Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, has called for a significant reduction in Africa’s reliance on the US dollar in intra-continental trade, arguing that the current dependence is both inefficient and unsustainable.
Speaking at the 2025 Afreximbank Annual Meetings (AAM2025) in Abuja on Wednesday, Mene emphasized the urgent need for African countries to adopt local currencies in cross-border transactions.
“Africa must reduce its reliance on the dollar; we must use our own currencies. We must ensure the economic sovereignty of our continent and guard ourselves against ever-shifting global geopolitical tensions that affect payment systems,” he stated.
He reiterated that economic sovereignty is central to the long-term success of the AfCFTA, especially in light of global uncertainties that frequently impact foreign exchange markets and international payment infrastructures.
Afreximbank’s Role and the Pan-African Payment Platform
Mene stressed the indispensable role of the African Export-Import Bank (Afreximbank) in facilitating the financial and institutional frameworks needed to drive AfCFTA’s core goals.
“Without the support of Afreximbank, the AfCFTA will not succeed. It requires trade finance tools, support for industrial development, green trade, and green industrialisation,” he said.
Afreximbank, in partnership with AfCFTA, has developed the Pan-African Payment and Settlement System (PAPSS), a central infrastructure enabling seamless intra-African payments in local currencies.
PAPSS is designed to reduce transaction costs and currency conversion losses, and to strengthen the independence of African economies from volatile global monetary trends.
Nigeria Launches AfCFTA Trade Air Corridor to Cut Export Costs
To further encourage seamless trade within the continent, Nigeria launched an AfCFTA Air Corridor last month, a strategic initiative aimed at expanding market access and improving cost efficiency for Nigerian exporters. The corridor links Nigeria to key African markets such as Kenya, Uganda, and South Africa, with operations running through Uganda Airlines.
According to the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the new corridor significantly reduces logistics costs for Nigerian exporters by between 50% and 75%, opening up greater access to the African market.
The corridor is expected to facilitate the export of goods, including textiles, cosmetics, and agricultural products, thereby strengthening Nigeria’s participation in AfCFTA trade flows and enhancing competitiveness across the continent.
What You Should Know
The African Continental Free Trade Area (AfCFTA) is a landmark agreement creating a single market for goods and services across Africa, promoting intra-African trade and economic integration.
- In April 2025, Nigeria gazetted and transmitted its ECOWAS Tariff Schedule for Trade in Goods to the AfCFTA Secretariat, enabling zero duties on 90% of goods traded under the agreement.
- This positions Nigerian exporters for improved market access and greater competitiveness across African markets.
