{"id":2692,"date":"2026-03-31T20:53:20","date_gmt":"2026-03-31T20:53:20","guid":{"rendered":"https:\/\/vindicatorslnews.com\/?p=2692"},"modified":"2026-03-31T20:59:56","modified_gmt":"2026-03-31T20:59:56","slug":"africas-trade-needs-better-payments","status":"publish","type":"post","link":"https:\/\/vindicatorslnews.com\/?p=2692","title":{"rendered":"Africa\u2019s Trade Needs Better Payments"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

By Chioma Mang, CEO, UBA Africa<\/em><\/p>\n\n\n\n

As Africa stands at the threshold of a new economic era, its trade narrative is becoming increasingly compelling\u2014yet still incomplete. The continent is moving, but not yet at the speed or scale required to fully unlock its vast economic potential.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Even more revealing is the state of intra-African trade. Currently valued at around US$220 billion, it represents just 15\u201318% of the continent\u2019s 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\u2014from about 11% to 12% in early-to-mid 2024\u2014this incremental progress highlights how much untapped opportunity still exists within the continent.<\/p>\n\n\n\n

These numbers point to a simple but powerful truth: Africa is trading more, but it is not yet trading enough\u2014with itself or with the world.<\/p>\n\n\n\n

Yet within this gap lies Africa\u2019s greatest opportunity.<\/p>\n\n\n\n

At United Bank for Africa (UBA) Plc, we see this moment not as a limitation, but as a call to action\u2014one 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.<\/p>\n\n\n\n

Africa in a Shifting Global Trade Landscape<\/h3>\n\n\n\n

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\u2014both as a production hub and a fast-growing consumer market.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Similarly, Africa\u2019s trade relationship with the United Kingdom continues to evolve. While still modest\u2014accounting for roughly 2\u20133% of total UK trade\u2014recent figures indicate growing engagement, particularly in services. In Q1 2025 alone, UK\u2013Africa trade included approximately \u00a32.3 billion in goods and \u00a36.1 billion in services.<\/p>\n\n\n\n

These corridors\u2014Africa\u2013USA and Africa\u2013UK\u2014represent 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.<\/p>\n\n\n\n

The Missing Link: Efficient Payment Systems<\/h3>\n\n\n\n

Trade does not happen in isolation\u2014it depends on the seamless movement of money. Where payments are slow, costly, or unpredictable, trade is constrained.<\/p>\n\n\n\n

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)\u2014the backbone of Africa\u2019s economy.<\/p>\n\n\n\n

This is why the emergence of the Pan-African Payment and Settlement System (PAPSS) marks a pivotal turning point.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

However, infrastructure alone cannot drive transformation. It must be translated into practical, accessible solutions that empower real businesses and real people.<\/p>\n\n\n\n

Turning Infrastructure into Impact<\/h3>\n\n\n\n

At UBA, our approach has been to build financial solutions that directly address the everyday realities of African trade.<\/p>\n\n\n\n

Africash<\/strong> enables real-time remittances across the continent, allowing individuals and businesses to send and receive funds seamlessly\u2014without the complexities of currency conversion. For traders moving goods across borders, or families supporting relatives, this represents a critical reduction in friction.<\/p>\n\n\n\n

Afritrade<\/strong> 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.<\/p>\n\n\n\n

UBA Connect<\/strong> 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.<\/p>\n\n\n\n

Together, these solutions align with the vision of the African Continental Free Trade Area (AfCFTA)\u2014a single, integrated market supported by seamless financial rails.<\/p>\n\n\n\n

Why UBA Matters in Global Trade Corridors<\/h3>\n\n\n\n

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.<\/p>\n\n\n\n

Three factors will define success in these corridors:<\/p>\n\n\n\n

    \n
  • Regulatory credibility<\/li>\n\n\n\n
  • Cross-border settlement efficiency<\/li>\n\n\n\n
  • Strong local presence across markets<\/li>\n<\/ul>\n\n\n\n

    UBA\u2019s unique footprint\u2014spanning 20 African countries, combined with a regulated presence in the United States and the United Kingdom\u2014positions us to operate effectively at both ends of these trade corridors.<\/p>\n\n\n\n

    This enables us to support:<\/p>\n\n\n\n

      \n
    • Export payments for African corporates<\/li>\n\n\n\n
    • Structured trade finance solutions<\/li>\n\n\n\n
    • Diaspora remittance flows<\/li>\n\n\n\n
    • SME integration into global markets<\/li>\n<\/ul>\n\n\n\n

      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\u2014not just in demand, but in how and when they get paid.<\/p>\n\n\n\n

      This is where the right banking partner makes the difference.<\/p>\n\n\n\n

      Unlocking Africa\u2019s Next Trade Frontier<\/h3>\n\n\n\n

      Africa\u2019s trade future will not be unlocked by policy frameworks alone, important as they are. It will be driven by systems that work in practice\u2014payment platforms that reduce friction, financial institutions that connect markets, and innovations that reflect the realities of doing business on the continent.<\/p>\n\n\n\n

      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.<\/p>\n\n\n\n

      UBA was built on the vision of being Africa\u2019s Global Bank. Today, that vision is being realised in practical, measurable ways\u2014through infrastructure, innovation, and presence.<\/p>\n\n\n\n

      But this is only the beginning.<\/p>\n\n\n\n

      The next phase of Africa\u2019s 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\u2014but better.<\/p>\n","protected":false},"excerpt":{"rendered":"

      By Chioma Mang, CEO, UBA Africa As Africa stands at the threshold of a new…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2692","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=\/wp\/v2\/posts\/2692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2692"}],"version-history":[{"count":1,"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=\/wp\/v2\/posts\/2692\/revisions"}],"predecessor-version":[{"id":2694,"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=\/wp\/v2\/posts\/2692\/revisions\/2694"}],"wp:attachment":[{"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vindicatorslnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}