Biashara Afrika 2024 : towards economic integration and digital transformation of Africa
The Biashara Afrika 2024 Forum brought together public and private sector players in Kigali around the theme "Daring to Invent the Future of AfCFTA." This event aimed to strengthen the continent's economic integration and digital transformation by addressing structural challenges and highlighting the key role of the private sector in promoting intra-African trade and developing essential digital infrastructure for Africa's economic growth.
By the editorial staff
From October 9 to 11, 2024, the Biashara Afrika Forum was held in Kigali, Rwanda, under the theme « Daring to Invent the Future of AfCFTA. » Organized by the Secretariat of the African Continental Free Trade Area (AfCFTA) in partnership with the Rwandan government, the event aimed to unite the public and private sectors to tackle the structural and political challenges hindering the continent’s economic development. With key players such as MTN, the forum addressed crucial topics for intra-African trade and digital transformation.
Encouragin intra-African trade to achieve Agenda 2063
Agenda 2063, the African Union’s development plan, envisions « an integrated, prosperous, and peaceful Africa, led by its own citizens. » To achieve these ambitions, the African Development Bank (AfDB) emphasizes the need for the continent to maintain sustained growth of at least 7%. However, in 2023, Africa achieved only 3.1% growth, down from 4.1% the previous year. To stimulate this growth, AfCFTA aims to create a single market for Africa’s 1.3 billion people, with a combined GDP of $3.4 trillion.
However, intra-African trade remains a challenge. While in East Asia it represented over 40% of regional trade in 2021, in Africa, it was 14.5%, dropping to 13.7% in 2024. The success of AfCFTA could generate up to $450 billion in additional revenue by 2035, but this requires major investments in the digital economy.
The Sector: A key player for digital infrastructure
At the Forum, MTN reaffirmed its commitment to supporting African integration through its digital infrastructure. With over 280 million subscribers, MTN plays an essential role in facilitating connectivity across the continent. Whether for small traders using MoMo (the Mobile Money service), entrepreneurs connected via Ayoba, or large companies using the Bayobab infrastructure, MTN highlights the importance of a strong digital network.
Thato Motlanthe, interim director of sustainability and corporate affairs at MTN, emphasized the importance of regulatory reforms to reduce costs and encourage investments. « By reforming policy, accessibility for consumers and investments by operators can be improved. For example, taxes and fees account for 30% of the sector’s revenue, which could be reinvested to stimulate growth, » he said.
Sub-Saharan Africa will have over 230 million digital jobs by 2030, but the skills gap is one of the largest in the world
Africa faces an infrastructure deficit estimated at $100 billion, according to the AfDB. To address this, joint efforts between sectors are necessary. But the development of « soft infrastructure, » such as education and digital skills, is equally crucial. Thato Motlanthe announced the creation of the MTN Skills Academy, aimed at training the next generation of digital professionals in Africa. « Sub-Saharan Africa will have over 230 million digital jobs by 2030, but the skills gap is one of the largest in the world, » he noted.
In this context, the forum also focused on the issue of cross-border digital payments. According to Mapula Bodibe, CEO of MTN Rwanda, « The ability to facilitate secure and affordable cross-border transactions is essential for the success of AfCFTA. » Small and medium-sized enterprises, which make up 80% of businesses in Africa, would greatly benefit from simplified payment systems. MTN, a pioneer in MoMo technology, is developing solutions to reduce transaction costs and help businesses access new markets.
The digital transformation of Africa is a shared responsibility
The discussions continued around a shared conviction: the digital transformation of Africa is a shared responsibility. African leaders, companies, and international partners were thus invited to collaborate to create a future where connectivity promotes economic growth and inclusion and to contribute to the realization of « the Africa we want, » the African Union’s roadmap.
