Part 1

A digitally divided Market Bloc

The African Continental Free Trade Area (AfCFTA), in its high ambition to boost intra-African trade, trade in value-added production, and trade across all sectors of the continent’s economy, has digital trade as one of its critical areas. Digitalization and the use of technology provide the much-needed continental interconnection and a platform for business people and labor, especially among the youth in Africa, to compete globally. In the post, digital acceleration in Africa has been gaining momentum if the recent adoption in response to Covid-19 disruption is anything to go by. As the AfCFTA pegs its business integration across the continent on digital trade, it is not lost on the African Union the extent of populations living without access to the benefit of digitalization. In a recent webinar discussion organized by Liberty Sparks, it emerged there exists a digital divide among African countries that, despite the promise of the trade agreement, the manifestation of its benefits may remain among technological leaders across Arica. With the glaring unequal distribution of access to and use of digital technologies, such as the internet, computers, and smartphones, how do member members enhance the digitalization of the local economies?

Wi-Fi or Why Not!

Covid-19 was a wake-up call for countries to enhance the adoption of digital technologies, especially internet-based options such as working and learning online, shopping, and making payments. With the AfCFTA emphasizing the need for accelerated digitalization of African economies, a new normal that advocates for digital technologies in every contemporary society, Africa cannot afford to lose its foothold by leaving some members out. The continent had about 570 million internet users in 2022, doubling from 2015 figures, which is expected to hit 763.46 million by 2028. While the AfCFTA is pegged on being aided by digital connectivity and technology adoption, only 22% of the African continent is connected to the internet, raising concerns about how the missing majority will be incorporated into the internet-based economy. The African Union has set the goal of connecting every individual, business, and government by 2030 against the backdrop of the continent still needing 500,000 km of cable to achieve full connectivity at an estimated cost of $15 billion. This digital divide among African countries can limit people’s access to information, education, and economic opportunities and exacerbate social and economic inequalities. At the national and continental levels and among regional blocks such as the East African Community, addressing factors of lack of infrastructure, high costs, limited digital skills, and cultural and linguistic barriers to improving digital connectivity is a priority.

Across the continent, 89% of web traffic was generated via smartphones in 2022, compared to 10% via personal computer devices. Internet access to most Africans remains too slow and expensive, limiting its utilization in the digital economy, with the cost of mobile data increasing as a percentage of income in most countries. Without effects to bridge this gap, enhance affordability and improve speeds, advances in digital technologies disproportionately benefit those already connected, contributing to greater inequality. Lowest-income countries in the continent continue to experience the slowest internet connections. At the same time, rural areas lag as a factor of return on investment for private entities committed to improving access. Therefore, this points to the need for urgent solutions to building digital infrastructure, a complex task requiring better coordination among many stakeholders. African governments, international organizations, communication service providers, hardware and software providers, providers of digital services and content, and civil society, among other groups, have a role in digitalizing Africa to benefit the AfCFTA actualization.

“Efforts and plans to enhance digital inclusion in all member states must be clearly outlined and agreed upon based on set metrics and monitoring for progress to be realized”.

Bringing Africa Up To Speed

For African nations to realize the promise of AfCFTA, better digitalization to solve the glaring divide is urgent. A digital corporation is needed among public and private entities working within the digitalization space to increase coordination and tailor approaches that respond to economic, social, and geographical barriers to internet penetration and access. AfCFTA member states have a role in creating policy frameworks to enable private sector players to increasingly pursue connectivity, enhance innovation, and lower internet use costs. In addition to making it possible and affordable, cooperation is needed to empower groups that are discriminated against and excluded, including those in rural areas, people with disabilities, youth, women, and the elderly. Responses and understanding of existing geographical, cultural, economic, and social factors creating the digital divide among nations are needed. Under the AfCFTA, efforts and plans to enhance digital inclusion in all member states must be clearly outlined and agreed upon based on set metrics and monitoring for progress to be realized. Stakeholders must therefore develop action plans, based on reliable and consistent measures for digital inclusion, albeit based on data, on the current state of connectivity in the continent. Perhaps there is hope for rapid response considering the inclusion of an e-commerce protocol in the AfCFTA that advocates for the liberalization of legal rules and regulations and the construction of technology infrastructure.

Bringing Africa up to internet connectivity lays a foundation for the protocol on digital trade to bear fruits and lead to the actualization of the e-commerce aspirations, provide employment, and enhance the overall economic integration among AfCFTA members. Legal convergencies that impact digitalization and internet connectivity, consumer and data protection, intellectual property rights, competition policies, and tax-related issues must be addressed. This lays the ground for improved participation of the international community and private enterprises in increasing internet access across the continent. Technology infrastructure, networks, connectivity, and affordability as enabling issues for internet access and adoption must be prioritized. If anything, faster, cheaper Internet should be seen as a precursor for the growth of new industries, creation of jobs, and growth of the overall economic well-being of African States. This is linked to the aspirations of the AfCFTA and screams for attention as a matter of urgency.

These are the writer’s own opinions and do not necessarily reflect the viewpoints of Liberty Sparks. Do you want to publish in this space? Contact our editors at [email protected] for further clarification.