Africa Turns to Stablecoins and IOTA to Unlock $70B in Trade

The African Continental Free Trade Area (AfCFTA) Secretariat and the IOTA Foundation, in collaboration with the Tony Blair Institute and the World Economic Forum, launched a digital trade initiative centered on stablecoin settlements to reform trade across Africa. The initiative, part of the Africa Digital Access and Public Infrastructure for Trade (ADAPT), aims to replace traditional paper-heavy processes with USDT-powered cross-border payments, which could reduce transaction costs significantly and cut document fraud. The project targets expanding its infrastructure to all 55 AfCFTA nations by 2035, with a forecast to double intra-African trade, unlocking $70 billion in economic value. Pilot projects in countries like Kenya and Rwanda have demonstrated efficiency gains, such as reducing border clearance times drastically and lowering documentation costs. The ongoing embrace of stablecoins presents a critical opportunity for African governments to enhance their financial infrastructure directly, bypassing outdated systems. This modernization initiative is expected to provide significant economic benefits to the region, including trade finance improvements and lower transaction fees for traders.

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