Kenya has emerged as a leader in digital trade in the East Africa region, which has been ranked as the strongest-performing subregion in the Africa Trade Barometer (ATB) fifth edition, with a 10-percentage-point increase in export activity.
According to the ATB report released by Standard Bank Africa on March 5, nearly 78% of cross-border transactions and 79% of cross-border payments are now conducted digitally through bank-led rails, mobile-money integration, and the growing use of the Pan-African Payment and Settlement System (PAPSS).
“Digital payments now facilitate 78% of cross-border sales and 79% of purchases, driven by bank-led rails, mobile-money integration, and the growing use of the Pan-African Payment and Settlement System (PAPSS),” read part of the ATB.
This enables faster settlement in local currencies and reduces reliance on hard-currency intermediaries.
The survey was conducted across 10 African markets, including Kenya, Nigeria, South Africa, Ghana, Namibia, Angola, Mozambique, Tanzania, Uganda, and Zambia.
Kenya Contributes Largely to East Africa’s Trade Growth
According to Standard Bank Africa, East Africa emerged as the strongest-performing subregion in the ATB’s fifth edition.
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The report highlighted that policy reforms, such as the Kenya–Uganda trade reclassification, which treats Kenyan goods as intra-regional transfers rather than imports, have reduced administrative friction.
In addition, Kenya and Tanzania’s efforts to remove non-tariff barriers have improved cross-border coordination and boosted trade flows.
“These reforms, combined with corridor upgrades across Northern and Central transport routes, are reducing border delays, improving logistics predictability, and strengthening supply-chain reliability.”
Africa Trade Improving, Rising Business Confidence
The ATB report highlighted a rise in business confidence across East Africa, with economic growth across surveyed markets expected to reach 4.3% in 2026.
This is supported by moderating inflation and strong commodity exports, including gold, platinum, and copper.
According to the report, the adoption of digital systems has also improved access to finance, particularly for SMEs, helping businesses secure cheaper credit and scale operations more effectively.
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Although business conditions across the continent have improved, ATB reported that climate-related challenges have been hindering it.
It is also noted that reduced engagement with the United States’ markets and growing ties with Asian partners, such as China, continue to shape Africa’s trade outlook.
“Climate-related pressures remain a constraint, with 38% of firms reporting demand shifts due to climate impacts and 32% citing productivity losses, underscoring the need for resilient infrastructure and production systems.”
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A photo of Philip Myburgh the Executive Sponsor: Standard Bank Africa Trade Barometer. PHOTO/Standard Bank Africa ATB Report
