Global Digital Value Chain: Africa’s Status and Way Forward | IGF 2023 WS #311

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Africa is currently not very visible on the global digital value chain map, particularly in areas such as content creation and fintech. This lack of ownership and visibility can be attributed to internal challenges faced by Africa itself. These challenges include a non-supportive business environment and deficiencies in policy frameworks, capacity building, infrastructure development, access to finance, and research and development.

One argument is that African businesses often end up being sold due to the non-supportive environment they operate in.

Additionally, Africa lags behind in critical areas such as policy and regulatory frameworks, capacity building, infrastructure development, and access to finance. These shortcomings highlight an urgent need for improvement in order to foster sustainable economic growth in Africa.

However, there is a recognition of the importance of enhancing these areas in Africa’s development.

It is argued that urgent attention is required to enhance policy and regulatory frameworks, capacity building, infrastructure development, and access to finance. By addressing these deficiencies, Africa can unlock its potential for decent work and economic growth.

On a positive note, it is suggested that African businesses need to shift their perspective and focus more on future possibilities rather than solely on past and present circumstances.

This shift in mindset is believed to be crucial in driving innovation and competitiveness in the digital economy.

In summary, Africa’s limited presence in the global digital value chain is attributed to internal challenges and deficiencies in critical areas such as policy frameworks, capacity building, infrastructure development, and access to finance.

However, there is a positive sentiment towards addressing these issues urgently in order to unlock Africa’s potential for economic growth. Additionally, the need for a mindset shift to focus on future possibilities is emphasized as a crucial step in driving innovation and competitiveness in the digital economy.

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The speakers engage in a discussion regarding Africa’s progress in the digital sphere, emphasising the need for an unbiased self-appraisal. They highlight several factors that have contributed to this progress. One notable development is the Africa ICT Alliance, which has played a crucial role in changing the dynamics of digital progress in Africa.

Despite not existing 30 years ago, the alliance now serves as a catalyst for digital innovation and advancement in the continent.

Furthermore, the expansion of companies such as MTN and Eko Network into Nigeria has had a significant impact on the digital landscape of Africa.

These expansions have not only brought about economic growth and job opportunities but also enhanced connectivity and access to technology in the region.

The discussion also highlights the importance of crowdfunding and crowdsourcing for technological development in Africa.

The promotion of these strategies has allowed individuals and organizations across the continent to raise funds for technological projects, thereby fostering innovation and growth in the digital sector.

However, concerns are raised about the potential detrimental effects of the financial influence of the West and East on Africa’s digital landscape.

The argument is made that these external sources of funding often prioritize their own returns on investment over the development of Africa’s digital infrastructure and capabilities. As a counterpoint, it is proposed that Africans can take charge of their own financial destiny through collective crowdfunding efforts.

By relying on their own people for funding, Africa can minimize the influence of external interests and ensure that digital progress is aligned with the needs and aspirations of the continent.

Another significant aspect discussed is the importance of developing and utilizing African solutions to address African problems.

The speakers highlight the field of hardware manufacturing as one area where African innovation and expertise can be harnessed to create solutions that specifically cater to the continent’s needs. By supporting local initiatives and encouraging entrepreneurship in this sector, not only can Africa address its challenges more effectively, but it can also create job opportunities and foster economic growth.

Overall, the speakers conclude that Africa’s progress in the digital sphere should be objectively examined through an unbiased self-appraisal.

While external financial influence can be a potential obstacle, the continent has the potential to overcome this challenge by relying on its own resources and fostering a culture of innovation and self-sufficiency. By embracing crowdfunding, supporting local initiatives, and creating African solutions for African problems, Africa can continue to make significant strides in its digital transformation journey.

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Africa is facing challenges in its digital and economic development, and several arguments are presented on how the continent can overcome these challenges and unlock its potential. One crucial aspect is the need for Africa to leverage its own capacity and resources to address its digital and economic development problems.

One argument emphasises the importance of increased Internet connectivity and accessibility in Africa over the past two decades.

This has attracted a significant number of startups to the continent, as they see new market potential and opportunities. The positive sentiment towards this argument suggests that leveraging the power of the Internet can be a game-changer for Africa’s economic growth.

Another argument focuses on the role of governments in encouraging local talent and facilitating the development of locally made products.

The argument highlights the significance of strategies and initiatives aimed at nurturing local talent, which can significantly boost economic development. Providing favourable government policies in terms of business setup is also essential for stimulating entrepreneurship and creating a thriving startup ecosystem.

