The African Continental Free Trade Area (AfCFTA) requires efficient payment systems, borders, and infrastructure to boost intra-African trade, according to Wamkele Mene, Secretary-General of the AfCFTA Secretariat. Speaking at the Project Management Institute's Global Summit Series in Cape Town, Mene emphasized the need for Africa to strengthen its capacity to deliver these essential components. He highlighted the importance of aligning national policies, modernizing customs, and enabling cross-border payments in local currencies.
Mene illustrated the challenges of fragmented markets through a transaction between businesses in Ghana and Kenya. Despite trading within Africa, the businesses may need to purchase a third currency, typically the US dollar, to complete payment. He estimated the associated currency conversion costs across the continent at approximately US$5 billion annually. This example demonstrates why the mechanics of integration matter to businesses and why reducing friction in payment systems can help make access to a continental market commercially useful.
To address these challenges, Mene pointed to the Pan-African Payment and Settlement System (PAPSS), developed by Afreximbank in collaboration with the AfCFTA Secretariat. The system enables cross-border payments in local currencies, reducing reliance on third currencies. This practical response aims to make trade easier and more efficient, allowing businesses to benefit from the AfCFTA.
Making trade easier also requires customs authorities to apply agreed rules and governments to align domestic policies with continental commitments. George Asamani, PMI's Managing Director for Sub-Saharan Africa, connected these requirements to the skills needed to deliver programs involving multiple institutions and countries. He emphasized the importance of project management in translating policy commitments into services that businesses can use.
Mene also addressed concerns about the impact of liberalization on domestic industries. He explained that the agreement includes safeguards and that adjustment support can help sectors facing disruption as markets open. Mene emphasized the need to assess potential losses and support affected businesses, with domestic reform and continental cooperation working together to help firms compete in larger markets.
Infrastructure remains central to this effort, with Mene calling for greater attention to project preparation and trade infrastructure, alongside digital investment. He highlighted the role of the Digital Trade Protocol in creating conditions for investment in emerging technologies and data centers. This makes project preparation an important part of the integration agenda, requiring professionals to consider how infrastructure will connect with customs processes, digital services, and institutions.
The discussion linked Africa's talent development agenda to the practical demands of integration, with professionals helping institutions translate shared objectives into coordinated delivery across sectors and participating African countries. For Mene, the ultimate test of AfCFTA is whether businesses can enter new markets at lower cost and with less administrative burden. Delivering these benefits will determine how effectively continental integration translates into commercial opportunity.
Key points
- Africa must strengthen its capacity to deliver efficient payment systems, borders, and infrastructure to benefit from the African Continental Free Trade Area (AfCFTA).
- The Pan-African Payment and Settlement System (PAPSS) enables cross-border payments in local currencies, reducing reliance on third currencies.
- Project professionals play a crucial role in delivering the projects that will shape the continent's future, with a focus on integrating infrastructure, customs processes, and digital services.
