In December 2022, the Biden administration announced an ambitious new program at the U.S.-Africa Leaders Summit: the Digital Transformation with Africa (DTA) initiative. This effort aims to dramatically expand digital access, digital literacy, and digital-enabling environments across the African continent over the next decade. Under the DTA initiative, Prosper Africa was tasked to engage the private sector to strengthen the business enabling environment for digital trade through the Prosper Africa Tech for Trade Alliance.
A pivotal component within the broader DTA initiative, the Prosper Africa Tech for Trade Alliance, unites leading American and African tech companies to accelerate e-commerce and digital trade in Africa. This alliance also brings together the public and private sector to discuss major legal, regulatory, and logistical obstacles that have hindered the growth of digital trade historically.
According to the International Telecommunication Union (ITU) and the African Development Bank (AfDB)’s “African Economic Outlook 2023”, Africa’s internet penetration grew from 9% in 2010 to 54% in 2023, but only 3% of small and medium-sized enterprises (SMEs) in the region use digital platforms to sell their products online. This statistic underscores the significant advancement in internet access contrasted with the limited adoption of digital tools for trade.
The Africa Tech for Trade alliance aims to partner American technological prowess with African companies who are looking to take their companies to the next level with an innovative digital solution.
The Africa Tech for Trade Alliance brings together major players from US and African private, public, and nonprofit sectors to make digital trade flows easier, cheaper, and more efficient. Through impact-oriented public private partnerships, members are building a robust digital infrastructure while discussing policies and regulations to streamline cross-border e-commerce within Africa and beyond.
For example, in 2023, Africa Tech for Trade Alliance members Amazon Web Services (AWS) and Choppies, a leading supermarket chain in Botswana, announced the launch of their joint venture, Farmer’s App, delivering on one of the U.S. Government’s commitments made at the 2022 U.S.-Africa Leaders Summit.
Farmer’s App aims to ease the buyer/order discovery phase of a typical “farmer’s journey.” The app connects farmers to Choppies, enabling them to share pictures of their produce, easily negotiate price/location of delivery, and safely store the confirmed purchase on a Blockchain, increasing farmers’ access to finance. The idea is to digitally integrate smallholder farmers into Choppies’ supply chain and overhaul procurement operations to allow fresh produce to swiftly reach store shelves.
According to Vinod Madhavan, Deputy CEO of Choppies, “the earlier process of farmers driving to the store to show the produce and then agree, and if it failed – driving to another store would take hours. Now (with the FarmersApp), the order discovery process could be done in minutes.”
Facilitated through the Tech for Trade Alliance, AWS proposed an enhanced solution to Choppies’ application by leveraging its cloud capabilities and distribution infrastructure. AWS is closely working with Prosper Africa and the United States Agency for International Development (USAID) to help Choppies transition from an analog supply network to a seamless digital system. This will revolutionize market access and income stability for more than 8,000 small-scale farmers by fostering their integration into the digital economy. Today, it is being used on 100 farms in Botswana.
By aligning the strengths of public and private sectors behind the intertwined goals of digital transformation and trade expansion, Prosper Africa promises to unleash a favorable cycle of youth-led entrepreneurship, market integration, and sustainable prosperity across Africa in the decades ahead.