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News Categories: The Horn of Africa News

Digital technologies could unlock Africa’s trade potential, says Ngirente

Prime Minister Edouard Ngirente delivers his remarks during the opening of the Africa Trade Development Forum in Kigali on Monday, December 2. Courtesy. Investment in Africa's digital and technological capabilities is necessary to unlock the continent's trade potential and accelerate economic growth, Prime Minister Edouard Ngirente said on Monday, December 2, as he opened the Africa Trade Development Forum in Kigali. Achieving this vision requires countries to adapt to the rapidly evolving trade landscape shaped by emerging technologies, Ngirente said, adding that enabling free movement of people, goods, and services is crucial to unlocking the full potential of intra-African trade. “Leveraging digital technologies is critical. Removing non-tariff barriers and facilitating seamless cross-border movement will not only create new opportunities for businesses but also address key trade-related challenges across the continent,” he said. “This potential requires that our countries advance the use of digital innovation in trade operations. Doing so will not only facilitate connections between producers and consumers but also boost growth and create opportunities for better jobs.” Ngirente noted that achieving this ambitious vision would require significant investments in scaling up energy and digital infrastructure, easing electronic cross-border payments, and improving customs and logistics systems.   Prime Minister Edouard Ngirente delivers his remarks during the opening of the Africa Trade Development Forum in Kigali on Monday, December 2. Courtesy Studies show that improving digital connectivity, combined with a supportive regulatory framework, could reduce trade costs by as much as 25 percent, Ngirente told delegates at the two-day event co-hosted by the...

Experts on how digitalisation can drive cross-border trade, expand African exports

Delegates follow a presentation at the opening of the Africa Trade Development Forum in Kigali on Monday, December 2. Courtesy 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. 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.   Delegates follow a presentation at the opening of the Africa Trade Development Forum in Kigali on Monday, December 2. Courtesy 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...

Digital innovation key to unlocking Africa’s trade potential, officials say

This photo taken on April 4, 2024, shows a statue (L) and Kigali Convention Centre in Kigali, the capital of Rwanda. (Xinhua/Dong Jianghui) Delegates at the Trade Development Forum 2024 have called for strengthened efforts to promote digital innovation as a means of unlocking Africa's trade and business potential. KIGALI, Dec. 3 (Xinhua) -- Delegates at the Trade Development Forum 2024 have called for strengthened efforts to promote digital innovation as a means of unlocking Africa's trade and business potential. The forum, which opened Monday in the Rwandan capital of Kigali, was organized by TradeMark Africa (TMA), an aid-for-trade organization with the aim of growing prosperity in Africa through trade, in cooperation with the Rwandan government. It focuses on the transformative power of digital innovation under the theme "Unlocking Africa's Trade Potential Through Digital Innovation." Speaking at the event, Prudence Sebahizi, Rwandan minister of trade and industry, underscored the crucial role of technology in overcoming trade barriers, fostering connections and enabling inclusive economic growth. "This year's theme reflects the aspirations of our continent to build a digitally connected and economically inclusive Africa. Today, we stand on the threshold of unprecedented opportunities under the African Continental Free Trade Area (AfCFTA), and technology is the engine driving this transformation," Sebahizi said. He highlighted Rwanda's achievements in trade facilitation through initiatives like the Electronic Single Window system, which has significantly reduced trade processing times and costs. "Technology enables us to enhance efficiency, cut trade costs and ensure that Africa's vast market is more...

What’s holding back Africa’s digital trade?

The Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene speaks during the Africa Trade Development Forum in Kigali on Monday, December 2. Courtesy. Africa has achieved different levels of digital trade, with some regions making more progress than others. Work must be done to connect the scattered dots and ensure the continent becomes a single digital market. The appeal was made by various leaders at the just-concluded Africa Trade Development Forum in Kigali, co-hosted by the government of Rwanda and TradeMark Africa. The forum was held under the theme, 'Unlocking Africa's trade potential through digital innovation.’ ALSO READ: How digitalisation is transforming trade in Africa The Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, cited the AfCFTA Digital Trade Protocol (AfCFTA DTP) as one of the ways digital trade fragmentations can be addressed on the continent. "We have seen how digital technologies have enabled trade and made it more efficient especially in the East African region. The AfCFTA DTP intends to consolidate all these efforts and create a single digital market," he said. The AfCFTA Digital Trade Protocol was adopted in February 2024, with negotiations still ongoing on annexes such as rules of origin and cross border digital payments. According to Annette Ssemuwemba, Deputy Secretary General Customs, Trade and Monetary Affairs at the East African Community, more still needs to be done to ensure a seamless flow of trade in the region. “The electronic single windows were meant to be integrated so that we are...