The sentiment associated with this argument is positive, indicating a belief that governments have a crucial role to play in supporting and promoting local talent and businesses.

Furthermore, developing a high skill set and an entrepreneurial mindset is emphasised as another key factor in driving Africa’s digital and economic development.

Proper education and training are seen as essential in nurturing an entrepreneurial mindset and developing the necessary skills. Additionally, the importance of capital investment within African communities is highlighted, suggesting that encouraging venture capitalism can further foster an entrepreneurial ecosystem in Africa.

A noteworthy observation from the analysis is the importance of nurturing homegrown solutions for the continent.

While it is mentioned that most African startups are currently funded by venture capitalists from Eastern and Western countries, there is a sentiment that African populations should be empowered to invest in local startups. This highlights the need for Africans to take ownership of the development and growth of their own businesses and industries.

Another observation is the responsibility of governments in creating an enabling environment for business setup, providing good policies, employment opportunities, and stable currencies.

Governments are seen as key players in creating favourable conditions for economic growth and reducing inequalities.

In conclusion, the various arguments presented all underline the need for Africa to leverage its own capacity and resources in addressing its digital and economic development problems.

This includes increasing Internet connectivity, encouraging local talent and homegrown products, nurturing an entrepreneurial mindset through high skills and venture capitalism, and ensuring that governments provide good policies and employment opportunities. By embracing these strategies, Africa can unlock its tremendous potential for economic growth and development.

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Africa is facing the need to transition from a consumption-based economy to a more sustainable model that focuses on becoming producers and manufacturers. This shift is crucial for the continent to achieve its sustainable development goals. It is predicted that Africa will become the most populated continent with a significant number of young people, who are likely to possess an average of four devices per individual over the next three to five decades.

While Africa’s potential youth population and their high device ownership may offer opportunities, relying solely on a consumption-based economy will not be sufficient to accomplish sustainable development goals.

Africa needs to move towards a more productive and manufacturing-focused economic model. This transition requires a strategic roadmap that includes capacity development and the establishment of production facilities.

The roadmap for Africa’s transition to a producer and manufacturer-oriented economy starts with capacity development.

It is essential to enhance the skills and knowledge of the workforce to meet the demands of a shifting economic landscape. Investing in quality education and vocational training programs becomes imperative in preparing the African population for jobs in the manufacturing sector.

Strengthening technical skills and promoting entrepreneurship can also contribute to the development of a vibrant manufacturing industry.

Alongside capacity development, the establishment of production facilities is vital. Africa must build the infrastructure and create a conducive environment for manufacturing industries to thrive.

This includes ensuring a reliable supply chain, access to affordable energy, modern technology, and supportive policies and regulations. By promoting local production and reducing reliance on imports, African countries can strengthen their economies, create employment opportunities, and encourage sustainable development.

It is important to note that a positive sentiment is associated with the transition from a consumption-based economy to a producer and manufacturer-oriented model in Africa.

This shift is aligned with the Sustainable Development Goals (SDGs), particularly SDG 8, which focuses on decent work and economic growth, and SDG 9, which emphasizes industry, innovation, and infrastructure.

In conclusion, Africa’s journey towards sustainable development requires a shift from a consumption-based economy to one that prioritizes production and manufacturing.

The continent’s projected rise in population, particularly the youth demographic, presents both opportunities and challenges. By implementing a strategic roadmap that includes capacity development and the establishment of production facilities, Africa can harness its potential, create sustainable economic growth, and achieve the SDGs.

It is essential for African nations to embrace this transition and invest in the necessary infrastructure and skills development to secure a prosperous and sustainable future.

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After analysing the given information, several key points emerge:

1. The National Information Technology Agency (NITA) in Nigeria is striving to improve regulations and enhance the quality of device components. This is important in order to enhance customer experience and increase market gains in the country’s tech industry.

Nigerian entrepreneurs have faced challenges in the market with device assembly, so these efforts by NITA aim to address these issues and drive growth in the sector.

2. It is essential to understand the structure of the labour market and the potential impact of technology adoption.

With a significant proportion of the economy operating in the informal sector, there is a need to comprehend the existing structure and identify where technology can make a difference. This understanding will contribute to the achievement of SDG 8: Decent Work and Economic Growth.

3.

The digitisation of traditional services like hair braiding and carpentry can bring about numerous benefits. By creating digital platforms, services that were traditionally limited to local markets can be expanded and made accessible to a wider audience. This not only opens up new market opportunities but also enhances the reach and impact of these services.

