"Three paths to accelerating digital access in West and Central Africa"

" \n Three paths to accelerating digital access in West and Central Africa \n \n\n \n Just before the coronavirus (COVID-19) pandemic struck, \u00a0just over half of the world\u2019s population approximately (51%)\u00a0had\u00a0access to the internet\u00a0compared\u00a0with\u00a0just 30% in\u00a0 Western\u00a0and Central Africa .\u00a0With the\u00a0 strict lockdown implemented\u00a0during the pandemic, many\u00a0services were only available\u00a0to people across the region\u00a0through the internet.\u00a0 \n \n\n \n Ever since, the\u00a0need for\u00a0universal, affordable,\u00a0and safe high-speed\u00a0connectivity\u00a0has\u00a0increased exponentially.\u00a0West\u00a0African countries\u00a0will not be left behind\u00a0and will need to deepen reforms and attract the necessary investments for increased digitalization of services, an essential condition for strong, resilient, green economic growth and quality job creation.\u00a0 \n \n\n \n The stakes are therefore high and the region is showing tremendous potential and opportunities. Although the challenges are not to be underestimated, this potential allows us to hope that West and Central Africa will accelerate the digitalization of its economy. What will it take? Three important steps: \n \n\n \n Four Challenges \n \n\n \n First, we must tackle the digital divide to provide access, usage, and affordability of the internet.\u00a0Many\u00a0West\u00a0and central\u00a0African countries\u00a0have been facing\u00a0four main\u00a0challenges:\u00a0 low network coverage and quality, high operating costs, barriers to market entry, lack of competition, and high operating and investment risks.\u00a0 \n \n\n \n Providing financial services via mobile phones can be difficult when only\u00a0 40% of\u00a0West Africans \u00a0own a cell phone. This underlines\u00a0the existing disparity between \u201cthe haves\u201d and the \u201chave-nots\u201d when it comes to access and affordability of devices, the internet, and digital tools.\u00a0 \n \n\n \n This disparity\u00a0also\u00a0disproportionately\u00a0affects rural populations, women, and vulnerable\u00a0groups\u00a0in the region. And there are significant differences across\u00a0Africa.\u00a0 \n \n\n \n While people in the Central African Republic pay more than 20% of their average earnings for 1GB of mobile broadband data, Egyptians only pay 0.5%. \n \n\n \n In Senegal, only 26% of small firms use smartphones, compared with 65% in Brazil. During a pandemic, access to a smartphone not only connects people via messaging, but it can be a useful tool for businesses and economies. \n \n\n \n Government Regulation \n \n\n \n According to a\u00a0 World Bank\/UN Broadband Commission report , it is\u00a0estimated that the cost of closing this\u00a0digital divide by 2030 in Africa alone will be US $100 billion.\u00a0 \n \n\n \n This is why\u00a0we must increase investments and attract the needed operators and strategic partners by mobilizing private capital, addressing capital risks, \u00a0and building strategic alliances between governments and private operators.\u00a0 \n \n\n \n We must also support the design and implementation of policies and regulations that de-risk and promote private investment in digital infrastructure. These two levers will help address the issues of affordability and make connectivity productive. \n \n\n \n As digital infrastructure improves, there is a need for both the public and private sectors to\u00a0promote and incentivize internet uptake\u00a0by developing systems and applications that allow people to do meaningful transactions online, such as applying for government services, opening bank accounts, and applying for credit. \n \n\n \n Unlocking New Opportunities with Digitalization \n \n\n \n Second, we must build \u2018digital stacks\u2019. Our research estimates that half a billion people in Africa lack an official ID , making it difficult for them to access key services and thus being denied the opportunities being created by digitalization. \n \n\n \n Identification systems in some countries in West Africa are not yet inclusive and trusted. Current manual, paper-based approaches for identifying their population makes it hard for governments and the private sector to improve how their services are