Intra-African trade should be bolstered to counteract the effects of global tariffs, according to UBA CEO Alawuba.

Escalating global trade disputes prompted the CEO of United Bank for Africa (UBA), Oliver Alawuba, to advocate for a resolution.

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2025 September 18 . 5:43 AM

2 min read

African CEO Alawuba advocates for increased intra-African trade to counterbalance global tariff... — African CEO Alawuba advocates for increased intra-African trade to counterbalance global tariff pressures

Intra-African trade should be bolstered to counteract the effects of global tariffs, according to UBA CEO Alawuba.

In a bid to strengthen regional trade ties and reduce dependence on foreign markets, United Bank for Africa (UBA) has launched a cross-border payment partnership with the Pan-African Payment and Settlement System (PAPSS). The announcement comes amidst the global tariffs announced by U.S. President Donald Trump in April, which included a 14% tariff on Nigerian imports.

At the launch of the Nigeria-Ghana corridor of the partnership, Oliver Alawuba, CEO of UBA, emphasised the need for African countries to do more business with each other. He believes that the current global tariff regime necessitates such a move, as intra-African trade is low and needs improvement.

The PAPSS system is a world-class financial market infrastructure designed for multilateral net settlement across African borders. It facilitates seamless payments between African countries using local currencies, as demonstrated by a shoe exporter in Aba who can now export goods to Ghana and receive Naira. Alawuba considers this transformational and the future of Africa.

The platform, developed in partnership with the African Export-Import Bank (Afreximbank) and approved by central banks across participating countries, is equipped with AI-powered chatbot, LEO, making it the first of its kind on the continent to facilitate instant remittances using local currencies. This reduces reliance on foreign exchange and enhances trade efficiency.

Mike Ogbalu, CEO of PAPSS, described the platform as being capable of standing anywhere in the world. Ogbalu, along with Alawuba, stressed that despite being African, the PAPSS infrastructure is world-class.

The tariffs announced by Trump were temporarily postponed for 90 days to allow for bilateral negotiations. However, as of August 1, the revised scheme imposed 15% tariffs, with no trade deals struck between the U.S. and any African country. These global tariffs have intensified calls for African nations to strengthen regional trade ties.

Alawuba supports using digital innovations and local currencies to foster resilient intra-African trade. He believes that these strategies will deliver sustainable financial solutions that connect markets, empower Small and Medium Enterprises (SMEs), and drive inclusive growth and infrastructure development across Africa.

In conclusion, the launch of UBA's cross-border payment partnership with PAPSS is a significant step towards boosting intra-African trade. The platform, with its AI-powered chatbot and world-class infrastructure, promises to make digital and real-time transactions without any border restrictions, thereby reducing the impact of global tariffs and fostering a more resilient and self-sufficient African economy.