Trade and Investment in Africa

In this episode, Crystal is joined by RMB Chief Economist Isaah Mhlanga to unpack the trade and investment momentum driving Africa’s future-and the partnerships fuelling it.

Infrastructure is redrawing the map

Africa is undergoing a massive infrastructure overhaul. Projects like the 9,000-kilometre Trans-Sahara Highway and the 1,300-kilometre Lobito Corridor are reshaping connectivity across regions. These routes are unlocking access to ports, connecting landlocked countries, and facilitating the movement of goods and people—from the Maghreb to the Sahel and beyond.

These developments are especially vital for economies dependent on exporting commodities, such as Zambia’s copper and the DRC’s cobalt. As Mhlanga notes, integrated rail systems and standardised gauges are essential to streamline trade flows and reduce border bottlenecks. 

The AfCFTA advantage

With close to 50 countries now ratifying the African Continental Free Trade Agreement (AfCFTA), Africa is on the cusp of becoming the second-largest integrated market in the world. This agreement is designed to lower the historically high costs of intra-African trade and boost trade volumes across the continent.

For AfCFTA to succeed, infrastructure must keep pace. Roads, rail, and logistics systems are the arteries of a connected Africa—and they’re finally getting the attention and investment they need. 

A new system for seamless payment

One of the key breakthroughs supporting intra-African trade is the Pan-African Payment and Settlement System (PAPSS). Launched in 2022 as part of the AfCFTA, this financial infrastructure enables cross-border payments in local currencies—a game-changer in a continent with over 40 individual currencies.

Previously, traders had to convert local currencies to dollars to transact, incurring delays and high costs. Now, thanks to PAPSS, businesses can settle transactions faster and more affordably, boosting trade volume and ease of doing business.

The system is being piloted through a new African Currency Marketplace, expected to integrate over 150 commercial banks and facilitate direct currency exchange across countries. Already, Ethiopian Airlines has begun accepting Naira-denominated ticket sales in Nigeria—a strong signal of the system’s growing impact.

Youth, jobs, and the private sector

Africa’s youth, around 400 million strong, represent not only a demographic asset but a powerful engine for growth. As infrastructure projects take shape, they are already creating jobs and stimulating demand in sectors like healthcare, agriculture, and education.

Private investment is key to sustaining this momentum. As Mhlanga emphasises, partnerships between government, the private sector, and international investors are what make these large-scale projects possible—and profitable.

Strong infrastructure builds strong economies—and RMB continues to help shape both.