African nations recommit to operationalize AfCFTA digital single market framework

State parties to the African Continental Free Trade Area (AfCFTA) agreement have committed to expedite action aimed at operationalizing the Protocol on Digital Trade, adopted by the Assembly of the African Union in 2024.

The pledge was made recently in Lagos, Nigeria, when government representatives and other stakeholders converged for the second edition of the AfCFTA Digital Trade Forum, which took place under the theme “Digital Trade for a Connected African Market.”

Discussions during the forum focused on how state parties, the AfCFTA Secretariat, and the private sector can take concrete measures towards “putting the framework to use across payments, data flows, and cross-border trade.”

Countries agreed that to do this, they must multiply efforts for the ratification and domestication of the protocol; speed up the implementation of digital public infrastructure (DPI) systems; modernize cross-border trade systems through paperless, electronic processes and harmonized procedures; and build trust and confidence in the digital marketplace through cybersecurity, consumer protection, and responsible data governance.

Other commitments include expanding digital inclusion, skills, and innovation, with women, youth, MSMEs, and rural communities at the centre; mobilizing investment to turn African innovation into solutions that scale across the continent; advancing public-private partnerships as the delivery model for Africa’s digital transformation; and strengthening secure and interoperable cross-border payments so that money can move as freely as goods and services.

Wamkele Mene, AfCFTA Secretary General, used the Lagos forum to underscore the importance of digital trade, noting that it can bring more people into the formal economy, create jobs, and boost regional growth.

The AfCFTA has been leading efforts to drive cross-border trade across Africa through other initiatives such as the Digital Inclusion and Entrepreneurship Programme (ADIEP), which supports SME development, as well as the Pan-African Payment and Settlement System (PAPSS), which is already said to be reducing the cost and friction of intra-African payments.

For businesses, particularly SMEs, the impact of a fully operational digital single market could be transformative. Having a common framework that harmonizes e-signature laws, ensures mutual recognition of digital identity, and facilitates interoperable payment systems will drastically reduce the cost and complexity of cross-border trade.

Robust and inclusive DPI implementation is also seen as a key contributor to realizing the single market objective.

These ongoing efforts to digitize Africa’s regional integration through the single digital market push align with the AU’s Digital Transformation Strategy and the Smart Africa Alliance efforts, which aim to address the digital border problem.

Speaking at GITEX Africa in April, the AfCFTA Secretary General expressed optimism the operationalization of the Protocol on Digital Trade will push African nations to increase their investments DPI to better drive trade and contribute to the continent’s economic growth.

Article Topics

Africa  |  African Union  |  cross-border data sharing  |  digital public infrastructure  |  Smart Africa