Agenda 2063: Can Blockchain Unlock Intra-African Trade?

The African Continental Free Trade Area (AfCFTA) holds immense promise for the continent, yet realizing its full potential requires addressing a critical bottleneck: payments infrastructure. While intra-African trade reached $220.3 billion in 2024—a 12.4% year-on-year increase—it still represents less than 20% of Africa’s total commerce.

The challenge lies in how money actually moves across borders. A Lagos merchant paying a Nairobi supplier often faces transactions routed through London or New York, adding time and cost. As Luno CEO Ayotunde Alabi points out, this reliance on foreign currencies creates both logistical hurdles and opportunity costs.

“The payment layer is not a back-office issue; it’s central to whether African trade can scale,” says Alabi. Companies must hold excess working capital to hedge against currency volatility, impacting margins and expansion plans.

The Case for Blockchain

While crypto has been viewed with skepticism in some quarters, proponents argue that stablecoins offer a solution by enabling faster, cheaper cross-border payments—potentially unlocking billions in additional income as the AfCFTA matures.

Nigeria’s adoption of stablecoins illustrates this trend. Businesses use them to pay suppliers in Asia at a fraction of traditional bank fees and with significantly reduced settlement times. As Alabi notes, “The remittance problem hasn’t changed, but we’ve found a better way to do it.”

Luno is actively building toward this vision with initiatives like ZARU—a Rand-backed stablecoin in South Africa—and plans for similar offerings in other key markets. The goal is to create a continental digital currency system that facilitates seamless trade across borders.

Navigating Regulation

Realizing this potential requires collaboration between regulators and innovators, with compliance taking center stage. Luno’s approach prioritizes regulatory alignment, evidenced by their dedicated team of over 150 compliance professionals.

As Alabi cautions, “We need to view digital assets through the lens of economic opportunity rather than anxiety.” With thoughtful regulation, blockchain could transform from a perceived risk into a key enabler of Africa’s free trade ambitions.