Accelerating the African continental free trade area through optimization of digital supply chains

Abstract

The integration of e‐commerce into supply chain management (SCM) and logistics operations has greatly impacted the way these processes are executed. The Fourth Industrial Revolution (4IR) has disrupted traditional SCM and logistics business processes, making digitalization a crucial element for differentiation and competitiveness. The objective of this article was to investigate how the adoption of appropriate digital technologies could accelerate intra‐African trade in goods and services through the AfCFTA Agreement. The author employed a content analysis of the primary source documents, specifically the Protocol on Trade in Goods, available on the AfCFTA's website. The nine Annexes of the Protocol on Trade in Goods were evaluated against a digital supply chain (DSC) model adopted in this article. The results of the analysis showed that the supply chain and logistics processes of the AfCFTA's Protocol on Trade in Goods could be effectively identified and mapped to potential digital technologies through the adopted DSC framework. The practical implications of this study suggest that the AfCFTA could adopt a DSC framework as a guide in concluding negotiations on the Protocol on Digital Trade to harness the benefits of digital technologies. As the main contribution, this article provides a DSC framework that could be utilized to accelerate intra‐African trade through optimization of supply chain and logistics processes of the AfCFTA.

Leveraging the Potential of the African Continental Free Trade Area: Logistics Challenges and Development Paths for Future Value Chains in Africa

“…The AfCFTA, established by the African Union (AU), is a comprehensive legal pact designed to bolster continental economic integration and enhance intra-trade, aiming to improve African nations' socioeconomic development [15]. As a coalition, the AfCFTA endeavors to forge a unified African market and drive intra-African trade by dismantling trade barriers among member states [16].…”

“…The agreement enhances Africa's long-term competitiveness with a focus on job generation, industrial growth, and investment promotion [16]. Foreseen to exert a significant influence across various sectors, including industrial and manufacturing expansion, intra-African collaboration, tourism, and broader economic growth, the AfCFTA stands as a transformative initiative [15].…”

“…Existing studies have predominantly focused on potential economic benefits and challenges across various sectors, inadvertently overlooking the pivotal role of the logistics sector within the context of the AfCFTA [16]. There is a noticeable dearth of research dedicated explicitly to examining how the implementation of the AfCFTA agreement affects supply chain management and logistics operations [15]. This gap in the literature prompts inquiries into the intricate relationship between the AfCFTA and logistics frameworks within Africa's distinct socioeconomic and political context.…”

“…This gap in the literature prompts inquiries into the intricate relationship between the AfCFTA and logistics frameworks within Africa's distinct socioeconomic and political context. Additionally, the current literature does not comprehensively explore how the AfCFTA can optimize its supply chain and logistics processes [15]. Again, scholarly works tend to be primarily conceptual and offer varied perspectives on the implications of the AfCFTA [24,25].…”