{"id":12697,"date":"2016-04-07T09:33:20","date_gmt":"2016-04-07T09:33:20","guid":{"rendered":"http:\/\/www.francinebeleyi.com\/?p=12697"},"modified":"2025-04-23T19:09:56","modified_gmt":"2025-04-23T19:09:56","slug":"roadmap-to-reap-the-digital-dividends-in-africa","status":"publish","type":"post","link":"https:\/\/francinebeleyi.com\/roadmap-to-reap-the-digital-dividends-in-africa\/","title":{"rendered":"TechAfrica: A Roadmap to Reap the Digital Dividends in Africa"},"content":{"rendered":"

\u201cWe find ourselves in the midst of the greatest information and communications revolution in human history. For many people, today\u2019s increase in access to digital technologies brings more choice and greater convenience.<\/p>\n

But \u201ctraditional development challenges are preventing the digital revolution from fulfilling its transformative potential.\u201d<\/p>\n

\n

\u201cNearly 6 billion people do not have high-speed internet, making them unable to fully participate in the digital economy.\u201d<\/p>\n<\/blockquote>\n

This is how Jim Yong Kim, President of The World Bank Group, prefaces the report on Digital Dividends<\/a>, which reveals that, although digital technologies have spread rapidly in much of the world, the broader development benefits from using these technologies are lagging behind.<\/p>\n

Prior to the publication of this report, I had a conversation with Dr Mawaki Chango from Togo, during my African tech tour<\/a><\/u>. He is a researcher, consultant and entrepreneur, founder of DIGILEXIS<\/a><\/u>, an entity with the mission to contribute to the use of ICTs for social change.<\/p>\n

Mawaki became an advocate for better ICT policies to help the society and let African policy makers understand that development is not all about taxes and monopolies. If they really want their nations to leverage the digital and advance economically, they need to think things through, not to be short-sighted, but instead to put in place effective policies, he says.<\/p>\n

His words echo the key findings of the World Bank report.<\/p>\n

\u201cTo deliver universal digital access, we must invest in infrastructure and pursue reforms that bring greater competition to telecommunications markets, promote public-private partnerships, and yield effective Regulation,\u201d says Mr Kim.<\/p>\n

Recently returned from the US diaspora, Mawaki is exploring the African market to decide where he can operate his consultancy with a decent and affordable access to internet. \u00a0But he is finding out that operating a digital business in some African countries is quite challenging, the cost to connect at 2mbps or less in Togo when he arrived, was twice the salary of a local director.<\/p>\n

How can anyone afford to run a digital business and sell their services at a competitive price with such an exorbitant rate, he asks?\u00a0 So he started in Cote d\u2019Ivoire where the situation was less challenging.<\/p>\n

Some countries like Cape Vert, he says, have taken drastic measures, to invest in affordable high speed internet<\/a> and attract digital entrepreneurs.<\/p>\n

\u201cWe must take advantage of this rapid technological change to make the world more prosperous and inclusive,\u201d says the boss of the World Bank.<\/p>\n

On the government role <\/strong><\/h3>\n

What are the most pressing actions governments can take to accelerate internet access to the wider population?<\/p>\n

Mawaki says: \u201cIt is a straightforward answer but on the other hand it is a difficult answer to get the government to embrace it. It is difficult to breakdown the monopoly situation because most of our governments heavily depend on tax revenues.\u201d<\/p>\n

Asking these governments to relax their grip and open up the market to new actors and drag down their revenues is a tough sell, he reckons.<\/p>\n

\u201cWe need deeper studies that show over time, like in five years\u2019 time, how by opening up the market, by regularising the market and encouraging competition, the different changes that can occur and their positive impact on the economy,\u201d Mawaki says.<\/p>\n

The World Bank report shows that: \u201cThe digital revolution can give rise to new business models that would benefit consumers, but not when incumbents control market entry.\u201d<\/p>\n

\u201cWhat should countries do? Making the internet universally accessible and affordable should be a global priority. \u201c<\/p>\n

\u201cCountries that are able to swiftly adjust to this evolving digital economy will reap the greatest digital dividends, while the rest are likely to fall behind.\u201d<\/p>\n

On entrepreneurial mindset<\/strong><\/h3>\n

Mawaki also strongly believes in entrepreneurship for Africa\u2019s economic and social development than the \u201cso-called public aid for development\u201d.<\/p>\n

\u201cThere is no digital economy without digital entrepreneurs,\u201d he says. Government support for entrepreneurship needs to span all categories of enterprises; not just giving a low level support to women to start a small biz with \u00a330, but also businesses that need \u00a310,000 or more, he says.<\/p>\n

He wants to see ministries in charge of digital economy in Africa to really support digital entrepreneurs, to take their ideas to the next level by enabling the right access, putting appropriate tax measures and regulatory policies in place, to encourage these specific types of businesses that need a long time for R&D before they become profitable and not lumping them together with traditional businesses.<\/p>\n

\u201cWe are not there yet and the problem for some of our countries is that they are not even taking that direction.\u201d They put too much emphasis on those heavy investments like port, businesses with big trade; and traditional sectors of business.<\/p>\n

He also regrets that often, decision makers in Africa do not tend to value their own people \u2018s contribution. \u201cThey act as if their nationals have no agency, they have no contribution to make.\u201d<\/p>\n

Diaspora role <\/strong><\/h3>\n

He thinks that the diaspora can play a big role to enable a thriving digital economy in Africa and offers some ideas:<\/p>\n

    \n
  • Be prepared. <\/strong>\u201cThey need to make sure that the scene is well prepared. The good news is that they can prepare the scene from wherever they are, they don\u2019t necessarily need to be on the ground.\u201d<\/li>\n
  • Be an angel investor.<\/strong> Funding start-ups, looking for young people who are bubbling with innovative ideas, to let them know there are people out there who are willing to put money in their business and take shares. Organise a trust fund or some kind of capital scheme where entrepreneurs can pitch their ideas for investment.<\/li>\n
  • Be a mentor or a manager<\/strong>. People with management skills may\u00a0volunteer\u00a0to help the younger ones to help them manage their business.<\/li>\n
  • Be an advocate for better digital policy.<\/strong> Get together to have a voice; speak up and say to the\u00a0government\u00a0and all decision makers that we need to do better.<\/li>\n<\/ul>\n

    \u201cTell the policy makers that if they want people to invest back in their country or to return and do business in their country, a critical part of the equation is to have a good infrastructure, a good access and a good regulatory framework.\u201d<\/p>\n

    \u201cMore importantly something that shows that the designer of the framework understands the opportunities of digital economy or digital entrepreneurship.\u201d<\/p>\n

    The triple condition to reap the digital dividends<\/strong><\/h3>\n

    The main mechanisms for digital technologies to promote development, the report says are Inclusion, efficiency, innovation<\/strong>. The triple complements\u2014a favorable business climate, strong human capital, and good governance.<\/p>\n

     <\/p>\n

    Watch the full interview<\/a>\u00a0 with Dr Mawaki Chango, and the\u00a04th episode<\/a>\u00a0of our\u00a0\u00a0#NOCTechAfrica<\/a> series, where I\u00a0interview of inspiring African Tech entrepreneurs in the diaspora and on the continent to explore how to unlock the potential of Africa and what it takes to succeed on the continent.<\/p>\n