East Africa’s smallholder farmers are at the heart of the coffee industry, producing 82 percent of Africa’s coffee and 10 percent of the world’s supply—yet they earn less than five percent of its final retail value.
A significant part of this is their limited ability to access digital solutions, which connects them to digital value chains, where favourable prices are established, markets are accessed, and profits are realised.
Imagine if these farmers used their smartphones not only for calls but also as digital storefronts to manage contracts and handle payments.
With access to digital trade platforms, they could connect directly with buyers from Berlin to Nairobi, negotiate fair prices in transparent markets, and receive instant payments while tracking their coffee’s journey from farm to port in real time, potentially tripling their income.
This illustrates the power of digital trade infrastructure, the invisible backbone that can transform every African entrepreneur’s mobile device into a passport to global markets. But how do we unlock these gateways for every entrepreneur?
Studies by the World Trade Organisation indicate that improving digital connectivity, supported by strong regulatory frameworks, could slash trade costs by up to 25 percent by improving access to information, lowering transaction costs, and enabling more efficient customs and logistics.
Yet, despite these opportunities, Africa’s internet penetration rate of 37 percent (ITU, 2023)—far below the global average of 66 percent, with infrastructure gaps as a primary contributing factor—leaves millions of businesses isolated due to slow, fragmented systems and outdated manual processes.
Just as physical roads and ports power trade, digital trade infrastructure—interoperable payment systems, e-customs platforms, and secure digital identities—acts as the operating system for a modern economy.
Initiatives like the Pan-African Payment and Settlement System (PAPSS) are projected to save $5 billion annually by simplifying cross-border transactions.
Meanwhile, blockchain pilots in East Africa, such as the Trade Logistics Information Pipeline platform, which enables the electronic exchange of trade documents across borders, illustrate how digital solutions can reduce trade time and costs while minimising fraud.
But technology alone isn’t enough. Three critical pillars must align for Africa's digital connectivity to improve:
Investment in backbone infrastructure: Nearly half of Africa is now online, but internet speeds and reliability are lacking. Investments in broadband, such as the World Bank's Digital Economy for Africa (DE4A) initiative, aiming for universal access by 2030, are crucial.
Investment in policy and regulation: Outdated rules hinder innovation. The African Continental Free Trade Area’s Single Digital Market is a leap forward that will streamline cross-border e-payments and data regulations, potentially transforming trade for 1.4 billion people. However, domestic policies must keep pace.
Investment in digital literacy: Without skills training, even the best tools go unused. Farmers, traders, and small businesses need training support to exploit digital trade’s full benefits.
Innovations are already demonstrating what’s possible: satellite internet initiatives, such as Starlink, bypass ground infrastructure to connect remote regions; AI-powered logistics platforms, such as Jumia, optimise delivery routes, reducing businesses' costs; and renewable energy microgrids provide continuity in areas where national grids fail. Kenya’s geothermal projects offer a blueprint.
The private sector, governments, and development partners must collaborate to fund and scale digital trade infrastructure, a continuous investment challenge in our fast-evolving tech landscape.
Keeping pace with the rapid technological advancements requires sustained capital: hardware demands frequent upgrades, cybersecurity needs constant reinforcement, and connectivity infrastructure becomes obsolete without regular updates.
Blended finance models are proving critical to making these recurring investments viable, de-risking capital flows while ensuring long-term viability.
Public-private partnerships should prioritise not just initial rollout but ongoing maintenance and upgrades, ensuring solutions reach rural entrepreneurs and remain future-proof. Without this sustained financial commitment, even today’s cutting-edge solutions risk becoming tomorrow’s bottlenecks.
Most importantly, we must remember that digital trade isn’t about replacing human connections—but enhancing them. When a coffee farmer in Arusha can securely sell to Europe with a few taps on her phone, or a Senegalese artisan can access global buyers without costly middlemen, we’ll know the bridge is working.
Africa doesn’t need to reinvent the wheel—it needs to connect it. The tools exist, and the blueprint is clear. Now, we must build. And build fast!
