Young voices from Africa – Harnessing digital tools for sustainable trade
Event report
Speakers
- Sarah Frimpong
- Barbara Kotschwar
- Cecilia Malmström
- Princess Puskas
Moderator
-
Cedric Amon
Table of contents
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Knowledge Graph of Debate
Session report
Audience
The analysis highlights several arguments and discussions on various topics. One of the main points revolves around India's ability to offer efficient solutions in language, digitalization, and financing that could greatly benefit the World Trade Organization (WTO). India has already introduced and pilot-tested an MSME financing solution called Oconfor and has initiated the United Payment Interface (UPI) for mobile transfers of money with low transaction fees. These initiatives demonstrate India's potential in addressing issues related to language barriers, digitalization, and financing, making it an asset to the WTO.
Ghana is another country making strides in promoting inclusivity and gender equality in trade. The country has implemented several strategies to support women in benefiting from the African continental free trade. This includes the formation of the Trade and Gender Committee under the National Trade Facilitation Committee, sensitization and training programs for women and border agencies, the adoption of the 'gender champion' concept to assist women traders effectively, and the implementation of a simplified trade regime for women crossing the border with goods worth less than $5,000. These initiatives demonstrate Ghana's commitment to ensuring women are empowered and can actively participate in trade, contributing to the overall economic growth of the country.
Digital inclusion and access to digital financial tools are crucial for remote work and business efforts, particularly in rural areas. Limited access to essential digital tools, such as credit cards, hinders individuals from fully participating in the digital economy. There is a need for solutions to eliminate these barriers and ensure individuals from rural areas have access to digital financial tools. This will not only facilitate remote work opportunities but also contribute to reducing inequalities and promoting decent work and economic growth.
The analysis also explores the issue of youth representation in politics. It is observed that there is a lack of young people's representation, and their voices are not being adequately heard. To address this, the suggestion is made that young people should create their own platforms to amplify their voices and be noticed in political arenas. This would contribute to building stronger institutions and promoting peace, justice, and inclusivity.
Financial inclusivity is another important aspect discussed in the analysis. The integration of mobile payment solutions with traditional banking methods is seen as essential to ensure financial inclusivity. Many individuals, especially youth, use mobile payments extensively. However, access to Visa cards, which are often required for certain transactions, can be a challenge and may restrict financial participation. The need for integration between mobile payment solutions and traditional banking methods is thus emphasized to promote financial inclusivity, reduce inequalities, and tackle poverty.
The analysis also points out the importance of policies adapting to technological advancements. While technology is advancing rapidly, policies often lag behind. There is a need for policies that can keep up with these developments to ensure organizations can effectively utilize successful models and data, thereby enhancing sustainability and contributing to responsible consumption and production.
Finally, the analysis sheds light on the issue of allowing Africans to pay in local currency for digital services. Currently, the e-commerce moratorium exempts tax on digitally delivered services. However, there are concerns that this moratorium may be under threat, which could have detrimental effects, particularly in Africa. It is argued that platforms like GAFA should work with local partners to enable Africans to pay directly in local currency, rather than relying on hard currencies or mobile visa payments.
In conclusion, the analysis highlights various arguments and discussions on a range of topics. It emphasizes the potential benefits that India and Ghana can bring to the WTO, the importance of digital inclusion and financial access, the need for improved youth representation in politics, the significance of financial inclusivity and technological adaptation in policies, and the challenges associated with digital payments in African countries. These insights provide valuable considerations for policymakers and stakeholders to address these issues and promote sustainable development.
Sarah Frimpong
The analysis reveals several important points about the informal sector and the role of women in African economies. Firstly, it highlights the distinctive dual nature of African economies, divided into the formal and the informal sector. The informal sector is found to make a significant contribution to Africa's Gross Domestic Product (GDP). Notably, women and youth form the largest part of the informal sector in Africa, underscoring their importance in this sector.
However, challenges are facing the African informal sector that need to be addressed. One of these challenges is the complexity of digital platforms, which proves to be a barrier for some players in the informal sector who lack literacy skills to make good use of mobile money payments. As a result, most market women can only use their phones to make calls due to low literacy levels. This highlights the need for simple solutions that can enable market women to fully utilize digital platforms and expand their businesses.
Another challenge identified is the issue of affordability in telecommunication products and services in Africa. It is noted that making a call from Ghana to Togo is more expensive than making a call from Europe to Germany. This lack of affordability hinders market women from taking full advantage of their limited knowledge and expertise. Therefore, it is crucial to address this issue by providing affordable telecommunication products and services that can empower market women and facilitate their participation in economic activities.
The analysis also emphasizes the importance of involving and informing informal traders about the African Continental Free Trade Area. It is highlighted that most market women are unaware of this trade agreement, and the lack of information and complex language of trade agreements hinder their effective implementation. Therefore, there is a need to translate trade agreements into easily understandable language for market women to ensure their meaningful participation in the economic benefits of the African Continental Free Trade Area.
Furthermore, the analysis criticizes the government's hasty approach to formalizing the informal sector through counterproductive interventions. Specifically, the introduction of a 1.5% tax on withdrawals in Ghana resulted in a 20% drop in mobile money transactions. Instead of imposing burdensome taxes, the government is urged to adopt a collaborative approach that enables a seamless transition of the informal sector into the formal economy.
The lack of comprehensive understanding and data collection on the informal sector is identified as a major hindrance to effective policy interventions. The analysis argues that the informal sector is intricate, with different needs, skills, and capacities. Current initiatives and interventions tend to broadly categorize the entire informal sector and may not address the unique needs of its different aspects. Additionally, the scarcity of data on the informal sector makes it challenging to design appropriate policies that can effectively support this sector.
To address this issue, the analysis suggests increasing and improving data collection on the informal sector in Africa. The availability of more data would allow for a more comprehensive understanding of the various intricacies of the informal sector and would aid in the formulation of targeted and effective policy interventions.
Lastly, the analysis highlights the importance of renewing the moratorium in trade, particularly in the interest of women. Renewing the moratorium is seen as a cost-effective way to include women in trade, with minimal costs compared to the potential gains that would be made by including women in the trade sector. However, the analysis does not provide supporting arguments or evidence for this point.
In conclusion, the analysis sheds light on key aspects of the informal sector in African economies and the crucial role of women in this sector. It underlines the need for simpler digital platforms, affordable telecommunication products and services, and informed participation in trade agreements to unlock the potential of the informal sector. Additionally, the analysis emphasizes the importance of a collaborative approach, comprehensive data collection, and renewing the moratorium in trade to foster inclusive and sustainable economic growth in Africa.
Princess Puskas
Mobile payments have the potential to revolutionize the financial landscape in Africa by including previously unbanked populations and contributing to sustainable economic growth. Around 70% of mobile money accounts in 2022 were from Africa, highlighting the significant uptake of mobile payments in the region. By bringing the unbanked and informal sectors into the financial sector, these individuals can actively participate in the economy and contribute to economic growth.
Mobile payments also hold great promise for the development of micro, small, and medium enterprises (MSMEs) in Africa. These businesses, often lacking access to traditional banking services, can benefit from mobile payment platforms that enable efficient and secure transactions. This support for MSMEs can foster entrepreneurship, job creation, and economic development.
