The digital economy is one of the fastest-growing sectors for foreign direct investment FDI in Africa, according to the United Nations Conference on Trade and Development Unctad World Investment Report 2025. Digital corridors are seen as vital to the success of the African Continental Free Trade Area AfCFTA. FDI in the digital economy holds transformative potential for host countries, as they can facilitate the transfer of capital and technology, enhance productivity, create jobs, and support rapid expansion of digital infrastructure, the report states. Digital corridors enhance logistics efficiency and minimise administrative barriers by automating customs clearance, licensing procedures and border management through integrated data sharing solutions. Studies by the World Trade Organization indicate that improving digital connectivity, supported by strong regulatory frameworks, could slash trade costs by up to 25 by improving access to information, lowering transaction costs, and enabling more efficient customs and logistics, according to Trade Catalyst Africa. Despite many infrastructural and legislative challenges, some projects are connecting countries via digital highways. They include the Smart Africa Alliance, which promotes public-private partnerships in digital innovation, the AfCFTA Protocol on Digital Trade, which establishes a regulatory framework for cross-border e-commerce and digital services, as well as regional community strategies. The physical infrastructure for moving digital information along corridors is also improving. The 2025 Africa Telecommunications Map notes that the continent will soon be connected through 77 undersea data cables, 50 of which are already active. Egypt and South Africa are the best connected, with 19 and 11 undersea cables respectively. There are also a number of satellite operators connecting the continent, including Eutelsat OneWeb, Starlink, Liquid Satellite, Avanti Communications, Lynk Global and Paratus Africa. Improved connectivity has seen data costs plummet by 99 in South Africa since 2000 but they remain too high in many other African countries, according to the World Banks Global Findex Database 2025: connectivity and financial inclusion in the digital economy report. As a result, only 45 of adults in sub-Saharan Africa used the Internet in the three months prior to the survey, compared to 80 in the Asian, European and Caribbean regions. E-commerce platforms, which are taking advantage of the digital corridors, include Jumia and Takealot, while fintech innovations like M-Pesa, Flutterwave and Paystack provide digital payment solutions. Matta in West Africa integrates procurement, logistics, and payment processes into a single platform to boost regional manufacturing and trade participation. The Malawi Transport Corridor Digital Platform integrates GIS mapping, cloud- native technology and real- time monitoring to digitally manage transport corridors and customs operations. The Pan-African Payment and Settlement System PAPSS aims to streamline cross-border payments, expected to save around 5 billion annually. ER
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'There is value in reviewing SACU and its benefits for all members.' Economist Wandile Sihlobo.
