In comparison with other regions, such as Asia and Europe, Africa’s participation in the digital economy is relatively limited. However, the growing demand for e-commerce, combined with pandemic-related restrictions, has highlighted the significance of digitalisation for the African continent. Perhaps more importantly, the pandemic has brought to light the deep digital divide that exists between developed and developing countries. Given the economic significance of e-commerce in bridging the digital divide and ensuring greater digital inclusion, efforts are being made to tackle the digital divide at the regional and national levels in Africa. However, this involves more than simply developing new e-commerce policies and tools to enter the global data economy. Myriad challenges must be addressed, including weak regulations, infrastructure shortcomings, a lack of digital skills and inadequate internet access, among others.
With the WTO’s Work Programme on Electronic Commerce having stalled, a number of WTO members have been exploring other ways to advance e-commerce negotiations, including adopting the joint statement initiative (JSI) approach which involves plurilateral negotiations. To date, only a few African countries have participated in the JSI on e-commerce negotiations, with many countries’ lack of digital knowledge, infrastructure and negotiating capacity serving as deterrents to their active involvement. Moreover, the African Group has called for negotiations on e-commerce to take place at the multilateral level, under the auspices of the WTO’s Work Programme, as otherwise African countries’ developmental interests are at risk of being overlooked.
All things considered, the conclusion reached in this policy insight is that it is better for African countries to participate in the JSI on e-commerce (either actively or as observers) than to remain removed from it so that they can help to influence the tone and outcome of the negotiations – particularly as a swift return to the multilateral negotiating model is unlikely. The JSI negotiations could even prepare African countries for continental talks on e-commerce under the auspices of the African Continental Free Trade Area and offer important insights which would help countries drive an e-commerce-enabled industrialisation agenda at the national and regional levels, supported by appropriate policy and regulatory frameworks.
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