Digitising trade to unlock Africa’s economic opportunity

The digitization of trade is poised to revolutionize the economic landscape in Africa, more than doubling trade volumes across the region. In a recent interview with CNBC Africa, Allen Asiimwe, Deputy CEO of Trademark Africa, shed light on the potential of digital technologies to transform the trade ecosystem and unlock future investment opportunities in East Africa. Asiimwe highlighted the challenges plaguing intra-African trade, with trade among African countries stagnating at around 15%, compared to the ease of trading with external partners. The key barriers identified include infrastructure deficiencies, border challenges, and productivity issues. However, Asiimwe emphasized that digital solutions such as automation, digitization, and e-commerce could play a transformative role in overcoming these barriers and boosting trade within the region. According to Asiimwe, leveraging digital technologies could see developing economies like Africa's grow by 2.5% annually, translating to significant economic gains and poverty alleviation. The potential impact of digitization on Africa's participation in the global economy is immense, with the prospect of reducing the continent's dependence on aid. Asiimwe highlighted success stories like M-Pesa, a mobile money platform that revolutionized the financial sector, as a testament to the transformative power of technology. He stressed the need for similar technological innovations in the trade sector to unlock its full potential. Trademark Africa's initiatives have resulted in tangible improvements in trade facilitation and efficiency across East Africa. By investing in single windows and automation processes, Trademark has streamlined customs procedures, significantly reducing clearance times for goods at border crossings. For instance, customs clearance at the Uganda-Kenya border of Busia has been slashed from three days to just 30 minutes. By embracing shared digital imaging and AI technologies, the inspection of trucks and cargo has been expedited, leading to faster clearance processes and enhanced trade flows. Asiimwe underscored the importance of sustainability and green trade in propelling Africa's trade growth. The organization's focus on efficiency enhancements has already yielded positive results, with trade volumes in East Africa on an upward trajectory. Asiimwe pointed out that strategic initiatives like the ISOCO eMarket platform for cross-border traders have empowered women and youth to engage in digital commerce and access essential services. Furthermore, in response to the challenges posed by climate change, Trademark Africa is leveraging predictive data to enhance resilience in agriculture and trade. By anticipating adverse weather patterns and implementing resilient infrastructure, the organization aims to mitigate the impact of climate shocks on trade activities. The potential of green trade presents significant opportunities for African exporters, particularly in accessing markets with stringent environmental standards. Trademark's 'Air to Seafreight' program in Kenya aims to reduce the carbon footprint associated with air freight by shifting to more sustainable sea transport for horticultural exports to Europe. Collaborating with key stakeholders, Trademark is paving the way for a greener and more sustainable trade ecosystem across Africa. With a focus on digital transformation, sustainability, and inclusive trade practices, Trademark Africa is poised to unlock economic opportunities and drive growth in the region's trade sector.