WeeklySA_AdminAccess: Digitilization is currently one of the greatest transformative opportunities yet few people can access its benefits
By Isaac Moledi
The U.S. Commercial Services and the African Development Bank have announced a new strategic collaboration in a move to drive digital transformation across Africa, a skillful concept that a few people on the continent can truly access its benefits.
Unveiled on the sidelines of the Africa Tech Festival held in Cape Town this week, this collaboration is expected to pave the way for a series of dialogues among others, on how U.S. digital innovation can support development goals across Africa.
The discussions focussed on key themes such as embracing new technologies, improving internet access, enhancing skills and creating a regulatory environment conducive to innovation. Both parties explored how African governments can collaborate with American technology firms to grow their economies and how U.S. businesses can tap into new opportunities in Africa’s emerging markets.
According to the World Bank Group’s Digital Economy for Africa (DE4A) initiative, digitalization is one of the greatest transformative opportunities of our time. Yet too few people can truly access its benefits. Despite improvements, in 2022, only 36 percent of Africa’s population had broadband internet access.
Though mobile internet availability has increased in the continent, broadband infrastructure reach and the quality of available services still lag in other regions. Furthermore, Africa has one of the widest digital gender gaps worldwide, with the greatest disparity between men and women using the internet (35 percent versus 24 percent in 2020, according to the International Telecommunication Union (ITU)).
Divides in the availability of high-quality digital services persist in all countries, particularly in remote and poorer subregions. This is compounded by Africa’s large usage gap due to several factors, including major affordability constraints, the limited availability of locally relevant content and inadequate digital literacy and skills.
To close the gap, the World Bank Group believes that significant investment is required to lay strong foundations for the digital economy and robust reforms to develop enabling policy and regulatory frameworks that encourage investment and effective competition. Broadband affordability also remains a challenge in the region, as average prices generally exceed the international target of 1GB for no more than 2 percent of the monthly GNI per capita.
According to Rebatho Madiba of Business Development Digital Platform Solutions at Business Connection, digital transformation is an opportunity despite South Africa’s digital divide. “In a world undergoing rapid digital transformation, South African organisations should collaborate to seize the opportunity this transformation presents.
Ashley Ndir, Senior U.S. Commercial Liaison to the African Development Bank, said : “We are at a turning point in Africa’s technological advancement. By bridging insights from the U.S. private sector with Africa’s vibrant markets, we aim to drive innovation and economic growth. This partnership is a testament to that mission.”
Head of ICT Operations, Nicholas Williams from the African Development Bank, added : “Africa has made significant investments in pivotal infrastructure and policy enhancements to create an innovative digital economy. As Africa’s premier development finance institution, the African Development Bank will help push Africa’s digital boundaries even further by forging strategic relations, building on historical investments and, more importantly, tapping into the energy of our young population, who are digital natives. We value the insights that the U.S. private sector may bring.”
The initiative ,says the African Development Bank, builds on the bank’s R36 billion investments in digital infrastructure which includes regional and national broadband development, creating favourable policy environments for private sector investments, scaling digital skills and nurturing innovative enterprises.
The bank’s efforts have reduced the cost of internet access, enhanced digital literacy and fostered a business and policy environment that is conducive. It will also benefit from the U.S. Commercial Service’s experience in fostering international trade. This collaboration promises to champion the digital transformation in Africa, aiming for a future where technology empowers growth and prosperity.
With this partnership, both the U.S. Commercial Service and the African Development Bank reaffirm their commitment to not only elevate digital capabilities in Africa but also to ensure that the continent’s potential is fully realized in the digital era.
