Over 50 African nations, united under the African Continental Free Trade Area (AfCFTA), are embracing blockchain technology and stablecoins as a means to significantly enhance intra-African trade and tap into a $70 billion market opportunity. This initiative, named the AfCFTA Digital Access and Public Infrastructure for Trade Initiative (ADAPT), aims to create a cohesive digital infrastructure that encompasses secure digital identities, instantaneous electronic payments, and reliable data access.
The African Union is leading this initiative in collaboration with the World Economic Forum (WEF) and the Tony Blair Institute for Global Change. The project was officially launched today in Johannesburg, with plans to develop what is projected to be the most advanced digital public infrastructure for trade globally.
Despite being home to a $3 trillion economy and a population expected to represent 40% of the global total by the century”s end, Africa”s role in international commerce remains minimal, accounting for merely 2% of global trade. Moreover, intra-African trade constitutes only 20% of the continent”s overall trade volume, highlighting a significant reliance on external markets.
One of the main challenges hindering local trade is the slow pace of digitalization, compounded by a heavy reliance on outdated paper-based systems. A recent study indicates that African nations collectively incur losses of approximately $25 billion each year due to cross-border fees. ADAPT aims to address these challenges by introducing blockchain-based solutions that facilitate instant transaction settlements and digitalize trade-related processes, logistics, and payments.
Wamkele Mene, the Secretary General of AfCFTA, emphasized that this initiative serves as a foundational element of their vision to establish an inclusive and integrated continental market. “It is Africa”s blueprint for the digitization and modernization of trade,” he stated, noting that the initiative seeks to replace fragmentation with integration and inefficiency with scale.
The initiative is expected to digitalize trade processes, fundamentally transforming how African economies interact and collaborate. Chido Munyati, the WEF”s Head of Africa, added that one of the core components of ADAPT will be establishing robust digital identities, a domain where Africa has made significant progress recently. Initiatives in Nigeria and Ethiopia, for instance, aim to enroll millions of citizens into digital identity systems by 2026.
Mene remarked that the establishment of a trusted and interoperable infrastructure will enable efficient movement of goods, services, and capital, aligning with the demands of the 21st century. The initial rollout of ADAPT is slated for 2026 in Kenya, Ghana, and an additional country yet to be announced, with plans for a broader continental expansion by 2035.
In a related development, Egypt is launching a digital platform designed to offer up to 400,000 housing units, as part of its initiative to modernize the real estate sector. The platform aims to simplify access to Egypt”s property market and enhance transparency for a sector projected to grow to $30 billion by 2033.
Ahmed Elbatrawy, who chairs this initiative, noted that the platform represents more than just digitalization; it signifies the emergence of a new institutional framework for the real estate and technology sectors in Egypt. With 25,000 units already offered through this platform, the government anticipates this initiative will attract significant interest from global real estate investors, further bolstering the local market.
