AfCFTA warns Africa loses $5b to forex reliance
Africa loses approximately $ 5 billion each year due to foreign exchange costs associated with trading in external currencies. Dr. Tsotetsi Makong from the African Continental Free Trade Area said this dependence weakens economic independence and trade development across the region. He addressed the International Conference on ESG and Sustainable Development of Africa in Accra about payment systems that route transactions through America or Europe, even when African nations trade with each other.
The trade organization develops instruments, such as a digital commerce protocol, to establish local-currency payment channels. Makong said fragmented markets discourage major capital inflows while unified economic zones attract substantial investment. He pointed to Ghana, Nigeria, and Togo as examples of countries that could combine markets under the continental agreement to strengthen investment appeal.
Success requires cooperation between African governments toward common economic objectives. Makong stressed that individual nations cannot advance independently. The trade area works to remove barriers that have separated African economies and limited their competitiveness in global markets.
