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You are here: Home / cat / Harnessing Africa’s Digital Economy for Growth, Integration, and Shared Prosperity

Harnessing Africa’s Digital Economy for Growth, Integration, and Shared Prosperity

Dated: August 28, 2025

Micro, small, and medium-sized enterprises (MSMEs) form the backbone of Africa’s economy but continue to struggle with limited access to finance, markets, and digital solutions. Strengthening their ability to adopt and leverage digital tools has become a shared priority for African governments, the United Nations Conference on Trade and Development (UNCTAD), and eTrade for all partners. This priority was reinforced at the Tokyo International Conference on African Development (TICAD 9), where leaders highlighted digital transformation, private sector development, innovation, and resilient supply chains as key drivers for the African Continental Free Trade Area (AfCFTA) and inclusive prosperity.

Globally, e-commerce is rapidly transforming trade and consumer behavior, growing from $17 trillion in 2016 to $27 trillion in 2022, according to UNCTAD’s Digital Economy Report. For Africa, the combination of TICAD 9 commitments, AfCFTA opportunities, and national efforts such as Algeria’s eTrade Readiness Assessment (eT Ready) points to a clear pathway: with the right policies and partnerships, digital trade can become a cornerstone of inclusive and sustainable growth.

Algeria is now putting this vision into action with the launch of its eT Ready on 26 August. The country’s fast-growing e-commerce sector reflects both opportunity and challenge. The number of registered e-commerce businesses has increased at an annual average of 92% since 2020, while online payment transactions have tripled. However, most trade remains domestic, and barriers in logistics and cross-border commerce limit MSMEs’ ability to expand regionally. Despite these hurdles, business-to-consumer e-commerce already contributed 0.8% of Algeria’s GDP in 2023, aligning with its diversification agenda. The eT Ready provides a practical roadmap with recommendations to address structural barriers, improve MSME competitiveness, and integrate Algeria more deeply into regional digital trade.

The launch of Algeria’s eT Ready will be a central topic at the Digital for Development Forum during the 16th session of UNCTAD (UNCTAD16), scheduled from 20 to 23 October 2025 in Geneva. According to Pedro Manuel Moreno, Deputy Secretary-General of UNCTAD, this initiative supports Algeria’s digital transformation and brings the promise of the AfCFTA closer by ensuring that no entrepreneur is left behind.

With 21 eT Readies already completed across Africa, UNCTAD’s experience shows that these assessments strengthen government capacity to engage in e-commerce and digital trade negotiations. Algeria’s participation positions it to advance economic diversification and deepen integration within the continent. Upcoming platforms, such as the 4th Intra-African Trade Fair (IATF) in Algiers in September 2025, will further provide opportunities to showcase digital trade solutions, connect African businesses, and accelerate the integration agenda.

This progress has been made possible with financial and technical support from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), along with contributions from UNCTAD’s E-commerce and Digital Economy Programme core donors, including Australia, Switzerland, Sweden, and the Netherlands.

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