By Brendan C. Ugwu
INTRODUCTION
The onset of the digital revolution has proven to be a fertile ground for transformative change across the globe. Africa, with its rich cultural diversity and economic potential, is witnessing a paradigm shift as digital platforms emerge as enablers of economic empowerment, with a particular impact on women’s trade opportunities. In this article, we will explore the intrinsic role of digital platforms in enhancing trade opportunities for women in Africa, delving into the opportunities and addressing challenges to adoption.
THE CURRENT LANDSCAPE OF WOMEN’S TRADE IN AFRICA
Historically, women in Africa have played a pivotal role in trade and commerce. Despite the numerous obstacles they face, such as limited access to finance, market information, and networks, women contribute significantly to their economies, often operating in informal trade sectors and agricultural markets (UNCTAD, 2020). According to a report by the International Trade Centre (2019), women in sub-Saharan Africa are likely to be self-employed in the informal sector and make up over 50% of those involved in agricultural exports. However, women’s entrepreneurial activities are frequently impeded by structural barriers and gender disparities (International Trade Centre, 2019).
THE EMERGENCE OF DIGITAL PLATFORMS AS A LEVER FOR CHANGE
The emergence of digital platforms presents unparalleled opportunities for women traders in Africa. Digital platforms encompass a spectrum of technologies including e-commerce websites, mobile money services, and social media channels, all of which can provide women with access to larger markets, financial services, and peer networks. The reach of mobile technology in Africa is substantial, with a report by GSMA (2020) indicating that mobile phone penetration is swiftly increasing, thus expanding access to digital services and potential markets for women traders.
EXAMPLES OF DIGITAL TRADE PLATFORMS EMPOWERING WOMEN IN AFRICA:
The continent has witnessed the emergence of several digital platforms tailored to the needs and strengths of women in trade.
1. Shop Soko (https://shopsoko.com/) is an online platform that connects consumers with jewellery and accessories crafted by artisans in Africa, most of whom are women. It empowers these women by providing a global market for their handcrafted products, thus enhancing their livelihoods. (https://shopsoko.com/)
2. Anka (https://marketplace.anka.africa/en#) another vibrant marketplace, focuses on promoting and selling African-inspired fashion, accessories, arts, and crafts, created by designers from the continent, many of whom are women. This platform has become essential in amplifying the reach of women-led businesses in Africa.]
3. SheTrades (https://www.shetrades.com/): Initiated by the International Trade Centre (ITC), SheTrades is an innovative digital platform designed to connect women entrepreneurs to global markets. As a hub aimed at empowering women economically, SheTrades provides key features such as market intelligence, learning opportunities, and the ability to showcase products and services to international buyers. With a commitment to connecting three million women to the market by 2021, this platform stands as a beacon of progress for digital trade in Africa.
4. WaystoCap (https://www.waystocap.com/ ): WaystoCap is a prominent B2B marketplace that serves the African continent by facilitating the buying and selling of goods. This platform uniquely targets African businesses and has provided a pathway for women traders to reach a more extensive network of buyers and sellers. By engaging in commerce on WaystoCap, women can benefit from secure transactions, logistics support, and payment protection.
5. M-Farm (https://mfarm.co.ke/): Aptly named, M-Farm is a digital solution tailored for the agricultural sector. Founded by Kenyan entrepreneurs, of whom one is a woman, this platform aids female farmers in finding information on pricing, connecting with buyers, and collectively selling their produce to obtain better rates. The utility of M-Farm to women in agricultural trade in Africa cannot be overstated as it champions transparency and fair trade, crucial elements for the success of women traders. https://www.farm-d.org/organization/mfarm-ltd-kenya/
6. Jumia (https://www.jumia.com.ng/) : Often referred to as the ‘Amazon of Africa,’ Jumia is an extensive online marketplace that offers everything from electronics to fashion and beauty products. It is also a platform where women entrepreneurs have been able to build and scale their retail businesses. Jumia’s infrastructure provides women with a solid framework for e-commerce activities, including marketing, payment processing, and logistics.
7. Kiva (https://www.kiva.org/) : While not a trade platform in the conventional sense, Kiva deserves mention for its role in supporting women’s economic participation in Africa. As a micro-financing platform, it enables women traders to seek small loans, which are crowd-funded by lenders across the world. Users of Kiva can search for women-led businesses in Africa and support them by lending money, thereby providing the capital needed for them to engage in trade.
