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Artificial intelligence will play a central role in determining the success of the African Continental Free Trade Area and shaping the future of cross-border commerce across the continent, according to a Senior Lecturer in International Economics and Development at the University of Kigali, Rwanda, Dr Luqman Afolabi.
Dr Afolabi made the remarks on Wednesday while presenting the lead paper at the International Conference on Artificial Intelligence and Education in Kigali. He explained that Africa’s economic transformation is shifting from dependence on physical infrastructure to digital “soft infrastructure” such as data systems, payment platforms, and human capital. He said these digital tools will support seamless trade within the AfCFTA’s $3.4tn single market.
According to him, the continent’s long-standing challenges—food insecurity, energy shortages and weak financial systems—can be solved faster with AI-powered solutions. He highlighted three major areas where artificial intelligence is already influencing African trade.
He said logistics platforms such as Kobo360 are using AI to reduce transport costs by up to 20 per cent and cut empty trips, improving how food and goods move across borders. This is important because Africa holds 60 per cent of the world’s uncultivated arable land but still imports food worth $35bn every year.
He also pointed to reforms in the energy sector, including the recent synchronisation of the West African Power Pool. Afolabi said AI-driven predictive maintenance tools are helping to stabilise power grids. He noted that these improvements could give Africa an advantage in “green compute,” where data centres run on renewable energy such as solar and geothermal power.
In the financial sector, Afolabi identified Afreximbank’s Pan-African Payment and Settlement System (PAPSS) as a major enabler of digital trade. The platform supports instant cross-border payments in local currencies, reducing the $5bn Africa loses annually to currency conversion. He added that AI-powered fraud analytics are improving the safety and speed of financial transactions under the AfCFTA.
Afolabi stressed that Africa must update its education systems to produce a workforce capable of supporting the continent’s digital trade goals. He said AI literacy and digital trade concepts should be included in Colleges of Education, and that every primary school teacher must be trained to become a “digital ambassador.” He mentioned institutions such as CMU-Africa, the African Leadership University, and Afreximbank’s AFRACAD academy as examples of growing talent pipelines connecting academia with industry needs.
To help the continent move from potential to real economic impact, he proposed a two-phase implementation plan. For Phase 1 (2025–2026), African countries should harmonise digital trade rules under the AfCFTA Protocol on Digital Trade and activate continent-wide digital identity systems through the Smart Africa Trust Alliance. For Phase 2 (from 2027), he advised that countries invest heavily in digital and green computing infrastructure, supported by the AfCFTA Adjustment Fund.
Afolabi also set clear targets for 2030, including raising Africa’s Regional Digital Trade Integration Index from 0.35 to 0.60, ensuring that 40 per cent of SMEs have digital credit scores, cutting grid losses below 10 per cent using AI, and achieving full AI literacy for newly graduated teachers.
He summarised his message by saying, “The AfCFTA provides the market, AI provides the mechanism, and education provides the mindset.” He added that Afreximbank’s leadership in digital payments and skills development is helping to shape the continent’s digital trade future.
The Deputy Vice Chancellor of the University of Kigali, Prof Ogechi Adeola, also praised Afreximbank for its leading role in supporting Africa’s move toward a fully integrated market under the AfCFTA. She said the bank’s investments in digital trade systems such as PAPSS and the Africa Trade Gateway are removing barriers that have slowed intra-African trade for years.
Prof Adeola noted that these tools are not just financial platforms but are crucial drivers of economic transformation. She said Afolabi’s presentation showed how AI is strengthening Africa’s food systems, energy systems and financial systems through what he described as the “three Fs”—Food, Fuel and Finance.
She added that human capital development remains critical, noting that without AI-literate teachers and a workforce ready for digital jobs, the full benefits of the AfCFTA will not be realised. Adeola said Afreximbank’s support for research, conferences like ICAIED, and knowledge creation is helping Africa build the skills needed to drive AfCFTA implementation.
She concluded that as Africa strengthens both its digital trade infrastructure and its education capacity, the dream of a unified, digitally enabled single market is becoming more achievable.
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