In January 2021, the AfCFTA entered its operational phase. This AfCFTA covers the liberalization of trade in services with a Protocol on Trade in Services. In this context, this paper examines the effects of FDI flows and ICT infrastructure on services exports, both globally and by sector in ECOWAS countries. We use panel data on the 15 countries for the period 1998 to 2020 and perform dynamic modeling using the LSDVC technique. The results reveal that the infrastructure ICT (internet and mobile telephony) does not directly affect services exports. However, overall, the interaction between ICT infrastructure and FDI positively and significantly influences services exports. The effects of the interaction between ICT and FDI have varying impacts on services exports across different sectors.

With the advent of the technological revolution, trade in services is of paramount importance in major international trade issues. This paper analyses the effects of trade in services in general and ICTs in particular on income inequality in 46 African countries over a decade 2009–2018. It focuses in particular on the channels through which trade in services affects income inequality. The results from the estimates show a robust and significant inverse relationship between trade in services and income inequality in Africa. Greater participation in international trade in services reduces inequalities in intra-national income distribution in Africa. The results suggest that the interaction of trade in services and internet penetration has a positive impact on income inequality in Africa. JEL Classification: F10, D31, C23