EXAMINING THE OPPORTUNITIES AND BENEFITS THE VARIOUS BENEFITS THAT DIGITAL TRADE PLATFORMS HAVE OFFERED TO AFRICAN WOMEN IN TRADE
Empowerment through Economic Participation: Digital trade platforms have granted African women more direct access to economic participation. Historically, women have faced numerous challenges in entrepreneurism and trade, including limited access to physical markets, financial resources, and education. However, with the advent of digital platforms, many of these barriers have been significantly reduced. For instance, digital platforms can democratise access to markets and reduce the gender gap in trade (Harvard Policy brief (2020). By facilitating business transactions online, women have the liberty to participate in trade without the traditional constraints that might limit their physical mobility or exposure to certain markets. Digital platforms enable women to manage their businesses from anywhere, providing flexibility that is especially crucial for those balancing entrepreneurship with domestic responsibilities or those in rural areas where access to commercial centres is limited.
Enhancement of Market Access and Customer Reach: Digital trade platforms have been critical in enhancing market access and customer reach for African women in trade. By going online, women traders can showcase their products to a global audience, something which was nearly impossible for many before the digital era. This was noted in a study by the UNCTAD, which mentioned, digital platforms have lowered export costs for firms in developing countries, allowing them to reach a much wider customer base (UNCTAD, 2020).
Online marketplaces such as Jumia and Konga in Nigeria, Kilimall in Kenya, and MAGNiTT across the Middle East and North African region, have proven to be invaluable for African entrepreneurs. These platforms not only provide the means to sell locally but also often support cross-border transactions, thereby expanding the potential customer base exponentially.
Reduction of Transaction Costs: Transaction costs are a critical factor that affects the feasibility and profitability of trade. Digital platforms have the capability to substantially reduce these costs. In traditional trade settings, costs associated with travel, middlemen, and physical market access can be prohibitive. However, a 2016 report by Financial Nigeria highlighted that digital platforms can reduce transaction costs by up to 90% (Financial Nigeria, 2016). By lowering these barriers, African women can enjoy increased profit margins and reinvest in their businesses, further enhancing their economic empowerment.
Access to Finance: Accessing finance has been a perennial obstacle for African women in trade. Nonetheless, digital platforms are beginning to ease this challenge by offering innovative financing solutions and connecting women entrepreneurs with potential investors. Through digital trade platforms that encompass crowdfunding, peer-to-peer lending, or even partnerships with financial institutions, women can secure the capital required to start, sustain, or grow their businesses effectively.
Capacity Building and Skill Development: An often-overlooked but significant benefit of digital trade platforms is their role in capacity building and skill development. As described by the World Bank, “Digital platforms can offer a myriad of tools and resources designed to help women entrepreneurs develop skills and business acumen” (World Bank, 2022,). From online training workshops to mentoring programs, digital platforms can play an important role in fostering a situational knowledge base that helps African women to overcome business challenges, innovate, and stay competitive.
Networking: Digital platforms have been instrumental in networking African women traders. Online marketplaces like Jumia and Konga act as virtual storefronts, providing women with platforms to sell their products beyond local boundaries (UNCTAD, 2018). Furthermore, social media platforms such as Facebook, Instagram, and WhatsApp are used to market products, connect with new and existing customers, and establish women trader communities that share market insights and support.
Catalyzing Financial Inclusion: Apart from market access, digital platforms play a critical role in fostering financial inclusion. Mobile money services, such as M-Pesa, have been transformative for women, allowing them to manage finances, receive payments for goods, and access credit without traditional banking barriers (GSMA, 2020). This financial autonomy can catalyse further business growth and diversify income streams, leading to greater economic security for women traders and their families.
BARRIERS TO AFRICAN WOMEN’S PARTICIPATION IN DIGITAL TRADE
Barriers to African women’s participation in digital trade are multifaceted and deeply entrenched in socio-economic and cultural fabrics. This expository essay delineates these barriers, exploring factors such as limited access to technology, socio-economic constraints, educational disparities, gender discrimination, and regulatory challenges prevalent within the context of African societies.
Access to Technology: One of the most significant barriers to African women’s participation in digital trade is limited access to technology. (Many African countries have low levels of technology penetration, and women are less likely than men to own or have access to digital devices) (UNCTAD, 2021). “The Mobile Gender Gap Report 2020” by GSMA highlights that, in most African countries, women have less access to the internet and smartphones, which are crucial tools for engaging in digital commerce (GSMA, 2020). This gap is a product of economic factors where the cost of digital services and devices is prohibitive for many women who generally have lower income levels than men.