Trade facilitation report: driving African trade through digitalisation

Trade facilitation report: driving African trade through digitalisation The Trade Facilitation Report is the inaugural knowledge report by TradeMark Africa (TMA). It was launched in Kigali, Rwanda, on 3 December 2024 at the conclusion of the Africa Trade Development Forum 2024. ODI Global researchers – Dirk Willem te Velde, Yohannes Ayele, Maximiliano Mendez-Parra and Linda Calabrese – contributed to shaping the ideas of the report. Recognising trade facilitation as a critical element for improving Africa’s trading environment, the Trade Facilitation Report addresses the priorities, lessons, risks and opportunities associated with trade facilitation in Africa. It seeks to outline ideas, opportunities, principles and priorities that should guide governmental actions and continental reforms in trade facilitation. The primary message is clear: investing in trade facilitation yields substantial long-term benefits in growth for both the private sector and consumers, and advances in digital technology mean that this area is now particularly fertile to drive gains. This document presents evidence of these benefits and lessons learned from various interventions across Africa, particularly from the impact of digitalisation in reducing the time and cost of trade for countries. It also highlights the disparities in policy frameworks and digital infrastructure, which, if effectively addressed, will further stimulate opportunities for intra-African trade. Lastly, it outlines risks that states should be wary of while accelerating digitalisation for trade.

How digitalisation is transforming trade in Africa

David Beer, CEO of TradeMark Africa speaks exclusively to The New Times. The digitalisation of trade has increased efficiencies in trade processes and changed how trade is conducted on the continent. However, a number of challenges need to be addressed in order to streamline digital trade and ensure its benefits are realised and shared inclusively. The New Times’ Tesi Kaven spoke to David Beer, the CEO of TradeMark Africa on the challenges, opportunities, and the future of digital trade in Africa. Below are the excerpts: How is digitalisation changing trade in Africa? We have seen improvements in the reduction of cost and time of trading across borders after digitalising many trade processes. At TradeMark Africa, we have implemented over 100 digital trade processes in conjunction with our government and private sector partners across Eastern Africa and even further. We have seen the average time to complete trade processes come down by around two thirds or 66 hours. That makes a big difference to exporters and increases their margins and makes them more profitable. We have worked with the government of Rwanda to put in place the electronic single window, which has reduced the time taken to complete those trade processes by half. We have also worked with the government of Kenya to put in place their integrated customers management system that reduced the time to clear air freight from about four days to just a couple of hours. In Uganda, we did the same thing and saw annual costs come...

Togo Hosts Customs Training for Women Engaged in Cross-Border Trade

(Togo First) - On October 28 and 29, the city of Aneho, near the border with Benin, hosted a training workshop for 50 women and young traders from Togo’s maritime region. Participants learned about customs procedures and regulatory requirements for cross-border trade, particularly along the Abidjan-Lagos corridor. The workshop was organized by the Ministry of Trade and Crafts, and backed by the World Bank's West African Food System Resilience Program (FSRP). The training aimed to improve understanding of the rules governing cross-border trade, making it easier to export goods. Batchassi Katchali, Director of Foreign Trade, underscored women’s role women in regional trade and noted the challenges they face, such as a lack of information on trade opportunities. FSRP representative Nator Koffi Edoh emphasized that workshops like the recent one will help participants enhance their trading activities along the corridor. Also, they align with the government’s efforts to build trade capacity across Togo, covering topics like customs procedures and the African Continental Free Trade Area (ACFTA).

