Africa stands at a pivotal moment in its trade evolution. The African Continental Free Trade Area (AfCFTA) has created a framework for deeper regional integration. Infrastructure corridors are expanding. Intra-African supply chains are slowly strengthening, and digital adoption is accelerating to unlock the continent’s full trade potential.
Yet when it comes to digitalising trade finance and trade processes, the conversation often swings between technological optimism and structural realism.
The truth lies somewhere in between.
Below is an honest assessment of Africa’s trade digitalisation opportunity and the risks we must navigate carefully.
1. Full Ecosystem Digitalisation Is Unrealistic in the Near Term
The ambition to fully digitalise Africa’s trade ecosystem is understandable. Paper-heavy processes, manual compliance checks, fragmented systems and slow cross-border settlements are real constraints on growth.
But systemic, continent-wide digital transformation in the short term is unrealistic.
Africa’s trade environment is highly heterogeneous:
- Different legal systems (common law, civil law, hybrid)
- Varying levels of regulatory maturity
- Uneven digital infrastructure
- Major disparities in banking system sophistication
Attempting sweeping transformation across all markets simultaneously risks overreach and stalled implementation.
A more pragmatic path forward is targeted digitalisation:
- Digitising specific corridors (e.g. port-to-port flows)
- Implementing electronic guarantees or LC processing in selected markets
- Rolling out digital KYC utilities regionally
- Introducing structured supply chain finance platforms in high-volume sectors
Isolated, high-impact use cases can deliver measurable value quickly, build trust and create replicable models. Africa does not need a “big bang” digital revolution, but a layered, modular progress.
2. Should Africa Avoid Continent-Wide Digital Trade Finance Regulation?
There is growing debate around whether Africa should pursue harmonised, continent-wide digital trade finance regulation.
The concern is valid: overly rigid supranational regulation could stifle local innovation, particularly in fintech-driven markets such as Nigeria, Kenya, South Africa or Rwanda, where experimentation has driven progress.
However, complete fragmentation carries its own risk.
Trade finance depends on:
- Legal certainty
- Enforceability of electronic documents
- Interoperability of systems
- Cross-border recognition of digital instruments
Without some level of harmonisation, digital trade risks remaining siloed within national borders, undermining AfCFTA’s objectives.
The right answer is not “one rulebook for all,” but rather:
- Principles-based harmonisation
- Mutual recognition frameworks
- Regulatory sandboxes that allow experimentation within guardrails
- Regional alignment before continental codification
Africa must strike a balance between integration and flexibility, preserving innovation while ensuring cross-border trust.
3. Electronic Transferable Records: Progress on Paper vs Progress in Practice
Several African jurisdictions have begun exploring or adopting legislative frameworks aligned with the UNCITRAL Model Law on Electronic Transferable Records (MLETR).
On paper, this is a major step forward.
In practice, however, legislative recognition alone does not change trade behaviour.
For electronic bills of lading or digital promissory notes to function:
- Domestic regulators must issue operational guidance.
- Courts must be prepared to enforce digital instruments.
- Banks must adapt internal risk and compliance policies.
- Corporates must integrate digital documentation into ERP systems.
Until regulators operationalise these laws through supervisory frameworks, circulars and compliance standards, adoption will remain limited.
Legal reform is necessary but not sufficient.
5. AI and Data-Driven Trade Finance: A Growing Divide
Globally, trade finance is being reshaped by:
- AI-driven credit decisioning
- Automated document checking
- Predictive compliance tools
- Data-based risk pricing
- Embedded finance platforms
But many African banks face structural barriers:
- Limited structured trade data
- Legacy core banking systems
- Skills shortages in data science
- Capital constraints for technology investment
The danger is clear: as global banks and large institutions accelerate AI adoption, smaller African banks could fall further behind, reducing their competitiveness and limiting their ability to serve SMEs.
The solution is not to avoid AI but to pursue:
- Shared utilities and collaboration platforms
- Cloud-based trade solutions that reduce upfront investment
- Regional data pools
- Public-private skills initiatives
Digital transformation must be inclusive by design.
6. The Real Risk: Widening the Trade Finance Gap
Africa already faces an estimated trade finance gap in the tens of billions of dollars annually. SMEs are disproportionately affected.
Without urgent investment in:
- Skills development
- Digital infrastructure
- Data governance
- Regulatory capacity
- Bank modernisation
Digitalisation could paradoxically widen the gap rather than narrow it.
Well-capitalised banks and multinational corporates will digitise first. Smaller banks and SMEs may struggle to keep up, becoming excluded from emerging digital ecosystems.
The opportunity is enormous but so is the responsibility.
A Realistic Path Forward
Africa’s trade digitalisation journey should be:
Pragmatic, not ideological.
Incremental, not theatrical.
Inclusive, not elite.
Key priorities should include:
- Targeted, corridor-based digital trade pilots in adoption-ready markets such as Nigeria, Kenya and Angola.
- Regulatory harmonisation through principles and mutual recognition.
- Operationalisation of electronic transferable record laws.
- Structured experimentation with digital currencies.
- Shared digital infrastructure and skills investment.
- Strong public-private collaboration.
Africa does not need to replicate Europe or Asia’s digital trade model overnight.
It needs a model rooted in its own realities – diverse, uneven, innovative and resilient.
The digital trade opportunity is real. But it will only deliver inclusive growth if ambition is matched with execution, capacity-building and coordinated investment.
The next decade will determine whether digitalisation narrows Africa’s trade finance gap or deepens it.
The choice is strategic rather than technological, but there’s no doubt that technology that enables easy digital adoption will shine through. Through low reliance on in-house trade finance knowledge and skill, IT resource and upfront investment, solutions like Surecomp’s TFaaS that facilitate ecosystem collaboration and regulatory compliance are proving invaluable to Africa’s digital trade finance momentum.