Africa leading the AI revolution in global trade

Global trade may be in the process of “a profound transformation” as it converges with artificial intelligence (AI), says Amandeep Singh Gill, United Nations under-secretary-general and special envoy for digital and emerging technologies. And Africa may be at the forefront of the change. Writing in the World Trade Report 2025, he says “this convergence combines the scale and complexity of cross-border exchanges with the analytical power of AI. “Think of it this way: trade has always been about moving goods, services and ideas across borders. “Now we are moving intelligence itself. Every shipment, every transaction and every customs declaration becomes a data point that feeds back into systems that are getting better by the day. “It is like watching a massive learning organism come to life”. Intra-African trade could take the lead and enjoy the biggest benefits. “The African Continental Free Trade Area (AfCFTA) is trying to turn 54 separate economies into one integrated market. “It is not just about trying to harmonise policies; these economies are building the digital backbone to make it all work. “We are talking about identity systems that span borders, payment networks that let you send money from Lagos to Nairobi as easily as transferring funds within a single city, and customs systems that actually talk to each other.” The Pan-African Payment and Settlement System (PAPSS) is a perfect example of this in action, he says. Established by African Export- Import Bank (Afreximbank) in collaboration with the African Union Commission (AUC) and the AfCFTA Secretariat, PAPSS has a presence in 18 countries, according to PAPSS chief executive officer Mike Ogbalu III. South Africa has not yet officially adopted the system. “So far, PAPSS has reduced intra-Africa cross-border transaction costs among participating countries and enabled savings of up to 27% for end users, while helping banks experience transaction volume surges of over 1 000% through digital channels integration,” he says. There has been an immediate impact on businesses in participating countries. “Imagine trying to run a business when every transaction takes days and costs a fortune in fees,” says Gill. “That single change has unlocked trade relationships that simply were not viable before. “And here is where AI enters the picture. All this digital activity is creating an incredible treasure trove of data, including transaction patterns, shipping routes, seasonal trends, and even regulatory bottlenecks. “This is already happening across the continent. In East Africa, logistics companies are using AI to predict delivery times by analysing traffic patterns, weather forecasts and road conditions. Digital trade finance platforms are leveraging AI to assess credit risks more accurately, thereby helping small businesses gain access to capital that was previously out of reach. “Governments are exploring AI-informed regulatory sandboxes, using live data to test and improve trade policies before they are scaled,” he says. ER