaboration between private and public sectors to build a unified digital payment network that spans the continent. This requires investment in technology, regulatory frameworks, and trust-building measures to ensure the system’s security and efficiency. Once these challenges are addressed, the potential for growth under AfCFTA becomes even greater, positioning Africa as a stronger global trading partner.
For AfCFTA to reach its full potential, a robust payment infrastructure is essential. Companies like PayAngel are leading the charge by offering innovative solutions that support cross-border trade and financial inclusion. As Africa moves forward with its ambitious trade goals, building strong payment systems will be key to unlocking new economic opportunities and driving sustainable growth across the continent.
For more stories of African trade, visit our dedicated archives.