Like anywhere else in the world, a technological revolution is sweeping across Africa. The barometers of change have to be discerned. Foremost is the deliberate efforts by most of the member-countries tom promote digital platforms in their own respective country. This can take various forms and hues. Internet and mobile penetration is one benchmark. A good number of countries, including some referred as laggards in pushing development to the centre stage, are witnessing smart growth in penetration of both internet and mobile telephony. Secondly, the appreciable growth of startups be they in e-commerce, money transactions, connecting buyers and sellers are registering good growth traction. To top it, venture capitalists, mostly from the developing countries are scouting the continent, spotting talents and pumping in dollars to handhold with budding entrepreneurs across Africa. Indeed, technology is fast reaching out to nook and corners of the largest continent endowed with over a billion people with youngest age profile. Innovations are booming so also the number of youngsters who make them possible.
But the pertinent question is whether the governments in the continent are doing enough? While discussing such conundrums, it is important to flag certain issues unique to Africa. There is a lot of gainsay in telling that Africa has bypassed many stages of technology revolutions for one reason or the other. One can blame on the colonial hangover, or the government inertia or the convoluted eco system that strained proliferation of local talents etc. Happily, such limits to growth are easing, if not melted away at least in some countries. It is time for the governments to assert and fasttrack the process of technology penetration in an inclusive manner so that the benefits percolate the grassroots and not to a few privileged, who are in the mainstream.
The recently held the UN Economic Commission for Africa (ECA) held in March at Marrakesh was unique in many ways. The assemblage of African ministers of finance, planning and economic development looked at the gamut of things that held back the digital growth. The conference was aptly titled “Fiscal Policy, Trade and the Private Sector in the Digital Era: A Strategy for Africa”.
The ministerial meeting took cognizance of the strides being made by Africa in digital economy. According to experts, digital economy contributes only 5% of gross domestic product (GDP) in some African nations. Can it be accelerated tom the elvel of 12-20% or so? The consensus at the meeting was that it can be provided the digital ecosystem is revamped. having regard toi the fact that the first two stages of technology revolution bypassed the continent. Although the ministers felt that the digital economy should occupy 12-20% of Africa’s economy, Africa watchers feel that it should be more than what it is targeted to make sold forays into the digital world. To put it in absolute, experts feel that the digital gap in the continent is US$ 600 billion as against the present size of US$ 200 billion. For covering a gap of US$ 400 billion or so, the digital penetration should be faster and swifter.
What are the areas that should attract the governments attention to broaden and deepen the digital footprint? Many suggestions were ferreted out such as digitizing the tax structure, banking operations, creating a digital ID system, greater degree of technology application in education both at the college and school levels, building an innovation savvy eco system with proper systems for patenting, public –private partnerships etc.
Does Africa have an ecosystem to reach that level of growth. A ground level assessment is needed to take a position. Most of the banks and financial institutions are still to be digitized. The governments will have to be serious about e-governance. Poor infrastructure like erratic and inadequate electrification, low density of telephones and internet and importantly, high cost of internet and internet –enabled services are indeed throttling digitization. But these are common problems that every country in the first layer of digitization faces. Africa should have the girth and determination to traverse these stages to push to digitization to the central theme of things.
