Trade Digitalization Pivotal Towards Realizing African Free Trade Agreement

Addis Ababa December 9/2020 (ENA) Digitalization of trade across Africa can significantly boost free trade in the continent and helping to realize the objectives of the Africa Continental Free Trade Agreement (AfCFTA), according to the Economic Commission for Africa.

The United Nations Economic Commission for Africa (UNECA) is holding a three-day virtual edition of the African Economic Conference 2020.

ECA Lead Advisor, Tunde Fafunwa said in order to properly implement the AfCFTA, the need for digital and virtual services in finance, remote health, agriculture and education is vital.

The AfCFTA seeks to create an integrated African market of 1.27 billion consumers, which is expected to reach 1.7 billion by 2030, with an aggregated gross domestic product of up to 3.4 trillion USD.

Ongoing research led by experts at ECA and the United Nations System Staff College (UNSSC) aims to document the opportunities, challenges and the role of digitalization in the implementation of the AfCTA.

Presenting the overall objectives of the study, Bineswaree Bolaky the staff want the report to contain policy recommendations that will be practical, and resource oriented for our policymakers especially capacity building.

In order to implement AfCFTA, Bolaky added, "we will need to keep on building capacities on the continent and in this report. we want to put emphasis on how we can leverage digitalization to build capacities to implement AfCFTA”.    

However, various issues such as harmonizing standards and improving the existing legal frameworks; enacting cyber security, consumer and data protection laws; and reducing the high cost of access all need to be addressed in order for Africa to take advantage of digitalization, it was indicated.

More also needs to be done to facilitate electronic transactions to drive e-commerce and step up investments in ICT infrastructure for the digital economy to develop, according to a press release issued by the ECA.

“Digital solutions can be the norm right from the start,” said Trudi Hartzenberg, Executive Director at TRALAC, adding that the COVID-19 pandemic has boosted digitalization and Africa now has a chance to leapfrog as the AfCFTA is a new agreement.

Lead Corporate Officer in the Office of the African Development Bank President, Temilade Abimbola said there is a need to pay attention to creating an enabling environment to facilitate digitalization, which, she argues, offers the best opportunity for Africa to harmonize standards to facilitate trade.

The 2020 edition of the African Economic Conference is being held virtually from 8 to 10 December, 2020.

Jointly organized by the African Development Bank (AfDB), ECA and the United Nations Development Program (UNDP), the conference provides a platform for academics and young researchers to present solution-oriented research to policymakers.