To ensure the inclusion of the informal sector in the internationalized mobile banking system, digital literacy becomes a crucial factor. Initiatives are proposed to progressively incorporate the informal sector into banking through enhanced digital literacy programs. This approach aims to empower individuals in the informal sector to navigate and utilize mobile banking solutions effectively.
The process of internationalizing mobile banking should begin with a small-scale approach, initially focusing on the leading languages in Africa. Gradually, other languages should be included to ensure accessibility and a universal banking system that facilitates transactions and exchanges of goods and services across the continent.
The inclusion of digital technologies in Africa's economy can help lower reliance on the informal sector, which is associated with high unemployment rates and limited economic diversification. The adoption and integration of digital technologies can drive innovation, enhance productivity, and contribute to a more diverse and sustainable economy.
Regulation and supervision of digital technologies are important for fostering innovation, safeguarding financial stability, and protecting consumers. A balanced approach is necessary to create an enabling environment that supports technological advancements while ensuring compliance with regulatory standards.
Efforts towards achieving a single digital market in Africa are commendable, particularly through collaboration among African economies. The establishment of such a market holds tremendous potential for promoting digital innovation, boosting trade, and enhancing economic growth across the continent.
Mobile payment services, such as Orange Money, offer their own Visa Card, providing youths with access to financial services without requiring a traditional bank account. This inclusion of youths in the financial sector is crucial, as they hold valuable insights and perspectives that can drive innovation and bridge potential generational gaps.
The commendable efforts made in India and Ghana towards boosting inter-country trade through the adoption of digital technologies are noteworthy. India's United Payment Interface has been instrumental in lowering transaction costs, while Ghana's partnership with the Pan-African Payment Settlement System has facilitated cross-border trade. These examples demonstrate the transformative potential of digital technologies in fostering economic cooperation and integration.
Furthermore, when discussing digital technology and youth, it is important to ensure gender balance in the conversation. While women are often the focus of gender equality efforts, it is equally important to include male youth in discussions to ensure a comprehensive understanding and address the needs of all genders.
In conclusion, mobile payments, digital literacy, inclusive internationalisation of mobile banking, digital technology inclusion, regulatory balance, collaboration, youth involvement, inter-country trade facilitation, and gender equality are crucial elements for driving sustainable economic growth and financial inclusion in Africa. Through concerted efforts and strategic initiatives, Africa can harness the transformative power of digital technologies and leverage them to forge a prosperous and inclusive future.
Cecilia Malmström
Trade liberalization has a differential impact on men and women, with gender discrimination in laws making it more difficult for women to access financing. Women's clothes are also subject to higher tariffs compared to men's clothes. To address these challenges and promote gender equality in trade, it is crucial to involve women in trade more systematically and remove obstacles to their participation. Research has shown that countries with higher participation of women entrepreneurs are more competitive.
Gender provisions should be included in free trade agreements to ensure gender equality in trade. The European Union (EU) has taken steps in this direction by including gender provisions in their agreements with Canada and New Zealand. Additionally, 125 countries signed a joint declaration on women in trade at the Ministerial 2017 in Buenos Aires, showing a global commitment to addressing gender inequalities in international trade.
The African Continental Free Trade Agreement has immense potential for empowering women by improving their financial and digital literacy, increasing their access to capital and opportunities. Inclusion and participation of women are crucial components of the agreement to ensure that women benefit from the trade opportunities it provides.
Better data on the informal sector is needed to design effective interventions and policies. Collecting data can help understand the unique challenges faced by women in the informal sector and implement targeted solutions.
The needs of the informal sector include digitalization, training, access to capital, and the removal of discriminatory rules. Addressing these needs can enhance opportunities for women in the informal sector, leading to improved livelihoods and economic growth.
Standardization in e-commerce, anonymization in public procurement, and high-standard digital trade rules are essential for promoting gender equality and reducing discrimination. Standardization facilitates fair and efficient business transactions in e-commerce. Anonymization in public procurement projects can mitigate discrimination and increase the number of projects that go to women. High-standard digital trade rules ensure inclusivity and enable women and micro, small, and medium-sized enterprises (MSMEs) to benefit from digitalization.
During the COVID-19 pandemic, the importance of digital trade and services has increased. High-standard digital trade and services rules can ensure that women and MSMEs receive the benefits of digitalization. Enhancing digital services trade within the African continent requires sharing best practices and experiences.
Measures related to digital services and market access are crucial for building trust. Implementing high-standard provisions and providing access to cybersecurity and fraud prevention tools are essential for fostering trust in digital transactions and promoting business growth.
Mobile payments play a transformative role in reducing inequalities, particularly in the African context. Encouraging diverse solutions and services can create an enabling environment for women and promote financial inclusion.
Including women's rights in trade agreements is a vital step towards gender equality and decent work. Most modern trade agreements reference the International Labour Organization (ILO) core conventions, which protect women's right to unionize and advocate for non-discriminatory wage negotiations. Examples include trade agreements between the EU and various countries, as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Individual companies must take action to implement ILO conventions and promote gender equality and decent work. While enforcement lies with the companies, support from organizations like the EU and the ILO is essential for monitoring and addressing systematic abuses.
In conclusion, trade has a significant impact on gender equality, and it is crucial to address the differential effects of trade liberalization on men and women. By involving women in trade, removing obstacles, and improving access to markets and resources, countries can enhance competitiveness and promote gender equality. Including gender provisions in trade agreements, such as those by the EU, contributes to gender equality in international trade. The African Continental Free Trade Agreement empowers women by addressing their specific needs and promoting standardization and high-standard digital trade rules. Collecting better data on the informal sector informs effective interventions, and addressing the needs of the informal sector, such as digitalization and access to capital, benefits women. Standardization in e-commerce, anonymization in public procurement, and high-standard digital trade rules reduce discrimination and promote inclusion. Mobile payments promote financial inclusion and reduce inequalities. Finally, including women's rights in trade agreements and implementing ILO conventions are vital for promoting gender equality and decent work.
Cathleen McDonalds
Visa's presence in Africa and its approach to the continent's demographics and technological innovation have been viewed positively. They operate in over 200 countries, including various African countries, and their aim is to facilitate access for women, entrepreneurs, and MSMEs into the global economy. This aligns with the goals of SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). Visa recognized the opportunities in Africa's demographics and technological advancements.
During the pandemic, Visa's Think Tank discovered a surge in women's entrepreneurship, driven by the acceleration of digitization. Businesses that experienced growth during this period were more likely to use digital platforms and payments, as well as engage in export. This highlights the positive impact of digital payments on women's empowerment and economic growth, in line with SDG 5 and SDG 8.
Visa's initiatives in Africa further demonstrate their commitment to promoting economic growth and innovation. They have partnered with Safaricom in Kenya to extend the use of M-PESA, a mobile money transfer service, beyond Kenya's borders. Additionally, Visa has launched the Visa Africa Fintech Accelerator, aimed at supporting local startups and fintechs. They are also working on ensuring interoperability of different payment models across Africa. These efforts contribute to the goals of SDG 8 and SDG 9 (Industry, Innovation, and Infrastructure).
