Activating digital inclusion for the success of MSMEs

Artificial intelligence is revolutionizing economies worldwide, streamlining processes, improving decision-making, and fostering innovative business models. In Africa, AI presents a wealth of opportunities for enhancing logistics, digital payments, customer insights, e-commerce platforms, and public service delivery — essential components of a thriving digital trade ecosystem. CNBC Africa recently attended the Inaugural AfCFTA Digital Trade and Services Forum in Zambia to delve into the key theme of 'Activating Digital Inclusion for the Success of MSMEs in the AfCFTA'. Keamogetswe Mosepele engaged in a stimulating conversation with Parks Tau, Minister of Trade, Industry, and Competition South Africa, shedding light on the transformative power of digital inclusion for micro, small, and medium enterprises (MSMEs) in the African Continental Free Trade Area (AfCFTA). Minister Tau highlighted the groundbreaking strides taken in adopting the Protocol on Digital Trade, emphasizing the collaborative efforts with Kenya and Nigeria to champion digital trade initiatives within AfCFTA. The protocol aims to dismantle trade barriers, promote interoperability of systems, facilitate local currency transactions through the Pan-African Payment System, and streamline regulatory frameworks to foster seamless implementation. Minister Tau underscored the critical challenges impeding digital trade, including infrastructural gaps, technological deficiencies, and regulatory complexities. Despite these hurdles, Africa has witnessed a surge in digital transactions, underscoring the continent's growing digital readiness. The minister emphasized the urgency of aligning regulatory frameworks, enhancing system integration, and promoting uniformity to optimize digital trade potential. Minister Tau articulated the pivotal role of digital trade in empowering MSMEs by granting them access to expansive markets, thereby fueling economic growth and job creation. Leveraging digital platforms can amplify the reach of African enterprises and mitigate logistical inefficiencies, propelling them towards global competitiveness. Minister Tau emphasized the imperative of nurturing intra-African trade relations and fostering a conducive ecosystem for MSMEs to thrive. Acknowledging Africa's burgeoning youth population as a demographic dividend, Minister Tau underscored the importance of harnessing their technological acumen to drive digital trade initiatives. Young people are at the forefront of digital platforms, exemplifying their adaptability and innovation in utilizing digital tools for trade. In conclusion, Minister Tau's insights shed light on the transformative potential of digital inclusion for MSMEs within the AfCFTA framework, underscoring the imperative of collaborative action, technological alignment, and youth engagement to propel Africa towards a prosperous digital future.