(Ecofin Agency) – While the transformative effect of digital technologies in the economy and society is no longer in doubt, there is still a persistent digital divide in Africa. A delay that harms the various economic benefits of accelerating connectivity on the continent.
According to the conclusions of the first edition of the Digital Africa Index (DAI) of the Global Association of Telephone Operators (GSMA), 41 African countries are currently experiencing low digital development due to an unfavorable political and regulatory framework. There are countries like Tunisia, Cameroon, Ivory Coast, Ghana, Algeria and Gabon.
The GSMA’s newest index, comprised of the Digital Nations and Societies Index (DNSI) – which assesses the adoption and use of digital technology by consumers, businesses and governments in Africa – and the Digital Policies and Regulations Index (DPRI) – which analyzes the political and regulatory framework influencing this adoption – has the main objective of identifying the obstacles to digital development in Africa, in particular policy and regulatory gaps, in order to promote inclusive digital transformation and durable.
Within the continent, the GSMA estimates that mobile internet use is most widespread in North Africa. The network coverage gap is greater in Central Africa, while the usage gap is more pronounced in East Africa. There is also a significant digital divide within different countries. In sub-Saharan Africa, for example, people in rural areas are 54% less likely than those in urban areas to use mobile internet and women are 32% less likely than men to use mobile internet.
The majority of mobile telephony users in Africa still use 2G or 3G technologies. 4G and 5G technologies represent just over a third of the total number of mobile connections, while 4G coverage represented 73% of the population at the end of 2023. The use of 4G/5G technologies is widespread in Africa southern and northern, but not in central, eastern or western Africa. This underutilization of investments in 4G, combined with the slow adoption of new technologies by consumers, businesses and public authorities in the region, poses the problem of maintaining private investment in new technologies to stimulate the development of artificial intelligence, automation, robotics and other technologies.
Beyond the general public, the weak political and regulatory framework also has an impact on the digital development of public administration and businesses. According to the GSMA, although many countries are showing better results in the field of e-government, there is still room for improvement to improve e-government services, to develop the use of P2G/G2P payments (person-to-government and government-to-person) and to use govtech solutions on a larger scale that improve the services provided and support government systems.
On the business side, digital development is at an all-time low as few countries have a vibrant startup ecosystem like Nigeria, Kenya, South Africa, Egypt, Tunisia and Ghana. There are also few of them showing significant use of Internet of Things (IoT) solutions or developing new ICT-related solutions. This last point is measured on the basis of the number of ICT patents granted per capita. The only countries showing progress in this area are Mauritius, Seychelles, South Africa, Tunisia and Morocco.
The use of digital technologies in commerce (electronic merchant payments, online transactions, etc.) also remains limited outside of a few countries such as Kenya, South Africa, Mauritius, Zimbabwe and Namibia.
What’s blocking?
The political and regulatory obstacles to digital development in the majority of African countries identified are of several types, notably the absence of monitoring of broadband strategies to measure the progress made in terms of financial accessibility, skills and connectivity within disadvantaged population categories (particularly women and rural populations); the absence of an effective, transparent and efficient universal service fund; the absence of a regulatory framework favorable to technological startups.
Several countries like Burundi, Eritrea or the Central African Republic, for example, lack regulatory clarity in data protection, cybersecurity and cross-border data transfer. Several, such as Tanzania, the DRC or South Sudan, impose sectoral taxes which have significant distorting effects.
Most countries score below 50 in spectrum licensing and management. A situation which can be explained by the absence of a spectrum roadmap in many countries, the incomplete allocation of available IMT frequencies and the ban on the rental or sale of frequencies. Some countries are also penalized by the high level of spectrum usage fees and the absence of neutral licenses in terms of technology or service.
Regarding network regulation, most countries do not have harmonized deployment regulations, do not have simplified rules for small cell deployment, apply rights of way (which impacts on the ability of operators to deploy terrestrial fiber optic links) and often impose onerous obligations in terms of quality of service and coverage without providing political or financial support.
The potential economic benefits of accelerating connectivity in Africa are significant. GSMA Intelligence analyzes show that closing the continent’s usage deficit by 2030 would increase Africa’s gross domestic product (GDP) by nearly $700 billion over the period 2024–2030. But to achieve this, the Association has identified several public policy priorities that countries must address now.
This includes allocating all available frequency bands at an affordable price and under technologically neutral licenses. This will improve network coverage and quality for mobile service users, as well as the provision of digital solutions and networking solutions for businesses, thereby promoting efficiency and productivity gains.
GSMA also recommends the removal of sectoral taxes on mobile services and cell phones. She believes this will allow the sector to increase its investment in networks while making new technologies more affordable and accessible for consumers.
“Regulatory uncertainty” must also be reduced according to GSMA through the harmonization of regulations relating to network deployment, the promotion of regulatory parity between digital service providers, and ensuring that coverage and quality requirements of service are adapted to the objectives sought in order to find a fair balance between the needs of consumers and the promotion of digitalization. This will encourage continued investment in the technologies of the future.
Finally, universal service funds (USFs) must be reformed to ensure more efficient, cost-effective and transparent provision of connectivity in remote and underserved areas. The aim is to drive wider adoption of digital services to attract locally relevant digital content that will drive our digital economies.
Muriel EDJO
Published by Sèna DB de Sodji
Also read:
In sub-Saharan Africa, 5G subscriptions will increase by 56% on average per year by 2030: report
Related News :