Digital Financial Inclusion in the AfCFTA

Digital Financial Inclusion in the AfCFTA Quest for One African Market

As the African Continental Free Trade Area (AfCFTA) gains momentum, a powerful ally emerges to shape its success: digital financial inclusion. The transformative impact of digital payments on lives, societies, and economies cannot be overstated. The Better Than Cash Alliance, in collaboration with the African Union Commission and the AfCFTA Secretariat, is spearheading an effort to make digital payments responsible, ubiquitous, and a driving force in realizing Africa’s economic promise.

Digital financial services, particularly digital payments, have already demonstrated their ability to reshape the African landscape. The urgency to foster responsible and widespread digital payments is both a challenge and an opportunity that holds immense potential for unlocking the continent’s economies. When executed responsibly, these digital transactions hold the key to unleashing Africa’s economic prowess.

True digital financial inclusion is not just about access; it’s about empowerment. In a continent where approximately 60% of the population is under 25 years old, digital inclusion becomes synonymous with giving the youth wings to soar. Women, who form a significant portion of Africa’s population, also stand to benefit immensely from inclusive digital economies.

The World Economic Forum’s projection that 70% of new global value will be digitally enabled underscores the importance of seizing the unprecedented opportunity that lies ahead. The African Union recognizes this potential and envisions an Africa that thrives on innovation in digital payments. The call to action by the African Union Commission and the AfCFTA Secretariat is built on Africa’s rich history of innovation, setting the stage for a digital revolution that will shape the continent’s future.

The impact of digital financial inclusion stretches far and wide, positively influencing economic activity by boosting efficiency, reducing costs, and enhancing women’s participation. In the context of the AfCFTA, inclusive digital economies are indispensable for its success. As trade becomes increasingly digitized, digital payments emerge as an essential cornerstone. Ensuring digital financial inclusion for all Africans is not just a goal; it’s a commitment to delivering on the promises made to women and youth over the next decade.

With 68% of global mobile money transactions by value taking place in Africa, the region’s potential in digital financial services is undeniable. However, this potential comes with a caveat. While digital payments hold the key to progress, they can also perpetuate inequalities if applied without responsibility. The African Union’s call for a responsible, universal, and superior digital payments ecosystem is a testament to its commitment to ensuring that the benefits of digital financial inclusion are reaped by all, without deepening existing divides.

In the journey towards realizing the Sustainable Development Goals and Africa’s Agenda 2063, digital financial inclusion emerges as a prerequisite. The Better Than Cash Alliance’s pivotal role in this journey is to be commended. As Africa’s economies integrate under the AfCFTA, the Alliance’s efforts to champion responsible and inclusive digital payments provide a blueprint for a future where every African, irrespective of gender or age, can contribute to the continent’s growth story.

In the pursuit of Africa’s economic potential, digital financial inclusion becomes more than just a tool—it becomes a promise, a beacon of hope, and a force that shapes a future where exclusion is no longer a barrier to progress. As Africa’s trade landscape evolves, let us remember that the real power of the AfCFTA lies not just in its agreements on paper, but in its ability to empower, uplift, and truly transform the lives of all Africans.