Dar es Salaam. Although Africa has a growing population and abundant natural resources, the continent continues to lag in fully realizing its trade potential — and the main reason for this slow progress is a severe lack of standardized payment systems and insufficient infrastructure. While Africa's Continental Free Trade Area (AfCFTA) offers the promise of a unified market, the absence of an integrated cross-border payment system and interconnected transport networks is seriously hindering business growth. Entrepreneurs and economic experts agree that unless these two challenges are urgently tackled, the vision of a prosperous and connected Africa will remain out of reach. David Ndelwa, CEO of Simba Group, which operates in seven African countries, clearly described the situation: “We claim to have a free trade area, but in reality, it doesn't work well. The differences in payment systems and the lack of transport infrastructure between countries make it almost impossible to trade freely,” he said at the Unlocked Africa Business Forum recently held in Cape Town, South Africa. Ndelwa highlighted the irony of needing a visa to move goods and people between African countries or lacking a direct road from Dar es Salaam to Maputo, despite being part of the same regional economic groups. "Unlike the European Union, where movement of people and goods is smooth, we still face logistical bottlenecks and border delays that undermine the spirit of trade," he stated. Perhaps even more concerning is the state of Africa's payment systems. With over 50 countries each having their own currency and banking regulations, cross-border transactions are complex and heavily dependent on the US dollar — an inefficiency that increases the cost of doing business. "A unified payment system could significantly reduce barriers. Right now, to trade with a neighboring country, I need to convert to dollars, and that’s expensive," Ndelwa explained. According to Goolam Ballim, Chief Economist at Standard Group, the solution lies in financial innovation. He sees FinTech, particularly mobile money services, as Africa's best opportunity to develop a homegrown solution to its payment issues. "Africa is not just catching up; it's leapfrogging through mobile-based transactions. The key is to standardize and link these services across countries so that we build an ecosystem that enables free-flowing trade," Mr. Ballim said. The expert emphasizes that Africa's greatest need is connectivity — both digital and physical — supported by its wealth of resources, including human capital. He believes that if properly utilized, Africa can become a global model for inclusive, digital-driven trade. However, the payment puzzle is only half the issue. Infrastructure remains a major obstacle. Poor roads, high air transport costs, and inadequate logistics services are increasing the cost of goods and limiting the movement of entrepreneurs across the continent. Julius Mkondo, a Tanzanian and Director of Ona Safari, a tourism company, noted: "Access to capital is our biggest challenge. If financial institutions could align their priorities with the needs of sectors like tourism, we would grow faster," he said, pointing out Tanzania's ambitious goal of attracting five million tourists annually. He added that accommodation is a key area with significant growth potential but is hindered by limited investment and financing. In response to these needs, Charles Mishetto, Head of Business Banking at Stanbic Bank Tanzania, a subsidiary of Standard Group, said their focus has been on formalizing informal businesses to help them access credit. "Most banks still ask for collateral, but for us, we consider your transaction history. However, for that to happen, we must first support your formalization. That's why we run campaigns to register and structure small businesses," Mr. Mishetto said. Provided by SyndiGate Media Inc. (Syndigate.info).
Dar es Salaam. Although Africa has a growing population and abundant natural resources, the continent continues to lag in fully realizing its trade potential — and the main reason for this slow progress is a severe lack of standardized payment systems and insufficient infrastructure. While Africa's Continental Free Trade Area (AfCFTA) offers the promise of a unified market, the absence of an integrated cross-border payment system and interconnected transport networks is seriously hindering business growth. Entrepreneurs and economic experts agree that unless these two challenges are urgently tackled, the vision of a prosperous and connected Africa will remain out of reach. David Ndelwa, CEO of Simba Group, which operates in seven African countries, clearly described the situation: “We claim to have a free trade area, but in reality, it doesn't work well. The differences in payment systems and the lack of transport infrastructure between countries make it almost impossible to trade freely,” he said at the Unlocked Africa Business Forum recently held in Cape Town, South Africa. Ndelwa highlighted the irony of needing a visa to move goods and people between African countries or lacking a direct road from Dar es Salaam to Maputo, despite being part of the same regional economic groups. "Unlike the European Union, where movement of people and goods is smooth, we still face logistical bottlenecks and border delays that undermine the spirit of trade," he stated. Perhaps even more concerning is the state of Africa's payment systems. With over 50 countries each having their own currency and banking regulations, cross-border transactions are complex and heavily dependent on the US dollar — an inefficiency that increases the cost of doing business. "A unified payment system could significantly reduce barriers. Right now, to trade with a neighboring country, I need to convert to dollars, and that’s expensive," Ndelwa explained. According to Goolam Ballim, Chief Economist at Standard Group, the solution lies in financial innovation. He sees FinTech, particularly mobile money services, as Africa's best opportunity to develop a homegrown solution to its payment issues. "Africa is not just catching up; it's leapfrogging through mobile-based transactions. The key is to standardize and link these services across countries so that we build an ecosystem that enables free-flowing trade," Mr. Ballim said. The expert emphasizes that Africa's greatest need is connectivity — both digital and physical — supported by its wealth of resources, including human capital. He believes that if properly utilized, Africa can become a global model for inclusive, digital-driven trade. However, the payment puzzle is only half the issue. Infrastructure remains a major obstacle. Poor roads, high air transport costs, and inadequate logistics services are increasing the cost of goods and limiting the movement of entrepreneurs across the continent. Julius Mkondo, a Tanzanian and Director of Ona Safari, a tourism company, noted: "Access to capital is our biggest challenge. If financial institutions could align their priorities with the needs of sectors like tourism, we would grow faster," he said, pointing out Tanzania's ambitious goal of attracting five million tourists annually. He added that accommodation is a key area with significant growth potential but is hindered by limited investment and financing. In response to these needs, Charles Mishetto, Head of Business Banking at Stanbic Bank Tanzania, a subsidiary of Standard Group, said their focus has been on formalizing informal businesses to help them access credit. "Most banks still ask for collateral, but for us, we consider your transaction history. However, for that to happen, we must first support your formalization. That's why we run campaigns to register and structure small businesses," Mr. Mishetto said. Provided by SyndiGate Media Inc. (Syndigate.info).
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