Algiers – Africa must move urgently to reduce its reliance on the US dollar for trade within the continent, Oakwood Green Africa CEO Gabriel Edgal told participants at the Intra-African Trade Fair (IATF 2025) in Algiers.
Speaking on a panel titled “One Market, Many Currencies – Can Africa Trade Without Foreign Money?” hosted by the Pan-African Chamber of Commerce and Industry (PACCI), Edgal warned that overdependence on foreign reserve currencies is undermining the goals of the African Continental Free Trade Area (AfCFTA). Indeed, without local currency convertibility, the objectives of AfCFTA will remain a pipe dream.
“Today, more than 80% of intra-African trade is still settled in US dollars, even for goods and services that never leave the continent,” he said. “This dependency imposes hidden costs – from currency scarcity to double conversions, settlement delays, and ultimately imported inflation making it impossible for our local products to compete favourably. For SMEs, currency sovereignty is not just required – it is existential. A trader moving goods from Mombasa to Addis Ababa should not have to worry that a policy announcement from the US Federal Reserve could erase their margins.”
To address the challenge, Edgal called for the creation of what he calls the “Pan-African Currency Protocol” to accelerate the use of local currencies in trade. To be developed in partnership with PACCI and Afreximbank, the framework would aim to remove unnecessary restrictions on cross-border payments, encourage local currency settlement, and strengthen platforms like the Pan-African Payment and Settlement System (PAPSS).
He illustrated the power of the PAPSS opportunity with a practical example: “Imagine a road project in Uganda financed and delivered by an Egyptian contractor, with payments made in Ugandan shillings and Egyptian pounds. Both economies would preserve their reserves, strengthen local value chains, and reduce dependence on external currencies.”
Edgal also addressed debates around a single African currency. While supportive of the vision, he argued for a more pragmatic approach. “There have been calls for a single African currency, and while this is laudable, I believe the practical path is to allow a dominant currency to emerge organically through trade flows, demand and market adoption. What matters now is building the systems and policies to make that possible.”
The proposed protocol, he added, would build on existing initiatives. Afreximbank has developed PAPSS to support real-time cross-border settlement in African currencies, while AfCFTA provides the policy foundation for a single continental market, the private sector must now play its role to promote it.
“The frameworks are already here,” Edgal said. “What is required now is decisive implementation. Currency is not just a medium of exchange – it is a lever of sovereignty.”
The panel brought together policymakers, financial institutions, and private sector leaders to debate pathways for reducing Africa’s dollar dependence. Participants agreed that currency reform is central to unlocking intra-African trade and positioning the continent for sustainable growth.
The panel, hosted by PACCI, also featured Mike Ogbalu (CEO, PAPSS), Yazid Benmouhoub (CEO, Algiers Stock Exchange), and Johana Leblanc (Partner, Adomi Advisory Group). Together with Edgal, they explored pathways for reducing Africa’s dollar dependence and strengthening intra-African trade.
