It is no longer a new fact that digital technology is rapidly diversifying into different sectors of the world. This boom is high as demand for the technology is accelerating, and governments are adopting it to simplify and speed up their services. Now, Africa is embracing a new form of trading through digital technology, called Africa Digital Access and Public Infrastructure for Trade (ADAPT).
IOTA, a decentralized blockchain infrastructure, partnered with the World Economic Forum and the Tony Blair Institute for Global Change to launch ADAPT, an initiative to build an advanced digital public infrastructure for trade across Africa.
Africa leverages technology and innovation to digitize trade
The plans to digitize trade also come under the leadership of the African Continental Free Trade Area (AFCFTA). As it is clear, the key goal of ADAPT is to digitize trade between regions inside the African continent. Moreover, the new initiative will
- boost intra-African trade by 2035,
- connect trading activities of all countries on a single open digital infrastructure by 2035,
- cut down cross-border payment fees from 6–9% to less than 3%,
- reduce border clearance items to 3 days,
- unlock $23.6 billion in economic gains each year from faster, cheaper trade.
As experts commented, AFCFTA aims to connect 55 countries by 2035 and intensify intra-African trade by more than $70 billion. Kenya will be leading the charge by becoming the first African country to launch ADAPT. Before expanding to other countries, the platform will be deployed, tested, and used in Kenya.
The new venture will create trusted digital identities for businesses and governments on blockchain infrastructure, enable cross-border data exchange through a single trustworthy digital system for trade documents and logistics details, and provide an interoperable financial layer for transactions.
Could Africa be the future of global trade?
With Africa’s ADAPT digital platform, the region could witness powerful economic growth in the future, according to experts. When governments, institutions, and countries adopt digital technology, it bolsters their development path and increases competition between other leading players.
The traditional trade system is a costly and time-consuming business practice for several African countries. An official statement read that this slow process drains an estimated ‘$25 billion each year from African economies.’ The ADAPT digital trade platform is introduced to push down these difficulties and make trade activities smoother and efficient.
In short, Africa is using public digital infrastructure, backed by blockchain technology, to boost trade activities and strengthen its economy. If successfully implemented, African countries will be identified as regions using the world’s most advanced digital trade ecosystem.