Socio-Economic Constraints: Socio-economic constraints are another factor impeding African women’s participation. The adherence to traditional roles in many African societies often dictates that women handle household responsibilities, leaving them with little time to venture into entrepreneurship or to upskill for digital trade) (Africa Rebirth, 2023). Women are disproportionately affected by poverty, and with lower economic power, they have fewer opportunities to invest in creating or expanding online businesses. Moreover, the gender pay gap means that African women have less capital to risk in new digital ventures.
Educational Disparities: Education is a fundamental enabler of digital literacy, yet educational disparities present a substantial barrier. (The African Development Bank Gender Strategy 2021 reports that the percentage of women with secondary education or higher is significantly lower than men, affecting their ability to engage effectively in digital trade, which often requires a certain level of literacy and numeracy) (AfDB, 2021). Furthermore, education systems in some African countries may not prioritize digital skills, leaving many women unprepared for the digital economy.
Gender Discrimination: (Direct and indirect gender discrimination remains an ongoing impediment for African women in all spheres, including digital trade). In some African countries, societal expectations and norms can deter women from pursuing business ventures or leadership positions traditionally held by men (Human Rights Watch, 2020). In the realm of digital commerce, gender biases can manifest in fewer opportunities for mentorship, networking, and investment. Women may also face harassment online, which can discourage them from actively participating in digital platforms.
Source: Human Rights Watch – https://www.hrw.org/world-report/2020/country-chapters/global
Regulatory Challenges: Lastly, regulatory challenges can hinder African women’s participation in digital trade. Inconsistent and inadequate regulations regarding e-commerce can create a hostile environment for new entrants. (Women, in particular, may struggle with navigating a complex legal landscape that does not always protect their interests or provide support for female entrepreneurs). Additionally, there may be a lack of framework to address cross-border trade issues specifically faced by women, such as customs regulations and accessing international payment systems (Trade Law Centre, 2021). Source: Trade Law Centre – https://www.tralac.org
Despite the profound potential of digital platforms, significant challenges remain. Digital literacy, access to reliable internet, and the affordability of devices are considerable barriers for women in remote or impoverished areas. Moreover, socio-cultural constraints and gender biases can dissuade or prevent women from seizing digital opportunities (UNCTAD, 2020).
Addressing these challenges requires concerted efforts from governments, private sector, and civil society organizations to invest in infrastructure, deliver targeted digital skills training for women, and create supportive policies and frameworks that encourage women’s participation in digital trade.
STRATEGIES THAT CAN BE DEPLOYED TO ENABLE AND EMPOWER AFRICAN WOMEN’S INVOLVEMENT IN DIGITAL TRADE.
Strategy 1: Access to Education and Training: One of the threshold barriers for African women’s entry into digital trade is education. Ensuring that women have access to the necessary training and education can build a foundation strong enough to surmount other barriers they might encounter. Initiatives like the “African Girls Can CODE Initiative” (AGCCI), launched UN Women and the African Union Commission (AUC) in collaboration with the International Telecommunication Union (ITU) and United Nations Economic Commission for Africa (UNECA) and other partners, aim to empower girls with digital literacy skills, coding proficiency, and self-confidence [“African Girls Can CODE Initiative – A Transformative Initiative Empowering Girls in ICT.” By expanding similar programs to include women of all ages, and tailoring them towards digital trade, many can carve a path for themselves in the digital marketplace.
Strategy 2: Encouraging Entrepreneurship and Start-ups: Entrepreneurship can lead to economic independence for African women. Creating enabling environments that encourage women to develop their own start-ups in the digital trade space is essential. The “She Trades” initiative, founded by the International Trade Centre (ITC), is one such platform that strives to connect female entrepreneurs to markets. It has proven to be a significant step towards briditing the gap by providing opportunities, skills, and networks necessary for women to thrive in global trade.
Strategy 3: Technological Infrastructure and Access: Access to the internet and digital technologies is a key factor in enabling African women to partake in digital trade. A report by the International Finance Corporation (IFC, 2019) highlights the digital divide, showing that women in Africa are about 45% less likely to have internet access than men, which has profound implications on their ability to engage in digital trade. Investing in infrastructure and advocating for more affordable internet services can lead to increased digital inclusion for women. Programs and initiatives that target infrastructure improvements and reduce the costs of digital tools and connectivity also are critical steps in closing the gender digital divide.
