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Unlocking North Africa’s Untapped Potential in the AfCFTA Digital Era

By HER staff reporter

The Economic Commission for Africa (ECA) Office for North Africa recently hosted a pivotal webinar series dedicated to the theme of Digital Transformation and Trade in North Africa. Convened on Tuesday, 23 June 2026, the high-level virtual event brought together a diverse group of regional and international experts to explore how digital advancements can catalyze deeper trade integration across the subregion.

 As North African countries navigate a rapidly evolving global economy, the discussions underscored critical policy priorities aimed at ensuring the area fully capitalizes on expanding digital opportunities. The overarching goal remains aligning these domestic and regional strategies with the broader frameworks established under the historic African Continental Free Trade Area (AfCFTA).

The webinar featured a robust lineup of speakers representing influential global and academic institutions. Prominent figures from the United Nations Economic Commission for Africa (ECA), the United Nations Conference on Trade and Development (UNCTAD), and the World Trade Organization (WTO) shared their institutional expertise.

They were joined by academic researchers from Côte d’Azur University and Mohammed V University in Rabat, who offered data-driven perspectives on harnessing digitalization to boost trade efficiency. Together, these experts dissected the complex intersections of technology and commerce, outlining comprehensive policy strategies designed to transform North Africa’s economic landscape through sustained digital integration.

Central to the panel’s conclusions was a call to action focusing on four foundational pillars necessary to build an inclusive digital ecosystem. First, experts stressed the urgent need to invest in key physical infrastructure, such as reliable electricity grids, widespread fibre-optic cabling, and robust cell towers to anchor digital trade. Second, they highlighted digital inclusion and skills development, emphasizing that financial inclusion and practical training are essential for businesses and individuals to confidently buy and sell online.

Third, the speakers called for the rapid development of public and private online platforms that allow small and medium-sized enterprises (SMEs) to seamlessy access larger markets and secure payment systems. Finally, the panel pointed to the necessity of establishing supportive national and international legal frameworks, including alignment with the WTO Agreement on Electronic Commerce, robust national data and consumer protection laws, and strict cybersecurity regulations.

The urgency of these digital reforms is underscored by the massive economic projections anchoring the continent’s future. Africa’s digital economy is on an exponential trajectory, expected to skyrocket to an estimated $712 billion by 2050. This massive valuation makes digital tools and e-commerce platforms absolute necessities, rather than luxuries, for modern market access and regional value chain integration. A major catalyst for this transformation is the AfCFTA Digital Protocol, which was signed in February 2024. The protocol explicitly aims to facilitate continental integration by enabling borderless digital trade. It seeks to achieve this through improved market access, the complete digitalization of traditional trade facilitation customs and processes, harmonized data governance, unified cybersecurity protocols, and broad-based digital trade inclusion.

Despite boasting the highest average internet access rates on the continent, North Africa ironically remains the least economically integrated subregion within Africa. This paradox highlights an immense, untapped potential; the subregion possesses the foundational connectivity required to successfully leverage digitalization for inclusive trade, which could profoundly stimulate economic development and GDP growth under the AfCFTA.

However, current internet access across North Africa remains uneven and performs well below its ultimate capacity. While advanced, high-income economies globally enjoy an average internet access rate of 94 percent, North Africa’s regional average sits at a more modest 67 percent. Furthermore, this average masks stark domestic disparities, with internet penetration rates dropping to as low as 46 percent in Mauritania and a critical 19 percent in Sudan.

A similar disparity is evident when analyzing the region’s technological maturity through the lens of the ICT Development Index (IDI). High-income nations lead with an impressive average IDI score of 92.5, whereas North Africa lags behind with a regional average score of 79.6. Within the subregion, countries like Mauritania score even lower, sitting at 58, illustrating the deep digital divide that policymakers must bridge.

Resolving these inequities is particularly vital because small and medium-sized enterprises (SMEs) form the absolute backbone of the local economy, accounting for between 80 and 90 percent of all formal businesses in North Africa. Consequently, implementing highly inclusive policies that specifically support SME digitalization and empower small businesses to engage in digital trade is the single most crucial factor for North Africa to maximize the immense rewards of regional integration under the AfCFTA framework.

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