Introduction
On the 30th of May 2019, African leaders in the African Union (UN) saw the need to facilitate industrialization, economic growth and prosperity in Africa. In order to accelerate this, the African Continental Free Trade Agreement (AfCFTA) entered into force. Estimates from the United Nations Economic Commission for Africa (UNECA, 2020) showed that the AfCFTA can raise intra-African trade by 52.3 per cent by reducing import tariffs, and that the removal of non-tariff barriers could double trade if .Businesses currently pay an average higher tariff of 6.1% when exporting within Africa than when exporting outside Africa. AfCFTA would eventually reduce intra-African trade tariffs, making it easier for African businesses to trade within the continent and cater to the rising African demand.The establishment of the AfCFTA aims to put together all 55 African Union Member States, representing a population of more than 1.2 billion people, with a rising middle class, and a total gross domestic product (GDP) of US$ 2.5 trillion. In view of this, AfCFTA is creating a highly dynamic market with a projected 2.5 billion population by 2050. Merging the continent of Africa into one market hubpaves the way for greater opportunities for trading enterprises to support sustainable developmentgoals in the continent since AfCFTA envisages trade liberalization to actualize its goals.
However, to actualize the opportunities of trading enterprises to support sustainable development goals in Africa, there is need for vibrant logistics – transport and products distribution. The degree of growth in Africa logistics services may be a critical element to pave the way foritscountries to trade without many restrictions and at lower prices. An improved logistics services in general may be a significant step in shaping trade within the continent in the long run.The transport and distribution of goods and services makes international trade simpler and plays an important role in the local economy's growth and development. Logistics links the foreign economy to the domestic economy. The interconnectivity of different interdependent sectors of the domestic economy, Oil & gas, agriculture, manufacturing, tourism and mining among others, is strengthened through efficient transport and distribution systems.
Businesses in Africa may be concerned about the quality and efficiency of logistics services, as inadequate logistics infrastructures and operational processes can be a major barrier to Africa international trade integration. On the contrary, improved logistics related to trade, combined with a liberalized economic environment as envisaged by the AfCFTA, will increase the amount of trade, economies of scale and scope of distribution and development activities. It is against this background that there is need to make use of E-commerce for quality and efficient logistics servicesthat will facilitate trading between buyers and suppliers when the African Continental Free Trade Area (AfCFTA) agreement starts by January 1, 2020.In addition to enhancing cross-border trade, the business-to-business e-commerce platform can also efficiently provide businesses with quality goods from confirmed African suppliers at reduced average trading costs, based on AfCFTA regulations. Based on the AfCFTA rules, e-commerce would provide a marketplace for buyers and suppliers to be able to exchange and purchase high quality goods from the continent.
Digitalization of Natural Gas Trade
According to the US Energy Information Administration (2020), Natural gas derived from natural gas or crude oil wells is referred to as wet natural gas because it usually includes methane, propane, butanes, and pentanes and water vapor along with methane. Non-hydrocarbons such as sulfur, helium, nitrogen, hydrogen sulfide, and carbon dioxide can also be present in Wellhead natural gas, much of which must be separated from natural gas before it is sold to end users. Across industries, consumers expect increased engagement, personalization and speed. To facilitate the transportation and quick transaction of natural gas for free trade barrier as embedded in the AfCFTA policy there is need to also embark on the use of digital platform.
Through a vibrant digital payment platform, there is no need for natural gas sellers and buyers to see face to face before transaction is done. Digital technologies eventually allow greater profit margins in natural gas trade, enabling cost savings through intelligent maintenance, automation of workflows, enhanced jobs, and increased standardization and simplification of templates, techniques, and machinery. Digital platform implementation will promote greater sustainability of trade in natural gas and customer interaction by being connected to multiple digital platforms.
Protocols of AfCFTA and E-Commerce Market for Natural Gas Distribution
An agreement and three protocols on goods, services and the resolution of disputes form the Treaty establishing the AfCFTA. The protocols are in essence, the tools that outline the priorities, state the guiding principles and set out the modalities for trade liberalization in thematic areas.
E-commerce can aid the Article 7 of the AfCFTA protocol on trade in goods that obligates State Parties to progressively eliminate import duties or charges of equivalent effect on natural gas. This can be achieved by establishing a sophisticated digital platforms, as well as natural gas mobility, surveillance, connectivity and storage technologies, coupled with the ability to process and analyse gas data rapidly, enhance agility and support real-time decision making and implementation.
E-commerce can help to actualize Article 3 of the AfCFTA protocol on trade in services states the objectives of liberalisation, which include the fostering of domestic and foreign investment, progressive liberalization of trade in services across the African continent on the basis of equity, balance and mutual benefit, by eliminating barriers to trade in services. This can be accomplished by creating a system of interrelated computing devices, mechanical and digital machines, objects, or people that are provided with unique identifiers and the ability to transfer data over a network without human to-human or human-to-computer interaction.
Article 13 protocol on the preferential treatment on goods originating in State Parties that will lead to schedules of tariff concessions from AfCFTA State Parties could be achieved by creating a digital platform that will shield non-state parties from products that are accorded preferential treatment.
Potential Threats to E-Commerce Natural Gas Market in Africa
In comparison to the products, services and dispute resolution protocols that combine elements of multilateral and regional agreements, there is no global e-commerce agreement to be used as a benchmark. This serves as a setback to E-Commerce in the Natural Gas Market in Africa.
Directly addressing the infrastructural challenges that affect cross-border e-commerce natural gas trade within Africa is beyond the scope of the e-commerce protocol.
In addition, there are numerous e-commerce outlets, including social media, marketplaces, software, websites and platforms run by companies or third parties. In the scope of e-commerce in the e-commerce protocol, these different types of channels and exchange would need to be accounted for.
Conclusion
In conclusion, the AfCFTA protocol will endorse the formulation of an African stance on e-commerce rules and potentially contribute to the actualization of the e-commerce goals already set out in the AU Digital Transformation Strategy. The AfCFTA e-commerce protocol will serve as an essential instrument for the digital protection of the consolidated African market for natural gas and prevent other structures that could theoretically hinder the agenda for liberalization and E-commerce market integration for natural gas trade in the continent.