Funding, digital infrastructure and cross-border data protection remain key implementation questions as South Africa considers the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol.
The protocol seeks to facilitate digital payments and cross-border data transfers, creating more consistent rules for businesses trading across African markets, Claudia Furriel, Director in the Department of Trade, Industry and Competition, told Parliament on October 20.
Presenting the protocol to the National Council of Provinces’ Select Committee on Economic Development and Trade, Furriel outlined measures to strengthen online security and expand participation in cross-border commerce, including small, medium and micro enterprises.
Committee members questioned how these objectives would translate into practical benefits, particularly for rural businesses with limited digital access and few affordable, secure online payment options.
They also raised concerns about protecting South Africans’ personal information when data crosses into countries with potentially weaker safeguards. Other questions centred on implementation costs, departmental responsibilities and how progress will be measured through exports and investment.
Implementation will require coordination across government rather than relying on the Department of Trade, Industry and Competition alone, Furriel said.
A South African AfCFTA national implementation committee will be established to develop a programme of action, including measures to strengthen digital infrastructure, she added.
Furriel said no specific additional funding has been identified at this stage but existing departmental budgets already cover many relevant initiatives.
“Most digital trade and online safety initiatives are already covered by departmental budgets,” she said.
The protocol will be effective 30 days after the deposit of the 22nd instrument of ratification in accordance with its entry-into-force provisions and the AfCFTA agreement. South Africa must complete its own parliamentary approval process as part of ratification.
