Central bank digital currencies in Africa: implications for financial inclusion and intra-African trade

Adewale, A. ORCID: https://orcid.org/0000-0002-7502-2875, Yadudu, M. and Oyewole, O., (2023) Central bank digital currencies in Africa: implications for financial inclusion and intra-African trade. Report. Nigeria Economic Summit Group

Abstract/Summary

Hence, this study provides a critical evaluation of African CBDCs and their implications for intra-Africa trade. As Africa continues her quest for development, the role of trade and especially intra- African trade remains a strong focal point. The barriers to intra-Africa trade are well documented, as is the agenda to boost intra-African Trade from the current 14% to 30% through AfCFTA over the next few years. The burgeoning interests of African countries to launch their own CBDCs could play a role in achieving this objective. Also, the literature has identified that a lack of common currency is amongst the significant intra-Africa trade barriers as well as a dysfunctional foreign exchange market. Digital currencies, especially CBDCs can help boost trade by removing or mitigating some of these key barriers. The aim of this study is therefore to provide a critical evaluation of CBDCs and their implications for intra-African trade. More specifically, it focuses on CBDCs as a financial inclusion tool and its impact on intra-African trade. The objectives include: • A critical review of the literature on the barriers to intra-African trade • A critical evaluation of how CBDCs as financial inclusion tools can mitigate intra-African trade barriers Considering that CBDCs are at the early stages of development and adoption, there is inadequate data on their adoption rate and usage statistics, thus limiting quantitative analyses of CBDC’s effects on intra-Africa trade. Nonetheless, studies providing evidence-based insights would be significant in: advancing the understanding of CBDCs on the continent; but more importantly, help policymakers make better informed decisions on policy interventions. In these early stages of adoption in Africa, the need for evidence-based policy making is very important.

Item Type	Report (Report)
URI	https://reading-clone.eprints-hosting.org/id/eprint/115177
Item Type	Report
Divisions	Henley Business School > Digitalisation, Marketing and Entrepreneurship
Publisher	Nigeria Economic Summit Group
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