U.S. Tariffs Spur Stronger Cross-Border Payments and Renew Interest in AfCFTA

The shifting global economic landscape, marked by fresh tariffs imposed by the United States and a stronger push toward regional trade integration, is driving growth in Africa’s cross-border payments ecosystem and fueling renewed interest in the African Continental Free Trade Area (AfCFTA).

This perspective was shared by Eghosa Nehikhare, CEO of Multigate, a licensed treasury management and cross-border payments solutions provider.

U.S. Tariffs and Trade Realignments

In a revised global trade plan announced in July, U.S. President Donald Trump introduced tariffs of up to 30% on goods imported from countries such as South Africa and Algeria.
Nigeria and Ghana were also affected, with 15% tariffs placed on their exports, signaling Washington’s tougher stance on African trade flows.

While the move risks marginalizing Africa further in American trade, Nehikhare noted that the new environment is having an unexpected upside: it is accelerating Africa’s adoption of local currency settlement systems and encouraging stronger economic ties with Asia.

“Yes, and we are already seeing the impact. Trading relationships between Africa and Asia, particularly with China and Singapore, are expanding rapidly,” Nehikhare said in an interview with Nairametrics.

He explained that in the past, African importers were forced to source U.S. dollars from the parallel market and wait days—sometimes up to a week—for payments to clear to Asian suppliers.

“Today, we enable them to pay in local currency, with the supplier receiving their local currency within T+1 or even in real time. Demand for this service is rising quickly, and competition in the space is intensifying,” he added.

Boost for Intra-African Trade

The Multigate CEO said momentum around intra-African trade agreements and regional integration is unlocking new opportunities for banks and corporates across the continent.

“In the near term, there is a lot of positive conversation happening, and this is prompting many banks and companies to express renewed interest,” he explained.

He cited the aviation sector as one industry where these changes are making a significant difference. Airlines operating across Africa often struggled to manage revenues in multiple local currencies, from Malawi to Zimbabwe and Kenya, while simultaneously requiring naira in Nigeria. The absence of a straightforward settlement system left them stockpiling currencies inefficiently.

Fintech as the Game-Changer

Technology, according to Nehikhare, is at the center of the transformation.

“Fintech is delivering more than traditional payment services. Platforms like Multigate allow clients to pay in naira while beneficiaries abroad can receive funds in U.S. dollars (USD) or Chinese yuan (CNY), eliminating inefficiencies in foreign exchange and reconciliation processes,” he said.

Toward a Resilient African Payment Ecosystem

The intersection of U.S.-led trade realignments, the AfCFTA framework, and fintech innovation is creating a more resilient and self-reliant African payments ecosystem.

By reducing dependency on the U.S. dollar, accelerating settlement speeds, and deepening Africa-Asia trade ties, the continent is increasingly positioning itself at the center of a new era of cross-border commerce.

What You Should Know

• Afreximbank Research earlier stated that the direct impact of U.S. tariffs on Africa may be limited, given the continent’s growing reliance on China.
• Recent trade data shows that China has now surpassed the United States as Africa’s leading trading partner.
• Regional initiatives like AfCFTA are expected to further reinforce Africa’s ability to absorb global shocks while enhancing its role in the global trade system.