U.S. tariffs strengthening Africa’s local currency payments – Fintech expert

The imposition of tariffs by the United States is reshaping the global economic landscape, with Africa's local currency payments being strengthened as a result. Eghosa Nehikhare, CEO of Multigate, a licensed treasury management and payment solution provider, highlighted that the push towards regional trade integration is fueling renewed interest in the African Continental Free Trade Area (AfCFTA).

Despite the tariffs imposed by President Donald Trump on several African countries, including South Africa and Nigeria, Nehikhare sees an unexpected upside for the African market. The shift towards local currency settlement systems is fostering stronger ties between Africa and Asia, particularly China and Singapore.

This development reduces Africa's dependency on the dollar, enabling businesses to settle international transactions faster and more efficiently. Nehikhare emphasized that the momentum around trade agreements like AfCFTA, coupled with the growing ability to settle transactions in local currency, is unlocking new opportunities for banks and corporates across the continent.

The fintech sector is at the forefront of this change, delivering.