Can Africa turn trade promises into tangible economic gains?
On the sidelines of the G20 Summit, the African Continental Free Trade Area (AfCFTA) Secretariat convened the Africa Private Sector Hearings (APSH) Pilot Session and a High-Level Briefing on the Pan-African Payment and Settlement System (PAPSS), signaling Africa’s intent to assert itself as a serious player in global trade.
But beneath the polished presentations and official statements lies a more complex reality: Africa has yet to fully operationalize the systems it is promoting, and millions of enterprises—particularly small and medium-sized businesses—continue to struggle with fragmented trade logistics, payment bottlenecks, and regulatory hurdles.
Private Sector Voices: Between Promise and Practice
The APSH Pilot Session, organized with the Pan African Chamber of Commerce and Industry (PACCI), offered African businesses a platform to air the operational realities of cross-border trade.
“The private sector has a central role in driving continental trade under the AfCFTA,” said PACCI Executive Director Kebour Ghenna. “This session allows enterprises to highlight logistics constraints, trade facilitation challenges, and opportunities for market expansion.”
Yet the reality is sobering. Many African companies still face high transaction costs, slow customs clearance, and regulatory inconsistencies across borders. While initiatives like APSH give these issues visibility, the challenge remains translating discussions into actionable reforms.
Analysts warn that without real enforcement, infrastructure investment, and regulatory alignment, AfCFTA risks being a high-profile agreement with limited practical benefits.
PAPSS: A Payment System with Potential and Questions
The PAPSS briefing, convened with Afreximbank, focused on creating a continent-wide cross-border payment and settlement system. PAPSS aims to simplify transactions, reduce costs, and support intra-African trade in line with AfCFTA objectives.
“Cross-border transactions must be efficient, affordable, and aligned with Africa’s economic priorities,” said PAPSS CEO Mike Ogbalu III.
While PAPSS is a promising tool, experts caution that technology alone will not solve structural bottlenecks. Questions remain about uptake by banks, integration with existing financial systems, and transparency in transaction management. In other words, the system could be revolutionary but only if effectively implemented, monitored, and scaled.
G20 Stage: Show, Not Always Substance
Presenting these initiatives at the G20 Summit signals Africa’s ambition to engage globally, but it also invites scrutiny. Observers note a tension between high-level diplomacy and on-the-ground realities:
- Trade facilitation: Many African firms still face border delays and inconsistent regulatory enforcement.
- Payment connectivity: PAPSS has potential, but adoption and reliability remain untested at full scale.
- Private sector inclusion: APSH provides a voice, but the real question is whether governments will act on it.
“Africa is showing the world plans and frameworks, but the effectiveness of these initiatives depends on follow-through, enforcement, and inclusivity,” said a trade analyst.
The Bigger Picture
The AfCFTA and PAPSS are not just technical mechanisms—they are foundational to Africa’s economic sovereignty. If successfully implemented, they could unlock billions in intra-African trade, reduce dependence on external markets, and support local enterprises.
But failure to act decisively risks turning policy ambition into a ceremonial exercise, leaving smaller businesses out of the benefits while high-level officials claim progress on the global stage.
Africa Must Deliver Beyond the G20 Spotlight
The APSH Pilot Session and PAPSS briefing are important milestones. Yet for Africa’s private sector, the real measure will be actionable reforms, improved trade logistics, and accessible payment systems.
The AfCFTA Secretariat must ensure that promises made at international forums translate into tangible results at the borders, banks, and marketplaces across the continent. Without that, Africa risks grand statements with minimal economic impact, leaving its businesses and its people waiting for the benefits that have yet to materialize.
