KEY TAKEAWAYS
- The IOTA Foundation partners with ADAPT to enhance trade across Africa through a shared digital infrastructure.
- The initiative aims to double intra-African trade by 2035, potentially unlocking $70 billion in annual trade.
- Strategic partnerships with organizations like AfCFTA and the World Economic Forum are crucial for the project’s success.
- The phased rollout begins in 2026, starting with Kenya and two other countries.
The IOTA Foundation is partnering with the African Digital Access and Public Infrastructure for Trade (ADAPT) initiative to revolutionize trade across the African continent. This collaboration aims to establish a shared, public digital infrastructure that could significantly enhance intra-African trade.
The ADAPT initiative, which plans to launch across 55 African countries, has the potential to double intra-African trade by 2035. It is projected to unlock over $70 billion in additional annual trade by reducing border clearance times by up to 80%. The initiative was officially launched in Johannesburg, where key stakeholders, including H.E. Secretary General Wamkele Mene of the African Continental Free Trade Area (AfCFTA), expressed their commitment to overcoming challenges and realizing the project’s goals.
Strategic Partnerships and Technological Foundations
The IOTA Foundation is working alongside notable organizations such as AfCFTA, the Tony Blair Institute for Global Change, and the World Economic Forum. These partnerships are crucial for navigating the complex landscape of African trade, which involves various actors and interests. The IOTA Foundation emphasizes the importance of these collaborations, noting that the technology has already been successfully deployed in countries like Kenya, Rwanda, and the UK.
The initiative’s success hinges on the proven effectiveness of the technology, which the IOTA Foundation and its partners are confident will scale effectively across the continent. The groundwork has been laid, and the business case for ADAPT is compelling, according to the foundation.
Future Steps and Implementation Timeline
The ADAPT initiative is set to begin its rollout in early 2026, starting with its first country. Later that year, two additional countries, including Kenya, will join the initiative. This phased approach aims to ensure a smooth implementation process and maximize the impact of the digital infrastructure on African trade.
For more details on the ADAPT initiative and its implications for the future of trade in Africa, the full announcement can be read here.
Why This Matters: Impact, Industry Trends & Expert Insights
The IOTA Foundation’s collaboration with the ADAPT initiative aims to establish a digital infrastructure that could transform trade across Africa by 2035. This initiative is projected to unlock significant economic value by enhancing trade efficiency and reducing border clearance times.
Recent industry reports indicate that the widespread use of stablecoins as low-cost cross-border settlement rails is a major trend in African trade. This aligns with the ADAPT initiative’s goal to leverage stablecoins for instant cross-border payments, thereby enhancing trade efficiency across the continent.
A GTR Review report highlights that strengthening Africa’s digital trade infrastructure is essential to unlocking large gains from digital trade. This supports the significance of the ADAPT initiative in addressing digital infrastructure gaps and facilitating smoother trade operations across Africa.
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