The impact of digitalisation in supply chain operations and trade has been well established over time. As the African Continental Free Trade Area (AfCFTA) advances its protocol on digital trade, a new era of digital payments, data governance, e-commerce, and smart logistics is emerging across the continent. The protocol aims to provide a comprehensive framework to harmonise digital regulations, foster cross-border data flows, enhance cybersecurity and promote digital inclusion amongst member states (Lemma et al., 2024). 

Embracing digital trade is no longer a luxury but a necessity for businesses operating in Africa.

The AfCFTA Digital Trade Protocol: A Continental Game Changer

In early 2024, AfCFTA member states began formalizing the Digital Trade Protocol, a key pillar in the effort to create a unified digital market across Africa. The general objective of the protocol is to support the attainment of the objectives of AfCFTA as stipulated in Article 3 of the agreement by enabling and supporting digital trade for sustainable and inclusive development (AfCFTA, 2024). The provisions of the protocol cover:

• Market Access and Treatment of Digital Products
• Promoting and Facilitating intra-Africa Digital Trade
• Data Governance 
• Business and Consumer Trust
• Digital Trade and Inclusion

This framework has the potential to level the playing field and promote digitally driven industrialisation by lowering transaction costs, increasing transparency, enhancing access to regional markets and stimulating digital entrepreneurship (Stuart, 2024).

The Rise of Digital Supply Chains in Africa

Technological innovation is streamlining supply chains across the continent. From sourcing to last-mile delivery, digital platforms are enhancing visibility, traceability and responsiveness. 

• Digital logistics platforms such as Jetstream in Ghana, Kobo 360 in Nigeria and Lori Systems in Kenya are optimizing truck transport routes and reducing idle time (Asoko Insight, 2024).
• Trade finance platforms such as Pan African Payment and Settlement System(PAPSS) have been launched as the payment and settlement platform to underpin the implementation of AfCFTA (Afrexim Bank, 2025).
• E-invoicing and blockchain solutions ensure authenticity, speed up payments and reduce fraud. 

According to McKinsey & Company (2023), an increasing number of companies are adopting digital logistics solutions to reduce costs, enhance visibility, and improve productivity. These solutions are vital for unlocking the potential of intra-African trade. 

Market Access through E-Commerce and Fintech

Digital platforms such as Famunera, Jumia, Flutterware, and Wasoko are not just transforming digital trade; they are enabling African businesses to reach consumers across borders. E-commerce has improved market access for small and medium-sized enterprises (SMEs) by reducing trade barriers without large capital investments. 

Another enabler is digital payments. GSMA (2025) reports that 60% of the population in Sub-Saharan Africa uses mobile financial services, making it easier to transact across borders and reduce cash-related inefficiencies. 

Challenges to Overcome

Despite the promising future of digital trade in Africa, several hurdles persist. These include

• The lack of harmonised regulations across member states
• Low levels of internet penetration in some regions
• Digital infrastructure gaps in rural areas
• Cybersecurity and data protection concerns

These challenges must be addressed through broad consultations, public-private partnerships, targeted investments and robust public policy alignment. Initiatives such as the Smart Africa Manifesto, as endorsed by the African Union (Smart Africa, 2014) and AfDB’s financing of digital infrastructure projects (AfDB, 2025) are helping to close these gaps.

The Role of Supply Chain Professionals

To remain competitive in this digital age, Supply Chain Professionals must:

• Embrace cloud-based tools for procurement, logistics and inventory management. 
• Provide training for team members to improve digital literacy and facilitate adoption.
• Partner with fintech and digital solutions providers to address persistent concerns.
• Advocate for interoperable systems across suppliers and partners. 

Conclusion: Digital Trade is Africa’s Next Frontier

As African countries continue to implement the provisions of the AfCTFA Digital Trade Protocol and digital supply chains gain traction, the continent is on the verge of a trade revolution. Investing in digital tools, strengthening supply chain capabilities and expanding market access through digital platforms will lead businesses to growth opportunities and improved competitive advantage. 

For African businesses and Supply Chain Professionals, the message is clear: the future of trade is digital, and the time to adapt is now.

References

Lemma, A., Agarwal, P., & Willem te Velde, D. (2024, October 18). Implementing the Digital Trade Protocol of the African Continental Free Trade Area: Expected impacts, early experiences and challenges ahead. From Trade Mark Africa: https://atdf.trademarkafrica.com/wp-content/uploads/2024/11/Session-5A-Africas-Digital-Trade-Protocol-Dirk.pdf

Stuart, J. (2024, February 15). The Digital Trade Protocol of the AfCFTA and Digitally-Driven Development in Africa. From Tralac: https://www.tralac.org/blog/article/16306-the-digital-trade-protocol-of-the-afcfta-and-digitally-driven-development-in-africa.html

AfCFTA. (2024, February). Protocol to The Agreement Establishing The African Continental Free Trade Area on Digital Trade. From African Union: https://au.int/en/treaties/protocol-agreement-establishing-african-continental-free-trade-area-digital-trade

Asoko Insight. (2024, August 27). Harnessing Technology in Africa’s Transport Logistics Infrastructure . From Asoko Insights: https://www.asokoinsight.com/content/market-insights/harnessing-technology-in-africa-s-transport-logistics-infrastructure

McKinsey & Company. (2023, November 16). Digital Logistics: Technology Race Gathers Momentum. From Mckinsey & Company: https://www.mckinsey.com/capabilities/operations/our-insights/digital-logistics-technology-race-gathers-momentum

GSMA. (2025, April 07). The State of the Industry Report on Mobile Money 2025. From GSMA: https://www.gsma.com/sotir/

Smart Africa. (2014, January 31). The Beginning of a New Era. From Smart Africa: https://smartafrica.org/who-we-are/

Afrexim Bank. (2025, June 03). Afreximbank opens registration for the 2025 Certificate of Trade Finance in Africa. From Afrexim Bank: https://www.afreximbank.com/afreximbank-opens-registration-for-the-2025-certificate-of-trade-finance-in-africa

AfDB. (2025, May 14). African Development Bank funds second Tech Park in Mindelo. From AfDB Group: https://www.afdb.org/en/news-and-events/press-releases/african-development-bank-funds-second-tech-park-mindelo-83646

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