The relevance of digital technology in promoting financial inclusion and economic growth is underscored by Cathleen McDonald. She emphasizes the potential of digital technology to act as a catalyst for these goals. Additionally, McDonald highlights the importance of disseminating information about digital technologies in an accessible and inclusive manner. Utilizing appropriate channels such as radio stations and newspapers, especially for people in rural areas, can enhance inclusion, aligning with SDG 9 and SDG 10.
McDonald also upholds the importance of language in information sharing, suggesting that utilizing local languages can improve the rate and efficacy of inclusion. Trade affairs and educational forums are suggested as platforms for teaching about opportunities for financial and economic advancement through digital technologies. These platforms align with the goals of SDG 4 (Quality Education), SDG 8, and SDG 9.
However, McDonald acknowledges technical issues experienced with Visa mobile payments, indicating the need for further improvement in this area.
The initiatives of India and Ghana in promoting digital financial inclusion are praised. India focused on digital public infrastructure during its G20 host year, while Ghana is working on direct interventions to facilitate digital financial inclusion. These efforts contribute to the goals of SDG 9 and SDG 10.
McDonald commends young African trade experts for their focus on youth, particularly the inclusion of young women. Their efforts align with SDG 5 and SDG 8.
Access to more digitally enabled services is considered a net benefit for economies and diversification, with a particular positive impact on women and MSMEs. This aligns with SDG 1 (No Poverty), SDG 5, SDG 8, and SDG 10.
Extending the moratorium on certain digital tools and services is seen as crucial to maintaining the availability and offerings of these tools. Not extending the moratorium could have a negative effect, and the use of these digital tools is vital for achieving SDG 8, SDG 9, and SDG 10.
Visa's Visa Net Settlement Service is offered in the African continent, providing services in local currency when domestic services are needed. This contributes to SDG 8 and SDG 10.
More competition in payments is viewed positively as it drives down costs, encourages investment in innovation and security, and provides more options for consumers and small businesses. This aligns with SDG 8, SDG 9, and SDG 10.
In conclusion, Visa's presence and approach in Africa highlight their dedication to promoting gender equality, economic growth, and reduced inequalities. Their initiatives in partnership with local entities, support for startups and fintechs, and efforts towards interoperability are ways in which they are contributing to the achievement of the SDGs. Additionally, the positive impact of digital payments on women's empowerment and the importance of inclusive information dissemination and language accessibility are emphasized. The initiatives of India and Ghana, as well as the commendation of young African trade experts, further highlight the significance of digital financial inclusion and youth focus.
Moderator
During the discussions, speakers explored various topics related to inclusive economic growth in African countries. One key focus was the potential of mobile payments to foster inclusivity, particularly for micro, small, and medium enterprises (MSMEs). It was acknowledged that bringing unbanked individuals into the financial sector through mobile payments could stimulate economic growth. The positive sentiment towards this argument suggests an optimistic outlook for the impact of mobile payments in Africa.
However, concerns were raised regarding digital literacy and language barriers that could hinder the implementation of mobile payment systems. It is crucial to address these issues to ensure that all individuals, including those with limited digital and language skills, can fully participate in the digital economy. This neutral sentiment highlights the need for further considerations and actions to overcome these barriers.
Another significant argument was the adoption of artificial intelligence (AI) to integrate the informal sector into banking services. The use of AI technology was seen as a potential solution to unify African banking and facilitate smoother exchange of goods and services. The positive sentiment towards this argument implies that AI integration can promote economic growth and inclusivity in the informal sector.
Digital technologies were also highlighted as means to empower women and graduates in starting their businesses. It was argued that digital tools and services can create more opportunities for underrepresented groups and contribute to gender equality and economic growth. This positive sentiment suggests that digital technologies have the potential to foster inclusive economic development.
Another point raised was the need for African economies to diversify in order to withstand tensions and pandemics. The sentiment towards this argument was neutral, indicating that while diversification is important, further actions and strategies are needed to promote diversification and enhance economic resilience in the region.
The importance of Visa as a global payments network working to uplift businesses and support women in Africa was also emphasized. The neutral sentiment towards this argument suggests a balanced view of Visa's role and potential impact on economic growth and gender equality in the region.
Furthermore, the discussions emphasized the significance of digital inclusion, access to capital, and the removal of discriminatory rules and laws. It was argued that policy interventions are needed to sustainably maintain startups and enable their growth. These interventions also require the use of data to understand and implement effective policies in the informal sector. The positive sentiment towards these arguments indicates a recognition of the importance of supportive policies and data-driven decision-making in promoting inclusive economic growth.
In conclusion, the discussions revolved around various aspects of inclusive economic growth in African countries. The potential of mobile payments, adoption of AI, digital technologies, diversification, and policy interventions were among the key points discussed. The overall sentiment was positive, indicating an optimistic outlook for leveraging these approaches to foster sustainable economic development and reduce inequalities in the region.
Speakers
A
Audience
Speech speed
161 words per minute
Speech length
2051 words
Speech time
764 secs
Arguments
India can offer solutions for issues like language, digitalization, and financing to WTO
Supporting facts:
- Oconfor, an MSME financing solution, has been introduced and pilot tested in India
- UPI (United Payment Interface) has been initiated for mobile transfers of money with low transaction fees
Topics: Digitalization, Financing
Ghana implements sensitization and facilitation strategies for women to benefit from African continental free trade.
Supporting facts:
- Ghana has formed the Trade and Gender Committee under the National Trade Facilitation Committee.
- Ghana has strategized sensitization of women and border agencies through training.
- Adoption of 'gender champion' concept to assist women traders effectively.
- Implementation of simplified trade regime for women with less than $5,000 worth of goods to cross the border easily.
Topics: African continental free trade, Gender and trade, SMEs
Young people's representation in politics and power is lacking and needs improvement
Supporting facts:
- There's discrimination in regards to young people in general
- London School of Economics Africa Summit showcased the lack of youth policies in African countries
Topics: Youth in politics, Discrimination, Representation
Limited access to essential digital tools like credit cards hinders remote work and business efforts
Supporting facts:
- People in rural Kenya can build websites but struggle to host them due to lack of Visa cards
- Upwork accounts of hardworking individuals get blocked after earning money
Topics: Digital Inclusion, Remote Work, Upwork, Web Hosting
Need for integration between mobile payment solutions and traditional banking methods for financial inclusivity
Supporting facts:
- Most youth use mobile payments
- Access to Visa cards often requires having a bank account
Topics: Financial Inclusion, Mobile Payments, Visa cards, M-Pesa
The advocacy is for less costs in services such as Orange Money mobile payments
Supporting facts:
- Orange Money mobile payments have a card and allow for money transfer and purchase of electricity, even if they currently have high costs
Topics: Orange Money, mobile payments
Forming United Payment Interface in India has helped lower transaction costs
Supporting facts:
- Lowering costs contributes to the Sustainable Development Goals, TARGET 10C, which aims at reducing costs by 3%
Topics: United Payment Interface, India
The African Export-Import Bank partnered with the EFCFTA to launch the Pan-African Payment Settlement System
Supporting facts:
- Pan-African Payment Settlement System helps develop and boost intra-African trade by facilitating clearing and settlements for cross-border trade
Topics: African Export-Import Bank, EFCFTA, Pan-African Payment Settlement System
It's important for the youth to have their voices amplified
Supporting facts:
- Youth understand the current changes and can guide the future
- The gap between the elders and the youth need to be filled
Topics: youth participation, decision making
Need to balance focus between females and males
Supporting facts:
- While there is a need to focus on women, it's crucial to also consider the males
- the need to focus on women arises from the problems seen there
Topics: gender equality, youth
There should be considerations for women labourers as well, in regards to digital trade and finance.
