Blockchain Technology Gains Momentum in Africa’s Trade Transformation

Manufacturers and stakeholders across Africa are championing the integration of blockchain technology to revolutionize trade under the African Continental Free Trade Area (AfCFTA). The push for blockchain integration aligns with AfCFTA’s goals of increasing intra-African trade by reducing barriers and fostering economic integration.

According to Mansur Ahmed, President of the Pan-African Manufacturers Association (PAMA), the low level of intra-Africa trade is a major concern. He emphasized that blockchain technology can help overcome challenges such as limited market access, complex trade procedures, and lack of trust in cross-border transactions.

By leveraging blockchain’s immutable record-keeping, smart contracts, and traceability features, manufacturers believe they can create a more seamless trading environment within Africa. Industry leaders are calling for the widespread implementation of blockchain technology to unlock the full potential of AfCFTA.

Ahmed also highlighted the opportunities offered by AfCFTA, including job creation, market access, and financial inclusion. However, he emphasized the need for a multi-stakeholder approach to achieve these goals.

During the PAMA capacity-building webinar, stakeholders discussed the need for a comprehensive African manufacturing directory, engaging with African banks, and a platform to showcase and exchange goods across the continent. They also emphasized the importance of payment technology as a backbone for connecting trade transactions, while addressing challenges faced by small and medium manufacturers in Africa, including access to affordable finance and infrastructure.

The webinar featured a range of speakers, including Dr. Tony Luka Elumelu, Director of Private Sector Development at the ECOWAS Commission; Ma Oluranti Doherty, Director of Export Development; Mr. Olusegun Olutayo, Lead Expert of Trade Enablement at the NGAfCFTA Secretariat; Mr. Mulualem Syoum, CEO of Africa eTrade; and Dr. Segun Ajayi Kadiri, DGCEO of the Manufacturers Association of Nigeria and Co-Interim Secretary General of PAMA.

As Africa continues to navigate the complexities of trade, the integration of blockchain technology is poised to play a crucial role in enhancing transparency, security, and efficiency in trade transactions across the continent.