Sone Osakwe

Digital identity, digital taxation and cross-border data flows are critical enablers of digital trade. Digital identities will enhance ubiquitous connectivity across the continent and develop safe and secure interoperable digital identities that are mutually recognised. Digital identities can support countries to fully harness their digital potential and exploit the benefits of digitalisation for the continent's development. Digital taxes are an important source of revenue generation and a way to protect local businesses or industries. However, customs duties may hurt consumers, and increase prices for digital trade products. Cross-border transfer of data is essential for conducting businesses and the production and delivery of products and services. However, African countries’ legal and regulatory framework for digital identity, cross-border data flows and digital taxation is fragmented. Countries are regulating these issues in silos and can consequently undermine the objectives of the African Continental Free Trade Area to establish a single market with free movement of goods, services and capital. The Protocol on Digital Trade aims to establish a single digital market. The envisaged AfCFTA Protocol on Digital Trade provides an opportunity for African countries to establish a harmonised continental legal framework for digital identity, cross-border data flows and digital taxation.