Kathy Gibson reports – Africa lags much of the world in connectivity and access to the digital economy – and its people are missing out on opportunities as a result.
It’s no secret that the continent is falling behind on its sustainable development goals (SDGs) and is on track to meet just 10 of the 144 SDGs by 2030.
Hloni Mokenela, MD of Africa Analysis South Africa, points out that about 40% of Africans are still living below the poverty line – with 22% youth unemployment and 600-million children of primary school age currently not in school.
“But digital transformation could help to accelerate efforts to meet the SDGs, with the African Union Digital Compact aiming to harness digital technologies to foster development and economic growth.”
Mokenela points out to the Ministerial Forum taking place ahead of AfricaCom that Africa needs to address two key elements: energy and connectivity.
“Most of the continent is still struggling with access to power, and this needs to be addressed before we can consider digital transformation.”
Access to broadband networks is also a challenge, with just 27% of Africans having access to mobile broadband.
Digital infrastructure expansion is critical if we want to close this gap, Mokenela believes.
However, it has been estimated that we will need $100-billion to come close to meeting the digital divide using terrestrial fibre. Not surprisingly, mobile broadband is plugging the gap, although this is covering just 27% of the potential market.
The continent is also playing second fiddle when it comes to data and data centres. Today, just 1% of the global data centre co-location supply is in Africa – with demand for data centres set to exceed supply by 300%.
So, while cloud and artificial intelligence (AI) will be key to providing digital services in Africa, there are still big challenges to their adoption if we are unable to plug the data centre and terrestrial infrastructure gaps.
While the picture is bleak and the problem of creating a digital economy could seem insurmountable, there are examples that Africa could emulate.
Dr Li Zhengmao, chairman of the World Broadband Association, points out that Africa could learn some vital lessons in developing a digital economy from China, which has turned itself from an agrarian country into a digital leader in just 30 years.
This was a direct result of government setting and implementing clear policies, driving the Internet stage from 1994 to 2008, the mobile Internet stage from 2008 to 2019, and the intelligent stage from 2019 onwards.
“Throughout this process, national strategy planning has played a critical role in guiding industry development,” Dr Zhengmao says.
For instance, in 1997 government mandated an Internet outreach to all villages. Operators actively responded by continuously improving their network coverage and reaching into the rural areas.
In 2009, granting 3G and 4G licences to operators enabled the mobile Internet era. Likewise, in 2019 government issued 5G licences and developed a new infrastructure strategy.
In 2021, it released the Digital China proposal, with the overall layout plan for building a Digital China released in 2023. “This marked the advent of a truly intelligent world.”
Critically, China’s national strategy emphasises the critical role of infrastructure in enabling the development of a digital economy, digital society, and digital government.
Thanks to policy and an enabling environment, China leads the world in infrastructure – with 3,92-million 5G base stations that cover 85% of its population and enabling its 207 digital cities.
At the same time, China is home to an impressive 26% of the world’s computing power.
But perhaps the biggest enabler of success is for the digital economy to be deeply integrated with the “real” economy, Dr Zhengmao explains.
To achieve this, a deliberate policy of improving data value was followed by digital realisation of industrial capabilities, digitalisation of logistics and services, and a focus on digital governance.
The results speak for themselves: the digital economy has reached RMB 54-million, contributing 66% to China’s GDP growth. “It has been the main driver for economic growth,” says Dr Zhengmao.
“The digital economy has been key to empowering economic and social development, building inclusive and convenient digital societies. China is using the digital economy to enhance resources, services, education, transportation, social security and employment.
“It does this by optimising public resources and, importantly, attending to grassroots and under-developed areas to make digital services accessible to all.”
This has enabled a universal digital lifestyle that creates an intelligent and convenient experience – and fosters new models of digital consumption. This is demonstrated by the fact that widespread access to online shopping now accounts for 38% of total consumption.
The final piece of the digital economy puzzle is developing efficient digital governance, says Dr Zhengmao.
At the same time, governments must embrace the technology themselves, and start delivering services that make citizens’ lives easier.
“In China, 90% of government services can now be handled online,” Dr Zhengmao concludes.