By Joshua Ahimbisibwe
Executive Summary:
The world being in the fourth industrial revolution today has seen Africa still lagging behind other continents in technological advancement and adaptation. With global financial prosperity being attributed to the different trade structures and their operation, This policy paper focuses on how Africa’s position can be elevated through e-commerce and IT to operationalize proposed trade structures for global competitiveness in trade placing the efforts and emphasis on the African Continental Free Trade Area (AFCFTA).
Introduction:
The aggressively developing digital technology and its impact on the existing global trade stance should be acknowledged in Africa through establishment of efficient systems and rules in order to tap into different trade practices to embrace sustainable development of the continent through trade. Initiation of AfCFTA still acknowledged the presence and potential influence of technology. A reason that drove the drafting of “The Digital transformation strategy of Africa 2020-2030” by the African Union with an aim of developing and concluding on a shared vision and to strengthen the different avenues of the digital economy and e-commerce within Africa. There is also international recognition to improve effectiveness of lawmaking bodies and regulatory agencies with capacity building efforts for transformation of trade practices all for enabling AfCFTA. However even with this effort, not much has left the paperwork but limited progress of embracing e-commerce and IT within the seemingly growing trade practices on the continent. There has not been actual harmonization of linkages between the economy and the digital sector. E-commerce is inseparable from IT (Information Technology).
Considering the growing yet still dynamic trade practices on the continent, IT and E-commerce and components of the fourth industrial revolution should be a strong consideration for the need to see the AfCFTA coming to full play.
In addition, with few WTO AU member states (only 6 out of 54 AU member states) leading to under-representation of the majority of the concerns Africa has in line with the existing structures addressing global e-commerce protocols of operation as stated by WTO.
The demography of Africa is not corresponding to digital knowledge uptake and adaptation in-terms of growth since the population is growing at a greater rate than the rate of digital adaptation therefore if the information gaps are not kept in check amidst the bulging youth population, E-commerce in trade won’t be seen contributing in any positive manner, leaving AfCFTA a fade with limited implementation of existing trade facilitation measures.
The figure shows how the majority of the potential facilitation measure of e
commerce in trade are not beyond 30% implementation rate. A fact that leaves digital trade on verge of failure in regards to sustainable growth.
Sources:
1. SAIIA_PB_276_DesigningAfCFTAECommerce
2. https://unctad.org/en/PublicationsLibrary/tn_unctad_ict4d12_en.pdf
Recommendations:
Promote measures that increase affordability of broadband and technology devices & services. This is essential to scale up the ability of the growing populations to access the products and services that are offered through the internet across the continent. These policies are also essential to revolutionize the work practices, that is embracing remote work.
Invest in green ICT. This will not only open more doors to employment and the business ecosystem but also indoctrinate within the implementation of the AfCFTA the aspect of climate action as this move explains the use of ICTs to achieve environmental sustainability while carrying on trade activities within the same ecosystem.
Merge the role of Direct Sales with the Digital Market space.Drawing from the most recent pandemic that bright about a freeze in the global economic activity(COVID-19), also reviewing the trend of the GDP generated by direct sales at a global scale compared to other forms of business models, the impact of network marketing and direct sales cannot be overlooked in the creation of one African Market through enhancement of the E-Commerce sector. Through the
adaptation of enablers like trusted and efficient online payment systems, development of digital infrastructure, this can be achievable
Review education curricula in accordance with the evolving needs and trends in the digital economy and society. Provide schools and other educational institutions with technology equipment and, where possible, broadband Internet connection. More advanced equipment will need to be provided by companies in work-based learning systems. In parallel, ensure that teachers access digital training and promote the development of train-the-teachers programs, both for their own professional development and for educating students on the use of technology to help create a scale-up and multiplier effect
Update the Statistical Data Regarding Africa’s market space. Revamp the collection of statistical information regarding both the physical and digital market space as a means to arrive at the various areas that need to be revolutionized so as to provide a convenient and a sustainable business ecosystem in relation to the African Continental Free Trade Area. African governments need to establish a harmonized framework to tax e-commerce and the Protocol on E-Commerce through putting to use some of the AfCFTA operation tools that are already in place, case in point the e- Book Tariff, the Pan African Payment and Settlement System and the AfCFTA Hub
