Agenda 2063, Africa’s development blueprint, aims to be inclusive and sustainable in its aspirations as it charts a unique development path towards “an integrated, prosperous and peaceful Africa, driven by its people." We recognize the need for possible development (1). For Africa to achieve these development goals, the African Development Bank (AfDB) has informed that Africa needs to reach a sustainable growth path of at least 7%. Last year, Africa recorded 3.1% growth, down from 4.1% the year before.
Aiming to promote growth and development in the adoption of Agenda 2063, the African Union has launched 12 flagship projects, among them the African Continental Free Trade Area (AfCFTA). It aims to create a single market for the benefit of people. The combined annual GDP is $3.4 trillion.
Growth can be effectively achieved through intra-regional trade, as in East Asia, where intra-regional trade accounted for more than 40% by 2021 (3). This is a key objective of AfCFTA’s mandate to remove trade barriers and facilitate intra-African trade. Unfortunately, in Africa during the same period, such trade remained at just 14.5%, after increasing from 11% in 2016. It has now fallen to 13.7%. Successful implementation of the AfCFTA could generate an additional $450 billion in revenue by 2035, requiring a step change in investments in the digital economy. Because much of this growth will be driven by digital technologies that facilitate trade, remove barriers and open up new areas. It creates opportunities for businesses across the continent.
In recognition of this growing awareness and the potential transformative role that the private sector can play, the AfCFTA Secretariat, in collaboration with the Government of Rwanda, hosted the Biashara Africa 2024 Forum from 9 to 11 October. Held under the theme “Boldly Inventing the Future of AfCFTA,” the forum rallied the public and private sectors behind the AfCFTA and focused on “the structures that need to be proactively addressed to foster investment and investments.” The aim was to chart a course for addressing “obstructions and policy challenges”. Unleash Africa’s full potential. ” Hence the name “Biashala” which means “business” or “trade” in Ki Swahili. MTN was represented at the forum by Tato Motlanthe, Acting Group Chief Sustainability and Corporate Affairs Officer. MTN Rwanda CEO Mapula Bodibe agrees.
It is within MTN’s commitment to re-envisioning a future where everyone benefits from a modern, connected life, no matter how impossible it may seem. This belief is rooted in MTN Group’s 30-year history of being at the forefront of localization and facilitating intra-African trade in 17 African markets and beyond. MTN’s role in providing the digital infrastructure that supports these activities is essential to unlocking Africa’s potential.
As a result, MTN’s more than 280 million subscribers place us in a unique position to support the integration required by the AfCFTA. Be it a small-scale female trader (a MoMo customer), a young mid-sized entrepreneur (connected through Ayoba), or even a large corporation (whose trading is facilitated by Bayobab infrastructure). Spread over 8,000 km from north to south or 7,400 km from east to west of the continent, most Africans are agents of change who benefit from the MTN. It is the combined strength of our network and platform business across the continent that has positioned MTN as the partner of choice for multilateral organizations such as the AfCFTA Secretariat and governments.
Thato Motlanthe stressed the need for innovative regulatory and investment governance reforms to the Biashara Forum, which, if implemented, would improve coverage and utilization while pushing African economies onto a new sustainable growth trajectory. He said that it could be facilitated to quickly close both of the gaps. “Policy reforms can improve affordability for consumers and investment by businesses, including additional resources, given that taxes and fees account for 30% of industry revenues. “While this may not be the means to an end, healthy competition can be achieved through other reforms such as voluntary infrastructure sharing, domestic roaming, and fair share frameworks. He also acknowledged the need to create an environment.
Thato Motlanthe also noted the persistent infrastructure deficit, which the African Development Bank estimates at around $100 billion, adding: Biashara Africa, by Africans and for Africans, is therefore an important platform that can foster cross-sector collaboration to close the infrastructure gap. ”
We also need to consider what we might call “soft infrastructure”, such as education and digital skills, which have their own gender dimensions. He noted that sub-Saharan Africa has the world’s largest digital skills gap, even though it is estimated that more than 230 million digital jobs will be created by 2030. He said on the forum: “MTN has launched the MTN Skills Academy, which aims to improve Africa’s digital skills upstream and downstream of the industry.”
We believe the Academy complements our efforts, particularly around affordability communications and financial inclusion. With this, MTN collaborates with the World Bank and IMF in some of the 16 markets operated by MoMo.
One of the key discussions at the forum revolved around cross-border digital payments. “The ability to facilitate seamless, affordable and secure cross-border trade is critical to the success of AfCFTA,” Mapula Bodibe said. According to the World Bank, small and medium-sized enterprises (SMEs), which account for 80% of businesses in Africa, will greatly benefit from a streamlined payment system. ” Through its pioneering role in mobile money, MTN Group is committed to developing digital payment systems that reduce transaction costs and enable businesses to enter new markets. This is consistent with AfCFTA’s goals of removing trade barriers, unlocking economic potential and building a more integrated and competitive continent.
As a result, the Forum considered, among other things, the mechanisms by which the digital economy can contribute to increasing intra-African trade and promoting financial inclusion while integrating African economies. Chief among the binding constraints on harnessing the digital economy to unlock its potential are restrictions on business operations and investment facilitation. While there were some areas of excellence, overall we were constrained by the policy and regulatory environment.
The success of the AfCFTA will depend on cooperation between governments, private companies and international organizations. MTN has a long history of working with partners in both the public and private sectors to expand connectivity and drive economic growth. At Biashara Afrika 2024, MTN highlighted the need for public-private partnerships to accelerate the development of digital infrastructure. By working together, stakeholders can overcome challenges hindering Africa’s development, such as inadequate infrastructure and limited access to digital services in rural areas.
As the conversation progresses, one message becomes clear: the journey towards a more integrated and prosperous Africa is a shared responsibility. By working together, African leaders, businesses and international partners can create a future where connectivity enables economic progress and inclusive growth. MTN’s active participation in this transformation demonstrates its commitment to supporting Africa’s digital future and contributing to the realization of “The Africa We Want”.
(1) African Union, Agenda 2063: The Africa We Want, see www.au.int
(2) Reference: https://www.gsma.com/mobileeconomy/wp-content/uploads/2024/02/260224-The-Mobile-Economy-2024.pdf
(3) Reference: https://www.brookings.edu/articles/asias-trade-at-a-turning-point/
(4) Reference: GSMA Mobile Tax Policy and Digital Development Report
