Lagos experts demand regulatory and digital reforms to boost intra-African trade

Industry experts gathered in Lagos for the Moonshot 2026 event called for immediate structural reforms to enhance trade within the African continent. The central focus of the discussions was the significant disparity between current trade volumes and the potential of the African Continental Free Trade Area (AfCFTA). Participants argued that urgent action is required to harmonise regulations and establish seamless digital payment systems to facilitate cross-border commerce.

The call for reform was driven by data showing that intra-African trade currently accounts for less than 17 per cent of the continent’s total trade volume. This figure stands in stark contrast to Europe, where intra-regional trade represents more than 60 per cent of total commerce. Despite the AfCFTA’s promise of creating a $3.4 trillion market, businesses continue to face significant hurdles. These include fragmented financial systems, high costs associated with cross-border payments, and persistent regulatory barriers that impede the free movement of goods and services.

Background

Adetola Onayemi, Chairman of Norebase, addressed the gap between the theoretical benefits of trade agreements and their practical implementation. Speaking to Business Africa, he highlighted specific obstacles encountered at borders, ports, and banking institutions. Onayemi advocated for technology-driven solutions to bridge this divide, specifically proposing standardised business documentation and interconnected digital payment networks. He suggested that these measures would simplify market entry for businesses and significantly reduce transaction costs.

Onayemi further urged private sector entities to actively utilise the AfCFTA framework to identify and expose systemic bottlenecks. By doing so, businesses could pressure governments to address these inefficiencies, thereby unlocking the agreement’s potential to expand trade, increase incomes, and reduce poverty across the region. The discussion also touched upon the broader technological landscape in Africa, noting a shift in the investment climate. As cheap capital becomes scarce and international investors reassess their exposure to the continent, startups are facing increased pressure to demonstrate profitability and financial discipline. This trend suggests a transition from rapid, expansion-focused growth to the development of more resilient, long-term business models.

Why it matters

The effectiveness of the AfCFTA is critical for the economic development of the continent, yet current structural weaknesses threaten its success. The inability to efficiently move goods and capital across borders limits the economic gains that member states could otherwise achieve. Beyond trade, the stability of the business environment is further complicated by governance issues. A recent report by the Mo Ibrahim Foundation indicates that nearly half of Africa’s population resides in countries where governance has deteriorated over the past decade. These findings raise serious concerns regarding institutional performance, political stability, and investor confidence. Weak governance structures can undermine the business environment and slow economic progress, making the strengthening of institutions, transparency, and accountability essential for securing sustainable growth. For businesses, the current climate demands a shift towards sustainable business models that can withstand the pressures of reduced funding and the need for proven financial discipline.

What happens next

The experts at Moonshot 2026 have outlined a clear path forward, emphasising the need for standardised documentation and digital payment integration. Businesses are being encouraged to engage more actively with the AfCFTA to highlight implementation failures to policymakers. While the sources do not specify immediate legislative deadlines or specific upcoming government meetings, the consensus among the attendees is that the transition to a more mature and resilient tech and trade ecosystem is already underway, driven by the necessity for profitability and the drying up of easy capital.