Sub-Saharan Africa is on the brink of a digital revolution that could transform the region’s socio-economic landscape.
With its youthful population and vast economic opportunities, digital transformation is seen as a pathway to inclusive growth and prosperity.
One of the key drivers of this digital transformation is the African Union’s Digital Transformation Strategy. This strategy aims to create an integrated and inclusive digital society and economy in Africa. It includes objectives such as building a secured Digital Single Market, ensuring digital empowerment for all citizens, and creating a harmonised environment for investment and innovation. Central to this vision is the development of digital infrastructure, including telecommunications networks, broadband connectivity, and digital platforms.
However, in order to achieve this vision, a number of elements need to be integrated. This includes the implementation of laws and regulations to stimulate and accelerate digital transformation for national, regional, and continental development, especially in the context of the African Continental Free Trade Area. Policies and regulations need to be developed to strengthen intra-Africa trade, investment flows, and socio-economic integration.
Access to affordable and reliable digital infrastructure is crucial for achieving inclusive digital transformation. Despite progress, nearly 300 million Africans still lack access to high-speed broadband internet. Mobile devices remain the primary means of internet access, but high taxes and levies on the mobile sector pose challenges to affordability and accessibility.
While 5G technology holds promise for enhancing connectivity and driving innovation, its adoption in Africa remains limited. Only a few countries have launched commercial 5G services, with South Africa and Nigeria leading the way. Expanding 5G coverage and spectrum allocation are important steps toward unlocking its full potential.
Investing in human capital and building digital skills are essential for realizing the benefits of digital transformation. Overcoming challenges such as limited infrastructure, high taxes on the mobile sector, and a lack of digital skills will be crucial. Collaboration between governments, businesses, and civil society is also needed to create an enabling environment for digital innovation and entrepreneurship.
Mobile Money has emerged as a powerful tool for promoting financial inclusion and driving economic growth in Africa. However, taxes and levies on mobile services pose risks to the affordability and accessibility of mobile money services. Balancing the need for revenue generation with the goal of promoting financial inclusion is key to sustaining the momentum of digital transformation.
Telecommunications and technology have the potential to catalyse sustainable development and inclusive growth in Sub-Saharan Africa.
As a leading Pan-African banking group, Absa is passionate about the role that technology will play in economic growth and looks forward to being a partner of choice to technology entrepreneurs across Africa.
