ONE AFRICA, ONE CLICK: WHAT THE AFCFTA DIGITAL TRADE PROTOCOL MEANS FOR AFRICA

BY SEUN TIMI-KOLEOLU & EFE OKPARAVERO

Introduction

Last week, Lagos hosted the AfCFTA Digital Trade Forum 2026, bringing together policymakers, regulators, financial institutions, technology companies, legal practitioners, and other stakeholders from across Africa and beyond under the theme, “Digital Trade for a Connected African Market.”

The Forum underscored the growing momentum behind the AfCFTA Protocol on Digital Trade. This Protocol seeks to govern the cross-border exchange of goods, services and other tradeable items that are facilitated by digital platforms and technologies. For more information on this, see our article here.

In light of the discussions and developments emerging from the Lagos Forum, this is an opportune moment to revisit the Protocol, assess the progress made to date, and consider the practical steps businesses should take to prepare for its implementation.

Changes Since the Adoption of the Protocol by the African Union on 18 February 2024

The most significant development has been the adoption of eight supplementary Annexes on 16 February 2025, transforming the Protocol from a mere framework into a more operational instrument setting out detailed rules for implementation.

Three notable annexes include:

1. Annex on Rules of Origin: The Rules of Origin (ROO) Annex was introduced to provide clarity on the ‘African origin requirements’ for digital products (mentioned in Article 5 of the Protocol) by introducing a two-tier test. Under these new rules, both the supplying enterprise or platform must be African-owned and operated, and the digital content itself must qualify as African content to enjoy preferential treatment under AfCFTA.
2. Annex on Cross-Border Digital Payments: This Annex sets out practical measures (improving on Article 15 of the Protocol) to promote secure and efficient digital payment systems across the African market. Such measures include requirements and guidance on interoperable payment infrastructure; electronic know-your-customer (e-KYC) processes; open application programming interfaces (APIs); fraud prevention mechanisms; and regulatory cooperation on anti-money laundering and counter-terrorist financing (AML/CFT).
3. Annex on Cross-Border Data Transfer: This Annex (mentioned in Article 20 of the Protocol) now creates an adequacy-based system for the free flow of data between countries engaging in digital trade. To fulfill the adequacy requirement, countries are required to maintain a domestic data protection framework which at a minimum meets the standards set out in Articles 5 to 14 of this Annex, such as Personal Data Protection by Design and Default; Data Minimisation; and Competent Data Protection Authorities etc.

Beyond the regulatory framework, there have been continent-wide initiatives such as:

1. AfCFTA Digital Inclusion and Entrepreneurship Programme (ADIEP): Delivered in partnership with Google, ADIEP is reported to have trained more than 7,500 SMEs across 19 African countries through 25 cohorts between November 2025 and June 2026, equipping businesses with skills in artificial intelligence, cross-border e-commerce and cloud technologies.
2. Pan-African Payment and Settlement System (PAPSS): PAPSS is expected to reduce the cost, complexity and settlement time of cross-border transactions, supporting one of the Protocol’s central objectives of seamless digital trade across Africa. For more on PAPSS, see here.
3. Africa Digital Access and Public Infrastructure for Trade (ADAPT): An implementation initiative, launched in November 2025 by the AfCFTA Secretariat, ADAPT designated Nigeria, Kenya and Morocco as its pilot countries. This initiative focuses on strengthening digital public infrastructure through digital identity systems; payment integration; and the digitisation of trade documentation.

What This Means Commercially

Africa’s digital economy is projected to grow from approximately US$180 billion today to US$712 billion by 2050, hence the stakes are quite high. For businesses, the Protocol is expected to deliver:

1. Greater market access: Harmonised rules will make it easier for businesses to reach customers across Africa without establishing a physical presence in every market, reducing regulatory fragmentation and expansion costs.
2. Stronger compliance obligations: Businesses will need to enhance data governance, privacy frameworks and cross-border transfer arrangements as digital trade rules become more aligned across jurisdictions.
3. Improved digital payments: Interoperable payment systems, supported by initiatives such as PAPSS, could reduce transaction costs and improve settlement efficiency, while requiring stronger AML/CFT/KYC compliance from financial institutions and Fintechs.

Ratification Status

Adoption is distinct from entry into force. Under Article 47 of the Protocol and Article 23 of the AfCFTA Agreement, the Protocol enters into force 30 days after the 22nd State Party deposits its instrument of ratification. That threshold has not yet been met, meaning the Protocol remains a framework for future implementation rather than an enforceable regime.

Nigeria has advanced its implementation efforts as a Co-Champion of the Protocol, with the Federal Executive Council approving Nigeria’s ratification on 6 November 2025.

The Protocol, however, does not yet have the force of law within Nigeria, as treaties require domestication by the National Assembly pursuant to Section 12 of the Constitution of the Federal Republic of Nigeria 1999 (as amended).

Recommendations

Going forward, we recommend the following:

A. State Parties should:

1. Identify gaps or discrepancies between their domestic legal frameworks and the Protocol, take steps to align their laws with the provisions of the Protocol.
2. Accelerate ratification of the Protocol and incorporate it into their domestic legal frameworks to ensure effective implementation.
3. Promote regulatory cooperation with other State Parties by working towards greater harmonisation of digital trade regulations, particularly in areas such as data protection, cybersecurity, digital identity, electronic transactions and consumer protection.

B. Businesses should:

1. Prepare ahead of the Protocol’s entry into force by monitoring ratification and regulatory developments,
2. Review contracts and data governance practices to align them with the Protocol
3. Strengthen cybersecurity, AML/CFT/KYC frameworks and digital payment capabilities to meet emerging cross-border digital trade requirements.

Conclusion

The AfCFTA Digital Trade Protocol represents a significant step towards building a better connected and competitive African digital economy. Whilst the Protocol is not yet operational, ongoing implementation initiatives signal a clear shift towards greater digital integration. Governments and businesses that begin preparations now will be better positioned to take advantage of the opportunities created by a single African digital market.