Does digital trade reduce export barriers for female-led SMEs in Sub-Saharan Africa?

Abstract

Abstract This study examines whether digital trade adoption helps female-led small and medium-sized enterprises (SMEs) in Sub-Saharan Africa (SSA) overcome disadvantages in export markets. Using firm-level data from the World Bank Enterprise Surveys covering 8079 firms across 26 countries in 2023–2024, we estimate export participation and export intensity models that explicitly address endogeneity and selection bias. The results show that female-led SMEs face a significant disadvantage in export market entry. However, this disadvantage is substantially mitigated by digital trade adoption, particularly through website ownership. In contrast, electronic payment technologies do not consistently moderate the gender-export gap. Heterogeneity analyses indicate that the mitigating role of digital trade is strongest among small firms, service-sector enterprises, and in specific sub-regions. Overall, the findings suggest that digital trade can reduce gender-based export barriers, but its effectiveness depends on the type of digital tool and the broader economic context.