4.

It is suggested that the focus should be placed on addressing the “low-hanging fruit” in African markets. This refers to goods that are currently unstructured and of low quality but are highly relied upon by the population. By implementing measures to improve the quality of these goods and enhance their structure, African markets can experience significant growth and development.

5.

The value of natural resources, such as coal, has drastically changed over the past few decades. However, emerging resources like data are gaining increasing value. This highlights the importance of recognising and adapting to the transition in resource utilisation. Governments should be prepared to embrace new opportunities and adjust their strategies accordingly to maximise the benefits of these changing trends.

6.

Governments play a vital role in acknowledging and adapting to the changing resource landscape. As certain resources become less valuable or utilised over time, it is crucial for governments to identify and prioritise emerging resources with rising worth. This supports the achievement of SDGs 9 (Industry, Innovation and Infrastructure) and 12 (Responsible Consumption and Production).

7.

Finally, the participation and contribution of the Nigerian government in the African Information and Communication Technology Alliance (AFICTA) is crucial. This partnership, in line with SDG 17: Partnership for the Goals, facilitates collaboration among various stakeholders and fosters a conducive environment for technological advancements and growth.

Overall, this analysis highlights the importance of improving regulations, enhancing the quality of device components, understanding the labour market, digitising traditional services, addressing low-hanging fruit, recognising the changing value of natural resources, adapting to resource transitions, and collaborating through platforms like AFICTA in order to achieve sustainable economic growth and development in Nigeria and across Africa.

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The National Communications Commission (NCC) plays a crucial role in uplifting digital literacy in Nigeria by sponsoring the Digital Bridge Institute. This institution is specifically designed to enhance the technological skills and knowledge of Nigerian citizens. It offers various programs and courses aimed at upskilling public servants and other individuals in the field of digital literacy.

The NCC’s sponsorship of the Digital Bridge Institute showcases its commitment to human capacity development.

By investing in such initiatives, the NCC acknowledges the importance of equipping individuals with the necessary skills to thrive in the digital age. Through its support, the NCC aims to bridge the digital divide and empower Nigerians to fully participate in the growing digital economy.

The positive sentiment towards the NCC’s efforts in promoting digital literacy is evident in the widespread support it receives.

The NCC’s commitment to research and development is evident through the establishment of a dedicated department. This signifies the NCC’s continuous efforts to stay abreast of technological advancements and to provide relevant resources and tools necessary for digital literacy development.

Furthermore, by linking digital literacy efforts to the Sustainable Development Goals (SDGs), such as Quality Education (SDG 4) and Industry, Innovation, and Infrastructure (SDG 9), the NCC demonstrates its recognition of the wider socio-economic benefits that come with enhanced digital literacy.

By aligning its efforts with these global goals, the NCC reinforces the importance of digital literacy as a key enabler for sustainable development.

In conclusion, the NCC’s sponsorship of the Digital Bridge Institute in Nigeria is a commendable initiative aimed at improving digital literacy.

By providing programs and courses to enhance the skills of public servants and other Nigerians in the field, the NCC actively contributes to human capacity development. The positive sentiment and widespread support for the NCC’s efforts reflect the recognition of the importance of digital literacy in shaping a prosperous future for Nigeria.

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Africa possesses a wealth of human and natural resources that have the potential to contribute significantly to its economic growth. These resources include various minerals that can aid in the manufacturing of infrastructure required for the internet. However, Africa has struggled to fully retain the value chain and capitalize on its resources, which has hindered its economic development.

There is a pressing need for policy development in Africa to address this issue.

The continent must establish effective policies that enable it to take advantage of its abundant resources and play a more active role in global discussions related to the internet governance forum.

Inye Kembonta emphasizes the importance of African solutions in benefiting Africa as a whole.

It is suggested that African solutions be defined to include existing solutions that are rooted in the continent. By highlighting the unique contributions that Africa can make to the global value chain, it can have a greater influence and derive more benefits from its resources.

However, Kembonta argues that Africa has not effectively utilized its resources.

Despite the abundance of resources, both human and natural, Africa has struggled to convert them into a significant part of the global value chain. This underscores the need for better resource management and responsible consumption and production practices.

Furthermore, Kembonta advocates for government engagement with non-governmental organizations (NGOs) to foster partnerships and collaboration.

By involving NGOs in discussions and initiatives, the government can benefit from their expertise and perspectives, leading to more inclusive policies that address the digital sector’s challenges and opportunities in Africa.

