Nigeria is the first African country that introduced the digital version of its national currency. The e-Naira currency has been in use for more than a year now, but still lacks mass adoption. In a country of 200 million people, only 0.5% is using e-Naira on a daily basis. The Nigerian government is already using some of the programmability features of digital money, and it’s looking now to enhance them. According to reports from Bloomberg, the Nigerian government is seeking help from the US private tech companies to improve technology behind the virtual currency. Final idea is that at the end of this process, the Central bank of Nigeria achieves full custody and know-how on the technology needed to run a virtual currency environment.
The Nigerian government confirmed that they are looking at: ‘developing additional features and enhancements.”
Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) has launched a new Africa Strategy dedicated, among other goals, to ‘lend[ing] structural support to the achievement of the development goals set by the African Union (AU) and its member states’.
Titled ‘Shaping the future with Africa’, the strategy notes that Germany’s cooperation with Africa will be based on respect and reciprocity, and anchored into Africa’s priorities and initiatives. Moreover, ‘the BMZ wants to engage in a dialogue with Africa rather than about Africa. It advocates for the voices of African states and the AU to be heard appropriately within multilateral fora.’
Digital transformation features among the focus areas for development cooperation (as part of a broader cluster titled ’employment, fair trade, migration and digital transformation’). First and foremost, Germany intends to contribute to the growth of digital economies across Africa by providing support in areas such as (a) enhancing relevant economic and political frameworks; (b) creating digital markets; (c) enabling secure, universal internet access and bridging digital divides; (d) fostering legal standards and data privacy regulations; (d) stimulating the creation of jobs in the ICT sector. Mobilising investments in digital infrastructures and supporting the implementation of the African Common Free Trade Area are also envisioned.
But supporting digital transformation across Africa relates to more than the digital economy. BMZ will also be directing its development cooperation towards supporting (a) enhancing women’s economic participation, including through providing training for women with a special focus on digital expertise; (b) the digitalisation of healthcare; and (c) the digitalisation of the public sector and the use of digital technology to strengthen political participation.
The US government has launched a Digital Transformation with Africa (DTA) initiative dedicated to ‘expand[ing] digital access and literacy and strengthen[ing] digital enabling environments across the continent’. The USA plans to dedicate over US$350 million to this initiative, which is expected to support the implementation of both the African Union’s Digital Transformation Strategy and the US Strategy Towards Sub-Saharan Africa. DTA’s objectives revolve around three pillars:
- Digital economy and infrastructure: (a) expanding access to an open, interoperable, reliable, and secure internet; (b) expanding access to key enabling digital technologies, platforms, and services and scale the African technology and innovation ecosystem; (c) facilitating investment, trade, and partnerships in Africa’s digital economy.
- Human capital development: (a) facilitating inclusive access to digital skills and literacy, particularly for youth and women; (b) fostering inclusive participation in the digital economy; (c) strengthening the capacity of public sector employees to deliver digital services.
- Digital enabling environment: (a) strengthening the capacities of authorities and regulators to develop, implement, and enforce sound policies and regulations; (b) supporting policies and regulations that promote competition, innovation, and investment; (c) promoting governance that strengthens and sustains an open, interoperable, reliable, and secure digital ecosystem.
China initiated a trade dispute procedure against the US chip export control measures arguing that these measures ‘threatened the stability of the global industry supply chains’.
The WTO process will start with requests for consultations. However, any resolution is not likely as the WTO’s arbitration body has been dysfunctional due to the US blocking the appointment of new judges. The WTO’s arbitration mechanisms are not likely to be de-blocked.
Thus, China’s move has more of a symbolic relevance in the ongoing ‘chip war’ between the two countries.
The third ministerial meeting of the EU-US Trade and Technology Council (TTC) was held on 5 December 2022 in Washington, DC, USA. During the meeting, the two parties:
- Reiterated the importance of cooperating on trust and security in the ICT ecosystem and noted that the TTC Working Group on ICTS security and competitiveness plans to discuss transatlantic subsea cables’ connectivity and security, including alternative routes, such as the transatlantic route to connect Europe, North America and Asia.
- Reiterated their commitment to developing and implementing trustworthy artificial intelligence (AI), building on the Joint Roadmap on Evaluation and Measurement Tools for Trustworthy AI and Risk Management.
- Announced plans to launch a pilot project to assess the use of privacy-enhancing technologies and synthetic data in health and medicine.
- Announced plans to establish an expert task force to strengthen research and development cooperation on quantum information science, develop common frameworks for assessing technology readiness, discuss intellectual property, and export control-related issues as appropriate, and work together to advance international standards.