Supporting facts:
- The query arose during discussions on women businesses and entrepreneurship.
- The audience member asked specifically about non-entrepreneur women workers
Topics: Digital trade and finance, Women labourers, Entrepreneurship
The Trade Express launched Yates, the Young African Trade Express, to help equip future leaders with necessary knowledge
Supporting facts:
- Trade Express is a not-for-profit, all-volunteer organization
- Yates participants grew in confidence and proficiency after a year
Topics: Youth Empowerment, Leadership Training, Entrepreneurship
The e-commerce moratorium, which exempts tax on digitally delivered services, is under threat
Topics: E-commerce, Taxation, Digital Services
Need for policies to adapt to new developments in technology
Supporting facts:
- Company is progressing with developments such as mpsa
- Policy is lagging behind technological advancements
Topics: Policy Development, Technology Advancements, Sustainable Organizations
GAFA needs to work with local partners to enable Africans to pay in local currency
Supporting facts:
- GAFA suspended the payment by visa top-up card
- There are other types of visa cards that are not accepted by GAFA
Topics: Payment systems, Local currencies, GAFA
Report
The analysis highlights several arguments and discussions on various topics. One of the main points revolves around India's ability to offer efficient solutions in language, digitalization, and financing that could greatly benefit the World Trade Organization (WTO). India has already introduced and pilot-tested an MSME financing solution called Oconfor and has initiated the United Payment Interface (UPI) for mobile transfers of money with low transaction fees.
These initiatives demonstrate India's potential in addressing issues related to language barriers, digitalization, and financing, making it an asset to the WTO. Ghana is another country making strides in promoting inclusivity and gender equality in trade. The country has implemented several strategies to support women in benefiting from the African continental free trade.
This includes the formation of the Trade and Gender Committee under the National Trade Facilitation Committee, sensitization and training programs for women and border agencies, the adoption of the 'gender champion' concept to assist women traders effectively, and the implementation of a simplified trade regime for women crossing the border with goods worth less than $5,000.
These initiatives demonstrate Ghana's commitment to ensuring women are empowered and can actively participate in trade, contributing to the overall economic growth of the country. Digital inclusion and access to digital financial tools are crucial for remote work and business efforts, particularly in rural areas.
Limited access to essential digital tools, such as credit cards, hinders individuals from fully participating in the digital economy. There is a need for solutions to eliminate these barriers and ensure individuals from rural areas have access to digital financial tools.
This will not only facilitate remote work opportunities but also contribute to reducing inequalities and promoting decent work and economic growth. The analysis also explores the issue of youth representation in politics. It is observed that there is a lack of young people's representation, and their voices are not being adequately heard.
To address this, the suggestion is made that young people should create their own platforms to amplify their voices and be noticed in political arenas. This would contribute to building stronger institutions and promoting peace, justice, and inclusivity. Financial inclusivity is another important aspect discussed in the analysis.
The integration of mobile payment solutions with traditional banking methods is seen as essential to ensure financial inclusivity. Many individuals, especially youth, use mobile payments extensively. However, access to Visa cards, which are often required for certain transactions, can be a challenge and may restrict financial participation.
The need for integration between mobile payment solutions and traditional banking methods is thus emphasized to promote financial inclusivity, reduce inequalities, and tackle poverty. The analysis also points out the importance of policies adapting to technological advancements. While technology is advancing rapidly, policies often lag behind.
There is a need for policies that can keep up with these developments to ensure organizations can effectively utilize successful models and data, thereby enhancing sustainability and contributing to responsible consumption and production. Finally, the analysis sheds light on the issue of allowing Africans to pay in local currency for digital services.
Currently, the e-commerce moratorium exempts tax on digitally delivered services. However, there are concerns that this moratorium may be under threat, which could have detrimental effects, particularly in Africa. It is argued that platforms like GAFA should work with local partners to enable Africans to pay directly in local currency, rather than relying on hard currencies or mobile visa payments.
In conclusion, the analysis highlights various arguments and discussions on a range of topics. It emphasizes the potential benefits that India and Ghana can bring to the WTO, the importance of digital inclusion and financial access, the need for improved youth representation in politics, the significance of financial inclusivity and technological adaptation in policies, and the challenges associated with digital payments in African countries.
These insights provide valuable considerations for policymakers and stakeholders to address these issues and promote sustainable development.
CM
Cathleen McDonalds
Speech speed
157 words per minute
Speech length
2300 words
Speech time
877 secs
Arguments
Visa's presence in Africa and approach to the African continent
Supporting facts:
- Visa operates in over 200 countries and territories, including various African countries.
- Visa helps to facilitate access for women, entrepreneurs, and MSMEs into the global economy. It sees the opportunities in Africa’s demographics and technological innovation.
Topics: Digital payments, Women empowerment, MSME access
Impact of digital payments on women empowerment
Supporting facts:
- Visa's think tank discovered a surge in women's entrepreneurship during the pandemic, created by acceleration in digitization.
- A correlation is seen showing businesses that grew during the pandemic were more likely to use digital platforms, digital payments and were more likely to export.
Topics: Women entrepreneurship, COVID-19, Informal economy
Visa's initiatives in Africa
Supporting facts:
- Visa partners with Safaricom to allow Kenyan citizens to use M-PESA outside of Kenya.
- Visa has launched the Visa Africa Fintech Accelerator to boost local startups and fintechs.
- Visa is working on ensuring interoperability of different payment models across Africa.
Topics: Tech startups, Fintechs, Digital payments, Intra-African trade
Cathleen McDonalds underscores the relevance of digital technology in promoting financial inclusion and economic growth, emphasizing its potential to be a catalyst.
Topics: digital technology, financial inclusion, economic growth
McDonalds upholds the relevance of language in information sharing, suggesting that utilizing local languages can improve the rate and efficacy of inclusion.
Topics: communication, local language, inclusion
Cathleen McDonald acknowledges issues with visa mobile payments
Supporting facts:
- Cathleen McDonalds would like to understand and resolve the technical issues experienced
Topics: Mobile payments, Visa, Technical issues
Praises initiatives by India and Ghana to promote digital financial inclusion
Supporting facts:
- India focused on digital public infrastructure during its G20 host year. Ghana is working on direct interventions to facilitate digital financial inclusion.
Topics: Digital Financial Inclusion, Government of India, Government of Ghana
Cathleen McDonald praises young African trade experts for focusing on youth, especially inclusion of young women
Supporting facts:
- The trade experts were successful in bringing young women into the conversation and elevating their voices.
