• 53.6% of African firms use digital payments, hindered by cost, internet, security
• 95% of CEOs see AfCFTA as vital amid global trade uncertainty
• Firms shift to GCC, Caribbean trade; 98% prioritize sustainable business practices
  

Fifty-three point six percent of African businesses currently use digital payment systems for commercial transactions, according to a report from the Pan-African Private Sector Trade and Investment Committee (PAFTRAC). Yet, these adoption rates are held back by challenges, including high implementation costs, unreliable internet access, and deep concerns over cybersecurity.

The report, titled “Africa CEO Trade Survey Report 2025: Leveraging the AfCFTA in an era of global trade uncertainty,” is based on a survey of executives from over 2,100 companies operating across 51 countries on the continent, with small and medium-sized enterprises (SMEs) making up the majority of respondents.

Digital payment systems, which are rapidly expanding thanks to the rise of mobile money and blockchain-based solutions, are not the only technology used by businesses to digitize transactions. The survey found that 49.68% of firms use e-commerce platforms, 40.04% rely on Supply Chain Management (SCM) software, and 28.18% employ Customer Relationship Management (CRM) systems.

Overall, nearly 100% of surveyed business leaders believe digitization is important for the future of African commerce, even though 12.74% have not yet adopted any digital tools to facilitate transactions.

While recognizing the necessity of adopting digital technologies across their production and marketing processes, executives cited persistent challenges. These include high implementation costs (46.15%), limited access to reliable internet (31.16%), cybersecurity concerns (30.84%), and a lack of technical expertise (30.09%).

Regional Integration Becomes a Priority

The survey also reveals that African business leaders are increasingly focusing on regional integration amid growing global trade headwinds, which range from rising U.S. tariffs to geopolitical tensions, fragile supply chains, and reduced development aid. Within this context, 95% of executives believe the African Continental Free Trade Area (AfCFTA) is essential for safeguarding Africa’s commercial interests.

Specifically, 48.74% of respondents called the AfCFTA "extremely important" for protecting African commercial interests, 29.61% rated it as "very important," and 17.48% deemed it "important." Only 4.17% considered the common African market "not important."

With 39 African countries having already joined the Guided Trade Initiative to commence trade under AfCFTA preferential terms, over a quarter of respondents (25.24%) reported having already benefited from the free trade area’s tariff preferences. Meanwhile, 30.29% stated they have not benefited but intend to do so soon, and 21.17% specified they were unaware of the preferential tariffs.

Diversification and Sustainability Key to Future Strategy

African business leaders are also looking beyond traditional markets such as the European Union, the United States, and China, increasingly turning toward new partners like the Gulf Cooperation Council (GCC) countries and the Caribbean, reflecting a trend toward diversification and strengthening South-South cooperation. More than 30% of surveyed executives currently have trading relationships with GCC member states and plan to maintain them, while 41.37% expressed interest in exploring this possibility in the future.

In the same vein of market diversification, 43.95% are interested in exploring Caribbean markets, and 17.02% already maintain commercial ties with that region.

Finally, the report highlights that adopting sustainable and eco-friendly solutions is central to the future commercial strategies of 98.29% of the surveyed companies. The primary sustainable solutions being considered are green energy (36.01%), carbon emission reduction solutions (31.34%), and eco-friendly packaging (28.09%).

PAFTRAC is an advocacy platform that brings together private sector actors and African policymakers to support both intra- and extra-African trade.

Walid Kéfi