Afreximbank calls for aligned regulations to boost African trade

Pauline Dikuelo | Monday October 26, 2026 13:00

Mmegi: Kindly introduce yourself and tell us a little about your role at Afreximbank.

Diop: I am the Director of Compliance at Afreximbank. I joined the bank in June 2019 and I am responsible for the Compliance Division, which supports the bank’s business operations and helps protect the institution against compliance risks, including money laundering, terrorist financing and proliferation financing.

The division also helps the bank better understand local regulations in the countries where we operate, monitors transactions and supports the business in achieving its objectives. We provide guidance on how to avoid regulatory breaches when we enter markets to support our customers.

Mmegi: Tell us about the upcoming Afreximbank Compliance Forum. Diop: We are inviting Africa to Botswana for the Afreximbank Trade Finance Seminar and Compliance Forum, which will be held from 16 to 19 November. Afreximbank will host three events: the African Bank Compliance Forum, the African Bank Trade Finance Seminar and the African Bank Factoring Workshop.

We are hosting these events in partnership with the Botswana Investment and Trade Centre and are engaging local stakeholders, including the central bank and the Banking Association.

Mmegi: In addition to the Afreximbank Compliance Forum, how do you support compliance across Africa?

Diop: When we identify financial institutions with weaknesses in their compliance frameworks, we advise them to strengthen their policies. We may even assist them in selecting appropriate compliance systems, although this is not strictly our responsibility. By doing so, we contribute to strengthening the overall compliance framework across the continent.

We also help companies establish their presence on the MANSA platform, which gives them greater visibility to the international business community. Through the platform, companies can share relevant information with stakeholders while observing the necessary data protection requirements. In addition, Afreximbank has established the Compliance System Financing Facility to help financial institutions acquire the systems they need to strengthen their compliance frameworks. We believe that reducing the risks associated with doing business in Africa requires stronger compliance systems. By strengthening financial institutions’ compliance frameworks, we can help restore the confidence of correspondent banks and encourage them to resume or expand their relationships with African financial institutions.

Mmegi: Is the African banking industry ready for greater alignment of compliance regulations?

Diop: Financial institutions are versatile and adaptable. The challenge facing intra-African trade under the African Continental Free Trade Area (AfCFTA) is the variety of regulations across countries.

Although financial institutions may comply with the regulations in their respective jurisdictions, differences between national regulatory frameworks can hinder the smooth integration of economies. Generally, financial institutions are ready to adapt to different environments. However, countries need to work towards adjusting their individual regulatory frameworks to facilitate greater alignment.

I would not necessarily advocate for complete harmonisation in every case. In parts of Francophone West Africa, for example, eight countries operate under a common central bank and share the same regulatory framework, making alignment easier. The challenge arises when countries operating under different regulatory systems seek to trade with one another. In such cases, regulatory alignment becomes necessary.

Stakeholders are already working to identify these differences, but political decisions may ultimately be required to address them. This would facilitate smoother economic integration and help achieve the AfCFTA’s objectives.

Mmegi: Would you say African banks and financial institutions are behind in terms of global compliance standards?

Diop: No, I would not say that. Banks understand the importance of compliance to their business operations. One of the themes of our African Bank Compliance Forum is “Better Compliance, Better Trade”. Where financial institutions face challenges, the issue is often investment.

They need to invest in human capacity and technology to strengthen their compliance systems. Significant efforts have been made in recent years to improve compliance capabilities and enhance the credibility of African financial institutions, both within the continent and among international stakeholders, including correspondent banks.

Mmegi: How can banks facilitate cross-border data sharing while ensuring regulatory compliance, protecting data and safeguarding customer privacy?

Diop: When engaging in international trade, financial institutions may need to share customer information with stakeholders across the world. They must, however, ensure that they comply with their own data protection requirements.

Almost every country has a data protection framework, although the level of protection and the standards applied may differ. Even where a country’s regulations do not fully reflect international best practices, financial institutions can take additional steps to protect their customers’ information. When processing transactions with neighbouring countries or other international markets, banks must ensure that their information technology infrastructure and internal processes adequately protect customer data. Failure to protect customer information can undermine an institution’s credibility and damage its relationships with other stakeholders, particularly when it also receives sensitive information from those parties. Financial institutions must therefore assure their partners that the information entrusted to them is safe.

This requires appropriate infrastructure, secure systems and effective processes that give customers and business partners confidence in their ability to protect sensitive data.

Mmegi: Given the challenges posed by money laundering and illicit financial flows, how can banks balance the management of emerging financial risks with the need to reduce unnecessary barriers that stifle local business growth?

Diop: African countries are working to strengthen their regulatory frameworks. Countries such as Nigeria and Senegal have recently exited the Financial Action Task Force (FATF) grey list after making improvements to their anti-money laundering frameworks to bring them closer to international standards and expectations.

Banks must be adequately prepared to identify and prevent money laundering and tax evasion. They also need to keep pace with technological developments, making it essential to have qualified compliance officers who can effectively monitor and control transactions. At Afreximbank, we encourage financial institutions to adopt appropriate policies based on best practices, invest in skilled personnel and acquire the systems needed to monitor transactions and prevent money laundering and terrorist financing.

Mmegi: Are regulatory differences between African countries slowing down intra-African trade, and what needs to change to make cross-border trade easier while maintaining compliance?

Diop: The AfCFTA is designed to enable African countries to trade with one another, but this does not mean that they should compromise their regulatory requirements. Countries need time to adjust their regulations to align with the AfCFTA framework. The agreement does not require any country to undermine its regulatory system simply to meet its objectives. While maintaining strong compliance frameworks, countries must identify ways to align their regulations with AfCFTA requirements to facilitate trade. This process requires patience, but we must also be ambitious because we all want to see Africa develop. Every country must work towards maintaining strong regulations while adapting them to support the objectives of the AfCFTA.

Mmegi: What is the role of the AfCFTA in compliance?

Diop: The main objective of the regulatory framework established under the African Union’s trade integration agenda is to increase trade between African countries. It sets out the conditions countries need to meet to position themselves to trade with their neighbours, identify their resources and adjust their regulations to facilitate cross-border commerce without compromising the interests of other parties.

That is what the AfCFTA expects from member states. However, the levels of integration and regulatory adaptation differ from one country to another, and addressing these differences remains an important part of the process. As countries prepare to trade with their neighbours and the wider continent, they must maintain strong governance and compliance frameworks to protect their economies against risks such as money laundering, terrorist financing and tax evasion.