AfCFTA Digital Trade Protocol

There are 54 State Parties to the African Continental Free Trade Area (or AfCFTA).  The United States is not a party to this agreement, but some of the broad disciplines contained within the AfCFTA Digital Protocol will affect the overall business regulations in African countries in which U.S. companies operate.  It strives to create a more harmonized framework to promote Africa’s digitalization and the development of digital-related industries and trade in digital products.  Promoting a transparent, secure, and trusted digital trade ecosystem is a major objective.

The AfCFTA Digital Protocol contains eleven sections covering broad areas such as market access, facilitating digital trade, data governance, business and consumer trust, digital trade inclusion, emerging technologies, transparency on government regulation, and capacity building.

There are specific provisions on cross-border data transfers, data localization, source code, and other key policy issues that can affect international trade and investment.  The Digital Protocol includes transparency obligations that require AfCFTA Parties to publish all digital-related regulations.  It requires AfCFTA parties to accept the legal validity of electronic documents, allow contracts to be concluded by electronic means, and permit electronic invoicing and paperless trading.  It seeks to address some of the last mile issues in eCommerce such as streamlining the licensing of logistics providers, for example.  It tackles issues such as use of digital payments and making settlement systems more interoperable.  It also addresses the treatment of fintechs in accessing digital payment systems.

The AfCFTA Digital Protocol was approved by State Party Ministers in February 2024.  However, the State Parties are conducting subsequent negotiations on eight supplementary annexes covering rules of origin for customs duties on digital products, digital identities, cross-border digital payments, cross-border data transfers, disclosure of source code, cybersecurity, emerging and advanced technologies, and fintech.    

Once the annexes are approved by the African Union Assembly, State Parties of the AfCFTA will need to ratify the Digital Protocol and its annexes. Once 22 AfCFTA State Parties ratify it, the Protocol will enter into force for those State Parties that have ratified it.  They will have up to five years to implement the provisions contained within it.  

For more information about Africa’s regional integration and to formulate your strategy for doing business in this context, please contact: U.S. Commercial Service Ghana at Office.Accra@trade.gov, Tel: +233-(0)30-274-1870, www.trade.gov/ghana-contact-us.  See our further reporting on AfCFTA.