Economy
Unlocking Africa’s Potential: Navigating B2B Payments in the AfCFTA Era
Introduction
Africa is one of the world’s fastest-growing economic regions, but trade across the continent for a long time remained fragmented and inefficient. This should naturally sound strange to anyone; because a continent home to some of the world’s largest deposits of raw materials, including agricultural produce, tin, crude oil, and other natural resources should trade with each other.
For decades, experts and policymakers called for a unified trade agreement that would connect African markets, boost regional commerce, and allow the continent to harness its full economic potential, but nothing happened.
If European countries have long-established routes to purchase Africa’s natural resources, despite the complex logistics haul, one would assume African nations have better trading relationships, but that hasn’t been the case.
Why? Many reasons, one of them being that Africa’s internal systems are simply not optimised for cross-border trade.
As the 21st century ushered in the IT boom and digital commerce expanded, African nations realised the need to rewrite their story, and on their own terms. Intra-African trade needed to flourish to unlock a new phase of development; internal cohesion was a must, and a unified customs and tariff agreement had to be put in place.
One of the most ambitious steps toward that goal was the creation of the African Continental Free Trade Area (AfCFTA), a framework designed to foster deeper economic integration and improve trade efficiency within Africa.
The AfCFTA would further create a single market for goods and services across the continent, boost intra-African trade by eliminating tariffs on up to 90% of goods and enabling the free movement of business travellers, capital, and investments.
The agreement, signed by 54 of Africa’s 55 countries, officially began operations in January 2021. While it has made visible progress, success is still far off, largely because of the persistent challenges in B2B Payments to the continent and other emerging market.
AfCFTA’s Vision and the B2B Payment Paradox
In simple terms, the AfCFTA aims to establish a single market for goods and services, enabling the free movement of Africa’s over 1.3 billion people, to deepen the continent’s economic integration in line with the Pan-African Vision of “an integrated, prosperous, and peaceful Africa” outlined in the African Union’s Agenda 2063.
At its core, the AfCFTA policy initiative was created to significantly boost intra-African trade, which currently sits at about 14.9% (2023), a stark contrast to Europe’s 62%.
When the AfCFTA successfully eliminates these tariffs and reduces other non-tariff barriers such as customs delays and regulatory bottlenecks, the agreement could significantly increase cross-border payments in Africa within the next decade.
Beyond trade numbers, if implemented well, the AfCFTA will lift over 30 million Africans out of extreme poverty by 2035 (World Bank), create millions of jobs, especially for women and the youth population, and promote inclusive, sustainable growth. It will also strengthen Africa’s collective bargaining power on the international stage, positioning the continent as an emerging market shaping its own economic future.
Despite the promise, turning the AfCFTA vision into reality has not been easy. For the agreement to truly thrive, intra-African trade needs seamless B2B cross-border payments and settlements.
However, many cross-border transactions are still settled outside the continent through global currencies like the U.S. dollars or euros, even when the trade is between neighbouring countries.
This paradox of unified trade ambitions but disconnected financial systems remains a key obstacle slowing progress and limiting the AfCFTA’s full impact.
The Realities of B2B Payments in Africa
Imagine a Nigerian business owner wants to pay his South African supplier. The payment would likely pass through the SWIFT network or a correspondent banking system, which often takes several days, involves multiple intermediaries, and racks up significant fees for both parties.
For most business transactions, B2B payments to emerging markets are not challenges. Individual banks in each country would route transfers to their partner institutions outside Africa, which would then forward the money to another intermediary bank, which would then credit the receiving African bank.
While large corporations may work around these inefficiencies, small and medium-sized businesses cannot, and that’s a bigger problem.
SMEs drive local economies, create jobs, and hold the potential to become Africa’s next unicorns; however, B2B settlement challenges, like limited access to foreign exchange and the lack of seamless cross-border payment systems, continue to hinder their growth across the continent.
Many of these businesses often resort to finding demand outside Africa, and using the existing, lacking channels to meet their payment obligations, usually at unfavourable rates or in insufficient volumes, causing fragmented liquidity.
The result? Stifled growth, strained operations, and inefficient treasury management.
But this is changing.
Private innovators have, in the last decade, created payment and B2B settlement solutions that have redefined and are still redefining how payments are now done on the continent.
But how have these fintechs shaped the AfCFTA era, and how are businesses navigating payments under this new framework?
The Rise of Fintechs, PAPSS and Stablecoin Payment Integrations.
How can African businesses enjoy better cross-border trade if they can’t settle seamlessly? Only one way! Africans must make African B2B payments better.
