A funding agreement for $9.73 million has been formalized by the African Union Commission (AUC) alongside the African Development Bank (AfDB) to promote the expansion of the continent’s digital marketplace.
This agreement pertains to the execution of Phase 1 of the Upstream Project aimed at Digital Market Development in Africa, as stated in a release on the AfDB website on Friday.
The signing occurred on Thursday at the AUC’s headquarters in Addis Ababa, Ethiopia.
Both Dr. Abul Kamara, the Deputy Director-General of the AfDB for the East Africa Region, and Amb. Albert Muchanga, the AUC Commissioner responsible for Economic Development, Trade, Tourism, Industry, and Minerals, endorsed the agreement.
In September, the AfDB Board of Directors granted its approval for the allocation of seven million Units of Account (equivalent to $9.73 million).
Nonetheless, Muchanga conveyed AUC’s gratitude for the AfDB’s support.
“The COVID-19 outbreak highlighted the significance of digital technologies and the entire digital economy.
“In this context, Africa should envision grand possibilities regarding digital advancement, the digital economy, and vast opportunities for integration and economic progress,” he remarked.
Furthermore, Kamara noted that the initiative would expedite the realization of Agenda 2063 objectives by executing the AfDB’s High 5 priorities.
To achieve “The Africa We Desire,” he remarked, the initiative would bolster the continent’s economic transformation.
For the continent’s stability and prosperity, he argues that it is essential to provide millions of young Africans with job prospects.
“The digital transformation of economies presents fresh opportunities to enhance intra-Africa trade and stimulate economic growth.”
The initiative aids the AUC in executing digital economy initiatives that will enhance the continental single digital market.
Moreover, it promotes the realization of the Digital Transformation Strategy for Africa and the African Continental Free Trade Area.
Phase 1 is expected to span from 2023 to 2026 and will focus on three primary components: adoption of digital trade and e-commerce, supportive actions, and digital enablers.
Specifically, the initiative will bolster the development of Africa’s digital economy by reinforcing the frameworks and cross-cutting dimensions (gender, climate change, and resilience).
These frameworks encompass conceptual, strategic, policy, and regulatory aspects.
