Africa’s Trade Needs Better Payments

By Chioma Mang, CEO, UBA Africa

As Africa stands at the threshold of a new economic era, its trade narrative is becoming increasingly compelling—yet still incomplete. The continent is moving, but not yet at the speed or scale required to fully unlock its vast economic potential.

In 2024, total African trade was estimated at approximately US$1.5 trillion. Despite this significant volume, Africa accounts for only about 3.3% of global trade, according to the World Trade Organization (WTO). For a continent of over 1.4 billion people, rich in natural resources and entrepreneurial energy, this figure underscores a persistent structural gap.

Even more revealing is the state of intra-African trade. Currently valued at around US$220 billion, it represents just 15–18% of the continent’s total trade. By comparison, intra-regional trade accounts for over 60% in Europe and around 50% in Asia. Although recent WTO data suggests a modest increase—from about 11% to 12% in early-to-mid 2024—this incremental progress highlights how much untapped opportunity still exists within the continent.

These numbers point to a simple but powerful truth: Africa is trading more, but it is not yet trading enough—with itself or with the world.

Yet within this gap lies Africa’s greatest opportunity.

At United Bank for Africa (UBA) Plc, we see this moment not as a limitation, but as a call to action—one that demands bold thinking, modern financial infrastructure, and deeper cross-border integration. The future of African trade will not be defined solely by production capacity, but by how efficiently value can move across borders.

Africa in a Shifting Global Trade Landscape

Global trade dynamics are evolving rapidly. Supply chains are being reconfigured, geopolitical alignments are shifting, and markets are increasingly looking toward diversification. In this changing environment, Africa is uniquely positioned to emerge as a critical player—both as a production hub and a fast-growing consumer market.

Trade between Africa and the United States currently stands at approximately US$104.9 billion annually, with an 8.3% year-on-year increase recorded in 2024. This includes US$32.4 billion in U.S. exports to Africa and US$39.6 billion in imports from the continent, resulting in a U.S. goods trade deficit of about US$7.2 billion.

Similarly, Africa’s trade relationship with the United Kingdom continues to evolve. While still modest—accounting for roughly 2–3% of total UK trade—recent figures indicate growing engagement, particularly in services. In Q1 2025 alone, UK–Africa trade included approximately £2.3 billion in goods and £6.1 billion in services.

These corridors—Africa–USA and Africa–UK—represent significant avenues for growth. However, their full potential will only be realised when the underlying financial systems supporting trade are as efficient and interconnected as the markets themselves.

The Missing Link: Efficient Payment Systems

Trade does not happen in isolation—it depends on the seamless movement of money. Where payments are slow, costly, or unpredictable, trade is constrained.

For decades, African cross-border transactions have relied heavily on correspondent banking systems and hard currencies such as the U.S. dollar. This has resulted in delays, high transaction costs, and foreign exchange constraints that disproportionately affect small and medium-sized enterprises (SMEs)—the backbone of Africa’s economy.

This is why the emergence of the Pan-African Payment and Settlement System (PAPSS) marks a pivotal turning point.

Currently operational in 13 countries, PAPSS enables instant cross-border payments in local currencies, significantly reducing dependence on external currencies and intermediaries. By simplifying settlement processes and lowering transaction costs, it has the potential to fundamentally reshape how trade is conducted across Africa.

UBA is proud to be the first bank licensed by PAPSS for continent-wide settlement. Through this integration, we have effectively expanded our trade facilitation reach to approximately 24 African markets, strengthening our capacity to support businesses operating across borders.

However, infrastructure alone cannot drive transformation. It must be translated into practical, accessible solutions that empower real businesses and real people.

Turning Infrastructure into Impact

At UBA, our approach has been to build financial solutions that directly address the everyday realities of African trade.

Africash enables real-time remittances across the continent, allowing individuals and businesses to send and receive funds seamlessly—without the complexities of currency conversion. For traders moving goods across borders, or families supporting relatives, this represents a critical reduction in friction.

Afritrade is designed specifically for SMEs engaged in intra-African commerce. By enabling faster receipt of import proceeds and improving liquidity cycles, it allows businesses to operate more efficiently and with greater confidence.

UBA Connect goes a step further by giving customers unified access to their accounts across all 20 African countries where UBA operates. This transforms banking from a national service into a truly continental platform, enabling businesses to expand without being constrained by geography.

Together, these solutions align with the vision of the African Continental Free Trade Area (AfCFTA)—a single, integrated market supported by seamless financial rails.

Why UBA Matters in Global Trade Corridors

As Africa strengthens its trade ties with global partners such as the United States and the United Kingdom, the role of financial institutions becomes even more critical.

Three factors will define success in these corridors:

• Regulatory credibility
• Cross-border settlement efficiency
• Strong local presence across markets

UBA’s unique footprint—spanning 20 African countries, combined with a regulated presence in the United States and the United Kingdom—positions us to operate effectively at both ends of these trade corridors.

This enables us to support:

• Export payments for African corporates
• Structured trade finance solutions
• Diaspora remittance flows
• SME integration into global markets

Consider a Ghanaian SME exporting goods to London, or a Nigerian supplier shipping products to Houston. In both cases, the speed, cost, and reliability of payment settlement directly influence competitiveness. Businesses need certainty—not just in demand, but in how and when they get paid.

This is where the right banking partner makes the difference.

Unlocking Africa’s Next Trade Frontier

Africa’s trade future will not be unlocked by policy frameworks alone, important as they are. It will be driven by systems that work in practice—payment platforms that reduce friction, financial institutions that connect markets, and innovations that reflect the realities of doing business on the continent.

The expansion of intra-African trade beyond US$220 billion depends on removing the barriers that slow transactions. Likewise, deepening trade with global partners will require trusted intermediaries capable of navigating multiple regulatory environments while maintaining efficiency and transparency.

UBA was built on the vision of being Africa’s Global Bank. Today, that vision is being realised in practical, measurable ways—through infrastructure, innovation, and presence.

But this is only the beginning.

The next phase of Africa’s trade transformation will require scale, deeper integration, and continuous innovation. It will require collaboration between governments, financial institutions, and the private sector. Above all, it will require a shared commitment to building systems that enable Africa to trade not just more—but better.