Africans understood that African problems required African solutions, and when policymakers were slow to respond, individual brilliance had to step in, and individual brilliance did step in.
Even before the AfCFTA framework was created in 2018, the continent had experienced a surge of fintech innovation focused on simplifying payments and expanding financial inclusion.
Since the AfCFTA trading began in 2021, Africa’s intra-national financial settlement infrastructure has improved, thanks to fintechs that have stepped in to close the gaps, creating faster, cheaper, and more inclusive payment rails for cross-border commerce.
Blockchain technology and stablecoins are new entries into this movement, and are now increasingly integrated into cross-border payment solutions, offering new ways to enable faster, cheaper, and more transparent cross-border transactions.
For instance, fintechs like Ledig uses stablecoins, a technology built on the blockchain, to facilitate payments for businesses and do remittances across many markets in Africa and other emerging markets.
These and others have opened doors for businesses that once struggled with inefficient B2B payment systems.
At the same time, policymakers have made their own move with the launch of the Pan-African Payment and Settlement System (PAPSS), a government-backed initiative designed to enable fast, cross-border transactions in local currencies across member nations.
With stablecoin-powered cross-border payments now helping reduce reliance on traditional rails and PAPSS offering public-sector infrastructure to support the AfCFTA’s vision of a unified market, the pathway for more streamlined cross-border B2B settlements across the continent has gotten clearer.
Conclusion
Trade agreements alone will not unlock Africa’s trade potential. The AfCFTA provides the framework, but how well businesses navigate B2B payments will determine its success.
As fintech innovators, regulators, and financial institutions continue to align, the dream of a truly borderless African market is taking form. Faster, transparent, and reliable B2B payments are also taking shape, enabling more businesses to trade freely, scale efficiently, and compete globally.
Seamless B2B payments are, in reality, only the first step. To fully realise the AfCFTA’s vision, policymakers must also streamline commodity logistics, harmonise customs procedures, and build and adequately maintain road and rail infrastructure linking major trade hubs.
When these systems converge, trading in Africa will be more seamless, and the continent’s $29 trillion economic projection may just well become reality.
By Aduragbemi Omiyale
The Global Banking and Finance Review has named Stanbic IBTC Capital, a subsidiary of Stanbic IBTC Holdings, as the Best Investment Bank in Nigeria for 2026.
The leading financial publication picked Stanbic IBTC Capital for the honour in recognition of its commitment to leadership and excellence in Nigeria’s investment banking sector.
The selection process involves an extensive evaluation of performance across critical metrics, including innovation, client service, financial health, and industry advancement.
Stanbic IBTC Capital’s accolade reflects its strong dedication to delivering capital markets and financial advisory solutions for clients in both the public and private sectors.
The firm has made significant strides in facilitating groundbreaking transactions, offering market-leading expertise in equity, debt, and structured finance, while nurturing the growth ambitions of businesses and institutions across Nigeria.
“We are truly pleased to be acknowledged for our relentless pursuit of excellence in the investment banking arena.
“This honour reflects our commitment to hard work and further establishes the deep trust our clients have in our expertise and service.
“It further motivates us to maintain our dedication to exceptional service, cultivate impactful partnerships, and continue delivering innovative financial solutions that meet our clients’ aspirations,” the chief executive of Stanbic IBTC Capital, Mr Oladele Sotubo, stated.
The Executive Director of Corporate and Transaction Banking at Stanbic IBTC Bank, Mr Eric Fajemisin, on his part, said, “Receiving this esteemed acknowledgement from the Global Banking and Finance Review Awards underscores our commitment to driving innovation and excellence within Nigeria’s investment banking landscape.
“This accolade highlights the significant role our skilled team plays in fostering economic growth and stability.
“We are dedicated to delivering exceptional value to our clients, which not only supports their financial success but also contributes to the broader development of the nation’s financial ecosystem.”
The Global Banking and Finance Review annually celebrates institutions that demonstrate quality, innovation, and contributions to the advancement of banking and financial services worldwide.
Now in its 16th edition, the awards honour organisations that uphold outstanding service standards, strategic execution, and industry leadership.
By Aduragbemi Omiyale
The Governor of Rivers State, Mr Siminalayi Fubara, has presented the 2026 Appropriation Bill to the Rivers State House of Assembly.
The 2026 budget estimate of N1.85 trillion, christened Budget of Resilience for Growth and Development, was presented to the state parliament on Friday.
