Keypoints:
- African firms still face major payment delays across the continent
- Payment fragmentation continues to slow intra-African trade growth
- Businesses expanding across Africa face currency and compliance hurdles
AFRICAN businesses still find it easier to move money to London than to neighbouring African markets, highlighting persistent payment barriers slowing regional trade growth despite African Continental Free Trade Area ambitions.
The friction comes despite growing momentum behind the African Continental Free Trade Area, which aims to boost regional commerce and reduce Africa’s dependence on external markets. Business leaders say outdated payment systems, currency shortages and disconnected banking rails remain among the biggest barriers to faster continental trade.
Fintech executives and trade operators say capital controls, foreign-currency shortages and uneven banking systems continue to make regional payments more difficult than transactions with global financial centres such as London.
Speaking to media, Verto chief executive and co-founder Ola Oyetayo said the contradiction highlights one of the biggest hidden barriers to African trade growth.
‘Paying Lagos is actually harder than paying London,’ he said. ‘That should not be the case in 2026, particularly when there is so much conversation around growing trade within Africa.’
Payment systems still lag trade ambitions
African governments and regional institutions have spent years promoting stronger continental commerce through initiatives such as the African Continental Free Trade Area (AfCFTA). However, businesses continue to face operational difficulties when transferring funds between African countries.
Oyetayo said many companies still encounter transaction limits, disconnected payment infrastructure, compliance bottlenecks and restricted access to foreign currency when operating across borders.
‘Trade between African countries is growing despite the infrastructure challenge, not because of it,’ he said. ‘You can have a country right next door and still struggle to move money there efficiently.’
The problem remains significant even as trade volumes between African economies continue to expand. Intra-African trade still represents a relatively small share of the continent’s total commerce compared with regions such as Europe, where regional trade integration is significantly deeper.
Analysts say payment fragmentation affects small and medium-sized businesses particularly heavily because many lack access to sophisticated treasury systems or international banking relationships. Delayed settlements and foreign-exchange shortages can disrupt supply chains, increase operating costs and slow expansion into neighbouring African markets.
Industry analysts argue that improving payment interoperability and reducing settlement delays could become critical to unlocking AfCFTA’s long-term ambitions. Recent pan-African payment settlement initiatives, including PAPSS’s push to handle most African payment flows and AfCFTA’s digital trade backbone project, reflect growing efforts to modernise continental trade infrastructure.
Businesses navigating multiple trade corridors
The issue is increasingly affecting companies operating across several African markets while also maintaining links with Europe, Asia and North America.
Oyetayo described this as a growing ‘two-corridor reality’, where businesses require payment systems capable of supporting both African regional trade and international commercial flows.
‘South Africa is simultaneously a hub into the rest of Africa and a bridge to major global markets,’ he said. ‘Businesses here increasingly need infrastructure that supports both.’
Although South Africa maintains one of the continent’s most sophisticated banking sectors and deepest capital markets, businesses still face administrative and exchange-control processes when moving money offshore.
Currency volatility across several African markets has added further pressure for businesses attempting to manage cross-border operations. Companies trading across multiple jurisdictions often face fluctuating exchange rates, liquidity shortages and regulatory mismatches that complicate financial planning and pricing decisions.
Oyetayo stressed that most firms were not seeking to bypass regulations but instead wanted payment systems that functioned more efficiently within existing rules.
‘Businesses are not trying to avoid the rules,’ he said. ‘They just want payments to work.’
Africa-China trade reshapes demand
The debate comes as Africa’s trade corridors continue evolving rapidly, particularly with the expansion of commerce between African economies and China.
Growing trade with Asian markets has increased demand for faster and more reliable payment infrastructure connecting African businesses to both regional and global markets.
According to Oyetayo, businesses are increasingly diversifying beyond traditional Western trading partners, but payment friction within African corridors remains unnecessarily high.
Verto says it is expanding infrastructure designed to support cross-border business payments across Africa and global markets, with access to multiple pay-in countries and outbound currency corridors.
Analysts say the broader challenge extends beyond payments alone. Infrastructure bottlenecks, digital connectivity gaps and regulatory inconsistencies continue slowing AfCFTA implementation across multiple sectors. Recent Africa Briefing reporting examined how Kenya, Nigeria and Morocco launched AfCFTA digital trade pilots, while Afreximbank warned about Africa’s widening digital trade gap at Davos earlier this year.
Oyetayo said private-sector innovation would play an important role while policymakers continue broader financial reforms across the continent.
‘We cannot wait for policy and infrastructure to catch up,’ he said. ‘The businesses that win will be the ones equipped to move seamlessly both within Africa and to the rest of the world.’
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