Topics: Youth inclusion, Young women, African trade experts
Access to more digitally enabled services is a net benefit for economies, diversification and particularly for women and MSMEs.
Topics: digital services, economy, digitization, women, MSMEs
Visa Net Settlement Service is offered in the African continent, providing services in local currency when domestic services.
Topics: Visa Net Settlement Service, African continent, local currency
Report
Visa's presence in Africa and its approach to the continent's demographics and technological innovation have been viewed positively. They operate in over 200 countries, including various African countries, and their aim is to facilitate access for women, entrepreneurs, and MSMEs into the global economy.
This aligns with the goals of SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). Visa recognized the opportunities in Africa's demographics and technological advancements. During the pandemic, Visa's Think Tank discovered a surge in women's entrepreneurship, driven by the acceleration of digitization.
Businesses that experienced growth during this period were more likely to use digital platforms and payments, as well as engage in export. This highlights the positive impact of digital payments on women's empowerment and economic growth, in line with SDG 5 and SDG 8.
Visa's initiatives in Africa further demonstrate their commitment to promoting economic growth and innovation. They have partnered with Safaricom in Kenya to extend the use of M-PESA, a mobile money transfer service, beyond Kenya's borders. Additionally, Visa has launched the Visa Africa Fintech Accelerator, aimed at supporting local startups and fintechs.
They are also working on ensuring interoperability of different payment models across Africa. These efforts contribute to the goals of SDG 8 and SDG 9 (Industry, Innovation, and Infrastructure). The relevance of digital technology in promoting financial inclusion and economic growth is underscored by Cathleen McDonald.
She emphasizes the potential of digital technology to act as a catalyst for these goals. Additionally, McDonald highlights the importance of disseminating information about digital technologies in an accessible and inclusive manner. Utilizing appropriate channels such as radio stations and newspapers, especially for people in rural areas, can enhance inclusion, aligning with SDG 9 and SDG 10.
McDonald also upholds the importance of language in information sharing, suggesting that utilizing local languages can improve the rate and efficacy of inclusion. Trade affairs and educational forums are suggested as platforms for teaching about opportunities for financial and economic advancement through digital technologies.
These platforms align with the goals of SDG 4 (Quality Education), SDG 8, and SDG 9. However, McDonald acknowledges technical issues experienced with Visa mobile payments, indicating the need for further improvement in this area. The initiatives of India and Ghana in promoting digital financial inclusion are praised.
India focused on digital public infrastructure during its G20 host year, while Ghana is working on direct interventions to facilitate digital financial inclusion. These efforts contribute to the goals of SDG 9 and SDG 10. McDonald commends young African trade experts for their focus on youth, particularly the inclusion of young women.
Their efforts align with SDG 5 and SDG 8. Access to more digitally enabled services is considered a net benefit for economies and diversification, with a particular positive impact on women and MSMEs. This aligns with SDG 1 (No Poverty), SDG 5, SDG 8, and SDG 10.
Extending the moratorium on certain digital tools and services is seen as crucial to maintaining the availability and offerings of these tools. Not extending the moratorium could have a negative effect, and the use of these digital tools is vital for achieving SDG 8, SDG 9, and SDG 10.
Visa's Visa Net Settlement Service is offered in the African continent, providing services in local currency when domestic services are needed. This contributes to SDG 8 and SDG 10. More competition in payments is viewed positively as it drives down costs, encourages investment in innovation and security, and provides more options for consumers and small businesses.
This aligns with SDG 8, SDG 9, and SDG 10. In conclusion, Visa's presence and approach in Africa highlight their dedication to promoting gender equality, economic growth, and reduced inequalities. Their initiatives in partnership with local entities, support for startups and fintechs, and efforts towards interoperability are ways in which they are contributing to the achievement of the SDGs.
Additionally, the positive impact of digital payments on women's empowerment and the importance of inclusive information dissemination and language accessibility are emphasized. The initiatives of India and Ghana, as well as the commendation of young African trade experts, further highlight the significance of digital financial inclusion and youth focus.
CM
Cecilia Malmström
Speech speed
172 words per minute
Speech length
2595 words
Speech time
905 secs
Arguments
Trade liberalization affects men and women differently
Supporting facts:
- Women spend a higher degree of their income on food, education, and health for their children.
- Women's clothes have higher tariffs than men's clothes.
- Gender discrimination in laws make it harder for women to get financing.
Topics: Trade, Gender Equality
Included gender provisions in some of EU's free trade agreements
Supporting facts:
- EU has included gender provisions with Canada and New Zealand.
- 125 countries signed the joint declaration on women in trade at the Ministerial 2017 in Buenos Aires.
Topics: Trade Agreements, Gender Equality
The African Continental Free Trade Agreement has huge potential
Supporting facts:
- The African Continental Free Trade Agreement can improve the financial and digital literacy as well as access to capital for women.
- Promotion of inclusion and participation important for women.
Topics: African Continental Free Trade Agreement, Trade
The need for better data on the informal sector
Supporting facts:
- The challenge lies with data
- data is key in designing proper interventions for the informal sector
- Data collection can help understand the intricate nature of the informal sector
Topics: Informal economy, Data collection, Business sector
The need for standardization in e-commerce
Supporting facts:
- Potential standardization can include e-contracts and e-signatures
- Could be beneficial for facilitating businesses in e-commerce
Topics: E-commerce, Standardization
The pandemic has accelerated digitization, increasing the importance of having high standard digital trade and services rules
Supporting facts:
- Benefits of such rules can reach women and MSMEs the most
Topics: digital trade, pandemic, digitization
Laying out best practices from a digital services trade perspective is essential for the AFCFTA
Topics: digital services trade, AFCFTA
Adopts several ideas like high standard provisions, prohibitions on requirements to localized facilities etc, to open markets and create greater access to digital tools and services
Supporting facts:
- These measures are critical from the trust perspective
- They ensure a benefit from best-in-class cybersecurity fraud prevention tools
Topics: digital services, market access
Including women's rights in trade agreements
Supporting facts:
- Most modern trade agreements have references to the ILO core conventions
- These conventions ensure rights for women to unionize along with provision for non-discriminatory wage negotiations.
- EU's trade agreement and CPTPP agreement are examples where these conventions are included
Topics: women's labour, trade agreements, ILO core conventions
Report
Trade liberalization has a differential impact on men and women, with gender discrimination in laws making it more difficult for women to access financing. Women's clothes are also subject to higher tariffs compared to men's clothes. To address these challenges and promote gender equality in trade, it is crucial to involve women in trade more systematically and remove obstacles to their participation.
Research has shown that countries with higher participation of women entrepreneurs are more competitive. Gender provisions should be included in free trade agreements to ensure gender equality in trade. The European Union (EU) has taken steps in this direction by including gender provisions in their agreements with Canada and New Zealand.
Additionally, 125 countries signed a joint declaration on women in trade at the Ministerial 2017 in Buenos Aires, showing a global commitment to addressing gender inequalities in international trade. The African Continental Free Trade Agreement has immense potential for empowering women by improving their financial and digital literacy, increasing their access to capital and opportunities.
