Leveraging Technology to Propel the Africa Continental Free Trade Area Agenda

The Africa Continental Free Trade Area (“AfCFTA”) stands as a monumental stride towards economic integration across the African Continent. As member states labor towards eradicating tariffs and nurturing a liberalized market, technology emerges as a pivotal enabler to confront challenges and advance the objectives of the AfCFTA. In this discourse, we delve into the background of the AfCFTA and examine how technology can serve as a transformative force in surmounting hurdles and maximizing the benefits of this landmark agreement.

AfCFTA: A Framework for Integration

The AfCFTA agreement endeavors to forge a single, liberalized market, diminish barriers to capital and labor, facilitate investment, develop regional infrastructure, and institute a continental customs union. The operational instruments governing the AfCFTA, comprising the rules of origin, the online negotiating forum, the monitoring and elimination of non-tariff barriers, a digital payments system, and the African Trade Observatory, constitute the backbone of this ambitious initiative.

• Addressing Challenges Through Technology
• Creating a Liberalized Market
• Movement of People

The implementation of the One Stop Border Post (OSBP) by Trademark has yielded significant improvements at the borders where they have been installed. Envisioning a future where systems for both countries at a particular border point are integrated within the same platform could streamline cross-border movements. With electronic identification documents, individuals could seamlessly traverse borders, thereby minimizing transit times within AfCFTA member states.

An integrated Africa-wide immigration system, albeit ambitious, could entail the registration of all individuals in Africa, from birth, to enhance continental security and monitor potentially high-risk individuals. Additionally, fostering competition for jobs and business opportunities may incentivize governments and corporations to prioritize meritocracy, fostering technology and knowledge transfer.

Free Movement of Capital

Many African countries impose restrictions on the movement of capital, hindering Foreign Direct Investment (FDI). However, easing capital movement barriers could catalyze job creation, particularly in a continent plagued by unemployment. Streamlining documentation for capital movement and leveraging Artificial Intelligence (AI) could bolster transaction integrity and facilitate economic growth.

Developing Infrastructure

Banking and Payment Rail

Despite over half a billion people in Africa lacking access to bank accounts, mobile money services have thrived in Sub-Saharan Africa. However, cross-border payments remain challenging, necessitating traders to resort to third-party currencies, incurring significant exchange rate losses. An integrated mobile money and banking service could facilitate cross-border transactions at minimal costs, fostering trade within Africa.

Moreover, establishing a unified payment rail for Africa could simplify currency exchange and transactions, fostering financial inclusion and participation. Enhancing initiatives like the Pan-African Payment and Settlement System (PAPSS) with features such as Know-Your-Customer (KYC) protocols and anti-money laundering measures could further bolster financial integration.

Access to Internet Services and Electricity

While internet access in Africa primarily relies on mobile phones, emerging technologies like satellite internet services could provide reliable connectivity to remote areas, including OSBPs. Harnessing renewable energy sources like solar power could ensure consistent electricity access, essential for powering internet services and driving economic activity.

Road, Rail, Air, and Sea Transport

Investments in infrastructure projects such as highways and railways could enhance trade connectivity across Africa. Innovations like using plastic in asphalt mixes for road construction and semi-automated warehouses at airports could improve efficiency and reduce environmental impact. Additionally, leveraging prefabrication and modular systems in railway construction could expedite project completion and reduce costs.

AfCFTA Virtual Trade Fair

The AfCFTA Virtual Trade Fair, an online marketplace for businesses to connect and negotiate trade deals, holds immense potential for fostering intra-African trade. Its architecture and platform will be instrumental in driving the success of this initiative, facilitating trade negotiations and showcasing products and services.

Business Intelligence

In an increasingly interconnected global economy, determining the origin of products has become challenging. AI can streamline this process, ensuring compliance with trade agreements' rules of origin and expediting trade. Furthermore, AI-enabled post-clearance audits can enhance government decision-making by identifying patterns and gaps in regulatory compliance.