The latest tariff ads caused significant violations in global markets and economies. Subsequent changes and postponers have called on the trade partnership to reduce the dependence on a single market, to reduce the dependence on a single market to effective countries.
In a short time, this variability has created an important headache for business leaders who combat costs and prices of goods and services. However, this provides unique opportunities for this uncertainty, especially the markets, especially in Africa for new trade relations and economic positions.
A rare opportunity for Africa will separate his way
On the one hand, the increase in trade restrictions can further marginalize developing economies. On the other hand, a unique moment for Africa will keep its path and will anchor in the boundaries of the borders, ideas, innovations, border, trade, trade, trade and digital powers.
Fortunately, as a vital strategy to protect against foreign shots as a powerful engine and tariffs for economic expansion, as a vital strategy for economic expansion, they have taken measures to increase self-trade. Now the African Continental Free Trade Area (AFCFTA) and a digital economy that grows a digital economy, the continent has tools to schedule its course. AFCFTA has significantly increased non-contact trade since the official start of January 1, 2021.
According to AfReximbank’s African Trade Report 2024,[1]African trade rose to $ 192.2 billion in 2023, despite global economic problems, has increased by 3.2% since the previous year. The United Nations Economic Commission for Africa expects 35%[2] After AfcFTA fully implemented in Africa trade in Africa.
Challenges to increase African trade
Despite the promise of AFCFTA, the traditional channels or digital channels continue to hinder African trade in Figure Akfratic trade. These challenges include fragmented payment systems, inappropriate regulatory frames and complex border logics. This contributed to African trade with Africa’s historically low African trade In 2022, 18% of total trade for Asia and 68% for Europe.[3]
Payments are the liveline of trade
Africa should be able to trade quickly, affordable and securely. When payments are easily moving between borders, goods, ideas, services, opportunities and people are also. This is not just flexibility or not only to defend for Fintech setting; This is the transformation of how we trade.
A trader in Nairobi sells goods to customers, in London or New York, it should be easily able to get a payment. Similarly, a large multinational looks to hit Africa to a young and growing consumer base, as well as in household markets, it needs complex, high-volume operations. The future of African trade depends on our ability to do such operations as intuitive and reliable as pressing a key.
When paying money for African trade and pay, we will see the faster growth of local value chains, the more efficient distribution of local goods, and more African stamps competing in the world. In fact, it is not only the necessary support for the open economy in Africa, but also the cost of trade in Africa, but also the economic sustainability for the shared prosperity.
What should we do
First, we must ensure the interaction of the business system so that the enterprises can act in trouble without the obstacle of friction or currency barriers. This is critical, because when developing effective local payment networks in accordance with African countries, these systems limit the potential that restricts more internal trading potential and withstand global economic strokes.
Second, we must adapt policies between governments to create an environment in innovative development and transition to a border trade. It is not restricted, but is not limited, a review of policies related to customs and trade and logistics (interagree shipping, cargo and flights). Finally, a critical step includes physical infrastructure, especially in resolving inadequate transport networks (roads, railways and ports) and an important investment in the solution of invalid energy supply.
Together, these efforts reduce the external dependence on the continent, grow in African and outside of enterprises, making it easier to create an economic firewall that protects us from external shocks. Do not fall below open, retreat from it; The future of Africa depends on this.
Olugbenga is the General Director of GB Agboola, Flutterwave.