The Economic Commission for Africa is calling upon countries across the continent to leverage technology in improving trade and enhancing competitiveness.
The plea was made last week at the African Union Summit on industrialisation and economic diversification by African Continental Free Trade Area (AfCFTA), Economic Commission for Africa, acting executive secretary Antonio Pedro.
Pedro said digitalisation is a promising vehicle to sustainable industrialisation, and countries should take action to promote trade and exports in order to realise the objectives of the AfCFTA.
“The major objective of AfCFTA is to foster competitiveness at the industry and enterprise levels through opportunities for scale production, improved market access and efficiency in resource allocation,” he said.
On how technology can enhance trade, Pedro cited the launch of the Africa Trade Exchange (ATEX) platform, a business-to-business and business-to-government digital trade platform that facilitates intra-African trade within the context of the AfCFTA as a positive move in the digital era.
"The ATEX is a clear demonstration of how regional trade can help channel critical commodities where it is needed most in Africa.”
He noted the Economic Commission for Africa is gathering and analysing data on the regulatory regime governing digital trade in Africa.
Also, speaking at the summit, Treasure Maphanga, chief operating officer of the AeTrade Group, and former trade and industrialisation director at the African Union Commission, said digitisation has a catalytic effect through the growth of services, especially in logistics, finance and insurance.
“Leveraging the technology and other aspects of the digital economy to create jobs is the way forward...and informal business does not have to be disadvantaged.”
In addition, African countries were urged to leverage new opportunities from the agreed package of resolutions at the recent UN climate change conference (COP27) in Egypt.
According to Pedro, the package includes financial, technological and capacity-building assistance that developing nations need to reduce their emissions of greenhouse gasses and adapt to the inevitable effects of climate change.
“Contributions of more than $230 million were made to the Adaptation Fund, which African countries should consider to access financing for structural transformation of their economies,” he said.
Pedro said a preliminary assessment of the voluntary carbon market led by Dalberg and Economic Commission for Africa, based on partial satellite data, indicated carbon credits can generate up to $82 billion at $120 per ton of CO2 equivalent using nature-based sequestration.
He explained that despite the current low prices for carbon credits in Africa, “the need for accelerated action on climate change and the implementation of Article 6 of the Paris agreement will drive prices up, to the benefit of African countries to monetise their natural capital”.
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