By Anifowoshe Oladipupo
Fresh U.S. tariffs are unexpectedly strengthening Africa’s financial ecosystem and accelerating the shift to local currency settlements, according to Multigate CEO, Eghosa Nehikhare.
In July, President Donald Trump announced a revised trade plan that introduced a 15% levy on goods from Nigeria and Ghana. While the move signaled a tougher U.S. stance, it has spurred a rise in local currency transactions between Africa and Asia, particularly with China and Singapore.
The shift reduces reliance on the U.S. dollar and cuts transaction times from a week to real-time.
This efficiency is fueling the African Continental Free Trade Area (AfCFTA), and creating fresh opportunities for banks and businesses across the continent.
“The momentum around intra-African trade agreements, coupled with the growing ability to settle in local currencies, is unlocking new opportunities for banks and corporates,” Nehikhare said.
Analysts say the fintech-driven pivot is positioning Africa at the center of a new era of resilient cross-border commerce, deepening intra-continental trade and strengthening Asia-Africa economic ties.
