Unlocking the

Digital Economy
in Africa:
Benchmarking the
Digital Transformation
Journey

AUGUST 2020

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 1
Authors
Grace Nyakanini from Smart Africa
Maurice Sayinzoga and Nicholas Gates from the
Digital Impact Alliance
Erik Almqvist and Kutay Erkan from Sense Strategy

Contributors
Scott Neilitz and Cristina Alves from the
Digital Impact Alliance
Dr. Ralph Oyini Mbouna from Smart Africa

With support from:

Didier Nkurikyimfura from Smart Africa
Mary Jo Kochendorfer, Laura Walker McDonald, and
Jake Watson from the Digital Impact Alliance
 Table of Contents
Table of Figures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Smart Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
DIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Sense Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Acronyms and Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
II. Methodology for Benchmarking Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.1. Framework for Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.2. Country Selection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.3. Benchmarking Assessment Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.4. Primary Data Collection and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
III. State of the Digital Economy: Benchmarking Progress Against the Digital Economy Pillars. . . . 20
3.1. Digital Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.2. Digital Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.3. Infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.4. Innovation-Driven Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
3.5. Digital Skills and Values. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
IV. The Role of Government in Unlocking the Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
4.1. Digital Economy Planning: Strategy, Policy, and Implementation . . . . . . . . . . . . . . . . . . . . . 33
4.2. Strategic Coordination and Silos Across Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
4.3. Resource Mobilisation: Funding, Affordability, and Procurement . . . . . . . . . . . . . . . . . . . . . 36
4.4. Digital Change Management: User-Centered Government Services for Businesses
and Citizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
4.5. ICT Infrastructure: Private Sector Collaboration and Last-Mile Connectivity. . . . . . . . . . . . . 41
4.6. Emergency Planning and Sectoral Plans for Digital Government . . . . . . . . . . . . . . . . . . . . . 43
4.7. Digital Skills and Capacity for Governments and Citizens. . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.8. Regional Collaboration and Global Alignment: Policy, Platforms, and Peer Learning . . . . . 47
4.9. Benchmarking the Digital Transformation Journey: Key Themes and Takeaways. . . . . . . . 50
V. Call-to-Action: Unlocking the Digital Economy Through Sustainable and Inclusive
Digital Transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
VI. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
A. Country Profiles: Benchmarking Progress Towards Digital Economy . . . . . . . . . . . . . . . . . . . 64
B. Detailed Methodology of Benchmarking Indices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
C. Selected Best Practices for a Digital Economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
D. Smart Africa Initiatives for a Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
E. Strategic Development: Designing Digital Economy Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 3
 Table of Figures
Figure 1: Objectives of the Benchmarking Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure 2: The Digital Economy Blueprint for Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Figure 3: Pillars of the Kenya Digital Economy Blueprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Figure 4: Participating Smart Africa Member Countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Figure 5: Indices Used for Benchmarking Assessment Using Secondary Data . . . . . . . . . . . . . . . . 17

Figure 6: Participation of Countries in Primary Data Collection Activities . . . . . . . . . . . . . . . . . . . . . 18

Figure 7: Case Study: E-Services Portal in Benin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Figure 8: Comparison of the Digital Government Pillar Among Participating Countries. . . . . . . . . . . 21

Figure 9: Evolution of Digital Government Services From 2010 to 2018. . . . . . . . . . . . . . . . . . . . . . . 22

Figure 10: Comparison of the Digital Business Pillar Among Participating Countries . . . . . . . . . . . . 23

Figure 11: Case Study: Mobile Money Interoperability in Ghana. . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Figure 12: Case Study: Broadband Fibre-Optic Network in Gabon . . . . . . . . . . . . . . . . . . . . . . . . . 26

Figure 13: Case Study: Digital Entrepreneurship in Senegal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Figure 14: Comparison of the Innovation-Driven Entrepreneurship Pillar Among

Participating Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Figure 15: Comparison of the Digital Skills and Values Pillar Among Participating Countries . . . . . 30

Figure 16: Case Study: DigiSchool in Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Figure 17: Call-to-Action: Unlocking the Digital Economy Through Sustainable and
Inclusive Digital Transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Figure 18: Country Profile of Angola in Terms of the Five Pillars of the Digital Economy Blueprint. . . . 64

Figure 19: Country Profile of Benin in Terms of the Five Pillars of the Digital Economy Blueprint . . . . . 64

