Chido Munyati, head of Africa at the World Economic Forum, said in a statement that outdated payments and documents are a significant obstacle for African trade, one that he hopes digitization can solve.
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A collective that includes the African Continental Free Trade Area (AfCFTA) Secretariat, Iota Foundation, the Tony Blair Institute and the World Economic Forum has joined forces to develop a digital platform in Africa to digitize trade across the continent.
on Monday, the Africa Digital Access and Public Infrastructure for Trade (ADAPT) is an open-source digital public network that will enable and store digital trade documents and interoperable digital identities, according to the Iota Foundation.
Dominik Schiener, co-founder and chairman of the Iota Foundation, in an X post that ADAPT aims to be rolled out across all 55 African nations by 2035 and streamline trade-related operations.
Among ADAPT’s other goals is to generate $70 billion in additional annual trade, cut border clearance times from up to 14 days to under three days, and reduce cross-border payment fees from the current levels of between 6% and 9%.
“Border & customs clearing will go from weeks to hours, cross-border payments will be reduced to less than 3% and exporters will get access to global trade finance liquidity,” Schiener said.
ADAPT rollout will start in Q1
ADAPT will launch in Kenya during Q1 next year, according to the , and then move to Ghana and a third country, which is still to be confirmed. The full launch is slated to start in 2027 and continue until 2035.
“This will be a long and challenging road, but thanks to the commitment of the AfCFTA and the dedication of our partners I am convinced that we will realize this mission to connect Africa through the most modern digital trade infrastructure in the world,” Schiener said.
Structural inefficiencies a major problem in African trade
Chido Munyati, head of Africa at the World Economic Forum, said that trade inefficiencies have become a significant obstacle for African countries, one that he hopes digitization and .
“Trade inefficiencies remain one of the key barriers to business growth, yet the digitalization of trade processes has the power to transform how African economies connect and collaborate.”
Paper-based documentation and slow border payments, which can take weeks, are some of the key inefficiencies, according to the Iota Foundation.
Africa is already a big player in crypto
Across Africa, it’s estimated that over 75 million users will be in the crypto space by 2026, to online data platform Statista, with a user rate of 5.9%. The total revenue from the continent is projected to hit $5.1 billion by 2026.
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Stablecoins already account for approximately 43% of the Sub-Saharan African region’s total transaction volume, , with Nigeria, South Africa, Ghana, Kenya and Zambia making up the top five.
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