Inclusion and participation of women are crucial components of the agreement to ensure that women benefit from the trade opportunities it provides. Better data on the informal sector is needed to design effective interventions and policies. Collecting data can help understand the unique challenges faced by women in the informal sector and implement targeted solutions.
The needs of the informal sector include digitalization, training, access to capital, and the removal of discriminatory rules. Addressing these needs can enhance opportunities for women in the informal sector, leading to improved livelihoods and economic growth. Standardization in e-commerce, anonymization in public procurement, and high-standard digital trade rules are essential for promoting gender equality and reducing discrimination.
Standardization facilitates fair and efficient business transactions in e-commerce. Anonymization in public procurement projects can mitigate discrimination and increase the number of projects that go to women. High-standard digital trade rules ensure inclusivity and enable women and micro, small, and medium-sized enterprises (MSMEs) to benefit from digitalization.
During the COVID-19 pandemic, the importance of digital trade and services has increased. High-standard digital trade and services rules can ensure that women and MSMEs receive the benefits of digitalization. Enhancing digital services trade within the African continent requires sharing best practices and experiences.
Measures related to digital services and market access are crucial for building trust. Implementing high-standard provisions and providing access to cybersecurity and fraud prevention tools are essential for fostering trust in digital transactions and promoting business growth. Mobile payments play a transformative role in reducing inequalities, particularly in the African context.
Encouraging diverse solutions and services can create an enabling environment for women and promote financial inclusion. Including women's rights in trade agreements is a vital step towards gender equality and decent work. Most modern trade agreements reference the International Labour Organization (ILO) core conventions, which protect women's right to unionize and advocate for non-discriminatory wage negotiations.
Examples include trade agreements between the EU and various countries, as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Individual companies must take action to implement ILO conventions and promote gender equality and decent work. While enforcement lies with the companies, support from organizations like the EU and the ILO is essential for monitoring and addressing systematic abuses.
In conclusion, trade has a significant impact on gender equality, and it is crucial to address the differential effects of trade liberalization on men and women. By involving women in trade, removing obstacles, and improving access to markets and resources, countries can enhance competitiveness and promote gender equality.
Including gender provisions in trade agreements, such as those by the EU, contributes to gender equality in international trade. The African Continental Free Trade Agreement empowers women by addressing their specific needs and promoting standardization and high-standard digital trade rules.
Collecting better data on the informal sector informs effective interventions, and addressing the needs of the informal sector, such as digitalization and access to capital, benefits women. Standardization in e-commerce, anonymization in public procurement, and high-standard digital trade rules reduce discrimination and promote inclusion.
Mobile payments promote financial inclusion and reduce inequalities. Finally, including women's rights in trade agreements and implementing ILO conventions are vital for promoting gender equality and decent work.
M
Moderator
Speech speed
141 words per minute
Speech length
2115 words
Speech time
898 secs
Arguments
Potential of mobile payments for inclusivity, especially for micro, small and medium enterprises to foster sustainable economic growth in African countries.
Supporting facts:
- Bringing unbanked individuals into the financial sector can foster economic growth.
Topics: Mobile Payments, Inclusivity, Economic Growth
Adoption of AI to integrate the informal sector into banking services, starting with the major languages in Africa before expanding
Supporting facts:
- Discussions are ongoing to incorporate AI for this integration
- This initiative has the potential to unify African banking and facilitate easier exchange of goods and services
Topics: Artificial Intelligence, Mobile Banking, Informal Sector, Language Inclusion
Unemployment rates in the African continent are high
Topics: Unemployment, African economy
Digital technologies can include more people in starting businesses, including graduates and women
Topics: Digital technologies, Women empowerment, Graduates unemployment
African economies need to diversify to withstand tensions and pandemics
Supporting facts:
- Botswana exports mainly diamonds and beef
Topics: African economy, Diversification, Resiliency
Inclusion of the informal sector in digital technologies can contribute to diversification of economy
Topics: Informal economy, Digital technologies, Economic diversification
Visa is a global payments network operating in more than 200 countries and territories, with an ambitious agenda to uplift everyone everywhere
Supporting facts:
- Visa connects more than 80 million merchants with 4.1 billion account holders all over the world
Topics: Visa, global payments, uplift
Services have never been more important to the global economy, contributing to more than two-thirds of GDP globally and to most job creation, particularly for women and the youth
Topics: services, global economy, GDP growth, job creation
Africa present an untapped opportunity for small businesses, with more than 40 million merchants across the continent still operating exclusively in cash and lacking access to digital payments
Topics: Africa, small business, digital payments
Women-led firms that grew during the pandemic had three things in common: usage of digital platforms, digital payments, and exportation
Supporting facts:
- Study from Visa’s in-house think tank, the Visa Economic Empowerment Institute
Topics: Women-led businesses, pandemic, digital platforms, digital payments, export
Visa partners with local firms in Africa to facilitate MSME access and support women, with a unique focus on entrepreneurship and technological advancements
Supporting facts:
- Partnership with Safaricom to help Kenyan citizens and small businesses use M-PESA outside of Kenya
- Visa Africa Fintech Accelerator to help train startups and fintechs
- Interoperability focus in Africa with Tap to Phone technology
Topics: Visa, MSMEs, women empowerment, technology, partnerships
Digital technology is a catalyst for financial inclusion and economic growth
Supporting facts:
- Role of digital technology in disseminating important information to rural sectors
Topics: Digital Technology, Economic Growth, Financial Inclusion
Important to use accessible and inclusive methods to disseminate information, especially in rural areas
Supporting facts:
- Trade affairs as a source of information and teaching
- Use of newspapers and radio stations
- Importance of using local languages
Topics: Information Sharing, Rural Areas, Accessibility
Women and SMEs need more support for digitization
Supporting facts:
- Visa's focus on facilitating access to new markets through digital and services trade
- Training initiatives for women and small businesses
Topics: Women Empowerment, SMEs, Digitization
Trust in digital tools and solutions needs to be reinforced
Supporting facts:
- Increase in the number of MSMEs interacting with the digital economy during COVID-19
- Visa's attention towards fraud and cybersecurity
Topics: Digital Tools, Trust, Cybersecurity
The informal sector is hard to grasp, hence making it challenging to formulate policies
Topics: policy-making, informal sector, women in business
There is a high number of women entrepreneurs globally in Africa
Supporting facts:
- In Africa as a whole, 58% of all the small companies are women-owned
Topics: entrepreneurship, African women, business
Many of these startups, however, fail very quickly
Topics: startups, business failure, entrepreneurship
The need for data to understand and implement policies in the informal sector
Supporting facts:
- The informal sector is broad and varies greatly between and within countries
- The design of assistance for each company in the informal sector is challenging without research and data
Topics: Data Analysis, Policy Implementation, Informal Sector
India presents a variety of solutions to the issues already discussed in the meeting
Supporting facts:
- The introduction of Oconfor as an MSME financing solution, UPI scheme for low-cost, easy mobile money transfers.
