Key Points
- The AfCFTA Secretariat and Quest Ghana established the Digital Trade Corridor to overcome intra-African trade barriers.
- The corridor will include cross-border payments, a digital commodity exchange, and a marketplace for 1.4 billion people.
- Intra-African trade, at $220 billion in 2024, targets growth alongside a $712 billion digital economy by 2035.
- A 3-year pilot will track transaction volume, cost, and participant numbers to measure success.
By the Numbers
The AfCFTA Digital Trade Corridor (DTC) is being established through a joint venture agreement signed between the African Continental Free Trade Area (AfCFTA) Secretariat and Quest Ghana. This corridor aims to overcome long-standing barriers to intra-African trade and reduce transaction costs by providing digital infrastructure.
The corridor will include cross-border payment systems, a digital mineral and commodity exchange, and a continental digital marketplace, providing access to 1.4 billion potential customers. Wider markets will open for young entrepreneurs, farmers, and SMEs, with the trade volume of $220 billion in 2024 expected to increase.
However, technology alone will not be sufficient; prerequisites such as data protection, cybersecurity, regulatory standards, reliable electricity, and internet infrastructure must be provided. Concrete benefits will be tracked by measuring transaction volumes, costs, and new market access in a three-year pilot program.
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Frequently Asked Questions
- What is the AfCFTA Digital Trade Corridor?
- It is a platform to be established in collaboration between the AfCFTA Secretariat and Quest Ghana, providing digital infrastructure, payment systems, and a marketplace for intra-African trade.
- What does this corridor offer an ordinary Ghanaian trader or farmer?
- It offers the opportunity to sell goods to customers in another African country with less cost, paperwork, and uncertainty.
- What conditions are required for the project's success?
- A secure/transparent ecosystem, data protection, cybersecurity, adequate internet/electricity, digital skills, and the inclusion of SMEs are necessary.
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