Digitization sets the stage for expansion of Intra-Africa trade.

Ecobank’s Group Head of Research Dr. Edward George

The evolution of the digital economy and the emergence of innovative financial solutions is set to increase the volume of trade across the African continent. According to Ecobank’s Group Head of Research Dr. Edward George, while the value of Intra-Africa Trade is estimated at 15%, the large volumes of informal trade within the continent and more so among border communities needs to be formalized to enable the continent realize its trade potential. This is all set to change with the emergence of the digital economy and mobile payment platforms.

“Ecobank has the widest geographical coverage across Africa with a footprint in 33 countries which is a major enabler for cross border trade. In addition to this, we have the Ecobank MobileApp that is available in all the countries where we operate, facilitating free in-country payments and allowing vendors across all 33 countries to make and receive payments in a very simple way.” Mr. Edward added.

Mr. Humphrey Muturi, Executive Director, Ecobank Kenya & Cluster Head of Commercial Banking for the EAC region said the recent launch of the Ecobank Mobile App and the Masterpass QR (Quick Reader) services was a major step towards the digitization of the Bank’s services.

“Today, customers do not have to go to a physical branch to access banking services. They do not need to go to an ATM to withdraw money to make payments. They have it all at their fingertips through our Ecobank Mobile App. The Masterpass QR service that is exclusive to Ecobank Kenya will revolutionize the way people shop and make payments in this country,” he said.

Ecobank's digital platforms enable its customers trading across the continent to tackle the increasing need for regional payment factories, regional collections, electronic bill presentment and settlement as well as 24/7 availability.

“Traditional barriers to trade in developing countries such as poor infrastructure, inefficient logistics, money transfer costs, delays in settlements and distance to market are being overcome as the Internet and associated technology allows for products to be developed and delivered online.” Ecobank Kenya / East Africa Cluster Head for Trade Sales, Michael Gichure said.

To address these barriers, Ecobank demonstrated the capability of its electronic finance supply chain (eFSC) platform primarily geared towards its corporate and commercial customers. This enables clients to fully digitize their procurement cycle from order to cash. The platform facilitates both domestic and cross border trade transactions and is an additional functionality to Ecobank's award winning electronic banking platform, Omni.

This comes shortly after Ecobank launched its Mobile App and Masterpass QR code, reinforcing the Bank's strategic focus on digitization. Ecobank says the technological disruption will enable businesses source for production inputs more efficiently by eliminating intermediaries, shortening supply and export-distribution chains while at the same time reducing business transaction costs. 

For government, the digital economy will make it easier to deal with the ethical and governance challenges they face in the procurement of goods and services.  This will in turn result in efficient government service delivery and ensure value for money by enabling easy access to sufficient information on products and suppliers.

There is need to continuously improve the legal framework to address electronic transaction issues that continue to arise with the passage of time. Both governments and traders will however have to build a framework for the harmonization of national ICT policies and regulatory frameworks. In addition, there is need to establish open standards, promote interoperability and interconnectivity. Additional investment in ICT infrastructure is also required to increase access to the internet across the continent.