Digitalization and Intra-african Trade: Key Reforms for Poverty Reduction

In May of this year, the World Economic Forum in collaboration with Deloitte published a report entitled “Growing Intra-african Trade through Digitat Transformation of Border and Customs Services: Regional Action Group for Africa,” which prescribes a series of digital reforms for non-tariff barriers encountered in customs and border services. The African Continental Free Trade Area (ACFTA) seeks to increase intra-regional trade from 18 to 50 percent of total trade on the continent by 2030 and lift 30 million people out of poverty in the process. Among the policy reforms and trade facilitation measures this will require is the effort to digitalize the services at borders and customs.

Increasing the prevalence of e-commerce will,accordingtothereport,helpindustrialize the region and create more inclusive economic growth. Fortiunately, there are successful models in place. European and Asian counterparts have been deploying various trade facilitation initiatives and digital solutions to improve operational effectiveness of trading ports. They would allow countries to “reap the benefits of future trade opportunities,” according to the report’’s conclusions, which also insist that demand-driven interventions and other modernized processes require enhanced collaboration between governments and business organizations.

There are a number of other related issues that the report’s findings also raise. For one, the skills and knowledge training required to operate such technology at each trading port is itself a significant cost to the govenrments and business organizations involved in implementing these reforms. Of course, th4is cost is easily offset by the significant economic benefits that the report projects. However, a certain degree of willpower and patience is necessary, in addition to the significant financial investment, before these reforms can reap the benefits of future opportunities. However, the digital solutions required at each of these ports, since the technical equipment and infrastructure is already available, and being deployed in other regions, also creates an opportunity for African professionals in the technological fields. The number of trading ports is so vast, the location of these ports is so disparate and remote, and the technical requirements so specific, that only regional technological companies and entrepreneurs cdan reliably provide the support and services required.

The opportunity for increased business opportunities in supplying and supporting these trading ports with digital solutions is itself a significant economic benefit of