Digital Economy for Africa

Achieving Digital Transformation in Africa

Ensuring that every African Individual, Business and Government
is Digitally Enabled by 2030
The Opportunity The Big Idea

Africa should think big on digital development. At the To thrive in the Digital Economy era, Africa needs a
current, incremental pace of economic and social coordinated action with an ambition equal to the
advancement, too many of Africa’s expanding youth incredible opportunities, and also risks. Under the
population will be denied the opportunity to live up to leadership of the AU with the support of the WBG,
their potential. Digital technologies offer a chance to Africa is ready to embark on a Digital Transformation
disrupt this trajectory – unlocking new pathways for agenda – a bold action plan to harness technology and
rapid economic growth, innovation, job creation and innovation to transform the continent’s economies,
access to services which would have been unimaginable societies and governments. The Digital transformation
only a decade ago. Yet there is also a growing ‘digital agenda aims by 2030 to digitally connect every
divide’, and increased cyber risks, which need urgent individual, business and government in Africa and
and coordinated action to mitigate. ensure each is digital enabled and ready to thrive in the
digital economy.
The time for action is now. Access to the internet
remains out of reach for most people in the continent,
with only 22% reporting having access in 2017. Too few
citizens have digital IDs or transaction accounts – locking
them out of access to critical services and e-commerce.
Digital startups struggle to attract funding and
‘traditional’ businesses are only slowly adopting digital
technologies and platforms to boost productivity and
sales. Few governments, are investing strategically and
systematically in developing digital infrastructure,
services, skills and entrepreneurship. To become
tomorrow’s innovators, entrepreneurs and leaders,
What will it take?
Africa’s youth need to be empowered with the digital
Achieving the Digital Economy Transformation will take
skills and access to technology and markets that are
a collective commitment by all African countries,
essential to thrive in an increasingly digitized global
development partners and the private sector to
economy. Governments need to find more nimble and
massively scale up resources dedicated to building the
effective means of delivering services and interacting
foundations of a thriving digital economy throughout
with citizens. Businesses need to utilize digitally-
the continent. It will need leadership and a vision to
centered business models to connect with the hundreds
push the frontiers of innovation so that Africa can own
of millions of customers previously out of reach due to
its 21st century.
geography or low income. Africa has the opportunity
to harness the digital economy as a driver of growth At the national level, it will require a concentrated effort
and innovation, but if it fails to bridge the digital divide to build up the core foundations of the digital economy
its economies risk isolation and stagnation. including digital infrastructure and platforms, digital
skills, digital financial services and an environment

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supportive of digital business and entrepreneurship. A
simultaneous effort will be needed to mitigate the
growing risks of the digital era including cybersecurity,
data privacy and protection and market concentration.
At the continental level, it will require a renewed
commitment to cross-border integration of digital
markets – building from sub-regional level to
continental level for Africa. Such cross-border
integration will be critical to generate the economies of
scale, network effects and cooperation critical to enable
African digital firms to compete regionally and globally,
to create the investment case for digital infrastructure
(e.g. broadband internet, payment systems) and to
enable access to digital services, e-commerce and
opportunities for all African citizens and businesses
regardless of location.

How do we get there?

The World Bank Group (WBG) has partnered with the
African Union and other stakeholders to develop the
“Digital Economy For Africa (DE4A)” diagnostic
assessment to highlight the key policy reforms and
investments needed at the national and regional level
for the continent to achieve its digital development
ambitions. The DE4A diagnostic assessment will serve as
the blueprint for the AU, national governments, WBG
and development partners to coordinate and
concentrate efforts with private sector toward achieving
the Transformation Agenda. These assessments have
been so far conducted in approximately 30 countries
across the continent (refer Figure 1), with subsequent
support through technical assistance, and finance
having been provided based on needs and priorities
identified. The assessment is based on evaluating the
state of the digital economy holistically, through in-
depth study of the five foundational elements of the
digital economy, including cross cutting areas and the
legal and regulatory environment.
Measuring Success

Ambitious targets have been set– a “Digital Economy

Scorecard” - across the five foundational pillars of the
digital economy. These can help concentrate efforts,
catalyze action, and enable progress toward
implementation and achievement of objectives to be
tracked.

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