African business leaders expect cross-border activity to increase over the next year, but high financing costs and gaps in implementation of the African Continental Free Trade Area are constraining intra-African trade, according to preliminary findings of a 2026 survey.

The 2026 PAFTRAC Africa CEO Trade Survey found that 81.3% of senior executives surveyed expect their cross-border activity to expand over the next 12 months.

The findings were presented at the World Trade Organization Public Forum in Geneva on Sept. 16 by the Pan-African Private Sector Trade and Investment Committee, or PAFTRAC.

The survey, now in its sixth year, has expanded from 400 respondents in 2021 to more than 2,500 executives in 2026, PAFTRAC said. The committee said intra-African commerce had become the principal target destination for surveyed executives, ahead of China, Europe and the United States.

That optimism has yet to translate into a major increase in the share of goods traded within Africa. Intra-African merchandise trade remains at about 15% to 18% of total African exports, according to the preliminary findings.

The results point to a gap between companies’ appetite for regional expansion and the financial and policy systems available to support it.

Financing Remains a Major Constraint

PAFTRAC said credit risk and the cost of financing remain important obstacles to cross-border commerce. It cited International Finance Corp. analysis estimating that African sovereign and institutional borrowers face an additional financing premium of about $31 billion a year because of how risk is priced by Western credit-rating agencies.

Professor Patrick Utomi, chairperson of PAFTRAC, described the additional cost as a “prejudice premium” and argued that existing global rating approaches can fail to reflect conditions in African markets.

“When capital is priced so that an economy actively at war receives more competitive financing than a stable, peaceful African sovereign, the system is misreading reality,” Utomi said, according to PAFTRAC.

PAFTRAC said 57% of executives surveyed described access to trade finance for cross-border transactions as difficult or very difficult. The committee also cited an IFC estimate that Africa’s small and medium-sized enterprise financing gap exceeds $331 billion.

The financing constraints are significant for companies seeking to enter new African markets because cross-border trade often requires working capital, payment facilities and financing for imports and exports.

AFCFTA Implementation Remains Uneven

The survey also found that implementation and awareness of mechanisms linked to the African Continental Free Trade Area remain uneven.

PAFTRAC said 70.2% of respondents reported a tangible operational impact from AfCFTA-related reforms. At the same time, more than half of respondents were unfamiliar with the Pan-African Payment and Settlement System, or PAPSS, which is designed to facilitate cross-border payments in African currencies.

PAPSS says its infrastructure enables instant or near-instant payments across African borders and allows participating banks and payment providers to connect through a continental payment network. The system is intended to reduce some of the cost and complexity associated with cross-border transactions.

The survey also found limited awareness of other AfCFTA implementation tools, including the E-Tariff Book, the African Trade Observatory and mechanisms for reporting non-tariff barriers, PAFTRAC said.

The findings highlight that tariff reductions alone may not be sufficient to substantially increase intra-African trade. Businesses also need payment systems, financing, trade information and regulatory processes that work across national borders.

Regional Markets Gain Importance

The survey results come as African businesses increasingly look to regional markets as part of their growth strategies. For companies operating across multiple countries, deeper integration can create opportunities to reach new customers, build regional supply chains and reduce dependence on markets outside the continent.

But the relatively low share of intra-African merchandise trade shows the scale of the challenge. Businesses still face differences in regulations, customs procedures, currencies and access to finance across markets.

Payment infrastructure is one area where regional initiatives are expanding. In February, Kenya’s Pesalink partnered with PAPSS to enable cross-border payments between participating institutions using local currencies.

PAPSS said in July that the Bank of Central African States had joined its network, bringing the system’s reach to 28 African countries, more than 190 commercial banks and fintechs, and 16 payment switches.

Those developments could support trade by reducing payment friction, but broader adoption will depend on financial institutions, regulators and businesses integrating the systems into their operations.

What Comes Next

PAFTRAC said the preliminary findings were the first public presentation of its 2026 Africa CEO Trade Survey. The full report is scheduled for publication in October and is expected to provide more detailed analysis of trade barriers, AfCFTA implementation and financing constraints.

The survey also plans to include policy recommendations from the more than 2,500 executives who participated.

For African businesses, the findings suggest that demand for regional trade is not the main constraint. The challenge is building the financing, payment, regulatory and information systems needed to convert that demand into sustained commercial activity.

The outcome of those efforts will be important for the future of intra-African trade as governments and businesses seek to turn the AfCFTA’s continental market into greater volumes of actual trade.