The African internet economy, which was valued at $115 billion in 2020, is expected to reach $180 billion by the end of 2025.
This sector is expected to increase employment on the continent and make significant contributions to GDP.
In an article shared by the African Media Agency, Nigeria’s Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, shared that Nigeria continues to be one of the leading forces in the continent’s Digital Trade Revolution:
“Digital trade and trade in services are recognized as key drivers of Africa’s economic transformation, helping to diversify economies, increase competitiveness, and improve productivity.”
“The African Continental Free Trade Area (AfCFTA) is expected to catalyze the creation of new job opportunities across various sectors, including services, manufacturing, and agriculture through regional trade.”
A World Bank report also shows that increased internet access will lead to job creation across Africa. It is expected that AfCFTA, by reducing trade barriers, adopting a digital trade protocol, and encouraging cross-border investments, will create a dynamic trade environment on the continent.
The protocol is expected to unify digital trade among participating countries, create a conducive environment for digital innovation, and reduce barriers.
The Trade Minister summarized the contribution of digital growth to the economy on the continent with the following statement:
“Digital finance, e-health, and e-learning are also growing rapidly in Africa. Driven by the increasing adoption of digital technologies and the need for innovative solutions to address the continent’s development challenges.”
“Companies like Andela, valued at $1.5 billion, which provides remote work opportunities for African software developers, and Esusu, valued at $1 billion, which offers credit building services for tenants, are examples of this growth.”
However, inconsistent standards across different countries, limited access to digital services, and cybersecurity issues have been observed as the biggest barriers to the continent’s digital growth. To overcome these challenges and ensure continuous progress, various solutions are being implemented:
“AfCFTA is currently harmonizing regulations and standards across the continent, facilitating the growth of digital trade.”
“Also, initiatives like Afreximbank’s Pan-African Payment and Settlement System, the AfDB’s Digital Africa Initiative, and the World Bank’s Digital Economy for Africa initiative are working to improve digital infrastructure, enhance digital skills, and promote digital inclusion.”