The Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, has emphasized the need for Africa to strengthen its capacity to deliver efficient payment systems, borders, and infrastructure. This, he believes, will enable businesses to reap the benefits of the AfCFTA. Mene made this statement at the Project Management Institute's Global Summit Series in Cape Town, where he engaged in a fireside conversation with George Asamani, PMI's Managing Director for Sub-Saharan Africa.
Mene outlined the necessary steps to turn continental trade commitments into easier access to markets. These priorities include aligning national policies, modernizing customs, and enabling cross-border payments in local currencies. He stressed that professionals across various sectors, including infrastructure, construction, agriculture, services, and customs, must consider how their expertise can help connect African economies. According to Mene, every individual has a role to play in creating a single integrated market.
The AfCFTA Secretary General illustrated the challenges posed by fragmented markets using a transaction between businesses in Ghana and Kenya. Despite trading within Africa, these businesses may need to purchase a third currency, typically the US dollar, to complete payment. Mene estimated that the associated currency conversion costs across the continent amount to approximately $5 billion annually. He highlighted the Pan-African Payment and Settlement System (PAPSS) as a practical solution, developed by Afreximbank in collaboration with the AfCFTA Secretariat.
The PAPSS enables cross-border payments in local currencies, reducing reliance on third currencies. This payments example demonstrates why the mechanics of integration matter to businesses. The ability to trade across borders depends on the systems supporting each transaction, as well as the agreement itself. Reducing friction in those systems can help make access to a continental market commercially useful.
Making trade easier also requires customs authorities to apply agreed rules and governments to align domestic policies with continental commitments. Asamani connected these requirements to the skills needed to deliver programs involving multiple institutions and countries. He emphasized that a continental agreement becomes meaningful when a business can use it, which depends on people who can coordinate institutions, manage risk, and deliver reliable systems.
Mene addressed concerns about the impact of liberalization on domestic industries, explaining that the agreement includes safeguards and adjustment support to help sectors facing disruption as markets open. He 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.
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 those benefits will determine how effectively continental integration translates into commercial opportunity.
Key points
- Africa must strengthen payment systems, borders, and infrastructure to benefit from the 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 programs involving multiple institutions and countries, and their skills are essential for making the AfCFTA meaningful for businesses.
