Introduction
In today’s interconnected world, digital technologies play a pivotal role in facilitating international trade. Recognising this, the African Export-Import Bank (Afreximbank), in collaboration with the AfCFTA Secretariat launched the Africa Trade Gateway (ATG), a suite of five digital platforms that have been designed as a single window to enable the Bank to better deliver on its mandate by providing critical services to support and promote intra-African trade and the implementation of the African Continental Free Trade Agreement (AfCFTA). Launched by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, of Afreximbank on the sidelines of the 30th Afreximbank Annual Meetings (AAM2023), the AfCFTA gateway digital ecosystem comprises the MANSA (due diligence platform), the Pan-African Payment and Settlement System (PAPSS), the TRADAR Club, the Africa Trade Exchange (ATEX) and ATG Connect.
Afreximbank’s digital evolution was part of its deliberate strategic response to address Africa’s key challenges to accelerate the pace of development and foster economic prosperity for Africans using and applying digital technologies and business models. Each one of the digital interventions is designed to address clearly identified challenges and barriers for those seeking to engage in African trade and investment. But to consolidate results, maximise net effects, achieve greater efficiencies, drive higher synergistic value, quicken regional integration, extend and create new access markets and accelerate digital economy in Africa, the Afrexim Bank is introducing a customer-centric Africa Trade Gateway.
The ATG is the gateway into a definitive digital ecosystem made for Africa’s trade, supported by Afreximbank and the AfCFTA Secretariat in collaboration with partners, to answer the needs of businesses, governments, and stakeholders by enabling trade, commerce, and investment. With the ATG, customers could complete all their transactions within one window.
The Five Digital Platforms
- MANSA, Africa’s due diligence platform, provides a single source of primary data required for the conduct of customer due diligence on African entities, financial institutions, corporates, and SMEs. It also provides a complementary collection of information on investment in Africa, country profiles, and trade products/services of African countries.
- PAPSS was established to enable efficient payment for intra-African trade in national currencies, promoting intra-African trade, minimising risk, and contributing to financial integration across Africa. In July 2019, African Union heads of state met in Niamey and adopted PAPSS as the payment and settlement system to support the implementation of the AfCFTA. It currently operates out of Cairo.
- TRADAR Club is a member-driven network aimed at empowering international businesses and executives to transform trade and investments in Africa through trusted trade intelligence and advisory services through innovative digital tools and networking opportunities, helping members discover new markets; grow their business; save time; access dedicated expert support; post and respond to new business opportunities; network; and meet business/trading partners. Membership is open to global industry leaders, African and foreign businesses, intergovernmental organisations, policymakers, and others committed to unlocking growth and development in Africa.
- ATEX is a B2B and B2G e-commerce platform launched at the 54th Conference of African Ministers of Finance, Planning and Economic Development in Dakar in May 2022, to help small and medium scale and large African businesses to tap into new markets in Africa and to facilitate the optimisation of their supply chains. It enables procurement in bulk for basic commodities to ensure access to suppliers in a transparent manner.
- ATG Connect serves to connect business service providers across Africa. It provides freight and logistics connectivity solutions that allow for frictionless connecting and matching of freight/ logistics requests with freight and logistics providers listed on the platform. Customers can get quotes for the pickup and delivery of goods to and from any location in Africa at a very competitive price.
Potential Benefits of ATG to African Businesses/MSMEs
The ATG serves as a centralised hub, providing a wide range of digital services and tools to facilitate trade operations for businesses, customs authorities, and other stakeholders involved in cross-border transactions in Africa. Let’s dive into how ATG is timely and relevant to inter-African Trade:
- Streamlining Trade Processes: The Africa Trade Gateway simplifies and harmonises trade procedures by digitising and automating various processes. It offers features such as electronic document submission, online customs clearance, and simplified trade documentation. By eliminating manual paperwork, reducing bureaucracy, and enhancing transparency, the gateway accelerates the movement of goods, reduces costs, and improves overall trade efficiency.
- Single Window for Digital Services: The Africa Trade Gateway acts as a single window, consolidating multiple trade-related services and information in one accessible platform. It integrates various digital tools, including electronic trade documents, customs declarations, payment systems, and risk management solutions. This consolidation eliminates the need for businesses to navigate multiple platforms, reducing complexity and enhancing user experience.
- Trade Facilitation and Compliance: The Africa Trade Gateway promotes trade facilitation by providing businesses with access to relevant trade regulations, customs procedures, and compliance requirements. It offers guidance on product standards, rules of origin, and trade documentation, ensuring businesses can navigate the complexities of cross-border trade more effectively. By facilitating compliance, the gateway helps businesses avoid delays, penalties, and unnecessary obstacles during trade transactions.
- Enhanced Transparency and Visibility: Transparency and visibility are crucial for building trust and fostering efficient trade relationships. The Africa Trade Gateway provides real-time tracking and monitoring capabilities, allowing businesses to track the status of their shipments, verify customs processes, and ensure compliance with regulatory requirements. This transparency improves supply chain visibility, reduces the risk of fraud or delays, and enhances the overall reliability of trade operations.
- Digital Trade Finance and Payment Solutions: Access to finance and secure payment systems are vital for facilitating trade. The Africa Trade Gateway may incorporate digital trade finance solutions, including access to trade credit, invoice financing, and electronic payment platforms. By providing businesses with reliable and efficient financing options, the gateway promotes financial inclusion, reduces trade barriers, and enables businesses to seize new market opportunities.
- Data Analytics and Market Insights: The Africa Trade Gateway harnesses the power of data analytics to provide businesses with valuable market insights. It offers access to market intelligence, trade statistics, and business analytics, enabling businesses to make informed decisions, identify emerging trends, and explore new market opportunities. These insights support strategic planning, market research, and product development, enhancing the competitiveness of African businesses.
Conclusion
The Africa Trade Gateway represents a significant milestone in Africa’s digital trade landscape. By offering a single window for digital services, streamlining trade processes, enhancing transparency, and providing valuable trade-related tools, the gateway empowers African businesses to thrive in the intra-African marketplace. As more businesses and stakeholders leverage the Africa Trade Gateway, we can expect increased trade volumes, improved efficiency, and accelerated economic growth across the continent.