The opportunities and challenges that the advent of a growing global digital economy is throwing into Africa’s path to sustainable development is a clear call for the continent to start operating as united economic front.
It is only as a united economic front that Africa can grab the opportunities created by the digital revolution while also navigating the challenges it presents. Operating as a united front offers Africa numerous advantages, particularly through initiatives such as the African Continental Free Trade Area (AFCFTA).
For example, by creating a single market of 54 countries with a combined GDP of R64.19-trillion, AFCFTA has the potential to boost intra-African trade, diversify exports, and boost industrialisation.
AFCFTA also aims to eliminate tariffs on 90% of goods, reduce trade barriers, and harmonise policies on investment, competition and e-commerce. These measures are expected to raise regional income by 7% (R8,5-trillion) by 2035 and lift 30-million people out of poverty.
A united front also has the potential for harmonised policies on investment, competition, e-commerce and intellectual property rights further enhance Africa’s competitiveness in global markets.
Moreover, the agreement is designed to strengthen resilience against global shocks by promoting regional integration and reducing reliance on primary commodities. It supports “made in Africa” policies that prioritises value addition and industrial diversification.
An effective AFCFTA has the potential to reshape markets, creating new industries, and positioning Africa as a significant player in the global economy while addressing poverty and inequality
In this era of a thriving global digital economy dominated by big tech companies from the global north it has become even more important that Africa uses initiatives such as the AFCFTA as a springboard to launch itself into becoming a key player in the global economy.
This means while grabbing the opportunities brought by the digital revolution, Africa must have the capability of navigating hazards such as, monopolisation, data colonialism and exploitation.
It is, for example, important to understand that relying on foreign digital infrastructure suppliers like Starlink, comes with the risk of perpetuating colonialism, where user data and economic benefits are extracted by external entities.
There is also the issue of threats to national security – whereby the foreign-owned companies’ unilateral control over service access raises concerns about surveillance and censorship, leaving Africa vulnerable to geopolitical tensions.
While the presence of multi-national companies offers immediate connectivity solutions – there is also the risk of them undermining local internet service providers by monopolising the market.
As it is, foreign digital platforms extract an estimated R18,93-billion annually from Africa. African countries can, for example, jointly build capacity to protect critical infrastructure thereby redressing the situation whereby 95% of Africa’s cloud rely on foreign service providers, leaving Africa vulnerable to external surveillance.
As a united economic front Africa could also expand tech education to meet the African Union’s (AU) target of 230 000 graduates annually by 2030; as well as address platform governance failures as, for example, exposed by Ethiopia’s 2020 violence – where hate speech, amplified by foreign algorithms, led to about 600 000 deaths.
We could also expand training of the space industry workforce. Currently Africa’s space industry employs more than 19 000 people, with 58% in government roles. Scaling such programmes continent-wide could reduce reliance on external expertise. For example, of Africa’s 58 satellites, only 19 were built domestically.
It is also important that the continent strengthens its regulatory and policy frameworks in the space industry. This could include the adoption of adaptive licensing regulations harmonising spectrum allocation and taxation policies to incentivise local satellite deployment while ensuring fair competition.
There is also the opportunity for Africa countries to mandate foreign services providers to store African data locally, as seen in Nigeria’s MainOne MDXi data centre, which cut hosting costs by 30%.
By focusing on these strategies of leveraging its growing space workforce, regulatory innovations, and regional partnerships to close the digital gap,
Due to its commitment to African development, and alignment with continental priorities, the African Development Bank is the most suitable financial institution to finance projects aimed at achieving Africa’s digital sovereignty. Ultimately, the AfDB’s Afro-centric approach, financial tools, and policy alignment make it the ideal institution to drive and fund our digital sovereignty agenda.
- Lekota is a veteran journalist
