Exploring Digital Transformation for Economic Empowerment in Africa: Opportunities, Challenges, and Policy Priorities (International Trade and Research Centre, Nigeria)

7 Dec 2023 13:00h - 14:00h UTC

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Full session report

Feyisayo Lari-Williams

Africa is currently undergoing a significant digital revolution, driven by the widespread adoption of digital technology. This surge in digital adoption can be attributed to two main factors: the availability of mobile phones and a young population.

Over the past decade, Africa has experienced a notable increase in digital adoption. This growth has been propelled by the widespread availability of mobile phones, which have become increasingly affordable and accessible to the population. Mobile phones have become a catalyst for digital transformation, providing individuals with the means to access the internet and engage in various online activities.

The youthful population in Africa has played a crucial role in driving digital adoption. Young people, who are early adopters of technology and adept at navigating the digital landscape, have eagerly embraced digital technology.

The digital transformation in Africa has had a significant impact on various sectors, including financial services, retail, and education. In the financial services sector, digital transformation has enabled substantial growth, with the sector projected to grow at around 10% per annum and reach approximately $230 billion by 2025. Additionally, the retail sector has witnessed an increase in the number of online shoppers, projected to reach 217 million by 2028. In the education sector, the use of digital platforms has seen a significant increase, from approximately 4 million users in 2017 to around 17 million users in 2023. This demonstrates how digital transformation is democratizing access to education and improving the quality of instruction.

The fintech industry has emerged as a primary driver of digital evolution in Africa. Successful fintech companies, including 4E, M-Pesa, InterSwitch, FlutterWave, and Paystack, have raised substantial venture capital funding and facilitated growth in e-commerce and online services. In 2021, the fintech sector accounted for almost three out of the five billion USD raised in venture capital funding in Africa.

While the benefits of digital transformation are evident, it is crucial to ensure the protection of online users. Policies and laws need to be put in place to safeguard individuals brought online and protect them from vulnerabilities. Failure to protect online users could result in the rapid depletion of the online population. It is essential to develop and enforce regulations to address online risks and create a safe digital environment.

In conclusion, Africa is undergoing a significant digital revolution, driven by the widespread adoption of digital technology. The availability of mobile phones and a young population have played a pivotal role in this digital transformation. Various sectors, such as financial services, retail, and education, have experienced substantial growth and improvement as a result. However, it is crucial to implement policies and laws to protect online users and ensure the sustainability of the digital revolution in Africa.

Moses Odumu

The gender digital divide in Africa has a negative impact on both the economy and education. Access to information and communication technology (ICT) has been linked to advancements in scientific research, academic achievements, and economic growth. Unfortunately, women in Africa are disproportionately affected by this divide, hindering their full participation in these areas.

Low female literacy is a major contributing factor to the gender digital divide. In the past, many parents did not believe that girls should receive an education, resulting in a general lack of literacy among women. This low literacy level makes females hesitant to engage with digital tools, worsening the divide. Without the necessary literacy skills, women lack confidence in using digital technology and are therefore unable to access its full benefits.

Bridging the gender digital divide in Africa would have significant positive effects on society and the economy. Access to digital technology can provide women with vital information and resources, empowering them and benefiting their families and communities. Additionally, access to digital technology is crucial for obtaining information and resources, which are key elements in economic development.

Addressing this divide requires efforts to improve access to digital technology and promote digital literacy among women in Africa. By investing in education and providing equal opportunities, African countries can empower women to fully participate in scientific research, academic pursuits, and the economy.

In conclusion, the gender digital divide in Africa negatively impacts the economy and education. Low female literacy contributes to this divide, preventing women from fully engaging with the digital world. However, bridging this divide can have significant positive impacts on society and the economy by empowering women and providing them with the necessary resources and information for personal and economic development. It is crucial for African countries to take steps to close this divide through improved access and digital literacy initiatives.

Sian Rapei

The analysis delves into the impact of digital transformation on gender equality and inclusivity. It highlights key points related to women’s involvement in the tech industry and the opportunities provided by online platforms. The analysis suggests that digital transformation is positively affecting gender equality by enabling greater participation of women in the tech industry. Online platforms are also playing a role in empowering women and promoting inclusivity.

Additionally, the analysis acknowledges that there is still a gender divide in access to digital technologies, especially in sub-Saharan Africa. Various factors, such as economic disempowerment, social attitudes, skills gap, affordability of devices, illiteracy, and lack of awareness, contribute to this divide. These obstacles hinder women’s access to digital technology and limit the opportunities it can offer. Addressing these challenges is vital to achieving gender equality in digital inclusion.

