The Africa Private Sector Dialogue on the African Continental Free Trade Area (AfCTA) was hosted by the Kenyan government, under the 3rd Kenya International Investment Conference (KIICO) from Monday 29th to Wednesday 31st May 2023 at the Safari Park Hotel in Nairobi, Kenya, bringing together all Africa Trade Ministers, investors, trade and development partners. The theme for the dialogues was  Unlocking the Potential of Digital Trade.

The AFCFTA was founded in 2018 by the African Free Trade Agreement signed by 54 of the 55 AU member states.  The AfCFTA’s goal is to create a single market for the continent by enabling the free flow of goods and services across the continent and boosting the trading position of Africa in the global market. It seeks to progressively eliminate tariffs on intra-Africa trade, making it easier for African businesses to trade within the continent. Digital trade is covered under the protocol that will form an integral part of the AfCFTA Agreement.

The protocol is a pan-African continental-level effort to foster integration and regional trade and this can be leveraged to accelerate digital trade growth. The AfCFTA Digital Protocol Policy Dialogue provided an opportunity for increased collaboration in the development of, negotiating, and implementation of the Digital Protocols.

Kenya having hosted the dialogue is a positive step towards enhancing digital trade and digitising 5,000 services by June this year. Digitisation has necessitated putting a plan into action and a well-organised process by ensuring that all stakeholders are involved. During the dialogue, the PS, Mr. Abubakar Hassan stated that the digital superhighway and the digital economy are some of the popular pillars of the bottom-up economy transformation agenda. He emphasised that liberalising, facilitating, and enabling digital trade is a priority for the government agenda. Finally, he mentioned that the areas of investment in the digital economy include health tech, education, e-commerce, and agriculture. As the government digitises its services, this also provides an opportunity for stakeholders to invest and collaborate with the government in different areas to enhance digital trade in Kenya and the region.

Kenya is among the 10 African countries responsible for 94% of online businesses in the continent, currently ranked at position three in the continent. It contributes 10% to the GDP and has created approximately two million jobs in Kenya. It is projected that 50% of Kenyan jobs will be digital by 2025.

This is an opportunity for Kenyans to participate in e-commerce and allow technology companies to leverage technology and create digital jobs. There are exceptional chances to employ ICT to boost the economy, raise productivity, and improve service delivery in terms of digital trade.

Mr John Tanui (Eng.), the Principal Secretary, Ministry of Information, Communication, and the Digital Economy, present at the dialogues stated that Kenya has made tremendous progress in its ICT infrastructure. The government has prioritised the agenda for building an additional 1000 km of fibre so as to enhance connectivity.  The Kenyan government is seeking to expand its scope to the regional levels in terms of connectivity by partnering with regional partners. He commended the rise of e-commerce platforms in the country and emphasized that MSMEs and foreign investors should take advantage of the platforms, especially after the scrapping of the 30% local ownership in foreign companies.

Additionally, the PS stated that the government has planned to enhance the digital infrastructure by opening and enhancing connectivity in different parts of the country. Further, the government has had conversations with the different ICT ministries in South Sudan, Uganda, and Rwanda to ensure that regional connectivity is enhanced.

The digital sector presents clear opportunities for the region in terms of providing both education and quality jobs. The growth of the digital sector has the potential to drive productivity growth in traditional sectors such as energy, financial services and agriculture as well as new business models and invigorate sectors such as education and health.

Mr Tanui stated that TVET institutions will collaborate with the government and Amazon Web Services to implement the 1,450 digital hub projects to equip young people with digital skills. This will enhance digital transformation that will affect not only established institutions and companies but also lead to the creation and growth of SMEs while driving investment in the country.

The  dialogue encouraged the government to work in tandem with the private sector to ensure the framework drafted to govern digital trade is highly beneficial to all in order to promote and support the development of a trusted digital trade ecosystem that will catalyse digital trade.