Intra-African Trade, Digital Technologies and Canada's Foreign Policy Choices

Abstract

This paper examines the impact of recent advances in digital technologies on intra-African trade, while paying attention to the informal economy and services trade, in addition to other important issues like trade-related infrastructure, trade policies and the macroeconomic environment. We advance a framework comprising Aid for Trade (AfT), Africa Regional Integration Index (ARII), Financial Inclusion, and the Boosting Intra-Africa Trade (BIAT) initiative, among others, to assess the implications of the growing link between financial technology (FinTech) services penetration and intra-regional trade for Africa’s informal sector and financial disintermediation. Our analysis shows that in order to foster increased use of digital finance in Africa, we must pay attention to the varying levels of digital technology adoption by users – particularly women, micro, small and medium-sized enterprises (MSMEs). We offer possible interpretations of the results, while highlighting useful lessons for Africa-specific trade programming and Canadian foreign policy.