Moonshot Lagos pushes harder on African trade

LAGOS, Nigeria — Business experts at Moonshot 2026 in Lagos have called for urgent reforms to make trading between African countries easier and less expensive, pointing to costly payments, complicated regulations and disconnected financial systems as major barriers to business growth.

Although the African Continental Free Trade Area (AfCFTA) promises access to a market worth $3.4 trillion, businesses still struggle to operate across national borders. Africanews reports that intra-African trade accounts for less than 17 per cent of the continent’s total trade, compared with more than 60 per cent in Europe.

The discussions at the conference highlighted the need to turn Africa’s trade agreements into practical opportunities that businesses can benefit from.

##Main Trade Problems Raised

One of the major concerns raised at the conference was the difficulty of expanding businesses across African countries. Different national regulations, complicated registration procedures and administrative delays make it difficult for companies to enter new markets.

Businesses also encounter obstacles at borders, ports and banks, where the implementation of trade agreements does not always match their intended benefits.

Another challenge is the lack of connection between financial and technology systems. Businesses entering new markets may have to verify customer information again because their existing records cannot easily be accessed across countries.

These difficulties create additional work, increase operating expenses and discourage businesses from expanding beyond their home markets.

##Why Payments and Rules Slow Businesses Down

Making payments between African countries can be expensive and complicated. Currency conversion charges, third-party clearing fees and disconnected banking systems can increase transaction costs and delay payments.

The Africanews report highlights that third-party clearing can account for costs of up to 10 per cent of a transaction. This means businesses may lose a significant portion of their money before payments are completed.

Regulatory differences create another problem. According to Adetola Onayemi, chairman of Norebase, companies often need to register separately in different African countries to access banking services and conduct business. They must also meet different compliance requirements and provide documents that may need translation or authentication.

These procedures make even simple business expansion unnecessarily difficult.

Onayemi suggested connecting existing local payment systems instead of relying heavily on complicated international payment routes. He also highlighted the importance of standardised business documents and digital systems that allow customer information to move more easily between markets.

##What This Means for Startups and Small Firms

For startups and small businesses, these challenges can make the difference between expanding successfully and remaining limited to their local markets.

Unlike large companies, smaller businesses may not have enough money to maintain separate registrations, employ legal advisers or absorb expensive payment charges in several countries.

For example, a small Nigerian business hoping to sell products to customers in Ghana may struggle with payment conversions, unfamiliar regulations and the cost of meeting additional business requirements.

These expenses can reduce profits, increase the prices customers pay and discourage entrepreneurs from exploring opportunities elsewhere in Africa.

However, more accessible payment systems and simpler regulations could allow startups to reach new customers, build partnerships and compete in larger markets without facing unnecessary administrative costs.

##Technology and Cooperation as Possible Solutions

Experts at Moonshot 2026 emphasised the importance of technology and cooperation in addressing these challenges.

Proposed measures include connecting digital payment platforms, introducing standardised business documentation and improving the movement of customer information between countries.

The Pan-African Payment and Settlement System (PAPSS) was also discussed as part of efforts to support payments and settlements using African currencies.

Onayemi encouraged businesses to make active use of the AfCFTA rather than wait until every challenge has been resolved. He argued that practical participation would help businesses identify obstacles and encourage governments to improve the system.

The discussions in Lagos highlighted a simple but important message: Africa’s trade agreements can only deliver their full benefits when businesses can use them without unnecessary financial and administrative difficulties.

For entrepreneurs and small business owners, making cross-border trade easier could open access to new customers, reduce operating costs and create opportunities for growth across the continent.