Accra, 12 August 2022 (TDI): The Secretariat of the African Continental Free Trade Area (AfCFTA) held virtual stakeholder consultations. These consultations are for Eastern and Southern African nations associated with digital trade today.
Furthermore, the consultations aim to directly discuss important issues addressed by the Procedure on Digital Trade. On Friday, the discussions resumed with a focus on North Africa.
Today, the AfCFTA Secretariat held virtual regional stakeholder consultations on Digital Trade for Eastern and Southern African countries. The consultations sought to engage stakeholders on substantive issues to be addressed by the Protocol on Digital Trade. #AfCFTA #Trade pic.twitter.com/8CPad97oZ8
— AfCFTA Secretariat Official (@AfCFTA) August 11, 2022
The African Union’s Heads of State and Government voted to order negotiations for an e-commerce protocol to the African Continental Free Trade Area on February 10, 2020. (AfCFTA).
AfCFTA: Objectives
Among the centrepiece initiatives of “Agenda 2063: The Africa We Want” is the AfCFTA. It is a trade treaty with high ambitions and a broad scope that covers important facets of the African economy.
Furthermore, among other things, investor protection and digital trade are also included. Additionally, the AfCFTA aims to increase intra-African trade by significantly removing obstacles associated with it.
This is especially concerning the exchange of goods as significant production and trade across Africa’s economic sectors.
African nations have a rare opportunity to build shared views on e-commerce, harmonize rules for the digital economy, and capitalise on the advantages of e-commerce through the discussions for an e-commerce protocol for the AfCFTA.
The Covid-19 outbreak appears to have had a direct impact on e-commerce, as seen by an increase in both business-to-business (B2B) and business-to-consumer (B2C) online transactions, particularly of food, home goods, and medical supplies.
Although there has been a similar increase in e-commerce across African nations, the influence of Covid-19 on e-commerce in Africa has been limited by enduring flaws in the continent’s digital economy that continue to impede e-commerce growth.
However, some impediments include high internet costs, flaws in postal services and capabilities, expenses associated with cross-border trade, and the sparse updating of electronic and digital payment systems.
Digital Trade: Outcomes
Cross-border transactions involving goods and services that can be supplied physiologically or electronically are referred to as “digital trade.”
Furthermore, improved online connectivity also comes under digital trade. This is such that the high Internet penetration increases trade openness and the number of markets. The markets are those where a country can sell its goods and services.
Moreover, digitalization translates into increased trade. Thus, digitalization may also assist nations in maximizing the advantages of their economic cooperation. It is particularly for female business owners in emerging economies.
Therefore, these tools can decrease the costs of trade parallel to the longitudinal supply chains. Additionally, open digital markets increase competition, reduce trade expenses for businesses, and bring down consumer prices.
Likewise, these advantages can result in a secured infrastructure and have made the companies that to look to enter the international markets.
Consequently, Digital Trade will create confidence among the developing ventures to open infrastructure and multilateral trade regulations agreements.
