The Federal Government through the Ministry of Trade and Investment has set up a regulatory committee to deepen digital market penetration and boost exportation of African products.
The committee was set up at the AfCFTA Digital Trade Market Access Roundtable organised by the Federal Ministry of Industry, Trade and Investment, hosting regulatory stakeholders from Egypt, Ghana, Kenya, Rwanda, and South Africa.
Jumoke Oduwole, minister for Industry, Trade and Investment speaking at the event said, “The Federal Ministry of Industry, Trade and Investment is committed to support your expansion into African markets.
To do this, we will actively steer the regulators’ working group established yesterday. This group will continue the momentum of regulatory cooperation beyond this event, creating a working channel for addressing challenges and advancing solutions.
“Also, we will explore opportunities for the passing of licenses. The goal is to create mechanisms where regulatory approvals in one jurisdiction can facilitate or expedite approvals in others, reducing barriers for firms operating across multiple markets,” Jumoke said.
The minister lamented poor exportation of Africa’s digitally delivered services globally despite the talents and resources, urging the continent to collaborate to achieve desired results leveraging enormous potentials that the Digital Trade Protocol holds.
“For digital services, the AfCFTA opportunity is particularly compelling. Africa currently accounts for less than 10 per cent in digitally delivered services exports globally. But we have the talent, the demand, innovative experience, and now the regulatory framework to dramatically transform our levels of digital trade.”
The minister added that, “Currently, only 5 percent of Africa’s digitally delivered services are traded within the continent. This represents an extraordinary untapped opportunity for intra-African digital trade and overarching digital transformation.
“The time to act is now. Nigeria has been designated as the African Union co-Champion of the AfCFTA Protocol on Digital Trade. This is both an honour and a responsibility. To demonstrate our resolve, we commenced regulatory alignment and harmonization of standards with our regional commitments with a Digital Economy and E-Governance bill currently before the National Assembly. As co-Champion, we are committed to demonstrating practical leadership.”
Jumoke said the programme is designed to gain a clear understanding of market entry rules and processes across the countries as they present regulatory categories, licensing requirements, and market entry processes and also have direct access to regulators through our clinic sessions this afternoon.
She tasked Nigeria’s digital service providers for compliance with domestic regulatory requirements at home in order to get the backup from the government at international stage.
“As the government creates these enabling structures, we also have clear expectations of Nigerian digital services providers. First, compliance at home is a prerequisite for support abroad. The Corporate Affairs Commission, Nigerian Copyright Commission, Nigerian Communications Commission, Federal Competition and Consumer Protection Commission, Securities and Exchange Commission, and Central Bank of Nigeria are all represented here today to provide consultations.
“The government cannot vouch for your credibility in foreign markets without confidence that you have fully satisfied domestic regulatory requirements. Use today’s clinic sessions to ensure you are in good standing. Second, reflect clearly and strategically on your ambitions to invest across Africa.”
The minister promised that the Federal Ministry of Industry, Trade and Investment will continue to support the efforts of digital services providers through targeted initiatives which will be announced before the end of the year.
Calvin Phume, director, African Bilateral Economic Relations, Department of Trade and Industry, South Africa described the collaboration as a transformational agenda crucial to harness untapped potentials in Africa’s digital market.
“This is a transformational agenda. We are trying to make sure that we take these opportunities that are derived by AFCTA. Under the digital trade Protocol, it gives us access as South Africans to collaborate with other Africans in terms of ICT and other digital services,” Phume said.
The director added that South Africa will target key areas of collaboration including ICloud, AI innovation, among other.
Elhanan Asara, deputy director, Fintech and Innovation, Bank of Ghana emphasised the importance of the collaboration describing it as an avenue to find solution to export barriers and boost market penetration across Africa.
“There is a deficit. There is a lot of I.T import to the country really formed by Europe and the western world in general compared to Ghana exporting IT services. This is also an opportunity to see if this is utilised in Africa instead of going to the western world.”