In conclusion, Africa’s vast human and natural resources hold immense potential for economic growth.

However, it is crucial for the continent to retain more of the value chain, exploit its resources effectively, develop appropriate policies, and engage with NGOs to foster partnerships. By doing so, Africa can position itself as a key player in the digital landscape, contributing to its own development and the global internet governance discourse.

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Jimson Olufuye, the chair of the Adversary Council of Africa’s ICT Alliance, opened a workshop at the 18th Internet Governance Forum in Kyoto, Japan. The workshop aimed to address the Global Digital Value Chain and discuss Africa’s current status and future plans.

Jimson Olufuye’s opening remarks at the workshop highlighted his support for fulfilling the promise of the digital age for everyone in Africa.

This vision is advocated by the Africa ICT Alliance, an organisation that works in collaboration with the African Union, UNECA, and African governments. Their shared objective is to bridge the digital divide and ensure that Africa can harness the full potential of the digital era.

With vast experience in the field, Jimson Olufuye is also a principal consultant at Contemporary Consulting, an IT firm based in Abuja.

The firm specialises in data centres, cybersecurity, cloud computing, and online workflow research. This expertise reflects Jimson’s involvement and commitment to addressing key issues in the digital landscape, particularly in Africa.

The workshop, organised by the Africa ICT Alliance, provided a platform to discuss the Global Digital Value Chain.

This chain encompasses various elements such as data centres, cybersecurity, cloud computing, and online workflow research. These aspects are crucial for driving innovation, supporting infrastructure development, and ensuring secure and efficient digital solutions.

The discussions held at the workshop aimed to provide insights into Africa’s current status and explore strategies to propel its digital growth.

Jimson’s participation and expertise, alongside other stakeholders, contributed to a comprehensive analysis of the challenges, opportunities, and the way forward for Africa in the digital realm.

In conclusion, Jimson Olufuye, as the chair of the Adversary Council of Africa’s ICT Alliance, played a key role in opening a workshop at the 18th Internet Governance Forum.

His support for the vision of fulfilling the promise of the digital age for everyone in Africa, as advocated by the Africa ICT Alliance, underpins the discussions held at the workshop. Additionally, his involvement as a principal consultant at Contemporary Consulting showcased his expertise in addressing crucial aspects of the digital landscape.

The workshop provided a valuable opportunity to assess the Global Digital Value Chain and chart Africa’s path towards a prosperous digital future.

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The summary highlights the need for a comprehensive and well-aligned regulatory framework for internet infrastructure in Africa. This is due to SpaceX now starting its operations in Nigeria and the importance of broadband internet access, which involves international law, national regulations, and multi-stakeholder policies.

The sentiment towards this argument is positive, emphasising the necessity of a regulatory framework to support internet infrastructures in Africa effectively.

Another argument raised is the scrutiny of non-African companies, like SpaceX, that offer connectivity services. It states that these companies should be thoroughly examined based on jurisdiction, security measures, and data handling.

Questions arise concerning equipment ownership and access, as well as the content of collected data, access to it, and processing rights. The sentiment regarding this argument is neutral, suggesting a need for careful consideration and evaluation of these non-African companies operating in Africa.

Promoting stakeholder participation is considered vital in achieving sustainable internet access.

This includes the involvement of governments and civil society in the decision-making process. The World Radio Conference, scheduled for later this year, aims to discuss these considerations. The conference would provide an opportunity for informed input from all stakeholders, enabling African countries to actively work towards ensuring sustainable development and internet access.

The sentiment towards this argument is positive, recognising the importance of involving all stakeholders for effective and inclusive decision-making.

In conclusion, the expanded summary emphasises the need for a comprehensive regulatory framework, scrutiny of non-African companies providing connectivity services, and the importance of stakeholder participation in ensuring sustainable internet access in Africa.

The World Radio Conference is highlighted as a platform for discussing these considerations and gaining input from all relevant stakeholders. Overall, the analysis provides insights into the challenges and opportunities involved in promoting internet infrastructure and inclusivity in Africa.

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According to the analysis, it has been found that several African governments are actively supporting investment in digital infrastructure. This is a significant development as it indicates a major shift in Africa’s role in the digital landscape. The provision of digital infrastructure is crucial for ensuring digital availability across the continent.

Without adequate investment in infrastructure, digital services and connectivity would not be possible.

Furthermore, the analysis highlights that governments in Africa, particularly in West Africa and specifically Benin, are offering subsidies to the private sector to incentivise and support investment.