Figure 20: Country Profile of Burkina Faso in Terms of the Five Pillars of the
Digital Economy Blueprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Figure 21: Country Profile of Côte d’Ivoire in Terms of the Five Pillars of the
Digital Economy Blueprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Figure 22: Country Profile of Gabon in Terms of the Five Pillars of the Digital Economy Blueprint . . . . 66

Figure 23: Country Profile of Ghana in Terms of the Five Pillars of the Digital Economy Blueprint . . . . 66

Figure 24: Country Profile of Kenya in Terms of the Five Pillars of the Digital Economy Blueprint. . . 67

Figure 25: Country Profile of Niger in Terms of the Five Pillars of the Digital Economy Blueprint . . . 67

Figure 26: Country Profile of Senegal in Terms of the Five Pillars of the Digital Economy Blueprint. . . 68

Figure 27: Country Profile of Sierra Leone in Terms of the Five Pillars of the
Digital Economy Blueprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 4
 Acknowledgments Smart Africa is a bold and
innovative commitment
This report is the result of a collaboration to accelerate sustainable
among three organisations. Smart Africa socio-economic development on the continent
and the Digital Impact Alliance (DIAL)—the and usher Africa into the knowledge economy
conveners and facilitators for this study— through affordable access to broadband
have provided guidance and secondary data and use of information and communication
through landscaping efforts, contacts, and technologies (ICTs). The Smart Africa Alliance
funding. Sense Strategy, which acted as a brings together heads of state who seek to
consultant on the study, collected the primary accelerate the digitalisation of the continent
data and summarised it into preliminary report and create a common market. Launched in
form, which has been iterated upon by the 2013 by seven African heads of state who
Smart Africa and DIAL teams. jointly adopted the Smart Africa Manifesto
at the Transform Africa Summit in Kigali,
From Smart Africa, we would like to thank the Alliance now has 30 member countries,
Grace Nyakanini, Dr. Ralph Oyini Mbouna, representing more than 750 million people. For
and Didier Nkurikiyimfura for their support, more information, see: https://smartafrica.org/.
guidance, and contributions to this project.
From DIAL, thanks are due to Maurice
Sayinzoga and Nicholas Gates for their The Digital Impact Alliance
contributions to the partnership and final is an independent global
report, as well as Scott Neilitz, Cristina alliance funded by leading development
Alves, Mary Jo Kochendorfer, Laura Walker agencies and private foundations. DIAL
McDonald, Angela Kastner, and Jake Watson was established in 2015 as a “think, do,
for their support and guidance throughout replicate” tank, combining practical research
the project. We would also like to thank Erik with evidence-based advocacy to advance
Almqvist and Kutay Erkan of Sense Strategy digital inclusion to achieve the Sustainable
for their efforts in collecting and preparing the Development Goals (SDGs). DIAL identifies
data for this study. barriers to the routine use of digital solutions
and data by development actors (countries,
Finally, and most importantly, we would NGOs, multilateral institutions); tests ways
like to thank the representatives of Angola, to remove them; and packages solutions for
Benin, Burkina Faso, Côte d’Ivoire, Gabon, these actors to use in service delivery efforts.
Ghana, Kenya, Niger, Senegal, and Sierra For more information, see:
Leone, without whom this report would not https://www.digitalimpactalliance.org/.
have been possible.

Sense Strategy is a global

management consulting
firm specialising in the
digital economy, digital transformation, and
investment advisory. The company actively
advises governments, NGOs, leading ICT
License information stakeholders, and investors. The Sense
This work is licensed under the Creative Strategy team has supported more than
Commons Attribution-NonCommercial- 160 projects on five continents, including
ShareAlike 4.0 International License. 31 African countries, and pioneered the
To view a copy of this license, visit measurement of the socioeconomic effects of
https://creativecommons.org/licenses/by-nc- ICT. For more information, see:
sa/4.0/legalcode or send a letter to https://sensestrategy.com/.
Creative Commons, PO Box 1866,
Mountain View, CA 94042, USA.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 5
 Foreword in certain key areas. However, there is
significant work that still needs to be done,
primarily in developing comprehensive and
In the modern era, digital technology is
coherent strategies which improve whole-of-
essential to everyday life and has become
government coordination and planning, but
embedded in every aspect of our lives,
also in ensuring that the five pillars of a digital
including business and government. Like
economy—namely Digital Government, Digital
all countries throughout the world, African
Business, Infrastructure, Innovation-Driven
countries need to adapt to this reality and
Entrepreneurship, and Digital Values and
ensure that technology becomes a central
Skills—are realised to the fullest extent.
component of people’s lives and businesses.
Part of this process is the development of
a digital economy for countries, within the In the modern era, digital
framework of regional economic integration technology is essential to
and the creation of a single digital market
on the African continent. Such a market everyday life and has become
could offer countries and their governments embedded in every aspect of
a range of immense possibilities to foster our lives, including business
technological inclusion and economic growth
for their citizens.
and government.

