Back to Insights
Africa in the digital age: The continent’s future in an interconnected world
Kenya leads the technological transformation, promoting social and economic inclusion through digital innovation.
Digitalisation in Africa marks a pivotal phase in the continent's socio-economic development. Indeed, through the adoption of digital technologies aimed at increasing growth and resilience, Africa is witnessing the development of various sectors, also thanks to the economic support of international organisations such as the World Bank. Moreover, the COVID-19 pandemic underscored the critical role of digital technologies in Africa's economic recovery. In fact, many countries have adopted economic policies focused on continuous investment in various sectors, from education to healthcare, from agriculture to banking, with the goal of promoting inclusive growth and bridging the digital divide with the rest of the world.
In that scenario, Africa's digital landscape is rapidly evolving. As a matter of fact, digitisation converts analog information into digital formats, automating tasks like data entry to boost efficiency. For instance, Rwanda’s adoption of electronic health records has improved healthcare, and Kenya’s e-government initiatives have made services accessible online. Concomitantly, technological transition is transforming sectors with technologies like AI, IoT, blockchain, and biotechnology. Kenya’s precision agriculture uses IoT, drones, and AI to boost farming productivity, while mobile banking platforms like M-Pesa and Nigeria’s Paga drive financial inclusion.
According to the World Bank's Digital Adoption Index and the International Telecommunication Union's Information and Communication Technology Development Index, Africa is making progress in digital advancement, but it still lags behind other regions of the world in terms of internet usage, appropriate use of technology, and infrastructure development. For instance, Kenya's digital adoption is advanced compared to the African average, but its digital business initiatives remain below the global mean. This highlights the broader disparities in digital infrastructure and technology integration between Africa and leading regions such as Europe, Latin America, the Middle East, and Asia, where universal internet connectivity and highly effective e-government services are common. Many African nations still grapple with limited broadband access and prohibitive costs for such services.
Specifically, Kenya leads Africa in digitisation with an impressive Internet usage rate of 85%, significantly higher than the continental average of 43%. However, this figure remains lower than those of Europe (92%), Asia (61%) and Latin America (72%). In fact, the African digital market is relatively smaller than that of the aforementioned continents, with a growth rate of 11%, which, although remarkable, is still outpaced by Asia's (14%) and Latin America's (12%). Focusing on the tech giants, the African digital market includes Safaricom and Jumia, whereas giants like Alibaba and Tencent dominate in China, and SAP and Vodafone are prominent in Europe. In the Middle East, the rapid progress of digitisation is facilitated by companies such as STC and Etisalat.
Furthermore, the disparities in digital adoption and infrastructure are evidenced by the percentage of firms using email across selected regions, highlighting significant gaps between African nations and more digitally mature regions.
In the areas of health care, agriculture, banking and the economy, digitalisation could play a key role in the growth of the African continent. In the health sector, digital technologies are improving diagnostics and simplifying the management of patient records. In addition, telemedicine is bringing health services to remote and disadvantaged areas, significantly improving health outcomes. In agriculture, digital tools such as mobile apps that provide market prices and weather forecasts are helping farmers make better decisions and increase productivity, contributing to improved food security and economic stability. Furthermore, in the banking sector, the adoption of innovative technologies promotes economic inclusion by giving more people access to banking services and financial literacy, thus fostering economic independence.
From a purely economic perspective, the adoption of modern technologies creates new employment opportunities, promotes sustainable development, while stimulating entrepreneurship and attracting foreign investment. In other words, the promotion of economic policies focused on technological innovation would enable a virtuous growth process capable of reshaping the African landscape.
While Africa faces several challenges in bridging the digital divide with the rest of the world, ongoing digital advances offer great opportunities for development. By overcoming infrastructure and cost barriers, Africa can take full advantage of digital technologies to improve its economic and social environment. This will require the adoption of expansionary economic policies, continued investment, and the importation of best practices from developed countries. With robust infrastructure and supportive policies, Africa can use digitalisation to improve living standards, build economic resilience and create a better future for all its citizens.
In this scenario, the Kenyan case represents an advanced model compared to many African countries. In fact, Kenya is a digital leader in Africa. In this sense, Nairobi is promoting digitalisation, recognising its importance for economic growth and social development. To cite a few figures, more than 85% of Kenyans use mobile phones and about 40% have access to the internet. This has been made possible by significant investments in ICT infrastructure, such as the National Broadband Strategy, which aims to provide ubiquitous internet access and bridge the digital divide between urban and rural areas. In addition, clear regulatory frameworks, such as the Kenya Information and Communications Act, provide an ideal environment for big tech and start-ups, both local and foreign, to develop projects that promote technological innovation and entrepreneurship. In fact, such an environment is a major magnet for foreign direct investment in the country. Success stories such as M-Pesa and e-health platforms such as M-TIBA highlight Kenya's leading role. In addition, technology hubs such as iHub are driving innovation. In other words, Kenya's approach is making the country a role model for the whole of the African continent, demonstrating how technological innovation is the main pillar that drives sustainable and inclusive economic growth.
To conclude, as Africa continues to embrace digital, the lessons learned from the Kenyan experience are invaluable in shaping a digitally inclusive future for the continent. From economic growth to promoting social inclusion, Kenya's adoption of economic policies focused on investment in technological innovation is indeed a model for African countries to follow.