Mr Fubara stated that the proposed spending for the 2026 fiscal year represents a 24.49 per cent increase over the adjusted 2025 budget, driven by anticipated growth in Federation Account Allocation Committee (FAAC) allocations, derivation revenue and internally generated revenue.
He informed the lawmakers that the state hopes to earn N487.61 billion from internally generated revenue, N936.05 billion from FAAC allocations, derivation funds, Value Added Tax (VAT) and exchange gains, and N382.48 billion from capital receipts, including loans, grants and asset sales.
According to him, N413.11 billion is for recurrent expenditure and N1.405 trillion for capital projects, underscoring his administration’s commitment to accelerating development across the state.
He added that personnel costs would gulp N154.77 billion, while N15.22 billion would fund new recruitments, stating that the budget also provides for pensions, gratuities, death benefits and debt servicing.
Governor Fubara further proposed a 50 per cent increase in overhead expenditure for Ministries, Departments and Agencies (MDAs) to strengthen their operational capacity immediately after the budget is signed into law.
He also stated that the largest allocation under the capital budget is the Works and Infrastructure sector with N533.32 billion, followed by Education with N315 billion and Healthcare with N105.43 billion.
In addition, N41.44 billion is for the Rivers State House of Assembly, N30 billion for the Judiciary, N19.26 billion for Agriculture, N15 billion for Power, N8.5 billion for Chieftaincy and Community Development, N7.98 billion for Sports, N7 billion for Youth Development, N6.5 billion for Women Affairs, and N6.61 billion for Environment and Sustainable Development.
The Governor noted that the budget was designed to sustain economic growth, expand critical infrastructure and improve the welfare of residents, pointing out that it builds on the achievements of his administration despite the challenges experienced by the state.
According to him, the budget prioritises the completion of ongoing road projects, new infrastructure investments, improved education and healthcare services, job creation and expanded economic opportunities for residents.
Describing the proposal as a people-centred budget, he assured Rivers people that every public fund would be judiciously utilised to deliver quality services, attract investment and stimulate inclusive development.
Mr Fubara acknowledged the delayed presentation of the budget and appealed to members of the House of Assembly to give the appropriation bill speedy consideration and passage to facilitate timely implementation.
In his remarks, the Speaker of the Rivers State House of Assembly, Mr Martin Amaewhule, acknowledged that the 2026 Appropriation Bill was presented later than expected but assured the Governor that the legislature would expedite its consideration in the interest of the people of Rivers State.
By Adedapo Adesanya
The Securities and Exchange Commission (SEC) has unveiled plans to make sustainability reporting mandatory for large public interest entities from 2027.
This comes as Nigeria moves to align its corporate disclosure framework with global environmental, social and governance (ESG) reporting standards.
The phased implementation will begin with voluntary adoption by early adopters and large public interest entities before becoming mandatory in 2027. The requirement will extend to other public interest entities in 2028 and small and medium-scale enterprises (SMEs) by 2030.
The Director-General of the SEC, Mr Emomotimi Agama, disclosed this at the 2026 Financial Institutions Training Centre (FITC) Sustainability and ESG Conference 3.0, themed ‘Building a Sustainable Africa: Integrating Environmental Stewardship, Social Investment, and Strong Governance for a Prosperous Future’ in Lagos.
Mr Agama said Nigeria’s sustainability disclosure regime is being aligned with the International Sustainability Standards Board (ISSB) framework, including IFRS S1 and IFRS S2, which have emerged as the global benchmark for sustainability reporting.
He said that institutional investors increasingly consider ESG performance a key determinant of capital allocation rather than a peripheral corporate responsibility issue, noting that the price of entry is disclosure.
He said the reforms would strengthen investor confidence and position Nigerian businesses to access global capital markets, where sustainability disclosures are becoming an essential investment requirement.
According to him, Nigeria’s capital market has recorded significant expansion, with market capitalisation growing from about N130 trillion to nearly N160 trillion following recent market reforms, while assets under management have surpassed N9 trillion.
To deepen sustainable finance, Agama said the commission was promoting infrastructure, green and municipal bonds, alongside infrastructure-focused investment funds, to mobilise long-term capital for critical national projects.
He added that the commission would also encourage investments in the blue economy and support financing for the power sector through green energy bonds, project bonds and public-private investment structures.
The SEC chief cited the recent launch of the Nigerian Exchange (NGX) Impact Board as another milestone in advancing sustainable finance and urged companies, regulators and investors to move beyond commitments by embedding sustainability into governance, operations and investment decisions.
