Kenya to lead talks on breaking Africa’s cross-border digital trade barriers

Kenya to lead talks on breaking Africa’s cross-border digital trade barriers
Kakuzi

NAIROBI, Kenya, Aug 12 – Kenya is set to host a digital trade congress to discuss ways of easing barriers to cross-border commerce, including fragmented regulations, payment systems, logistics challenges, cybersecurity and gaps in digital trust.

The Digital Trade Congress, scheduled for August 28 in Nairobi, comes as African countries move towards implementing the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol, which seeks to establish common rules for digital commerce across the continent.

The protocol covers areas including digital identity, electronic transactions, consumer protection, cybersecurity and cross-border data flows. However, businesses continue to operate under different national regulatory and payment systems.

For small and medium-sized enterprises (SMEs), these differences can increase the cost of entering new markets and make it harder to complete transactions, receive payments and deliver goods across borders.

Jennifer Chiku, Digital Trade Manager at GIZ Kenya, said Africa’s digital trade ambitions require stronger systems that allow businesses to operate across markets with greater certainty.

“Realizing this opportunity requires trusted digital markets, supportive legal and regulatory frameworks and stronger regional collaboration,” Chiku said.

“The enabling environment for cross-border e-commerce must allow SMEs, women-led businesses and young entrepreneurs to participate fully in the digital economy.”

The discussions will also focus on cross-border payment interoperability, logistics and fulfilment, cybersecurity and digital trust as more African businesses use online platforms to reach customers outside their domestic markets.

Martin Muli, Chief Executive Officer of Teki, which is organising the congress with GIZ’s Pan-African E-commerce Initiative, said removing practical barriers would be key to expanding digital trade.

“The opportunity now is to remove the barriers that limit cross-border trade,” Muli said.

“As governments implement the AfCFTA and businesses increasingly embrace technology, the focus should be on turning policy into practical business opportunities,” he added.

Industry forecasts cited by the organisers estimate that Africa’s e-commerce market will exceed $113 billion by 2029, while cross-border payment flows are projected to increase substantially over the next decade.

Kenya, which has been designated the African Union Champion for Digital Trade under AfCFTA, is seeking to leverage its mobile-money and fintech ecosystem to strengthen its position in regional digital commerce.

The congress will also see the launch of the Kenya Ecommerce Alliance, a public-private initiative aimed at coordinating efforts to develop the country’s digital commerce ecosystem.