WEF: How AI can power African economies through digitising trade

The World Economic Forum in Davos has been abuzz with discussions on how African economies can leverage Artificial Intelligence (AI) to power intra-Africa trade. CNBC Africa's Kenneth Igbomor caught up with Haytham El Maayergi, Executive Vice President, Global Trade, Afreximbank, to delve into the critical role of AI and data in shaping Africa's economic landscape. El Maayergi highlighted the prominence of AI and data as the central theme at Davos, emphasizing the pivotal role it plays in driving Africa's advancement. El Maayergi stressed the significance of data exchange and digital trade protocols, citing them as essential for the continent's progress. Without efficient data sharing mechanisms, it becomes challenging for African nations to tackle pressing issues such as healthcare, trade barriers, and supply chain logistics. The Executive Vice President emphasized the need for data to fuel AI, enabling accurate resource allocation, cost optimization, and streamlined supply chain management within Africa. Furthermore, El Maayergi delved into the geopolitical dynamics affecting global trade, emphasizing the need for diversification and agility in supply chains. He highlighted how disruptions, such as the recent events in Ukraine and Russia, have prompted countries to reevaluate their reliance on certain imports, leading to potential opportunities for African nations in areas like food security. As Africa gains a stronger foothold in global forums like the G20, with South Africa currently presiding over the G20 presidency, El Maayergi underscored the importance of positioning the continent as a prime investment destination. Leveraging initiatives like the pan-Africa payment system and industry-free zones, African nations aim to attract foreign investment, foster intra-Africa trade, and drive economic growth. Highlighting the urgent need for energy transition in Africa, El Maayergi emphasized the dire consequences of energy poverty, with hundreds of millions lacking access to electricity. Addressing challenges like sustainability of debt, infrastructure investment, and critical mineral industries are crucial components of Africa's growth trajectory. In reflecting on the key takeaways from Davos, El Maayergi emphasized the opportunity for Africa to leapfrog by embracing AI and data, circumventing the traditional industrialization pathways. Collaborative efforts among African nations to harmonize data practices, seize supply chain opportunities, and amplify their voices in global forums like the G20 are imperative for Africa's economic prosperity. As the discussions at Davos draw to a close, the spotlight remains on Africa's potential to harness AI and data-driven strategies to propel its economies forward. With a concerted focus on leveraging technology, embracing innovation, and fostering collaboration, Africa stands poised to chart a path to sustainable growth and development.