PAPSS Exposes Broken AfCFTA Border Integration as IMF Warns Implementation Still Lags

PAPSS now reaches 28 African countries, with more than 190 commercial banks and fintechs connected through 16 switches.

BEAC’s entry in 2026 extended the network into the six CEMAC markets, where rollout is still continuing.

Participating institutions can settle cross-border transactions in African currencies without using the dollar or another hard currency as the mandatory intermediary.

Trading under AfCFTA began in 2021, and more than 12,000 Certificates of Origin had been issued and notified by March 2026.

The Secretariat said in July that most of the legal framework was in place and that implementation had become the priority.

The IMF says rules of origin and tariff concessions remain unfinished in some areas, while non-tariff barriers and customs modernisation continue to hold back implementation.

The World Bank estimated in August that roughly 60% of Africa’s trade costs arise behind national borders, including customs delays, fragmented standards and other domestic restrictions.

PAPSS has already linked part of Africa’s payment system across several markets. AfCFTA preferences still have to be recognised and applied by customs authorities when goods cross national borders.

AfCFTA’s Continental Market Now Runs Through National Customs

Trading under AfCFTA began in January 2021, with tariff liberalisation phased across most product lines. The agencies that classify goods, value shipments, inspect cargo, verify origin and collect duties remain under national control.

The IMF says The Gambia receives about 25% of tax revenue from customs and trade-related taxes, compared with about 19% among low-income peers.

Ethiopia also raises substantial revenue through customs duties, import VAT and import-related surtaxes.

Lower AfCFTA tariffs reduce what governments collect at ports and land borders, bringing trade liberalisation directly into domestic revenue systems.

Customs authorities still decide whether a shipment qualifies for preferential treatment, how it is valued and which documents are accepted.

Different procedures across countries can delay clearance and weaken the commercial value of the preference.

AfCFTA has established the tariff framework, but traders still meet national customs systems at the border.

Digital Customs Are Moving AfCFTA From Paper Rules to Border Execution

AfCFTA already uses Certificates of Origin to identify goods eligible for preferential treatment. Recognition still varies across national customs systems.

The IMF has called for electronic proof of origin, shared customs data, digital transit records, cargo tracking, risk-based inspections and more consistent valuation and tariff classification.

In August 2026, AfCFTA signed a 20-year, $3.1 billion customs-modernisation concession covering digital customs systems, secure information exchange, one-stop border posts, coordinated border management, electronic cargo tracking, common customs portals, non-intrusive inspection and data analytics.

The programme brings more of the clearance process onto shared digital infrastructure. Customs authorities can verify origin, transit and documentation with information available across borders.

Qualifying shipments still have to receive consistent treatment when they move from one customs territory into another.

China’s Zero Tariffs Are Making Africa’s Internal Trade Friction More Visible

China extended zero-tariff treatment on May 1, 2026 to all 53 African countries with which it has diplomatic relations, covering 100% of tariff lines subject to eligibility rules. Exporters still have to meet origin, inspection, quarantine and other import requirements.

China’s imports from Africa rose 23.5% year on year in May and June.

The African Development Bank says intra-African goods trade accounted for about 13.2% of total goods trade in 2024. The World Bank estimates that roughly 60% of African trade costs arise behind national borders.

Farmers, processors and manufacturers moving goods across neighbouring markets still face delays, inconsistent valuation and different clearance procedures.

Those differences raise transport costs, complicate inventory planning and make delivery schedules less predictable.

The widening access to China puts more pressure on AfCFTA to make regional preferences work consistently when African goods cross another African border.

PAPSS Shows How Far AfCFTA Border Integration Still Has to Go

PAPSS has shown that African financial institutions can connect across borders while central banks and regulators remain responsible for their domestic markets.

AfCFTA is extending electronic origin checks, shared customs data and coordinated border management.

The IMF has linked deeper regional trade to greater resilience as global commerce becomes more fragmented, and the World Bank has called for closer links across customs, payments, transport, energy and digital networks.

Africa exports large volumes of commodities, agricultural goods and industrial inputs to global markets.

Predictable access to neighbouring countries would widen the customer base available to processors, manufacturers and regional suppliers before products move overseas.

Competition over supply chains and market access is giving regional commerce greater economic weight.

African firms with reliable routes into neighbouring markets have more scope to source inputs, process goods and sell across the continent.

AfCFTA has established the continental framework. Its commercial impact now rests on whether qualifying African goods receive the agreed treatment when they reach customs.