Public-private partnerships hold the key to future development

 

For Africa to not just survive the current pandemic but to thrive, investment into digital infrastructure is inevitable.

 

Much-needed digital infrastructure and the resulting digital transformation will be an enabler of rapid development across the continent, positively impacting the most vulnerable communities.

While digital transformation is certainly not a new discussion, the Covid-19 pandemic has abruptly accelerated the need for digital adoption.

There’s an urgent need to invest in connecting communities and improving service delivery to citizens throughout Africa. However, governments across Africa, and indeed globally, have budgetary restraints that have been exacerbated by the current pandemic. With digitisation requiring significant investments to modernise the government sector and beyond, public-private partnerships (PPPs) will play a critical role in accelerating digital transformation.

Africa’s recovery must be digitally driven – the digital economy is the recipe for job creation, spurring innovation, boosting economic growth and supporting long-term competitiveness in the global digital economy.

To unlock digital transformation, the public sector must be brought into the digital age, accelerating the rollout of digital IDs, signatures and registries, as well as implementing digital-friendly policies.

But to positively impact inequality, citizens need access to the internet. There is more work to be done to create equal opportunities for everyone, including improving next-generation connectivity, particularly for rural communities.

The latest Ericsson Mobility report states that mobile data traffic in sub-Saharan Africa is estimated to grow by 12 times the current figures by 2025. 

Mobile broadband subscriptions are predicted to reach 72 per cent of mobile subscriptions while Long-Term Evolution (LTE) subscriptions are set to triple, increasing from 90 million in 2019 to 270 million in 2025. E-commerce has also been growing quickly; online retailers in Nigeria, for example, have experienced a doubling of revenue each year since 2010. Despite this progress, most sectors of African societies and economies still lag behind the rest of the world in digitisation.

One way to expand digital services is to make use of TV White Space technology (TVWS).

The sustainable nature of this type of spectrum use makes it very cost efficient to implement, which is extremely beneficial for rural, underserved and developing areas.

With TVWS, people are now able to access the internet for less than five per cent of the average household income, and projects such as Mawingu in Kenya, and Bluetown in Ghana are making a palpable difference to people’s lives and livelihoods.

Many governments have struggled with digital transformation. In some instances, red tape and outdated policies make it more challenging to implement digitisation goals. In recent Microsoft-EY research, businesses cite a lack of regulatory guidelines among their top three challenges to implementing AI.

African governments have important roles to play in developing sound digital policies and stable harmonised regulatory environments that enable people and businesses to participate fully in the global digital economy.

With funding constraints and reallocation becoming an even more stark reality, governments are under pressure to normalise tax collection.

Past inefficiencies in the process may well have been overlooked. Countries with vast informal and cash-based shadow economies wish to extend support to all their citizens; however, the support available can be severely hampered by issues with tax collection of existing businesses and individuals.

Some countries are taking the opportunity to offer support to informal SMEs in return for a commitment to register and become part of the regulated economy.

This is often done by offering discounted rates in return for participation in the government’s tax collection policy and laws. Enabling technology can help governments scale tax collection and manage it, predict fraud and support governments in their goals. PPPs can serve to accelerate conversations around key country policies.

The writer, Ryno Rijnsburger, is Chief Technology Officer at Microsoft 4Afrika.