delivered and to reduce fraud and waste. \n \n\n \n Digital IDs\u00a0aligned with the ten\u00a0 Principles on Identification for Sustainable Development \u00a0offer a solution\u00a0to this,\u00a0providing the opportunity to expand and transform delivery of\u00a0healthcare, education, financial, and other key\u00a0services,\u00a0especially for\u00a0rural populations, women, and\u00a0the most\u00a0vulnerable\u00a0groups. \n \n\n \n The good news is that\u00a0many\u00a0African countries are well on their way to developing these processes, and many are doing so with technical and financial support from the \u00a0World Bank\u00a0and our Identification for Development (ID4D) initiative. \n \n\n \n Read This: Ghana\u2019s relations with Germany of utmost importance \u2013 President Akufo-Addo \n \n\n \n Reliable Data \n \n\n \n Digital IDs are one of three components of \u201cdigital stacks,\u201d along with digital payments and trusted data platforms. A digital stack allows people and businesses to prove and verify their identity securely, make and receive payments fast and easily, and share and verify personal data, such as credit histories and academic qualifications. \n \n\n \n Together, these functions unlock significant social and economic benefits and accelerate the transition to digital economies, societies and governments. \n \n\n \n To succeed in the digital transformation agenda, we must work together to empower Africans with greater agency over their personal data and help governments ensure that cash transfers programs and services reach the right beneficiaries , reduce fraud and fiscal leakages. \n \n\n \n This needs \u201cwhole-of-country\u201d strategies, with strong leadership and coordination at the policy-level. It also needs the definition and implementation of common standards to ensure interoperability at the technical level, a strong data protection, and cybersecurity frameworks. \n \n\n \n Finally, we must think boldly with regional and continental approaches. While continuing to drive digitalization efforts at the national level, West African countries must look beyond their own borders. I believe that success in the digital economy requires economies of scale and network effects far beyond what any individual country can muster on its own. \n \n\n \n Time for a Single Digital Market in Africa. \n \n\n \n Our research\u00a0in East Africa\u00a0shows that a more deeply integrated and competitive digital market among the six\u00a0 East African Community (EAC) countries\u00a0 alone would generate up to a US$2.6 billion boost in GDP and 4.5 million new jobs\u00a0in the subregion.\u00a0 The potential of an integrated digital market in West Africa and at the continental scale is even greater.\u00a0 \n \n\n \n To make this vision a reality, we need to support countries in modernizing\u00a0and harmonizing\u00a0telecoms\u00a0and data policies and\u00a0regulations\u00a0to promote\u00a0regional scale\u00a0investments\u00a0in broadband and cloud infrastructure\u00a0and widespread access to relevant digital content and services \u2013 including in lagging areas.\u00a0It will also\u00a0require\u00a0 streamlining and harmonizing\u00a0business registration and digital taxation policies,\u00a0and\u00a0enabling\u00a0fast,\u00a0low-cost,\u00a0and reliable\u00a0cross border digital to unlock digital trade and e-commerce. \n \n\n \n But none of this\u00a0can\u00a0happen overnight.\u00a0A\u00a0digital transformation in Africa will require greater leadership and collaboration from Governments, the Private Sector and Civil Society.\u00a0We are working closely with sub-regional, continental and international partners, such as the \u00a0African Union Commission\u00a0(AUC), the\u00a0 Regional Economic Communities, and Smart Africa.\u00a0 \n \n\n \n The COVID-19 pandemic \u00a0shows\u00a0a unique\u00a0opportunity\u00a0to reverse inequality and promote strong economic growth.\u00a0\u00a0Accelerating\u00a0Africa\u2019s digital\u00a0transformation\u00a0can be\u00a0a\u00a0part of this\u00a0reality. It will require\u00a0closing\u00a0the\u00a0digital divide, building\u00a0digital stacks, and\u00a0achieving a Single Digital Market.\u00a0We need to act now.\u00a0 \u00a0\u00a0 \n "

"Three paths to accelerating digital access in West and Central Africa"

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