Digital marketplaces hold immense potential to connect African businesses to regional and global buyers, but most platforms in Ghana and Kenya still operate only within domestic borders. This UNDP policy brief explores how digital marketplaces can become stronger enablers of intra-African trade under the African Continental Free Trade Area (AfCFTA).

A mapping exercise conducted between December 2023 and July 2024 identified 21 digital marketplaces across Ghana and Kenya. Only one platform in each country currently facilitates cross-border transactions—and both specialize in African cultural products, operate regional business models from inception, integrate payment and logistics providers, and serve both B2B and B2C markets.

The study highlights five major challenges limiting cross-border digital trade:
    •    Mismatch between marketplace business models and real cross-border trade practices
    •    Strong competition from social media platforms that offer more flexible and lower-cost selling options
    •    Difficulties resolving disputes and managing returns across borders
    •    Complicated regulatory environments with no clear national category for digital marketplaces
    •    Macroeconomic pressures, limited digital skills, and weak infrastructure affecting operations and user adoption

To unlock intra-African trade through digital platforms, coordinated effort is needed among governments, regulators, and digital marketplace operators. Key recommendations include:
    •    Adapting marketplace models to reflect the realities of cross-border trade
    •    Increasing interoperability with payment, logistics, and trade service providers
    •    Developing clear regulatory categories and guidelines for digital marketplaces
    •    Accelerating liberalization of African payment systems
    •    Leveraging AfCFTA’s Protocol on Digital Trade to support platform mobility and recognition across borders

The report concludes that digital marketplaces can become powerful engines for African economic integration—if supported by the right policies, infrastructure, and regulatory reforms. As Africa builds a single market under the AfCFTA, strengthening the digital trade ecosystem will be critical to unlocking new opportunities for businesses, consumers, and regional value chains.