Why paytech is the key to unlocking Africa’s new free trade zone

Efficient payment will be needed across the AfCFTA’s 55 countries, with their varying financial system. Africa’s emerging paytech sector already has experience working across borders. Government-sanctioned paytech is a better trade facilitation option than unregulated cryptocurrencies.

Optimistic, the world holds its breath for the African Continental Free Trade Agreement (AfCFTA) as it seeks to redefine African markets. It will create uniform rules to guide trade, dispute settlement, investments, competition and intellectual property rights across the continent.

According to the World Bank, AfCFTA will lift 30 million people out of extreme poverty and raise the incomes of 68 million more. Intra-African trade was around 2% of the continent’s total trade between 2015 and 2017, while comparative figures for America, Asia, Europe and Oceania were, respectively, 47%, 61%, 67% and 7%. The goal of Africa’s new trade pact is to increase this share within the world’s largest free trade area (in terms of numbers of countries).

However, with the AfCFTA signed, implementation is the next critical hurdle. In the words of its Secretary-General Wamkele Mene: “We have completed the easiest part – that is for 55 countries to negotiate a single set of rules. The most difficult part is implementation.” Read More.

Leave a Reply:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.