AI, blockchain drive new phase of regional digital commerce

Technology industry leaders are urging greater collaboration to overcome obstacles hindering online commerce. This sentiment emerged during the East Africa Digital Commerce Summit held in Nairobi, which gathered representatives from fintech, e-commerce, logistics and retail sectors to discuss the future trajectory of the industry, focusing on artificial intelligence, digital payments and cross-border trade.

Gilbert Rono, CEO of Vibrant Digital Africa, emphasized the necessity of uniting different stakeholders to address the pressing challenges plaguing digital commerce in the region, stating that the summit was crucial in facilitating dialogue and cooperation among fintechs, logistics providers, and agencies to overcome the hurdles faced by businesses in the region.

One of the prominent concerns highlighted was the complexity of conducting seamless cross-border transactions, which impedes businesses aiming to broaden their market reach beyond their home countries. Rono stressed the need for payment systems capable of functioning smoothly across borders to facilitate the expansion of regional e-commerce.

Peter Mwangi, the Kenya country manager for VALR, pointed out that stablecoins, which are digital currencies pegged to stable assets like the US dollar, could alleviate some of the friction associated with cross-border payments. He argued that accelerated transaction times would enhance businesses' ability to engage in cross-border commerce, thereby boosting the volume of trade across African markets.

However, Mwangi highlighted the lack of understanding about virtual assets as a significant barrier to their adoption. In addition, artificial intelligence is being hailed as a means to mitigate the technical barriers that have deterred some enterprises from venturing into e-commerce. Ruhi Suttarwala, CEO of Emmerce Limited, called on businesses to embrace digitization, asserting that technology could broaden access to e-commerce for women, young people, and other groups that traditionally lacked the technical expertise needed to operate online.

Furthermore, AI is being leveraged to tackle issues in digital advertising, where businesses often grapple with assessing the effectiveness of their marketing spend. The summit's deliberations coincide with the ongoing evolution of digital commerce, transcending the realm of online retail. The growing interconnectivity of payment systems, logistics, advertising technology, and artificial intelligence is reshaping the digital commerce landscape, underscoring the pivotal role these technologies will play in the future of regional digital commerce.