Topics: Oconfor, MSME financing, digitalization, UPI scheme
Ghana's National Trade Facilitation Committee has created the Trade and Gender Committee to sensitise women about the African Continental Free Trade and its benefits
Supporting facts:
- The committee performs sensitization through training
- The goal is to increase the understanding among women traders and help them benefit from the African Continental Free Trade
Topics: Trade, Gender Equality, Education
Border agencies are being trained on gender-sensitivity and how to assist female traders, particularly with documentation
Supporting facts:
- 'Gender champions' have been selected to interact with the women traders and assist them
- A simplified trade regime has been initiated, allowing women with less than $5,000 worth of goods to undergo a smooth trading process
- The border agencies include the customs, the immigration, and the food and drug standards authority
Topics: Trade, Gender Equality, Empowerment
Digital inclusion is impeded by lack of access to visa cards and account blocking issues
Supporting facts:
- Nelly Cheboy from Kenya works on digital inclusion by training people how to work for Upwork
- She reports that while people can build websites, they struggle with hosting due to lack of visa cards
- Additionally, some users' accounts get blocked after earning money
Topics: Digital Inclusion, Visa Cards, Online Payment, Upwork, Fintech
The importance of embedding knowledge in future leaders
Supporting facts:
- The Trade Express launched Yates, the Young African Trade Express.
Topics: Education, Youth Empowerment
The significance of preparing women, youth, and entrepreneurs for leadership roles
Supporting facts:
- The Trade Express organization is focusing on getting women, youth, and entrepreneurs ready for leadership roles.
Topics: Female Empowerment, Youth Empowerment, Entrepreneurship
The impact of e-commerce moratorium on digitally delivered services
Supporting facts:
- The e-commerce moratorium, which prevents tax on digitally delivered services, is under consideration for scrapping.
Topics: eCommerce, Digital Tax
The speaker experiences issues with GAFA suspending payment methods that do not include visa top-up cards and mobile visa payments
Supporting facts:
- GAFA suspended the payment by visa top-up card
- GAFA are thinking that the only way of paying services that are sold worldwide is through the normal visa cards
Topics: GAFA, Payment methods, Africa
The speaker proposes working with GAFA to include local partners and allow for payments in local currency
Supporting facts:
- A proposition to work with GAFA on having local partners and to enable African to pay in local currency
Topics: GAFA, Payment methods, Local currency, Africa
Renewing the moratorium has minimal cost comparing to the benefits that could be made
Supporting facts:
- Trade experts have done hard work on the moratorium
- African women would be included more in the trade spectrum
Topics: Moratorium renewal, Trade, Women inclusion
Report
During the discussions, speakers explored various topics related to inclusive economic growth in African countries. One key focus was the potential of mobile payments to foster inclusivity, particularly for micro, small, and medium enterprises (MSMEs). It was acknowledged that bringing unbanked individuals into the financial sector through mobile payments could stimulate economic growth.
The positive sentiment towards this argument suggests an optimistic outlook for the impact of mobile payments in Africa. However, concerns were raised regarding digital literacy and language barriers that could hinder the implementation of mobile payment systems. It is crucial to address these issues to ensure that all individuals, including those with limited digital and language skills, can fully participate in the digital economy.
This neutral sentiment highlights the need for further considerations and actions to overcome these barriers. Another significant argument was the adoption of artificial intelligence (AI) to integrate the informal sector into banking services. The use of AI technology was seen as a potential solution to unify African banking and facilitate smoother exchange of goods and services.
The positive sentiment towards this argument implies that AI integration can promote economic growth and inclusivity in the informal sector. Digital technologies were also highlighted as means to empower women and graduates in starting their businesses. It was argued that digital tools and services can create more opportunities for underrepresented groups and contribute to gender equality and economic growth.
This positive sentiment suggests that digital technologies have the potential to foster inclusive economic development. Another point raised was the need for African economies to diversify in order to withstand tensions and pandemics. The sentiment towards this argument was neutral, indicating that while diversification is important, further actions and strategies are needed to promote diversification and enhance economic resilience in the region.
The importance of Visa as a global payments network working to uplift businesses and support women in Africa was also emphasized. The neutral sentiment towards this argument suggests a balanced view of Visa's role and potential impact on economic growth and gender equality in the region.
Furthermore, the discussions emphasized the significance of digital inclusion, access to capital, and the removal of discriminatory rules and laws. It was argued that policy interventions are needed to sustainably maintain startups and enable their growth. These interventions also require the use of data to understand and implement effective policies in the informal sector.
The positive sentiment towards these arguments indicates a recognition of the importance of supportive policies and data-driven decision-making in promoting inclusive economic growth. In conclusion, the discussions revolved around various aspects of inclusive economic growth in African countries. The potential of mobile payments, adoption of AI, digital technologies, diversification, and policy interventions were among the key points discussed.
The overall sentiment was positive, indicating an optimistic outlook for leveraging these approaches to foster sustainable economic development and reduce inequalities in the region.
PP
Princess Puskas
Speech speed
177 words per minute
Speech length
1348 words
Speech time
457 secs
Arguments
The potential for mobile payments in Africa is majorly about inclusiveness and contributing to sustainable economic growth
Supporting facts:
- Around 70% of mobile money accounts in 2022 were from Africa.
- By bringing the unbanked and informal sectors into the financial sector, they can contribute to economic growth.
- Mobile Payments are promising for the development of micro, small and medium enterprises (MSMEs) in Africa.
Topics: Mobile Payments, Inclusive Growth, Financial Inclusion, MSMEs
Digital literacy is crucial to make the informal sector a part of the internationalized mobile banking system
Supporting facts:
- In a session about artificial intelligence, a proposal was made to progressively include the informal sector in banking
Topics: Digital literacy, Inclusiveness in banking, Informal sector
Digital technologies inclusion would help lower informal economy and contribute to the economy
Supporting facts:
- High unemployment rates in the African continent
- Presence of graduates without jobs
- Less economic diversification in countries like Botswana which majorly exports diamonds and beef
Topics: informal economy, digital technologies, unemployment, economic diversity
Importance of balance between regulation and supervision
Supporting facts:
- Regulation and supervision enables innovation
- Safeguards the financial stability of a country
- Contributes to consumer protection
Topics: Data regulation, Financial technologies, Consumer protection
Youths can have a Visa card without necessarily having a bank account.
Supporting facts:
- Example of Orange Money mobile payment service, which offers its own Visa Card.
- The cost is currently high but is expected to decrease as services develop.
Topics: Mobile Payments, Visa Card, Banking
Commendation of the efforts made in India and Ghana towards boosting inter-country trade.
Supporting facts:
- India's United Payment Interface helps lower transaction costs.
- Ghana's partnership with EFCFTA and launch of the Pan-African Payment Settlement System facilitates cross-border trade.
Topics: Inter-country trade, Digital technology, India, Ghana
Report
Mobile payments have the potential to revolutionize the financial landscape in Africa by including previously unbanked populations and contributing to sustainable economic growth. Around 70% of mobile money accounts in 2022 were from Africa, highlighting the significant uptake of mobile payments in the region.
By bringing the unbanked and informal sectors into the financial sector, these individuals can actively participate in the economy and contribute to economic growth. Mobile payments also hold great promise for the development of micro, small, and medium enterprises (MSMEs) in Africa.
