AU: Tackling Everyday Trade Barriers Key to Unlocking Africa’s Economic Potential

Addis Ababa, August 28, 2026 (FMC) — The African Union (AU) has highlighted a range of measures it says are helping address persistent barriers to intra-African trade, from payment and transport constraints to divergent technical standards, as the continent seeks to translate the African Continental Free Trade Area (AfCFTA) into tangible economic benefits.

The AU said trade barriers extend beyond tariffs to include disconnected payment gateways, fragmented rail networks and unaligned standards, describing the removal of these practical constraints as essential to creating jobs and improving the gains from continental trade.

According to the AU, the Pan-African Payment and Settlement System (PAPSS), developed in partnership with the African Export-Import Bank (Afreximbank), is enabling commercial settlements in local currencies.

The system, it said, is reducing reliance on third-party clearing currencies and retaining an estimated 5 billion U.S. dollars annually within African commercial ecosystems.

The AU said the AfCFTA Secretariat’s Guided Trade Initiative (GTI) is facilitating commercially viable cross-border supply chains under preferential tariff regimes, supported by synchronized digital customs protocols and harmonized rules of origin.

On infrastructure, the AU said the African Union Commission is coordinating 69 strategic multi-sector projects under the Programme for Infrastructure Development in Africa Priority Action Plan 2 (PIDA PAP 2), representing a portfolio of 161 billion U.S. dollars aimed at integrating regional transport corridors, energy pools and digital networks.

The AU further said that, in collaboration with the African Organisation for Standardisation (ARSO), efforts are underway to align continental technical standards and eliminate redundant conformity assessment procedures at border posts.

The AU said aligning trade facilitation frameworks, infrastructure priorities and regional financial market integration is contributing to the realization of Agenda 2063 and the AfCFTA.