This creates numerous investment opportunities, particularly in areas such as broadband implementation in rural areas. Such initiatives encourage the private sector to contribute to the expansion of digital infrastructure and bridge the digital divide within the continent.

The analysis also emphasizes the need for increased investment in data centres and internet exchange points.

These facilities play a crucial role in ensuring local internet traffic and lowering costs. By establishing well-equipped data centres and internet exchange points, Africa can benefit from efficient and cost-effective local data networks.

Additionally, the analysis presents an argument regarding the freedom of internet service providers to offer services at lower costs.

This argument suggests that governments should allow greater flexibility in regulations to enable service providers to lower their prices. An example from Benin indicates that internet service providers can receive licences by city, which not only helps in reducing service costs but also promotes competition and improves access to affordable internet services for users.

In conclusion, the analysis reveals the changing landscape of digital infrastructure investment in Africa.

African governments are actively supporting investment, and the private sector is presented with several opportunities to contribute to the expansion of digital infrastructure. Furthermore, the importance of increasing investment in data centres and internet exchange points is highlighted. Lastly, the argument is made for enabling internet service providers to offer services at lower costs to enhance affordability and accessibility.

Overall, these findings underscore the significant progress being made in Africa’s digital ecosystem and the potential for further growth and development.

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The analysis highlighted several key points discussed by the speakers. Firstly, concerns were raised about the lack of significant participation of African businesses in digital processes, indicating the need for training African youth and business people to increase their engagement in the global digital value chain.

This involves equipping them with the necessary skills and knowledge to actively participate in digital activities, which can contribute to the growth of Africa’s digital economy.

Secondly, the analysis recognised the remarkable growth of fintech in Africa, with a focus on the success of M-Pesa in Kenya and the industry’s expansion in Nigeria.

M-Pesa, a mobile payments platform, has not only transformed the financial landscape in Kenya but has also been adopted by other countries in the region. The rise of e-commerce platforms like Jumia and Conga in Nigeria further demonstrates the increasing digitalization and consumer adoption of digital platforms across Africa.

Lastly, the analysis underscored the need for stringent measures to protect data and ensure its security, particularly with regards to human rights.

Concerns were raised about the storage and safety of collected data in an increasingly digital world. Advocacy for data protection and security measures is crucial to safeguard individuals’ privacy rights and prevent unauthorized access or misuse of personal information.

Overall, the analysis reflects a positive sentiment towards Africa’s potential to enhance its participation in the global digital value chain.

It highlights the importance of investing in training and skills development to empower Africa’s youth and business communities. Additionally, it recognizes the significant growth and impact of fintech, exemplified by M-Pesa and e-commerce platforms. Furthermore, it emphasizes the urgency of implementing robust data protection measures in line with human rights considerations.

This comprehensive understanding of the challenges and opportunities in Africa’s digital era underscores the need for strategic interventions and collaborations to harness the potential of digital technologies for sustainable economic growth and social development in Africa.

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Melissa Sassi is a venture partner at Machine Lab Ventures, where her focus is on enabling tech entrepreneurs to effectively build, scale, and potentially exit their businesses. She prioritizes the importance of digital innovation and financial well-being in this process, particularly within the African context.

In Africa, Melissa Sassi emphasizes the crucial role that digital technologies play in driving economic growth.

She specifically highlights the significance of entrepreneurship and the youth in this regard. She provides evidence from various articles that underscore the value of digital technologies and youth entrepreneurship in transforming Africa. Her belief in the potential of these factors to contribute significantly to the continent’s development is evident.

Melissa Sassi advocates for a practical and real-world-oriented education model.

She places importance on skills such as storytelling, critical thinking, building partnerships, and financial management. By promoting this type of education, she aims to equip individuals with the necessary skills and knowledge to thrive in today’s world.

Furthermore, Melissa Sassi emphasizes the importance of fostering an entrepreneurial culture within universities to drive growth and development.

She suggests a project-based learning approach at the university level, with a focus on cultivating a growth mindset and entrepreneurial skills. This approach encourages students to think creatively, take risks, and develop the mindset necessary for entrepreneurial success.

Overall, Melissa Sassi’s work demonstrates her dedication to supporting and empowering tech entrepreneurs, specifically in the African context.

Her emphasis on digital innovation, practical education, and fostering an entrepreneurial culture contributes to economic growth and development. Her insights serve as inspiration for entrepreneurs and educators alike, providing valuable guidance for creating an environment conducive to innovation and progress.