Digital trade protocol for Africa as a whole must be prioritised

Close to 40 heads of state have signed a draft convention, but its implementation still faces significant hurdles. By Franziska Sucker

- Franziska Sucker

In February 2024, the heads of 37 African states that are parties to the African Continental Free Trade Area adopted a draft protocol to regulate digital trade on the continent.

This significant yet challenging course for Africa's digital economy fits into the broader trade agreement, designed to create a single continental market for free movement of goods, services, capital and people. Franziska Sucker explains the protocol, why it matters and what still needs to be done.

What is digital trade, and how big is it in Africa?

Digital trade refers to cross-border exchange of goods, services and other tradeable items that is enabled by digital technologies.

Africa's market share of the digital trade globally is small. But it has expanded rapidly, outpacing the global average. For example, between 2005 and 2021, global digital service exports increased 40.52%, whereas Africa's surged 91.53%.

This, coupled with low intra-continental trade, the presence of 11 of the world's fastest-growing economies and a young, digitally eager population of almost 1.5 billion, positions Africa as having the world's largest untapped digital growth potential.

What's in the protocol?

The protocol represents a consolidated Pan-African approach to digital trade issues, paving the way for regulatory convergence and common standards. It stipulates rules for both traditional trade and digital trade-specific issues. Digital trade-specific issues include data governance, business and consumer protection, digital trade facilitation and digital inclusion.