“Africa Continental Free Trade Area (AfCFTA): Prospects and Challenges of Digital Trade For Private Sector”.

Held under the patronage of H.E. Abdel Fattah El-Sisi, the President of the Arab Republic of Egypt, and launched by Egypt’s Ministry of International Cooperation, the Egypt- International Cooperation Forum (Egypt- ICF), gathered international policymakers and think tanks on one table in a workshop session titled: “Africa Continental Free Trade Area (AfCFTA): Prospects and Challenges of Digital Trade For Private Sector”. The workshop session included various representatives including H.E. Dr. Rania A. Al-Mashat, the Minister of International Cooperation, alongside, Hany Sonbol, CEO of International Islamic Trade Finance Corporation(ITFC); Zainab Shamsuna Ahmed, Minister of Finance, Budget and National Planning of Nigeria; Sidi Ould Tah, Director General of Arab Bank for Economic Development in Africa; Ebrahim Patel, Minister of Trade, Industry, and Competition of South Africa; and Steve Lutus, Vice-President of Middle East Affairs at the US Chamber. The speakers also include James Howe, Senior Advisor at the International Trade Centre; Jamie MacLeod, Trade Policy Fellow of the Africa Trade Policy Center at UN Commission for Africa; Aymen Wajih Kasem, Division Manager at Trade Development at ITFC; Ahmad Mukhtar, Senior Economist at the FAO Regional Office; and Ahmed Rezk, UNIDO Regional Hub office in Egypt. During the workshop, H.E. Dr. Al-Mashat emphasized the vital role of international cooperation within Africa: “the political will is present; the need of the hour is to improve the infrastructure and engagement at the national, regional and international levels.” “While the development of roads and digital infrastructure cannot be overlooked, it is also important that we focus our energies on developing SMEs, and upskilling youth in Africa all while accelerating trade by boosting trade and infrastructure financing across the continent.” she said. The workshop explored the pivotal role the African Continental Free Trade Area (AfCFTA) can play in enhancing the private sector from participation in digital trade. Moreover, it discussed the methods that regulators and private sector partners plan to tackle the exchange of data, including across borders, amplifying concerns about use and misuse of data, privacy protection, digital security, intellectual property protection, regulatory reach, competition policy, and industrial policy. “Making e-commerce a success on the African continent is challenging. Approximately, only 11% of platforms in Africa take electronic payments, and others deal in cash,” said James Howe, Senior Advisor at the International Trade Centre, explained, adding that through trust, the continent’s digital development will be accelerated. “It is important to develop trust to address issues on the continent, and this will help facilitate an environment for e-commerce in Africa,” he elaborated. In his address, Eng. Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation (ITFC), highlighted the role of partnerships in Africa’s growth. “We need to mobilize all resources – financial as well as human – to achieve our overall goals for the continent. At the same time, we need to see innovation and use of digital tools to help farmers improve their yield.” “We are working closely with the Government of Egypt to make all commercial transfers using modern technology. Egypt has exerted exceptional efforts towards accelerating digital transformation,” added Sonbol. Highlighting the need for a competitive landscape, Ebrahim Patel, South African Minister of Trade, Industry and Competition, said, “It is essential that the competitiveness and dynamism of our markets are improved so that we are able to attract inward investments into our economies. Bold and ambitious steps need to be taken, and digital technologies will open up new avenues to boost the African economy.” Elaborating on the need for digital trade, Hon. Dr. Zainab Shamsuna Ahmed, Minister of Finance, Budget and National Planning of Nigeria, stated, “The AfCFTA presents the best opportunity for Africa to take advantage of e-commerce and digital trade. We have seen the benefits of the digital economy in Nigeria, which is on an upswing. Ahmed added that there is a huge opportunity to drive trade through the e-commerce and digital channels – not only within Nigeria but in the intra-African region. He shared that the country is working in partnership with different banks and agencies to develop the local agriculture value chain, which has a significant regional potential. The AfCFTA is the world’s largest free trade agreement, encompassing 54 African nations with a market size of $3.4 trillion and a population of 1.3 billion. The AfCFTA is a platform for consolidating e-commerce rules and regulations across the continent, and its ultimate objective is to establish Africa’s own integrated digital market. The World Bank estimates that the agreement, coupled with necessary reforms, has the potential to lift 30 million people out of poverty. Dr. Sidi Ould Tah, Director General of the Arab Bank for Economic Development in Africa (BADEA), said, “The micro, small and medium-sized enterprises (MSMEs) need support from all stakeholders – and they form one of the four main pillars of the BADEA strategy. Our vision is holistic, and we believe all stakeholders should work hand in hand for overall development.” Steve Lutes, Vice President of Middle East Affairs at the U.S. Chamber of Commerce, also presented an overview of the Chamber’s efforts to support trade on the African continent. “We are fully committed to creating opportunities for economic reforms and being an advocate for Africa. With the acceleration of digital transformation, it is time to engage African governments on digital policies and build on cross-border trade.” Jamie MacLeod, Trade Policy Fellow at the Africa Trade Policy Center (ATPC) at the UN Economic Commission for Africa (ECA), said the African continent has a lot of potential that is yet to b