Keypoints:
- 53.6% of African firms now use digital payments
- High costs and weak internet slow wider adoption
- Executives see AfCFTA as vital amid global trade strain
MORE than half of African businesses are now using digital payment systems to process commercial transactions, according to the Africa CEO Trade Survey Report 2025 released by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC). The survey found that 53.6 percent of firms have integrated such systems into their operations, signalling growing confidence in digital transformation across the continent.
However, the report warns that widespread adoption remains constrained by significant challenges, including steep setup costs, unreliable internet infrastructure, and persistent cybersecurity risks.
SMEs lead the digital transition
The PAFTRAC report draws on responses from over 2,100 company executives across 51 African countries, with small and medium-sized enterprises (SMEs) making up the majority of participants. While mobile money and blockchain-based payment tools continue to drive expansion, many firms are adopting other digital solutions to streamline their operations.
Nearly half of the respondents (49.68 percent) said they use e-commerce platforms, 40.04 percent deploy Supply Chain Management (SCM) software, and 28.18 percent rely on Customer Relationship Management (CRM) systems. Yet, despite overwhelming agreement that digitisation is crucial for Africa’s economic future, 12.74 percent of surveyed firms have yet to implement any digital tools.
Executives pointed to cost and connectivity as the most pressing barriers. Some 46.15 percent cited high implementation costs as their main challenge, while 31.16 percent mentioned poor internet access, 30.84 percent raised cybersecurity worries, and 30.09 percent noted the lack of skilled technical staff.
Regional integration tops business priorities
Beyond digitalisation, regional integration has become a dominant theme for African business leaders facing volatile global markets. The report shows that 95 percent of executives view the African Continental Free Trade Area (AfCFTA) as essential for protecting the continent’s commercial interests in an era of trade wars, geopolitical tensions, and fragile supply chains.
Almost half of respondents (48.74 percent) rated the AfCFTA as ‘extremely important’, with 29.61 percent calling it ‘very important’. Only a small fraction — 4.17 percent — saw it as ‘not important’.
According to PAFTRAC, 39 African countries have already joined the Guided Trade Initiative, allowing trade under AfCFTA’s preferential terms. Over a quarter (25.24 percent) of companies reported benefiting from these tariff preferences, while 30.29 percent said they plan to do so soon. About 21.17 percent, however, admitted being unaware of such opportunities.
Diversification and sustainability shape future growth
In a sign of shifting global partnerships, the survey revealed that African firms are turning to new markets beyond the traditional powers of Europe, the United States, and China. More than 30 percent already trade with Gulf Cooperation Council (GCC) countries and plan to expand these ties, while 41.37 percent expressed interest in exploring them. Similarly, 43.95 percent are keen on developing links with Caribbean economies, and 17.02 percent already have ongoing trade relationships there.
Sustainability also features strongly in corporate strategies. Nearly all respondents (98.29 percent) said environmentally friendly practices are part of their future plans, with green energy, carbon reduction, and eco-friendly packaging ranking among their top priorities.
PAFTRAC, an advocacy platform connecting African policymakers and private sector leaders, said the findings highlight both the progress and the persistent gaps in Africa’s journey toward a fully digital, integrated, and sustainable trading environment.
