Africa is ripe for a globally competitive African digital economy. However, for this to happen, the necessary frameworks must be created to facilitate digital trade.
Adopting the AfCFTA digital protocol in February 2024 was the first step in the right direction. Recently, the African Union endorsed Nigeria as the digital trade champion under the Africa Continental Free Trade Area(AfCFTA). This designation reflects Nigeria’s proactive investment in digital infrastructure.
Apart from its adoption, AfCFTA’s digital protocol must be developed for Africa’s digital commerce to thrive. This is where Nigeria’s role as a digital trade champion comes into play.
This article breaks down the AfCFTA digital protocol and explains how Nigeria is positioning itself to lead the continent’s push to create an inclusive digital trading environment within Africa.
Breaking down AfCFTA digital protocol
Africa’s digital economy is projected to reach $180 billion this year, contributing a whopping 5.2% to the continent’s GDP.
Establishing a unified digital market across the continent will significantly boost Africa’s economy. The AfCFTA digital protocol has been touted as a landmark move which promises to redefine Africa’s digital landscape. It would also impact how Africa engages digitally with the world.
The protocol is structured along eight annexes on
- Rules of origin
- Cross-border digital payments
- Cross-border data transfers
- Criteria for determining the legitimate public reasons for disclosure of source code
- Digital identities
- Financial technology
- Emerging and advanced technologies, and
- online safety and security
These annexes are the foundations for Africa to build a thriving digital economy. These foundations are critical to creating a transparent and secure digital trade ecosystem.
As the champion, Nigeria will lead efforts to operationalize these annexes, ensuring alignment with Africa’s economic priorities.
The need for a digital trade Champion
The AfCFTA Digital Trade Protocol offers a unified African digital market blueprint. However, beyond this protocol, governments, regulatory authorities, and the private sector need to work together.
For this vision to become reality, governments, regulators, and chambers of commerce must play their part. The protocol’s focus on digital inclusion, consumer trust, and supportive policies provides a roadmap for chambers to lead their members through the digital transition.
This is why there is a need for a “champion”. In this case, it refers to the country that would lead the charge in designing the policies that will move Africa’s digital economy forward.
Building a digital economy: What is Nigeria doing right?
In his annual report on the progress of the AfCFTA’s Digital Trade Protocol, former President of Niger Republic and AU AfCFTA Champion Mamadou Issoufou praised Nigeria’s leadership for organising the Digital Economy Roundtable in January 2025.
With over 100 million users and a thriving Mobile economy, Nigeria has what it takes to set the foundations for Africa’s digital evolution. In January 2025, the Nigerian government hosted the Digital Economy Roundtable, bringing together tech founders, policymakers, and the AfCFTA secretariat.
These gatherings are critical to creating a continental model similar to Nigeria’s. Nigeria’s digital economy is diverse, encompassing sectors from digital content creation to e-commerce, fintech, chemtech, health-tech, agritech, etc.
Nigeria has a 55% internet penetration rate, which accounts for about 123 million users. However, of this number, 84% of internet traffic comes from mobile (Statistica). This growing adoption of mobile solutions in Nigeria is powered by policies and regulations that make Nigeria’s robust digital infrastructure. This approach to digital trade facilitation is decisive and needed across Africa.
Unlock Africa’s digital trade potential with Matta
The road ahead requires deliberate action that bridges gaps and seeks solutions. By aligning policy and infrastructure, African countries can unlock new economic opportunities.
Matta isn’t just another software solution; we are a strategic partner that understands the complexities of procurement for manufacturers across Africa. We connect manufacturers with suppliers of chemicals, raw materials, ingredients, and commodities (CRIC).
We invite you to explore how Matta can help streamline your processes, reduce delays, and boost operational efficiency.
