The African Export–Import Bank (Afreximbank) has initiated a border market strategy aimed at modernising protocols that could substantially reduce costs and enhance efficiency for intra-African trade.
This comes on the back of existing border protocols that often lead to lengthy delays and a cumbersome bureaucratic process that inflate transportation costs across Africa and stifle economic growth.
Afreximbank’s director for trade facilitation and investment promotion, Dr Gainmore Zanamwe, on Thursday said this strategy included establishing dedicated lanes for trucks at border points.
He said this was exemplified by successful collaborations at the Beitbridge Border, which have enhanced the flow of goods by implementing modern infrastructure.
“We actually developed what we call the border market strategy, which seeks at building border markets and modernizing the borders and using technology to break the barriers. This is the technology that was used to automate some of the customs processes and procedures,” Zanamwe said during an interview with Business Report.
“So by using technology, you can actually fast track the movement of goods, cut the red tape. And the more you automate and digitalize and move away from paperwork, you actually are able to reduce the delays at the borders, cut the costs. So this is basically what we are working on.
“By using technology, we are actually changing the way in which goods are going to be moving on the continent. By the way, you know that with artificial intelligence and all these developments, we believe that the future is a situation whereby goods will not be transported, but they will be transmitted using technological platforms. And we want to make sure that our borders are decongested using technology.”
Zanamwe was speaking after making a presentation at the Inter-African Trade Fair (IATF) 2025 Business Roadshow in Johannesburg ahead of the 4th IATF which will take place in Algeria in September.
Since the inception of the IATF in 2018, Zanamwe noted a gradual increase in intra-African trade, with current statistics hovering between 15% to 18%.
Yet, he acknowledged that while progress was being made, the pace could be accelerated. Initiatives such as the Africa Trade Gateway have played a vital role in providing businesses with the necessary tools to negotiate trade easier under the African Continental Free Trade Area (AfCFTA) agreement.
“In terms of trade and investment deals, in 2021 in South Africa we actually concluded $42 billion of trade and investment deals. And in 2023 in Egypt, we actually did $43.7bn of trade and investment deals. These are all contributing to increasing intra-African trade,” he said.
“And we believe at this stage we are actually moving in the right direction because when we started the IATF, the African Continental Free Trade Area Agreement was not fully implemented.”
The AfCFTA is a free trade agreement aimed at integrating all 55 members of the African Union into a single market. It seeks to boost intra-African trade and investment by establishing a framework for tariff liberalization and harmonizing trade-related rules.
The agreement came into force in 2019 and is a key element of the African Union’s Agenda 2063, a plan for sustainable development across the continent.
Wamkele Mene, secretary general for the AfCFTA Secretariat, said the low volumes of intra-African trade underscored a pressing need for African nations to refocus their energies inward, addressing the stark contrasts in trade flows compared to their international counterparts.
Mene said South Africa was well positioned to lead the continent in ensuring the process of value addition as it had a well-established industrial base.
“By integrating resources, integrating our trade policy with the endowment of natural resources that we have, we have the capacity to accelerate our industrial development. The AfCFTA provides a once in a lifetime opportunity for us to act together to accelerate the vision of an integrated continent,” Mene said.
“Fostering regional value chains in key sectors such as the automotive sector with its emerging regional hubs and agro-business with its vast potential for inclusive growth is absolutely critical. Developing interconnected regional value chains will promote technology transfer, diversification of intra-Africa export markets, and position our small-medium enterprises for benefits under this significant market.”
Afreximbank’s chief economist and managing director for research, Dr Yemi Kale, said Africa must continue to look within for trade partnership, particularly in the fragmented global trade environment.
“Africa must trade more with itself, not just in raw materials but in value-added goods, services and innovations,” Kale said.
“West African countries spend over $3 billion importing meat from as far as Argentina and Australia, while countries like Botswana and Mali can meet the demand.”
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