The Way Forward on Key Cooperation Areas that will Enhance China-Africa E-Commerce Collaboration

There is no doubt that the China-Africa relationship continues to exist on a rock-solid platform as China seeks every opportunity to consolidate pragmatic cooperation with Africa. This is seen in the numerous economic and social developments recorded in Africa. This also includes technological expansion.

Currently, China remains at the forefronts of technological advancement, especially in Asia and Africa. This is revealed in its increasing investment and growth in e-commerce, a sector that has its impact skyrocketed the global economy. As this sector continues to advance, it is worthwhile to explore how cross-border sales contribute to international trade, in particular between Africa and China.

In the midst of this digitalization, Africa still struggles to provide digital solutions that minimize the need for contactless transactions and ensure that some businesses are kept from closing down. Apart from the implications of this digital shift on businesses and governments, consumers are also changing the way they make transactions as a lot of them now go online to find products and services.

To this end, only businesses with a strong online presence will be able to meet the needs of such consumers. This is where China comes to play a significant role. In the aspect of payment solutions, African-owned platforms still struggle to scale to the international level, partly as a result of the weak e-commerce ecosystem.

China can leverage its payment solution to help Africa-owned businesses root for local digital platforms that can help them offer products and services to local users, while also boosting their trade with the international communities.

Also, some locals are afraid to get on the digital platform as a result of potential threats to their privacy and security. China can cooperate with Africa in the area of strengthening cybersecurity as well as educating consumers as well as SMEs in developing nations on the need to embrace e- commerce.

In terms of logistics, the two regions may have to establish physical supply chains and logistic services to facilitate the speedy delivery of products. As a way of addressing logistical problems, there may be a need to establish cooperation with the private sector as well as other partners that support developmental plans. Livestreaming is another key area that Africa needs to catchup in its journey of digitalization.

Witnessing both the opportunities and challenges, African business leaders have joined hands to form the first China-Africa Chamber of E-Commerce (CACOEC), finally being launched in 2021 after along deliberations. Since its establishment to address the above mentioned challenges, CACOEC) has made its top priority to bridge the digital divide between China and Africa. CACOEC, as the premier e-commerce chamber advancing multilateral trade and investment relations between Africa and China, along with its strategic partners are establishing the first research institute for thoroughly studying both the challenges and opportunities that this sector holds. The center will conduct specialized and targeted research and produce a final analysis of key findings for the stakeholders, such as governments, industry and member businesses.