Africa’s trade revolution: Technology powers sustainable growth --[Reported by Umva mag]

Fortunately, sustainable trade practices offer a path to a brighter future for Africa’s economies. These practices consider the environment, social impact, and ethical governance (ESG) throughout the supply chain.

Green logistics, fair trade, and circular economy principles are all part of a sustainable trade approach that benefits both the environment and economies. Sustainable practices improve market competitiveness and open doors to markets that prioritize sustainability.

However, embracing sustainable trade requires investment in infrastructure and technology. Streamlining port and customs operations is crucial for smooth goods movement. Additionally, governments and regulatory bodies must recognize the importance of digital transformation and adopt digital solutions over traditional methods.

African countries that understand these needs are paving the way for sustainable trade. Take Benin, for example. The port of Cotonou, handling 90% of the country’s international trade, has seen its operations flourish. A recent infrastructure upgrade loan from the African Development Bank and a leap of 100 places on the World Bank’s Logistics Performance Index showcase this success.

Technology’s transformative power

So, how did Benin achieve this remarkable transformation? Technology played a key role in breaking down trade complexities and inefficiencies. By leveraging technology, Benin transformed into a competitive trade hub.

This story is being replicated across Africa. Port operators and customs entities are actively seeking solutions to ease backlogs and delays caused by high trade volumes. Digitization, coupled with improved infrastructure, is proving to be a powerful solution. Public-private partnerships are essential for success.

Webb Fontaine and Benin: A case study

Webb Fontaine began collaborating with Benin’s Ministry of Finance and Benin Control in 2017, highlighting the importance of long-term partnerships in modernizing trade. We implemented a suite of innovative solutions, including Webb Single Window, Webb Transit Tracking, Webb Valuation, Webb Ports, and Webb Customs, and are proud to be part of Benin’s trade transformation.

Webb Single Window, a game-changer, forms the core of GUCE Benin. This digital platform, with over 6,500 users, facilitates import, export, and transit operations and integrates electronic payment via Paylican. Webb Single Window also automates critical administrative tasks like issuing licenses, managing exemptions, and communicating with tax services.

In practical terms, this means faster container clearance from the port. Digitization increases efficiency by using new technologies like AI, reducing clearance times for both customs brokers and administrators. Today, Benin ranks as West Africa’s top port and holds the 3rd highest rating in Africa. Release times have dropped by 30%, with 50% of containers cleared within just two days.

Economic benefits beyond efficiency

Technology in port operations is just one piece of the sustainable trade puzzle. Technological advancements like automated systems and data analytics offer the potential for greater operational efficiency, reduced emissions, and less waste – all key components of sustainable practices. Quicker turnaround times not only reduce the carbon footprint of shipping and logistics but also decrease storage needs, lowering energy consumption and waste.

Is Africa ready for a sustainable future?

Despite challenges, many African countries are making significant strides. Examples include Togo’s new container platform, Nigeria’s planned green port, and Liberia’s green economy reforms. However, full digital transformation and infrastructure development remain crucial steps on the journey.

All stakeholders must contribute to establishing sustainable trade practices and policies. African governments need to invest in trade-supporting infrastructure alongside digital advancements and sustainability initiatives. The African Continental Free Trade Area can play a pivotal role by fostering a standardized approach, drawing on lessons learned across the continent.

Africa has immense potential to create and maintain sustainable trade practices that drive economic growth. Existing success stories demonstrate this potential, urging governments, stakeholders, policymakers, and the private sector to collaborate on solutions for further growth and development. Webb Fontaine is already actively supporting African governments on their trade facilitation journeys, providing specialized port technology that secures customs revenue, combats trade fraud, and streamlines clearance times. By working together, Africa can collectively reap the rewards of a sustainable and prosperous future.

ABJ/APA

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