AfCFTA Advances Continental Trade Integration Through New Digital Infrastructure Programme

Source: Supplied | IOTA Foundation

The Africa Digital Access and Public Infrastructure for Trade (Adapt) initiative was launched by the AfCFTA Secretariat to support the development of interoperable digital trade systems across the continent.

The three pilot countries were selected following a two-stage process assessing factors including political commitment, digital infrastructure readiness, regulatory alignment and implementation capacity.

Digital systems to support cross-border trade

According to the AfCFTA secretariat, Adapt will establish a shared digital infrastructure to support the trusted cross-border exchange of trade data, payments, and digital identity systems.

The initiative aims to reduce trade friction caused by paper-based processes, fragmented systems and limited interoperability across African markets.

“The full implementation of the AfCFTA could boost intra-African exports by over 80% and generate up to US$450bn by 2035,” said Wamkele Mene, AfCFTA secretary-general.

“Through initiatives like ADAPT, digital public infrastructure spanning digital identity, payments, and data systems will be the engine that lowers trade costs, expands market access, and enables a more competitive, inclusive, and resilient African single market.”

Focus on digital payments and interoperability

The initiative will focus on enabling:

• Cross-border digital identity systems• Integrated payment infrastructure• Trusted data exchange• Interoperable trade systems

Adapt is being developed in partnership with the Tony Blair Institute for Global Change, the IOTA Foundation and the World Economic Forum.

The initiative will also explore future digital payment solutions, including potential use cases involving stablecoins and digital currencies.

“Africa has a unique opportunity to leapfrog fragmented, paper-based trade systems and establish digital trust infrastructure designed for the future,” said Dominik Schiener, co-founder and chair of the IOTA Foundation.

Pilot countries to begin implementation

Implementation in Kenya, Morocco and Nigeria will now move into operational phases involving:

• Digital identity integration• Payment infrastructure development• Cross-border data exchange systems• Alignment with continental interoperability standards

The pilot countries will also help shape governance and regulatory frameworks for future continental rollout.

The AfCFTA Secretariat said lessons from the first phase will support expansion into additional African markets over time.