In a historic move that underscores Africa’s unwavering commitment to inclusive development, the recent adoption of the AfCFTA Protocol on Digital Trade alongside the Protocol on Women and Youth in Trade heralds a new era of opportunity and empowerment across the continent.
The transformative power of the world’s first Protocol on Women and Youth in Trade cannot be overstated. Women are central to trade as they dominate in numbers of entrepreneurs, traders, employees and more, often leading small businesses and engaging in cross-border trade, particularly in the informal sector.They play a significant role in sectors like agriculture, making up half of Africa’s agricultural output, yet typically occupy lower-tier positions in the value chain.
Unlike previous trade agreements, which sometimes gesture toward gender equality, the protocol establishes concrete rights and obligations that set a new standard for inclusive trade policies.that have long hindered women’s participation in trade. These barriers include limited access to finance, inadequate training opportunities, and a lack of mentorship. According to the World Bank, women-owned businesses in Africa face significant financing gaps, with an estimated credit deficit of $42bn.
By removing trade barriers and providing targeted support, such as training programmes and access to credit, women entrepreneurs can expand their businesses, increase their incomes, and contribute more significantly to their family’s welfare and their communities’ economic development. This benefits the individual women and their families and contributes to the continent’s overall economic growth.