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Africa must urgently reduce its reliance on the U.S. dollar to strengthen intra-continental trade and enhance economic sovereignty, according to Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA). Speaking at the 2025 Afreximbank Annual Meetings in Abuja, Mene emphasized that continued dependence on the dollar for trade transactions within Africa is inefficient, costly, and exposes the continent to unnecessary global economic vulnerabilities.
He stressed that reducing dollar reliance is essential for achieving the AfCFTA’s vision of seamless trade among African countries. Currently, only about 15% of Africa’s trade happens within the continent, compared to over 60% in Europe and Asia. Mene noted that structural barriers, such as currency fragmentation and reliance on foreign payment systems like SWIFT, inflate transaction costs and slow economic integration. For example, a transaction of $500 using SWIFT can incur fees of up to $70, while the Pan-African Payment and Settlement System (PAPSS) a new initiative backed by AfCFTA and Afreximbank, can complete the same transaction for just $2 using local currencies.
The PAPSS platform is designed to enable direct payments between African countries in their respective national currencies, bypassing the need for dollar conversions and international financial intermediaries. Mene described PAPSS as “a strategic pillar of economic sovereignty,” and called on all African countries to integrate the system into their trade infrastructure. He said the platform will not only cut costs but also make African economies more resilient to global shocks, such as interest rate hikes or currency fluctuations in the U.S. and Europe.
Highlighting a real-world example of intra-African trade improvement, Mene cited Nigeria’s launch of an AfCFTA Air Corridor in partnership with Uganda Airlines. The route connects Lagos with key African hubs such as Nairobi, Kampala, and Johannesburg, and has reportedly slashed logistics costs for Nigerian exporters by 50–75%. Products like textiles, cosmetics, and agricultural goods have already seen increased movement thanks to this initiative, showing the potential of coordinated infrastructure and policy reforms under AfCFTA.
Mene further warned that continuing to peg African economies to the dollar limits their ability to control their financial futures. He argued that the continent must develop mechanisms for self-sufficiency, including investment in trade finance, industrial production, and innovation, to ensure long-term competitiveness. He praised Afreximbank’s role in supporting trade finance for small and medium-sized enterprises and called for accelerated partnerships across both public and private sectors to support AfCFTA’s rollout.
In conclusion, Mene said reducing dollar dependency is not only an economic issue but also a matter of sovereignty and stability.
“We must ensure the economic independence of our continent by building systems that serve African priorities first,” he stated.
As AfCFTA continues to gain momentum, with over 50 countries signed on, its success will increasingly depend on how quickly Africa can overcome legacy systems and build a unified, locally driven trading ecosystem. The launch of PAPSS, expanding air corridors, and rising political support indicate that Africa is taking tangible steps toward that future.