The United Nations Economic Commission for Africa (UNECA) has stated that African e-commerce is rapidly growing and is expected to increase by 50% by 2025.
The UN agency's Acting Executive Secretary Antonio Pedro revealed the estimates at the opening ceremony of the ninth session of the Africa Regional Forum on Sustainable Development, which took place this week in Niamey, Niger.
According to the official, expansion of e-commerce will be feasible only with an increase in investments. In particular, investing in capacity-building is critical to deliver on the ambitious growth targets.
He added that the financing of large-scale infrastructure projects should be accompanied by sustainable policies and strategies implemented both at national and regional levels.
"By adopting appropriate standards and emphasizing the value of sustainable value chains, we can maximize the job creation potential on our continent," Pedro said.
The executive secretary further underlined that the development of digital technologies on the continent could boost its economic transformation and improve the socio-economic situation. The expansion of digital technologies could likewise create more job opportunities for Africans across the continent, maximizing its potential.
"Africa’s accelerated transformation will be fueled by digital technologies," the executive secretary said. "To this end we must bridge the digital divide, particularly along gender lines, to ensure true inclusion, and to truly unleash the potential of the fourth industrial revolution."
Speaking about the economic development of Africa and its progress so far in achieving SDGs (Sustainable Development Goals), he noted that the continent's GDP growth is expected to decelerate in 2023 due to "a volatile global environment."
Against this backdrop, he claimed that "business as usual will not work for Africa," referring to radical changes to the economy brought about by the effects of COVID-19 pandemic, which "have reversed many of the hard-won gains on the continent." Therefore, the forum in Niger, he underlined, should have a renewed momentum to accelerate, deliver on and review the implementation of SDGs.
As for digitalization, according to the UN, some notable progress has been made in terms of technology despite persisting challenges. For instance, 2021 was a record year for tech startups in Africa, with nearly $2.15 billion in investment capital directed to the sector. However, there remain some barriers to the quick development of the digital economy that include weak skills development and a lack of necessary infrastructure.