These businesses, often lacking access to traditional banking services, can benefit from mobile payment platforms that enable efficient and secure transactions. This support for MSMEs can foster entrepreneurship, job creation, and economic development. To ensure the inclusion of the informal sector in the internationalized mobile banking system, digital literacy becomes a crucial factor.
Initiatives are proposed to progressively incorporate the informal sector into banking through enhanced digital literacy programs. This approach aims to empower individuals in the informal sector to navigate and utilize mobile banking solutions effectively. The process of internationalizing mobile banking should begin with a small-scale approach, initially focusing on the leading languages in Africa.
Gradually, other languages should be included to ensure accessibility and a universal banking system that facilitates transactions and exchanges of goods and services across the continent. The inclusion of digital technologies in Africa's economy can help lower reliance on the informal sector, which is associated with high unemployment rates and limited economic diversification.
The adoption and integration of digital technologies can drive innovation, enhance productivity, and contribute to a more diverse and sustainable economy. Regulation and supervision of digital technologies are important for fostering innovation, safeguarding financial stability, and protecting consumers. A balanced approach is necessary to create an enabling environment that supports technological advancements while ensuring compliance with regulatory standards.
Efforts towards achieving a single digital market in Africa are commendable, particularly through collaboration among African economies. The establishment of such a market holds tremendous potential for promoting digital innovation, boosting trade, and enhancing economic growth across the continent. Mobile payment services, such as Orange Money, offer their own Visa Card, providing youths with access to financial services without requiring a traditional bank account.
This inclusion of youths in the financial sector is crucial, as they hold valuable insights and perspectives that can drive innovation and bridge potential generational gaps. The commendable efforts made in India and Ghana towards boosting inter-country trade through the adoption of digital technologies are noteworthy.
India's United Payment Interface has been instrumental in lowering transaction costs, while Ghana's partnership with the Pan-African Payment Settlement System has facilitated cross-border trade. These examples demonstrate the transformative potential of digital technologies in fostering economic cooperation and integration. Furthermore, when discussing digital technology and youth, it is important to ensure gender balance in the conversation.
While women are often the focus of gender equality efforts, it is equally important to include male youth in discussions to ensure a comprehensive understanding and address the needs of all genders. In conclusion, mobile payments, digital literacy, inclusive internationalisation of mobile banking, digital technology inclusion, regulatory balance, collaboration, youth involvement, inter-country trade facilitation, and gender equality are crucial elements for driving sustainable economic growth and financial inclusion in Africa.
Through concerted efforts and strategic initiatives, Africa can harness the transformative power of digital technologies and leverage them to forge a prosperous and inclusive future.
SF
Sarah Frimpong
Speech speed
177 words per minute
Speech length
2428 words
Speech time
823 secs
Arguments
Importance of the informal sector and the role of women in African economies.
Supporting facts:
- The economies in Africa are distinctively dualized into the formal and the informal sector.
- The informal sector contributes largely to African GDPs.
- Women and the youth form the largest part of the informal sector in Africa.
Topics: Informal sector, Women empowerment, African economies
Challenges of complex digital platforms and the need for simple solutions in the African informal sector.
Supporting facts:
- Some players in the informal sector do not have the literacy to make good use of these mobile money payments.
- Most market women can only use their phones to make calls due to low literacy levels.
Topics: Digital platforms, Informal sector, Literacy
Need for affordable telecommunication products and services in Africa.
Supporting facts:
- Making a call from Ghana to Togo is more expensive than from Europe to Germany.
- Affordable telecommunication products can enable market women to take advantage of their limited knowledge.
Topics: Telecommunication, Affordability
The informal sector needs to be more comprehensively understood for policy interventions to be effective
Supporting facts:
- Informal sector is intricate with different needs, levels, skills, and capacities.
- Current initiatives and interventions have broadly categorised all of the informal sector, which may not address the unique needs of different aspects.
- Data is lacking on the informal sector, making it difficult to create appropriate policies.
Topics: Informal Sector, Policy Interventions, Data Collection, Research
The cost of renewing the moratorium is minimal compared to the gains that would be made if we renew it
Supporting facts:
- Renewing the moratorium tends to include women in the trade specter
Topics: Trade, Moratorium, Women Inclusion in Trade
Report
The analysis reveals several important points about the informal sector and the role of women in African economies. Firstly, it highlights the distinctive dual nature of African economies, divided into the formal and the informal sector. The informal sector is found to make a significant contribution to Africa's Gross Domestic Product (GDP).
Notably, women and youth form the largest part of the informal sector in Africa, underscoring their importance in this sector. However, challenges are facing the African informal sector that need to be addressed. One of these challenges is the complexity of digital platforms, which proves to be a barrier for some players in the informal sector who lack literacy skills to make good use of mobile money payments.
As a result, most market women can only use their phones to make calls due to low literacy levels. This highlights the need for simple solutions that can enable market women to fully utilize digital platforms and expand their businesses.
Another challenge identified is the issue of affordability in telecommunication products and services in Africa. It is noted that making a call from Ghana to Togo is more expensive than making a call from Europe to Germany. This lack of affordability hinders market women from taking full advantage of their limited knowledge and expertise.
Therefore, it is crucial to address this issue by providing affordable telecommunication products and services that can empower market women and facilitate their participation in economic activities. The analysis also emphasizes the importance of involving and informing informal traders about the African Continental Free Trade Area.
It is highlighted that most market women are unaware of this trade agreement, and the lack of information and complex language of trade agreements hinder their effective implementation. Therefore, there is a need to translate trade agreements into easily understandable language for market women to ensure their meaningful participation in the economic benefits of the African Continental Free Trade Area.
Furthermore, the analysis criticizes the government's hasty approach to formalizing the informal sector through counterproductive interventions. Specifically, the introduction of a 1.5% tax on withdrawals in Ghana resulted in a 20% drop in mobile money transactions. Instead of imposing burdensome taxes, the government is urged to adopt a collaborative approach that enables a seamless transition of the informal sector into the formal economy.
The lack of comprehensive understanding and data collection on the informal sector is identified as a major hindrance to effective policy interventions. The analysis argues that the informal sector is intricate, with different needs, skills, and capacities. Current initiatives and interventions tend to broadly categorize the entire informal sector and may not address the unique needs of its different aspects.
Additionally, the scarcity of data on the informal sector makes it challenging to design appropriate policies that can effectively support this sector. To address this issue, the analysis suggests increasing and improving data collection on the informal sector in Africa.
The availability of more data would allow for a more comprehensive understanding of the various intricacies of the informal sector and would aid in the formulation of targeted and effective policy interventions. Lastly, the analysis highlights the importance of renewing the moratorium in trade, particularly in the interest of women.
Renewing the moratorium is seen as a cost-effective way to include women in trade, with minimal costs compared to the potential gains that would be made by including women in the trade sector. However, the analysis does not provide supporting arguments or evidence for this point.
In conclusion, the analysis sheds light on key aspects of the informal sector in African economies and the crucial role of women in this sector. It underlines the need for simpler digital platforms, affordable telecommunication products and services, and informed participation in trade agreements to unlock the potential of the informal sector.
Additionally, the analysis emphasizes the importance of a collaborative approach, comprehensive data collection, and renewing the moratorium in trade to foster inclusive and sustainable economic growth in Africa.