Africa, a continent of nearly 1.5 billion people, with a nominal GDP of US$2.82 trillion and a PPP-equivalent GDP of US$10.77 trillion, is one of the fastest growing global regions. The continent is rapidly urbanising, and industrial sectors such as manufacturing, commodities, and services are growing rapidly.

The continent presents many opportunities, and a number of challenges. Rapid urbanisation is creating the need for modern cities and efficient urban services. A growing population requires effective healthcare, education and employment. Throughout Africa, businesses need access to smart and connected technologies to take advantage of growing market and global investment opportunities. Africa’s commodities, energy and telecoms infrastructure are typically sprawling and environmentally stressed: modernisation of infrastructure is another key challenge.

Two international bodies are implementing strategies to transform Africa’s infrastructure, economy and society through digitalisation and smart technologies. The World Bank has set out a vision for renewing Africa’s economy and societies through digitalisation. It is funding a range of projects throughout the continent to kick-start wider adoption of connected technologies for modernisation of infrastructure, services and businesses. For its part, the African Union has adopted a continent-wide digital transformation strategy through intergovernmental consensus. This aims to eradicate poverty, create new opportunities for citizens and break digital divides.

Access to the internet is limited in Africa. According to the World Bank, only 22% of the population have access. Traditional businesses have been slow to adopt digital technologies continent-wide, impeded by reliable access to high speed internet. While some regions have a flourishing start-up culture, most notably West Africa, across Africa as a whole digital start-ups often fail to attract investment.

There are pockets of rapid adoption of smart and IoT technologies in Africa. South Africa, Kenya, Nigeria and Senegal stand out in Sub-Saharan Africa. In North Africa, Morocco has been a significant adopter of grid and renewable technologies, while Egypt has been a marked adopter of smart city technologies.

World Bank Digital Economy for Africa Initiative

The World Bank established an initiative in 2019 to promote and fund the digitisation of African society and infrastructure. Known as the Digital Economy for Africa Initiative (DE4A), it aims to support the creation of digital infrastructure, entrepreneurship, business as well as governmental transformation. This includes societal projects such as digital healthcare, education and transport infrastructure.

The World Bank supports the African Union’s Digital Transformation Strategy for Africa (2020-2030), which establishes agreed goals and strategies among African Union member states.

Working alongside the African Union, the World Bank DE4A programme has established economic and social objectives, significant seed funding, and a network of pilot initiatives throughout Africa. The World Bank is also providing tools and support to monitor progress of the initiatives, as well as progress in achieving its wider economic, entrepreneurial and social objectives.

For its part, the African Union’s Transformation Strategy addresses the infrastructure requirements for establishing and expanding a continent-wide digital economy and social support.

The World Bank has delivered 70 digitalisation investment projects since 2019. These projects have totalled US$9 billion across 37 African countries. Among the projects, 24 have focused on expanding network infrastructure and bridging the digital connectivity divide. These projects have totalled US$2.8 billion in 23 countries.

Recent projects that have been approved include the Senegal Digital Economy Acceleration Project, the Sierra Leone Digital Transformation Project, the Mozambique Digital Acceleration Project, and the Kenya Digital Economy Acceleration Project.

The World Bank has also undertaken regional initiatives that aim to fund integration of digital infrastructure and smart societal, economic and healthcare projects. These include notably the Eastern Africa Regional Digital Integration Project and the Western Africa Regional Digital Integration Project.

African Union Digital Transformation Strategy for Africa

The African Union’s Digital Transformation Strategy for Africa is an intergovernmental effort to build digital infrastructure and enable smart initiatives in the economy, cities, education and health care at an Africa-wide level.

It aims to create a secure, single digital market for Africa by 2030. It envisages a digital and connected economy across an Africa-wide free trade area, corresponding to Africa’s Continental Free Trade Area (AfCFTA).

According to the strategy, by 2030 all Africans will have access to digital services and goods through low-cost broadband services, wherever they are on the continent. Access will be through smart devices manufactured at low cost on the continent, and providing access to all basic e-services and content, at least 30% of which will be developed and hosted within Africa.

The strategy aims at harmonisation to enable the creation of a digital sovereignty fund that will be used to close Africa’s digital infrastructure gap. The African Union is also seeking the harmonisation of policies and regulation across Africa to enable the development and improvement of digital networks and services throughout the continent.