Artificial Intelligence will determine whether Africa fully unlocks the $3.4tn market potential of the African Continental Free Trade Area (AfCFTA), according to development economist Dr. Luqman Afolabi.
Speaking at the International Conference on Artificial Intelligence and Education at the University of Kigali, Rwanda, Afolabi argued that the continent’s next phase of economic transformation will be powered not by roads or rail tracks, but by digital systems strengthened through AI.
Afolabi explained that Africa must now prioritise “soft infrastructure”, data networks, digital payment systems, and technology-driven skills, over traditional physical infrastructure. He said these digital foundations will enable the continent to participate effectively in global trade and maximise the economic benefits AfCFTA was designed to create.
Using what he termed the “three Fs”, Food, Fuel, and Finance- Afolabi highlighted the areas where AI is already reshaping African trade systems. In agriculture and logistics, he cited companies such as Kobo360, which use AI to optimise truck movements, cut transport costs by as much as 20 per cent, and reduce empty return trips.
These efficiency gains, he said, are essential for a continent that still imports more than $35bn worth of food annually despite holding 60 per cent of the world’s uncultivated arable land.
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He added that AI is also improving the reliability of energy systems across Africa, providing the stability required for industrial growth and large-scale trade.
In finance, Afolabi emphasised the role of Afreximbank’s Pan-African Payment and Settlement System (PAPSS), which uses digital tools to support instant cross-border transactions in local currencies. The system prevents the loss of an estimated $5bn each year to currency conversion, making intra-African trade faster and more affordable.
Afolabi stressed that education remains the final pillar needed to drive digital trade. He urged African countries to reform curricula, integrate AI literacy into early learning, and equip teachers to serve as digital ambassadors capable of preparing the next generation for a technology-driven economy.
He concluded with a simple formula: while AfCFTA offers the market, AI provides the mechanism, and education delivers the mindset required to make it work.