Strategy 4: Financial Inclusion: Financial barriers often prevent African women from participating fully in the digital trade economy. Women need access to credit, funds, and financial services to start or scale up their digital trade enterprises. The World Bank’s “Africa Gender Innovation Lab” is researching and piloting financial products tailored to the needs of women to overcome these financial barriers Coupled with the implementation of mobile banking and digital financial services, such approaches have the potential to offer women the financial resources they need to succeed in digital trade.
Strategy 5: Legal and Policy Frameworks: Harmonising legal and policy frameworks to dismantle structural barriers and incentivize African women’s participation in digital trade is critical. The African Continental Free Trade Area (AfCFTA) can serve as a platform to enhance trade opportunities for women, but only if gender-responsive strategies are explicitly integrated into its implementation plans. The United Nations Conference on Trade and Development (UNCTAD) advocates for policies that create a more equitable environment for women’s economic participation [“Gender and trade.” By bolstering legal frameworks that tackle discrimination and promote gender equality, African countries can create an environment where women can equally benefit from digital trade.
Conclusion:
The advent of digital platforms heralds a promising future for African women in trade. By bridishing distances, catalysing financial inclusion, and facilitating skill development, digital platforms are a springboard for economic empowerment and gender equity. The strategic application of this digital leverage can yield a new era of inclusive trade for African women, creating stronger economies and more resilient societies. To realize this vision, the digital gender divide must be closed, ensuring that all women can take advantage of the trade opportunities ushered in by the digital age.
References
Africa Rebirth, (2023) The Changing Role of Women in African Culture
Financial Nigeria, (2016) Digitizing payments can reduce transaction cost by 90 percent
GSMA, (2020)The Mobile Gender Gap Report 2020 https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/wp-content/uploads/2020/05/GSMA-The-Mobile-Gender-Gap-Report-2020.pdf
Harvard Policy brief (2020) Women aand the Digital Economy In Africa https://africa.harvard.edu/files/africanstudies/files/women_entrepreneurship_in_africa_policy_brief_-_digital_economy_final.pdf
International Finance Corporation (IFC, 2019) Digital2Equal: Expanding Digital Opportunities for Women in Africa.” International Finance Corporation, 2019, https://www.ifc.org/en/what-we-do/sector-expertise/gender/disruptive-technologies/digital2equal-program#:~:text=Digital2Equal%20is%20an%20IFC%2Dled,for%20women%20in%20emerging%20markets
International Trade Centre. (2019). Unlocking Markets for Women to Trade. Retrieved from: https://intracen.org/resources/publications/unlocking-markets-for-women-to-trade
The African Development Bank (2021) Group Gender Strategy
UNCTAD (2020) Digital platforms and value creation in developing countries https://unctad.org/meetings/en/SessionalDocuments/tdb_ede4d2_en.pdf
UNCTAD, 2020, https://unctad.org/publication/gender-and-trade
UNCTAD. (2018). UNCTAD B2C E-commerce Index 2018 – Focus on Africa. retrieved from: https://unctad.org/system/files/official-document/tn_unctad_ict4d12_en.pdf
UNCTAD. (2020). Empowering Women Entrepreneurs through Information and Communications Technologies. United Nations Conference on Trade and Development. Retrieved from: https://unctad.org/webflyer/empowering-women-entrepreneurs-through-information-and-communications-technologies
United Nations Women, Africa, (2023) Empowering the Future: African Girls Can Code Officially Launched in Rwanda https://africa.unwomen.org/en/stories/press-release/2023/07/empowering-the-future-african-girls-can-code-officially-launched-in-rwanda#:~:text=AGCCI%2C%20launched%20in%202018%20by,by%20equipping%20them%20with%20digital
United Nations Conference on Trade and Development (UNCTAD) Technology and Innovation Report 2021 https://unctad.org/system/files/official-document/tir2020_en.pdf
World Bank (2019) “Africa Gender Innovation Lab” https://www.worldbank.org/en/programs/africa-gender-innovation-lab
World Bank(2022) Using Digital Solutions to Address Barriers to Female
World Bank. (2019). Women, Business and the Law 2019: A Decade of Reform. Retrieved from: https://documents.worldbank.org/en/publication/documentsreports/documentdetail/101301551208346052/Women-Business-and-the-Law-2019-A-Decade-of-Reform
