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The Chief Economist and Managing Director of Research and Trade Intelligence at the African Export Import Bank Group, Yemi Kale, states that digital trade systems could lower transaction costs throughout Africa by up to 30 percent, a change he refers to as crucial for enhancing the continent’s competitiveness and removing obstacles that have kept intra-African trade at low levels for many years.

Kale expressed this view on Thursday during a conference focused on trade intelligence and digital innovation hosted at the Afreximbank Africa Trade Centre in Abuja.

He mentioned that studies have indicated that “digital trade platforms can lower transaction costs by as much as 30 percent,” noting that these advantages are now essential for African economies dealing with elevated logistics expenses, disconnected markets, and sluggish cross-border payment systems.

Kale informed attendees that Africa was at “a crucial turning point in its economic development,” highlighting that the African Continental Free Trade Area had established a $3.4 trillion integrated market serving more than 1.3 billion people.

Nevertheless, he cautioned that integration by itself would not bring about change unless digital systems were implemented widely to address persistent structural issues.

He stated that trade within Africa remains between 15 and 18 percent, significantly lower than Europe’s 60 percent and Asia’s 40 percent.

He mentioned that this gap stems from “markets that operate in isolation, elevated transaction and transportation costs that diminish competitiveness, deficiencies in trade-related data and insights, and ongoing challenges with cross-border payment systems.”

Kale stated that digital technologies were already transforming global value chains and showed how African economies could gain from adopting similar approaches.

He referenced Rwanda’s digital single window, which “cut export processing time by over 90 per cent,” and the growth of mobile money systems that handle more than $800 billion each year as evidence of what can be achieved when innovation intersects with trade.

He mentioned that the African Payments and Settlement System was expected to save the continent billions by facilitating cross-border transactions in local currencies, eliminating one of the major obstacles in regional trade.

“Digital innovation is more than just a driver of trade. It represents the new route through which African commerce will move,” he stated, emphasizing that those who adopt it early will define the continent’s competitive future.

Kale stated that digital transformation also enhances accessibility for small businesses, which constitute more than 90 percent of African companies. He mentioned the case of a young leather products entrepreneur from Kano who faced export challenges for many years before transitioning to online trade platforms and digital payment systems.

“Her world transformed almost overnight,” he remarked, pointing out that she now exports to Rwanda, Côte d’Ivoire, and Europe, and has more than 25 employees. He stated that these kinds of stories demonstrate how digital platforms can turn local skills into regional and global prospects, but cautioned that the effect would rely on the robustness of the innovation environment.

“Trade does not prosper when cut off from the world. It flourishes in environments that support the growth of ideas and the expansion of businesses,” he said. Kale referred to Nigeria’s young tech community as a key strategic advantage, noting that 65 percent of the population is under 25.

He mentioned that young Nigerians were already “establishing technology startups, developing software code, and creating entirely new industries,” placing the nation in a strong position to lead Africa’s growth in digital trade, provided that infrastructure, regulations, skills, and financial support keep up.

He also emphasized Afreximbank’s continuous efforts, such as the Africa Trade Gateway, which combines trade data, due diligence resources, secure payment mechanisms, and market analysis, as well as the network of Africa Trade Centres being established throughout the continent.

The Abuja center, he mentioned, was conceived as “a hub of innovation, integration, and investment,” consolidating conference venues, SME incubation areas, trade intelligence services, and connectivity to digital infrastructure under a single roof.

Kale also encouraged African companies and organizations to embrace digital transformation and teamwork. “If we are courageous and look ahead, Africa will not only engage in the global economy but will also contribute to defining it,” he stated.

He mentioned that lowering expenses, simplifying payments, and increasing access to market information were essential actions needed for the continent to realize the complete potential of the AfCFTA and enable its business owners to compete successfully on the global level.

Additionally, Oluwaseun Alabi, the Manager of Real Estate and Administration at Afreximbank, mentioned that the Africa Trade Centre in Abuja was designed not only as a regional office but also as a comprehensive trade hub offering combined trade information, financial services, and business amenities to boost both intra-African and international trade.

He stated that the Abuja center is the first of a proposed series of African Trade Centers throughout the continent and the Caribbean, with the following location in Harare set to open to the public in June 2026.

Alabi revealed that the Abuja ATC exceeded $100m in cost, took 41 months to complete, and has attracted over 47,500 visitors, hosted 34 trade-related events, and received hundreds of trade inquiries since it was launched on April 10, 2025.

He mentioned that the building is Nigeria’s first LEED Platinum-certified facility, the second in West Africa, and the 19th across the continent, highlighting Afreximbank’s commitment to sustainable infrastructure.

He emphasized that the ATC will act as a useful connection among buyers, sellers, service providers, governments, financial institutions, and the broader trade sector, while overseeing important Afreximbank initiatives like PAPSS and the Mansa due diligence system to assist businesses from information gathering to securing funding.

Provided by SyndiGate Media Inc.Syndigate.info).