Providing women entrepreneurs in Africa with the digital tools to succeed
Faced with the economic consequences of the COVID-19 pandemic, policymakers and business leaders should use the African Continental Free Trade Area (AfCFTA) to equip African women entrepreneurs with the skills and resources to expand their operations and spur the post-pandemic recovery.
As the world continues to grapple with the COVID-19 pandemic, one thing has become increasingly clear: women entrepreneurs in Africa are suffering. National lockdowns, business closures, and travel restrictions have disproportionately affected women entrepreneurs in Africa. According to the World Bank, 60 percent of women-led small and medium- sized enterprises (SMEs) in Sub-Saharan countries have lost all sources of income — a rate three times higher than their male-owned competitors.
Even outside the pandemic, despite comprising the vast majority of informal cross-border traders in Africa, women are disproportionately affected by non-tariffs barriers (NTBs), lack of information about customs procedures, trade regulations and confiscations of goods. Governments have the opportunity to address these inequalities and support an inclusive COVID-19 recovery for all through the African Continental Free Trade Area (AfCFTA).
Launched in January, the AfCFTA is a free-trade area that will reduce non-tariff trade barriers (NTBs) and deepen economic integration in Africa. In its founding text, the AfCFTA strives to “achieve sustainable and inclusive socioeconomic development, gender equality and structural transformations within member states.” While the AfCFTA stresses the importance of achieving gender equality, governments and businesses need to first enable women entrepreneurs’ access to resources to scale up their businesses.
Digital foundations for the future
To fully participate in today’s global economy, businesses require digital connectivity to make informed decisions and expand their operations to new markets. In the wake of the pandemic, we have all become more aware of the importance of digital technologies to sustain business operations and keep economies afloat.
Africa remains one of the least connected regions in the world with only 17.8% of households reporting internet access. Without adequate access to the Internet, women-led SMEs and entrepreneurs will be unable to harness the full potential of digital trade and e-commerce. Governments and businesses must work together to expand information technology infrastructure and create an enabling digital environment for women-led SMEs in Africa. The negotiations on services regulatory cooperation and e-commerce are integral to achieving the AfCFTA’s promise to accelerate trade in the region and create equal opportunity for everyone.
Developing and strengthening skills
African governments can also promote digital transformation by creating digital skills and education programmes for women entrepreneurs. Whether in the form of local trainings, coding labs or innovation hubs, policymakers and business leaders can unite to strengthen the digital capacity of women-led SMEs. Larger multinational corporations should work together with governments to devise long-term strategies that will address local gaps, improve digital literacy skills and create a more inclusive environment for women entrepreneurs.
Knowledge sharing and building networks
The digital transformation of Africa will require trusted channels of information-sharing between women-led SMEs and building new networks across the continent. To support the operationalization of the AfCFTA, the International Chamber of Commerce, Trade Law Centre (Tralac), West Blue Consulting, and UPS recently announced a new partnership to support the digital transformation of women-led SMEs in Africa.
The partnership, which will be supported by ICC’s Centre of Entrepreneurship, will establish the “Women Traders in the AfCFTA” working group to gather the support of women-led SMEs and entrepreneurs in the region. Working with leaders from government, business and civil society, the partners will develop policy recommendations to ensure that women-led SMEs benefit from the AfCFTA. The mission of this new working group will be to promote intra-regional trade and drive the transition of e-commerce in Africa.
Building an inclusive and prosperous future
The pandemic has revealed the consequences associated with unequal digital access. As businesses around the world shifted their operations remotely through video conferences, e-commerce platforms and online services, women entrepreneurs were left behind. Now, with the rise of the AfCFTA, we need to ensure that these businesses are equipped with the tools and resources to benefit equally from the new trade framework and thrive in a prosperous post-pandemic world.
Valentina Mintah, CEO, West Coast Consulting, and International Chamber of Commerce Executive Board Member.
Trudi Hartzenberg, Executive Director of the Trade Law Centre (TRALAC).
Susan Zimmerman, International Public Affairs Director, UPS.
