The African continent has been tasked to grow its intra-trade level from the current 15 percent to 60 per cent to help reduce dependence on foreign goods and improve the region’s economy.
The Managing Director of Sterling Bank Nigeria, Abubakar Suleiman, highlighted this as a panelist at the ongoing West African Economic Summit (WAES) in Abuja (20 – 21 June 2025), with the theme “Unlocking Trade and Investment Opportunities in the Region”.
Speaking during the panel session on the sub-theme, “Overcoming Barriers to Harness AfCTA for Stronger Intra-Africa Trade”, Mr Suleiman said the task could be achieved through enhanced free movement of citizens of the continent across borders, which will not only improve relationships but also create and increase different types of demand, leading to production and trade.
Another major driver that could boost Africa’s intra-trade to 60 per cent, he said, should be the building and promotion of a near-free and seamless payment system or interconnected banking system, including a trade policy framework that is known and gives incentives like easy access to finance, especially at the small-medium enterprises (SMEs) level.
“I think the political authorities within West Africa should accelerate the adoption of the Pan-African Payment and Settlement System (PAPSS) within their countries because the technology and agreement behind it is very powerful—what is left now is the last mile adoption.
Currently, a lot of banks are integrating into the system. We need to have a campaign to encourage small businesses to start using it because a lot of them are not aware that this option exists. That option will drive adoption of the singular payment system across the continent,” he said.
He described the Pan-African Payment and Settlement System (PAPSS) as not just a payment system but a market place for currencies.
“It enables you, for instance, to make a payment in Ghanaian Cedi using the Naira because once you put up the Naira that is required for payment, someone else within the market will observe that there is Naira available and may have Cedi that they want to give up, and they will make the payment on your behalf.
So, there is an engine that allows that market place for exchange to take place directly between African currencies without going through a third party currency.
This not only reduces significantly the cost of cross-border payment. It also reduces the exchange volatility, as all these payments can happen in microseconds without affecting the treasury market,” said Suleiman.
He cautioned that importation of foreign goods and trading same across borders is not beneficial to the African continent, hence emphasis should be on what is produced on the continent to grow trade and the economy in general.
He equally noted that issues of price and inflation variation in the various countries pose some level of challenges, which need to be addressed.
The World Bank representative at the panel encouraged the African continent to digitise its systems to meet the targeted percentage, as it brings about transparency and reduces corruption.
He equally suggested for massive deployment of modern technology such as Artificial intelligence (AI) to revolutionise trade in Africa.
Another panelist, Jubrin Mohammed, proposed increased injection of equity, especially in the small and medium-scale enterprises sector as well as trade-focused insurance policies that support trade across borders.
“Africa needs insurance that involves cross-border trade. This is good and will definitely improve trade on the continent,” he pointed out.
For her part, the Benin Republic’s Minister of Trade, Shadiya Alimatou Assouman, called for more strategies, including harmonisation of differentials in Customs policies at countries’ borders while the Nigeria’s Minister of Trade and Investment, Dr Jumoke Oduwole, advocated strategic coordination of trade policies on the continent to ease investment.