Fragmented Systems Cost Africa Around US$100 billion Annually
The AfCFTA Secretariat reports that fragmented digital systems cost Africa approximately $100 billion annually in lost trade and investment. A new partnership with the Abu Dhabi-based ADI foundation aims to mobilize $1 billion to build interoperable digital trade infrastructure.
Why it matters
Improving digital trade infrastructure is critical for African economic integration and the inclusion of small businesses in the global market.
The African Continental Free Trade Area (AfCFTA) has noted that Africa’s fragmented systems are costing the continent billions in intra-trade, investment and convenience.
Wamkele Mene, secretary-general for the AfCFTA, said this last week during a partnership agreement for digital development support with Abu Dhabi registered foundation ADI.
Mene noted that the fragmentation cost is a great inconvenience for African businesses.
“Fragmented systems are estimated to cost Africa close to US$100 billion each year, due to a lack of interoperable digital trade systems that are required to enable more efficient cross-border trade,” he stated.
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