L’adoption des technologies est essentielle pour rationaliser les paiements transfrontaliers

Les États membres de la Communauté d'Afrique de l'Est (CAE) ont été invités à adopter la technologie pour faciliter les paiements transfrontaliers au sein du marché commun régional. Selon l'organisme régional, l'innovation technologique dans ce domaine permettrait aux commerçants et aux investisseurs transfrontaliers de payer et de recevoir des paiements pour des biens et des services par le biais d'un système de paiement rentable, augmentant ainsi les systèmes, le commerce et l'investissement intrarégionaux. La CAE a lancé cet appel lors d'une table ronde de deux jours sur la coordination du soutien des donateurs de la CAE aux systèmes de paiement, qui s'est tenue au siège de la CAE à Arusha, en Tanzanie. La secrétaire générale de la CAE, Mme Veronica Nduva, a déclaré que les banques centrales des États partenaires devraient adopter les changements technologiques pour faciliter les paiements transfrontaliers dans la région. Elle a souligné les défis auxquels la région est confrontée. Il s'agit notamment de la faible utilisation du système de paiement de l'Afrique de l'Est (EAPS) en raison de sa capacité limitée, du manque d'interopérabilité, des lacunes dans la communication entre les banques centrales et les parties prenantes, de la crainte des escroqueries en ligne, du protectionnisme des banques centrales et du chevauchement des adhésions des États partenaires aux systèmes de paiement mis en place par les différentes communautés économiques régionales. Le système a été lancé en 2014, en tant que système de transfert de fonds sécurisé, efficace et efficient, afin de renforcer l'efficacité et la sécurité...

La rationalisation des postes frontaliers accélère les échanges

Les agents de dédouanement sont parmi ceux qui font l'éloge du concept de poste frontalier unique (OSBP) en tant que facteur clé d'une facilitation efficace du commerce dans le pays. Le Malawi dispose actuellement d'un OSBP pleinement opérationnel à la frontière Mchinji-Mwami, le poste de Dedza attendant l'achèvement d'une installation similaire du côté mozambicain pour devenir pleinement opérationnel. La construction du nouveau poste de Dedza aurait réduit le temps que les voyageurs, les commerçants, les agents de dédouanement et les autres parties prenantes passent à visiter tous les bureaux nécessaires. À Dedza, le chauffeur de camion Fred Moziyane, originaire d'Afrique du Sud, a fait remarquer que, bien que les agents frontaliers mozambicains n'aient pas encore déménagé dans la structure malawienne, les procédures sont plus rapides du côté malawien.  Grâce à la conception moderne de l'installation, qui abrite tous les fonctionnaires des frontières sous un même toit, nous pouvons accomplir toutes nos tâches en un seul endroit. Auparavant, nous devions nous déplacer d'un bâtiment à l'autre pour faire vérifier et tamponner nos documents », a déclaré M. Moziyane. Prince Kaiwawile, agent de compensation à l'OSBP de Mchinji, a expliqué que la rationalisation des services leur a permis de dédouaner plus de marchandises de manière efficace. Les envois sont traités plus rapidement car les formalités d'importation et d'exportation sont gérées dans un seul bâtiment », a déclaré M. Kaiwawile. Il a ajouté qu'auparavant, lorsque le Malawi et la Zambie opéraient dans des bâtiments distincts, le dédouanement des marchandises prenait des jours, alors...

La lenteur des progrès en matière d’harmonisation des normes affecte le commerce en Afrique de l’Est

L'absence d'harmonisation et de promulgation d'une loi de normalisation complète affecte le commerce intra-régional en Afrique de l'Est, l'Ouganda étant pointé du doigt pour avoir retardé la promulgation de la loi sur les normes de la CAE. Le processus est également très lent, ce qui affecte les entreprises, car plus de la moitié des membres n'ont pas encore atteint le seuil requis. Le commerce mondial et régional dépend des normes, de l'assurance qualité, de la métrologie et des essais pour établir la confiance entre les clients et les fournisseurs. Au sein de la CAE, c'est la structure juridique qui n'est pas encore totalement en place, ce qui compromet l'évolution des activités de normalisation, d'assurance qualité, de métrologie et d'essai, qui sont essentielles pour améliorer la productivité et assurer le développement social et économique de la région. En effet, la secrétaire générale de la CAE, Veronica Nduva, s'inquiète du fait qu'en dépit des efforts déployés pour garantir une législation sur les normes, une décision de l'Ouganda empêche la promulgation du projet de loi, ce qui bloque le processus juridique. Lien