Africa’s information and communication technology (ICT) sector is undergoing significant expansion, with services exports reaching $9.2 billion in 2023, marking a 5.4% increase on the previous year, according to a report by the Trade Law Centre (Tralac). Although this growth is promising, African exports still represent only a small share, at 0.85% of the world total. This dynamic highlights both Africa’s successes and challenges in the field of digital services.
In 2023, exports of African ICT services reached 9.2 billion dollars, an increase of 5.4% compared to 2022, according to a report by the Trade Law Centre (Tralac). This growth is mainly dominated by North Africa, followed by East Africa and Southern Africa. Despite this progress, exports of African ICT services still account for just 0.85% of the world total.
North Africa remains the leading region, with exports worth $4.49 billion, followed by East Africa ($2.05 billion) and Southern Africa ($1.4 billion). Africa’s digital exports cover a wide range of fields, including software development, engineering and business process outsourcing (BPO). For example, Morocco excels in the outsourcing of engineering services, while Ghana stands out in technical and specialist services.
However, despite this growth potential, a number of obstacles stand in the way of ICT development in Africa. Lack of adequate infrastructure, gaps in digital skills and insufficient funding are holding back the expansion of the sector. Cross-border trade in ICT services is also hampered by a lack of regulatory harmonisation between African countries. To overcome these difficulties, initiatives such as the African Continental Free Trade Area (AfCFTA) and the COMESA Digital Free Trade Area aim to strengthen digital integration and e-commerce on the continent.
The World Trade Organisation (WTO) projects that African exports of ICT services could reach 74 billion dollars by 2040, with annual growth of over 7%. If this trajectory continues, Africa could become a major player in the global digital economy in the decades to come.
The Editor (with AITN and CA)