Furthermore, the analysis highlights the positive impact of digital transformation on advocating for the rights of intersex children. In particular, it mentions that digital platforms allow individuals of intersex gender to connect with like-minded people and advocate for their rights. This demonstrates the potential of technology to facilitate social change and empower marginalized communities.

In addition to the main arguments and evidence presented, the analysis emphasizes the importance of fostering social conversations in various spaces, including online platforms. It suggests that engaging in discussions and promoting dialogue can contribute to overall development. This further underscores the potential of digital platforms to facilitate meaningful conversations, knowledge sharing, and collaboration for positive societal transformation.

In conclusion, the analysis demonstrates both the positive and negative effects of digital transformation on gender equality and inclusivity. While digital advancements have provided opportunities for women and marginalized groups, significant barriers and disparities persist. Addressing these challenges is essential to bridge the gender divide and ensure equal access to digital technologies for all. The analysis also highlights the power of digital platforms in advocating for the rights of intersex individuals and the importance of fostering social conversations for overall development.

Sand Mba-Kalu

Digital technology has the potential to drive significant positive change in the economy and entrepreneurship in Africa. It can bridge divides and build future-proof workforces, opening up new opportunities for growth and development. This is evident as young people in Africa are already leveraging artificial intelligence (AI) to bring about positive changes in their communities.

However, there are several challenges that need to be overcome in order to harness the full potential of digital technology in Africa. Limited internet connectivity, lack of infrastructure, and policy misdirection remain significant barriers. These challenges hinder the capacity of the workforce to engage in global digital activities, limiting their ability to benefit from the opportunities presented by digital transformation. Furthermore, issues such as cybercrime and digital breaches pose additional threats that need to be addressed.

In order to overcome these challenges, it is crucial that proposed policies are inclusive, taking into consideration the needs and potential of women, youth, and marginalized groups. By ensuring inclusivity, the potential of digital transformation can be fully harnessed, leading to more equitable and sustainable growth. Without considering these groups, the benefits of digital technology may not be fully realized.

Establishing policies that foster a digital ecosystem is also essential for the successful implementation of digital transformation in Africa. This requires creating an environment that encourages innovation, collaboration, and investment in digital technologies. Policies must support the development of robust digital infrastructure and provide the necessary frameworks for businesses to flourish in the digital age.

Additionally, measuring and evaluating the impact of policies is crucial to ensure their effectiveness. Currently, there is a lack of metrics to evaluate the impact of policies in the policy space. It is important to develop robust measurement and evaluation frameworks to assess the outcomes and effectiveness of policies, enabling policymakers to make informed decisions and drive meaningful change.

Furthermore, leveraging AI and big data is essential for future growth. AI and big data technologies hold immense potential for driving innovation, improving efficiency, and solving complex problems. By harnessing these technologies, Africa can position itself at the forefront of the global digital economy and drive collective prosperity.

In conclusion, digital technology has the potential to bring about significant positive changes in the economy and entrepreneurship in Africa. However, challenges such as limited internet connectivity, lack of infrastructure, and policy misdirection need to be addressed. By implementing inclusive policies, fostering a digital ecosystem, and leveraging AI and big data, Africa can fully harness the potential of digital transformation and drive sustainable and equitable growth. It is also crucial to measure and evaluate the impact of policies to ensure their effectiveness. By doing so, Africa can position itself as a leader in the global digital economy and create a prosperous future for its people.

Stella Igabor – Mustapha

The analysis features four speakers discussing various topics related to gender equality, digitization, education, collaboration, and learning. Stella Igabor-Mustapha firmly believes that digitization has opened up numerous opportunities for women, allowing them to actively participate in society. She supports her argument by sharing her personal experience of fighting for her right to education in a patriarchal society. Stella’s story serves as evidence that digitization is helping to level the playing field for gender equality.

Stella also emphasizes the crucial need to increase access to education and the digital world, particularly for girls and women. She highlights her role as a mentor for young girls, aiming to make them tech-savvy and equip them with the skills to seize the opportunities offered by digital transformation. By empowering these girls to navigate the digital realm, Stella believes they will be better positioned to succeed in a rapidly changing world.

