Regional integration: a driver of growth for African digital SMEs?

eTrade for Women Masterclass | Policy Dialogue

In this Policy Dialogue “Regional integration: a driver of growth for African digital SMEs?”, representatives from international institutions, policy-makers and top digital entrepreneurs from the region will present and confront their perspectives on ways to foster digital entrepreneurship while supporting Africa’s regional integration, for an inclusive and sustainable recovery.

In the wake of the COVID-19 pandemic, the digital transformation of the economy and the recent acceleration of e-commerce across the African continent could be a powerful force towards economic recovery and market integration. By nature, digital technologies provide solutions that allow to connect producers and consumers across physical borders. E-commerce can make it easier to sell goods and services faster and at a lower cost. Over recent years, a vibrant digital ecosystem has developed across Africa, taking advantage of such opportunities. Economies from East-Africa, in particular, have seen the emergence of small and medium sized digital businesses operating in different sectors, such as online marketplaces and platforms, digital payment solutions, or digital support services.

Yet, despite the potential of digital technologies to boost intra-African trade, doing business across borders in Africa remains difficult. According to the 2020 World Bank’s “Doing Business” survey, environments in Sub-Saharan Africa to export and import goods still lag behind, as compared to other regions of the world. UNCTAD eTrade Readiness Assessments also show that in spite of significant strides in African countries’ readiness to engage into e-commerce, some structural constraints continue to impede the emergence of an enabling environment to take better advantage of digitalization.  When consulted about engaging in intra-regional trade, digital entrepreneurs report facing several challenges, from poor connectivity and transport infrastructure, complex and costly compliance procedures, or a lack of harmonized payment system across countries.

Removing regulatory and logistical obstacles to cross-border trade and building a more conducive policy environment could unleash huge business opportunities and build better digital ecosystems.