The AFCFTA: unlocking the potential of the digital economy in Africa: ODI report

Abstract

The African Continental Free Trade Area (AfCFTA) constitutes a critical tool to achieve the economic transformation objectives for the continent set out in the African Union (AU) Agenda 2063 by increasing intra-African trade and investment. The potential for intra-African digital trade and e-commerce remains constrained by traditional restrictions such as logistical challenges, limited internet penetration and access to financial systems and those related to the management and governance of data. The AfCFTA protocol on digital trade can provide a framework for the convergence of domestic and regional policies. The first aim of this report is to provide summarized evidence on the importance of the digital economy in Africa, the state of e-commerce trade strategies at the continental and regional level, and the potential impact of liberalized e-commerce trade on African economies. The report uses these findings to highlight key negotiating areas for the AfCFTA. Two typologies of trade are discussed in this report, e-commerce and digital trade.