Nigeria and other African countries attracted approximately $70 billion in foreign direct investment (FDI) last year. Eastern Africa, in particular, saw a 12% increase in FDI inflows, making it one of the continent's leading investment destinations. This information was presented at the UN Economic Commission for Africa (ECA) online Expert Group Workshop on "Advancing Inclusive Trade and Investment under the African Continental Free Trade Area (AfCFTA)".
The workshop, convened by ECA's Office for Eastern Africa (SRO-EA), brought together policymakers, regional organizations, researchers, youth organizations, young entrepreneurs, and private sector stakeholders from across Eastern Africa. Discussions focused on regional trade and investment performance, implementation of the AfCFTA Protocols on Investment, Digital Trade, and Women and Youth in Trade, as well as opportunities and challenges related to gender inclusion and digital trade.
According to ECA's Economic Affairs Officer, Rodgers Mukwaya, Eastern Africa continues to demonstrate resilience despite ongoing global economic uncertainties. He noted that intra-regional trade remains one of the region's strongest assets, but rising dependence on commodity exports highlights the urgent need for economic diversification and greater value addition to ensure sustainable growth under the AfCFTA.
The Director of ECA in Eastern Africa, Andrew Mold, emphasized that Eastern Africa has strong foundations on which to build a more inclusive trading system. However, translating the AfCFTA's commitments into tangible benefits for women, youth, and small businesses will require sustained action at both national and regional levels.
Associate Economic Affairs Officer at ECA, Elena Acebes, highlighted the need to bridge persistent digital and financial inclusion gaps affecting women entrepreneurs. She noted that women account for up to 70-80% of informal cross-border traders in many African trade corridors, yet only 31% of women in Africa use the internet, compared with 40% of men.
The workshop also explored the role of digitalization in promoting women's trade, including e-commerce, mobile payments, and paperless trade systems. The Pan-African Payment and Settlement System (PAPSS) was cited as an example, which connects over 30 African countries and reduces payment times from several days to just seconds while lowering transaction costs by over 90%.
The workshop concluded with a call for faster implementation of AfCFTA protocols, greater investment in digital infrastructure and skills, enhanced support for women and youth entrepreneurs, and stronger regional cooperation to ensure that the benefits of continental integration are shared more broadly and equitably across Eastern Africa.
Key points
- Eastern Africa saw a 12% increase in FDI inflows last year.
- Women account for 70-80% of informal cross-border traders in many African trade corridors.
- The Pan-African Payment and Settlement System (PAPSS) reduces payment times from several days to just seconds.
