Intra-African trade still accounts for less than 17% of the continent's total commerce, a stark contrast to the more than 60% seen within the European Union. Despite the promise of the African Continental Free Trade Area (AfCFTA) to create a $3.4 trillion market, businesses remain hamstrung by regulatory inconsistencies, fragmented financial systems, and costly cross-border payments. At the Moonshot 2026 conference in Lagos, experts pressed for urgent reforms to turn the vision of a single African market into a practical reality.
Adetola Onayemi, Chairman of Norebase, told Business Africa that the gap between trade agreements and their implementation is glaring. He pointed to persistent obstacles at borders, ports, and banks that continue to frustrate traders. Onayemi called for technology-driven solutions, including standardised business documentation and interconnected digital payment systems, to simplify market entry and reduce transaction costs. He urged businesses to actively use the AfCFTA framework to expose bottlenecks and push governments to address them, thereby unlocking the agreement's potential to boost incomes, expand trade, and reduce poverty.
Africa's tech sector: From easy money to sustainable growth
Africa's technology ecosystem is confronting a new reality as cheap capital dries up and international investors reassess their exposure to the continent. With funding becoming harder to secure, start-ups are under increasing pressure to demonstrate profitability, financial discipline, and sustainable business models. But does this mark the end of Africa's tech boom, or the beginning of a more mature ecosystem? The shift could signal a transition from rapid expansion towards building resilient businesses with long-term economic value.
This recalibration is not unique to Africa. European investors, too, are becoming more selective, favouring ventures with clear paths to revenue. The lessons from Silicon Valley's pullback resonate in Lisbon, Berlin, and Tallinn, where tech hubs are learning that growth at all costs is no longer a viable strategy. For African start-ups, the challenge is to build on local strengths while attracting global capital.
Governance in Africa: A growing challenge for economic growth
The latest Mo Ibrahim Foundation report reveals that nearly half of Africa's population lives in countries where governance has deteriorated over the past decade. The findings raise concerns about institutional performance, political stability, and investor confidence. Weak governance can undermine business environments and slow economic development, making stronger institutions, transparency, and accountability essential to securing sustainable growth across the continent.
These governance deficits are not just an African issue. European companies and governments have a vested interest in a stable and prosperous Africa, given the continent's role as a trading partner and a source of migration. The European Union's recent efforts to deepen economic ties with Africa, such as the Global Gateway initiative, underscore this interdependence. As Europe faces its own economic headwinds, a thriving African market could offer new opportunities for European exporters and investors.
The push for digital payments in Africa also echoes developments elsewhere. In Central Asia, for instance, Uzbekistan's fintech reforms have opened doors to global payment systems, showing how regulatory changes can accelerate financial inclusion. Similarly, harmonised payment systems across Africa could reduce transaction costs and boost trade, a point emphasised by experts in Lagos.
While the challenges are significant, the potential rewards are immense. If African nations can implement the reforms called for at Moonshot 2026, the continent could finally begin to realise the economic integration that has long been promised. For Europe, a more integrated African market would mean a more reliable partner in trade, security, and sustainable development.
