Why affordable communication is key to AfCFTA

Africa is on the brink of a monumental economic transformation with the African Continental Free Trade Area (ACFTA), a pact designed to boost trade, collaboration and growth across borders.

Already, 43 countries have ratified the AfCFTA agreement, marking significant commitment toward the continent’s goal of creating a single market. This ratification phase is critical as it drives the agreement’s operational phase, which includes implementing tariff reductions, establishing the Pan-African Payment and Settlement System for intra-African payments, and launching the African Trade Observatory to address trade barriers.

AfCFTA is structured to boost African economies by promoting industrialisation, reducing trade barriers, and expanding access to regional markets. However, one major opportunity lies in furthering digital and communication protocols, which are currently developing under specific agreements like the Protocol on Digital Trade.

.

Keep Reading business

•  Behind-the-scenes rush as clock ticks for sale of Bamburi Cement Premium
•  Pension industry seeks to flex its muscle in large State projects
•  Why construction sector is on steady decline in Kenya
•  Treasury goes for UAE loan as IMF cautions of debt situation Premium
•  Traders claim closure of liquor stores, bars near schools punitive Premium

Lowering cross-border mobile and internet rates could dramatically enhance connectivity and facilitate business, investment, and social cohesion across borders. This integration would make benefits of a free trade area tangible to citizens, especially in the communication-service and business sectors.

While recently travelling between Kenya, Zambia, Zimbabwe, and Malawi, I found that affordable cross-border communication within Africa would help bridge regional divides, lower business transaction costs, and stimulate the AfCFTA’s overall objectives.

Fostering affordable intercontinental connectivity could also empower SMEs and entrepreneurs, facilitating faster business development and enhancing social integration. As a Kenyan, I experienced firsthand the prohibitive costs of communicating across African borders. The high roaming charges were a stark reminder of the barriers still in place for truly integrated, seamless intra-African exchange.

As African leaders finalise protocols, it is time to advocate for affordable communication as a core element of this agreement’s ongoing ratification and implementation.

Despite strides in infrastructure, calling and internet rates remain prohibitively high for many Africans travelling or working across borders. Countries like Zambia, Zimbabwe, and even Kenya have mobile carriers that charge significantly for roaming. For instance, extremely high roaming rates for travellers across these regions can leave even the most connected individuals feeling isolated.

These costs discourage regional travel, business, and the very people-to-people connections that a united African market requires. According to recent telecommunications reports by SMART Africa & BICS, cross-border communication rates within Africa can be up to three times higher than in Europe or Asia. This discrepancy undermines ACFTA’s vision of creating an interconnected African market.

Lowering these costs is not merely about convenience; it’s a strategic move that could significantly boost economic growth. Affordable communication would allow African entrepreneurs, particularly those in Small and Medium Enterprises (SMEs), to interact easily with suppliers, clients, and partners across borders.

Imagine the potential of a Kenyan tech startup that could affordably pitch its services to investors in Rwanda or Ghana, or a Nigerian designer showcasing their work to potential clients in South Africa.

Affordable communication has potential to unify Africa beyond economic transactions. Lower rates could encourage more cultural exchange, promoting a sense of shared identity and community. Friends, families, and even grassroots movements would be better able to connect, creating an integrated society that feels as connected as it is economically aligned.

Consider students and professionals with family spread across the continent. Affordable calling would enable families to stay connected, promoting unity and cultural exchange across African nations.

The writer is a policy expert