By embracing emerging technologies and building robust digital infrastructure, African countries can unlock new opportunities for businesses, improve access to global markets, and increase the efficiency of trade operations, officials said during the African Development Forum in Kigali, on December 2.
The forum highlighted that digitalisation holds immense potential for transforming Africa's trade landscape by facilitating smoother cross-border trade and boosting exports across the continent.
ALSO READ: Digital technologies could unlock Africa's trade potential, says Ngirente
According to TradeMark Africa (TMA), an organisation that works to increase trade in Africa, a major challenge facing cross-border digital trade in Africa is the lack of uniform regulations across countries. Each nation has its own rules governing digital transactions, data privacy, and e-commerce, thereby creating barriers for trade. One of the key advantages of digital trade is its ability to empower small businesses, including women entrepreneurs, smallholders, and marginalised groups, by lowering barriers to entry.
Antoine Sebera, the chief innovation officer at Rwanda Information Society Authority (RISA), said that the fragmentation of policies is a critical barrier to digital trade, and aligning these frameworks under initiatives like the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol is a game-changer.
ALSO READ: Rwanda set to host Trade Development Forum
"Fragmented regulations limit our ability to scale. With the AfCFTA framework, we have an opportunity to create seamless cross-border trade and ensure data flows freely and securely. Legislation must be complemented by actionable use cases to demonstrate the value of data sharing across sectors," said Sebera.
"There is a lot of innovation that we can unlock with data. But we need to strike a balance between legislation, use cases, and infrastructure. While data protection laws like the General Data Protection Regulation (GDPR) introduced critical safeguards, that initially instilled fear and hesitation, leading to restricted data sharing. We can unlock value through experimentation by showing the value of data in different government sectors."
Demonstrating the benefits of data through early use cases and training can help to build momentum and trust, which is still a big issue in digitalization in Africa, he said.
From ensuring data privacy and security to fostering reliable e-commerce systems, experts at the forum stressed the importance of building confidence among consumers and businesses.
Moses Kemibaro, the Founder of Dot Savvy, a digital business agency in Kenya, and a tech expert, said that for digital trade to flourish, consumers and businesses need to trust the platforms they engage with. Data privacy, security, and the reliability of digital payment systems are critical for building that trust, he said.
"We must tackle the trust deficit. Without trust, digital trade platforms cannot scale. Drawing on examples from China, where digital infrastructure in remote villages allowed small communities to access millions of customers nationwide, trust became central to e-commerce and digitization. Ensuring secure digital payment systems, robust logistics, and seamless fulfillment will be critical," said Kemibaro.
"One of the critical targets is interoperability. Platforms must be able to communicate with each other, whether they are digital wallets or systems for businesses across the continent. Awareness and digital literacy remain key challenges," he added.
Marketing and creating awareness of these platforms are crucial to driving adoption, Kemibaro said.
Kemibaro also said that for digital transactions to grow, ensuring robust safeguards and transparent practices will be essential in encouraging wider adoption of digital trade across Africa.
While many African countries made progress in digital adoption, there are still gaps in internet connectivity, data centers, and digital payment systems. Speakers at the event also highlighted the urgent need to address Africa's digital infrastructure deficit.
Gabriel Negatu, the Board Director at TradeMark Africa and the Atlantic Council, described the continent's lagging development compared to global standards.
Building and enhancing these infrastructures, as well as ensuring their affordability and accessibility, will be key to unlocking the potential of cross-border trade, he said.
"We lack data centers. The infrastructure gap is vast, and the reality is that without targeted investments, we cannot compete on a global scale. The progress in countries like Kenya, where hyperscale data centers from major players like Microsoft and Google are beginning to emerge, is a good sign," said Negatu.
"To capitalise on neighbourhood trade, we need a big dose of innovative infrastructure, from internet servers to mobile phone towers and cloud services. It is not just about building infrastructure but it's access, affordability, and reliability. These will define the next era of development."
Negatu said that this requires a joint effort, not just governments or the private sector, but collaboration to finance infrastructure, generate knowledge, and build capacity.
"Financing digital transformation in Africa requires new models that blend private and public sector investments. Governments and international bodies must collaborate to fund the development of digital trade infrastructure, while also promoting sustainable business models that encourage long-term investment in the sector. By leveraging partnerships and innovative funding mechanisms, Africa can build a thriving digital economy that supports its trade ambitions," he said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Digital trade's potential for inclusivity was a focus, particularly in addressing barriers faced by marginalised groups, including women entrepreneurs and smallholders.
Bernice Omiunu, the founder of Women in Blockchain, an international umbrella organization designed to empower women through blockchain technologies, underscored the importance of empowering women in decentralised technologies.
"For women, digital innovation is more than access. It is about agency. We are educating women to build their solutions, be it decentralised marketplaces or agri-tech innovations, so they can participate fully in this ecosystem, as a tool that connects rural women to global markets without intermediaries," said Omiunu.
"Decentralized technology is not just about cryptocurrencies. It is about building solutions, whether in decentralized autonomous organizations or in sectors like agriculture, where women can create decentralized marketplaces or farm management tools."
Women can build decentralized marketplaces where they list their products for global trade without intermediaries, unlocking new opportunities for sustainable income and growth, said Omiunu.
"Our goal is to make women feel comfortable and confident that they can innovate within the decentralized ecosystem, beyond just finance or e-commerce."
