Africa’s cross-border payments ecosystem is witnessing rapid growth as shifting global trade dynamics, driven by U.S. tariffs and rising regional integration efforts, reshape the continent’s economic future.
Eghosa Nehikhare, CEO of Multigate, a licensed treasury management and cross-border payments solutions provider, said the continent is benefitting from the global trade shake-up by deepening intra-African trade and accelerating the adoption of local currency settlement systems.
In July, U.S. President Donald Trump announced fresh tariffs of up to 30% on goods from countries including South Africa and Algeria, while Nigeria and Ghana were hit with 15% tariffs.
Analysts fear the measures may further marginalize Africa in U.S. trade flows, but some industry experts argue the move is inadvertently fueling regional resilience.
“Trading relationships between Africa and Asia, particularly with China and Singapore, are expanding rapidly,” Nehikhare said.
“In the past, African importers often sourced dollars from the parallel market and waited up to a week for payments to reach suppliers in Asia. Today, we enable them to pay in local currency, with suppliers receiving funds within T+1 or even in real time.”
According to him, the rising demand for local currency settlements is reducing Africa’s dependence on the U.S. dollar, enabling faster and more efficient international transactions.
The African Continental Free Trade Area (AfCFTA) is emerging as a key beneficiary of these global realignments. Nehikhare explained that the ability to settle transactions in local currencies is unlocking new opportunities for banks, corporates, and multinationals.
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“In the past, airlines operating across Africa struggled with multiple local currencies,” he said. “They often had revenues in places like Malawi, Zimbabwe, and Kenya while needing naira in Nigeria. Without an efficient settlement system, they accumulated currencies and used them inefficiently. That is now changing.”
Technology firms are at the forefront of this transformation. Nehikhare noted that fintech solutions like Multigate allow clients to pay in naira while beneficiaries abroad receive U.S. dollars (USD) or Chinese yuan (CNY), eliminating foreign exchange inefficiencies.
“Fintech is delivering far more than just payments,” he said. “It is enabling reconciliation, faster settlements, and integration into regional trade frameworks like AfCFTA.
Trade analysts believe this shift marks the start of a significant rebalancing in Africa’s global economic alliances.
Dr. Kemi Adeyemi, an economist at the University of Lagos, noted:
“While the tariffs appear punitive, they are accelerating Africa’s pivot to Asia and intra-African trade. For the first time, the continent has both the incentive and the infrastructure to trade more with itself and less with traditional Western partners.”
Similarly, Afreximbank Research recently highlighted that the direct impact of U.S. tariffs on Africa may be limited, given China’s position as the continent’s largest trading partner.
The bank added that the combination of AfCFTA and fintech-driven innovation is setting the stage for Africa to become a central player in global commerce.
With U.S. trade relations becoming less favorable and Asia deepening ties, Africa’s strategy of strengthening local settlement systems and promoting AfCFTA could redefine the continent’s role in the global economy.