Another speaker emphasizes the importance of collaboration and conversation for progress. They explain that engaging in conversations and collaborating with others is vital in reviewing and making necessary changes to achieve goals. By working together and fostering dialogue, individuals and organizations can enhance their understanding and find innovative solutions to pressing issues.

The speakers also express their gratitude for the platform that allows them to share their insights and learn from one another. They extend their appreciation to Sam, the individual responsible for organizing the platform, and express their thanks to all participants. This display of gratitude demonstrates the importance of creating spaces for exchange and knowledge-sharing, where individuals can come together to discuss, learn, and collaborate.

Overall, this analysis highlights key themes of gender equality, the transformative power of digitization, the importance of education and mentorship, the role of collaboration in fostering progress, and the value of platforms for sharing and learning. It emphasizes the need to continue amplifying efforts towards achieving gender equality and leveraging digital advancements to empower individuals and drive positive change in society.

Hortense Mbea

The challenges facing digital transformation in Africa are significant but not insurmountable. One major challenge is the digital divide between men and women. African women are less likely to have access to technology and digital skills, creating a gender imbalance in the digital era. This divide not only affects opportunities for women but also hampers overall development.

Another challenge is the lack of access to digital technologies in remote areas. Many regions in Africa still lack basic infrastructure like electricity and internet connectivity, making it difficult for people in these areas to benefit from the digital revolution. This issue of limited access hinders progress and exacerbates existing inequalities.

Cybersecurity concerns also pose a significant challenge to digital transformation in Africa. As technology advances, the risk of cyber threats and attacks increases. Without robust cybersecurity measures, African countries may find it challenging to fully embrace digital technologies and protect sensitive information.

Despite these challenges, there is optimism surrounding the role of fashion and creative industries in driving digital transformation. Initiatives such as Fashionomics Africa and the Creative African Nexus aim to grow the creative sector and leverage technological advancements such as artificial intelligence (AI) and virtual reality (VR). African artists are using AI and VR to tell authentic African stories, while storytelling and conveying African culture contribute to the continent’s digital transformation.

Africa has a digital transformation strategy in place for the period 2020 to 2030. This strategy, supported by the United Nations Economic Commission for Africa (UNECA) and Smart Africa, envisions affordable and widespread access to digital technologies across the continent. The goal is to ensure that all Africans have access to a minimum bandwidth at a low cost and on devices manufactured in Africa by 2030. This strategy is a vital step towards bridging the digital divide and promoting inclusive growth.

In anticipation of the next industrial revolution, young people are encouraged to equip themselves with future skills to avoid being left behind. New ways of doing fashion involving AI and VR present opportunities for job creation. While automation may replace some jobs, it is predicted that a greater number of jobs will be created as a result of technological advancements.

The fashion industry can play a significant role in contributing to the Sustainable Development Goals (SDGs). By implementing responsible production and consumption practices, the industry can address SDG 12 on responsible consumption and production. Additionally, initiatives like integrating braille into clothing by companies like Hisi Studio in Kenya promote inclusivity, contributing to SDG 4 on quality education. Embracing technological advancements, such as virtual reality, can also reduce the negative environmental impact of the fashion industry.

A final noteworthy observation is the call for African unity and cooperation to harness opportunities effectively. It is emphasized that Africans need to act as one and speak with one voice to maximize the continent’s potential. Partnerships and coalitions are crucial to achieving sustainable development and driving digital transformation in Africa.

In conclusion, while digital transformation in Africa presents several challenges, there are also opportunities for growth and development. Addressing the digital divide, improving infrastructure, ensuring cybersecurity, and leveraging the potential of fashion, creative industries, and technology are key strategies to drive digital transformation. Furthermore, African unity and cooperation are critical for the continent to harness opportunities and achieve sustainable development goals. Through these efforts, Africa can overcome the challenges it faces and become a leader in the digital age.

FL

Feyisayo Lari-Williams

Speech speed

155 words per minute

Speech length

1208 words

Speech time

466 secs

HM

Hortense Mbea

Speech speed

169 words per minute

Speech length

1861 words

Speech time

661 secs

MO

Moses Odumu

Speech speed

136 words per minute

Speech length

747 words

Speech time

330 secs

SM

Sand Mba-Kalu

Speech speed

154 words per minute

Speech length

1407 words

Speech time

548 secs

SR

Sian Rapei

Speech speed

141 words per minute

Speech length

990 words

Speech time

423 secs

SI

Stella Igabor – Mustapha

Speech speed

137 words per minute

Speech length

1981 words

Speech time

869 secs