- Announced progress on increasing standards cooperation, for instance through the Strategic Standards Information mechanism meant to enable the EU and the USA to share information about international standardisation activities and react to common strategic issues.
- Announced that the US Department of Commerce and the European Commission are entering into an administrative arrangement to implement an early warning mechanism to address and mitigate semiconductor supply chain disruptions in a cooperative way.
- Stressed the importance of eliminating the use of arbitrary and unlawful surveillance to target human rights defenders, and expressed concerns over government-imposed internet shutdowns.
- Announced plans to enhance transatlantic trade, for instance through developing joint best practices for the use of digital tools to simplify or reduce the cost of commercial actors’ interactions with the governments in relation to trade-related policy, legal requirements, or regulatory requirements.
- Announced the launch of a Talent for Growth Task Force to facilitate exchanges of experiences on training and capacity building and serve as a catalyst for innovative skills policies.
These and other commitments and initiatives are outlined in the joint statement issued at the end of the meeting.
On 30 November 2022, the UK Competition and Market Authority (CMA) announced an investigation of Emma Sleep GmbH regarding online sales practices based on ‘urgency’ claims, potentially breaching UK consumer law.
The CMA will investigate if Emma Sleep used countdown timers and claims about time limits, implying a deadline for a discounted price and thereby harming consumers. The announcement of the investigation endorses the consumer protection programme based on Online Choice Architecture (OCA). The investigation is at an initial stage, and CMA will engage with Emma Sleep to gather additional evidence.
On 16 November 2022, the Digital Services Act (DSA) came into force. The DSA applies to digital services connecting consumers to goods, services, or content. Online platforms will have until 17 February 2023 to report the number of active end users.
The European Commission suggests all online platforms notify it regarding these numbers. Then, the Commission will determine if the platform is a large online platform or a search engine. Following this determination, the platform will have four months to comply with the DSA. EU members will have until 17 February 2024 to accredit their Digital Services Coordinators.
From 25-28 October the participants of the Joint Initiative on e-commerce (JSI) held a series of meetings aiming to speed up progress in the negotiations. The co-conveners of the Initative – Australia, Japan and Singapore – affirmed that negotiations reached a critical moment and urged participants to “find a good landing zone for the articles of existing small groups”. A new ‘consolidated document’ – working documents that capture the progress made in the negotiations and serve as the basis for further work – is expected to be published by the end of 2022. Negotiations are currently taking place within small groups. In October, small groups on e-invoicing, cybersecurity, privacy and telecommunications met, and a small group on ‘information and communication technology (ICT) products that use cryptography’ was created.
Mauritius joined the Joint Initiative on e-commerce, bringing the total number of participants to 87. During a cluster of meetings that took place in September, negotiators sought convergence on topics such as cyber security, privacy, telecommunications services, electronic invoicing and electronic transaction frameworks. A stocktaking effort is being put in place in order identify proposals that have not yet attracted universal support in the negotiations. The withdrawal of proposals from single proponents is being encouraged. According to the co-conveners of the Initiative, it is possible to achieve convergence on most issues by the end of 2022, but “this will require members to energize in those areas where no convergence has been reached and pull back where it has become clear there is not enough support”.
The 12th WTO Ministerial Conference (MC12) took place from 12 to 17 June, in Geneva. The Conference had already been postponed twice because of COVID-19-related restrictions.
During MC12, the co-conveners of the Joint Initiative issued a statement in which they welcomed “the good results achieved in the negotiations to date and remain committed to agreeing on a global set of digital trade rules as rapidly as possible.” They committed to issuing a revised Consolidated Negotiating Text by the end of 2022 and to revise the JSI’s working modalities to “seek expedited progress in the negotiations, including on the key issues of data flows and data localisation”.
The co-conveners also recognised barriers faced by least developed and developing countries to “utilise e-commerce for their benefit”. In response to these challenges, they launched the E-Commerce Capacity Building Framework. The Framework is expected to “bring together a wide range of technical assistance and capacity building efforts to support countries participating in the E-Commerce JSI” in order to help them harness the opportunity of digital trade. The co-conveners also expressed the support from JSI participants to the continuation of the moratorium on customs duties on electronic transmissions.
During MC12, a Ministerial Decision concerning the Work Programme on Electronic Commerce was approved. The decision renews the moratorium on customs duties on electronic transmissions and instructs and General Council to hold periodic reviews on the moratorium, including on its scope, definition and impact. Member countries also agreed to reinvigorate the work under the Work Programme on Electronic Commerce, particularly in line with its development dimension.