Following the launch of the Digital Economy In order for governments and their citizens to
Blueprint by the Republic of Kenya, Smart access the benefits of participation in a
Africa commissioned this study to benchmark digital economy, countries need to
the progress of its Member States—and by collectively build ecosystems that facilitate
extension Africa’s progress—towards unlocking digital integration—regionally and
the digital economy. Ten countries were continentally, and in collaboration with the
selected for this assessment, including: Angola, private sector and civil society. Towards this
Benin, Burkina Faso, Côte d’Ivoire, Gabon, end, Smart Africa has begun the journey
Ghana, Kenya, Niger, Senegal, and Sierra towards operationalising the Digital Economy
Leone. Supported by the Digital Impact Alliance Blueprint for use in developing digital
(DIAL), this report documents these countries’ economies across the continent, and this
experiences to create actionable knowledge study is the first step in helping member
and insights which will inform the development states achieve this vision.
of digital economy strategies. We thank the
Honourable Ministers of ICT and delegations
from each of these countries for their valuable
support and engagement during this process.

The results of the study are encouraging

with regards to such progress. Most of the
countries surveyed have some degree of
strategy in place and are making progress

Lacina Koné Kate Wilson

Director General and CEO CEO
Smart Africa Digital Impact Alliance

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 6
 Acronyms and Abbreviations
AfCFTA AfDB AIDI AISI AU
Africa Continental African Africa African African Union
Free Trade Area Development Infrastructure Information
Bank Development Society Initiative
Index

CEMAC DER DIAL ECOWAS EGDI

Central African General Digital Impact Economic E-Government
Economic Delegation Alliance Community of Development
and Monetary for Rapid West African Index
Community Entrepreneurship States

EMIS GCI GII ICT4D ICT

Education Global Global Innovation ICT for Information and
management Competitiveness Index development communication
information Index technology
systems

IoT ITU KII KPI M&E

Internet of things International Key informant Key performance Monitoring and
Telecommunica- interview indicator evaluation
tions Union

MII MNO NICI NIIMS OSI

Mobile money Mobile network National National Online service
interoperability operator information and integrated identity index
communication management
infrastructure system

PPP PWG R&D SDGs SMS

Public-private Project working Research and Sustainable Short message
partnership group development Development service
Goals

UN UNDESA UNECA WGA WEF

United Nations United Nations UN Economic Whole-of- World Economic
Department Commission for government Forum
of Social and Africa approach
Economic Affairs

WHO WSIS WURI

World Health World Summit on West Africa Unique
Organization the Information Identification
Society for Regional
Integration and
Inclusion

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 7
 Executive Summary Angola, Benin, Burkina Faso, Côte d’Ivoire,
Gabon, Ghana, Kenya, Niger, Senegal, and
Across the African continent, governments Sierra Leone. The goals of the benchmarking
are recognising the transformative potential study were to understand the progress these
of digital technologies within their countries. countries have made and the challenges they
They are also recognizing the importance face in unlocking the digital economy, identify the
of government in driving movement towards status of their ICT strategies and plans, provide
an interconnected, digital economy which high-level guidance and recommendations
harnesses the power of technologies as a driver to Smart Africa, and provide conclusions
for economic growth and innovation.1 That about best practices and common learnings.
being said, the key to realizing this potential A specific focus was also put on the role of
lies in expanding digital adoption and inclusion digital government in driving the transformation
across the whole-of-society, as well as in of the economy, looking at the various areas
improving whole-of-government coordination of of a digital economy endorsed by Smart Africa
digital services extension and delivery. through the Digital Economy Blueprint.
Smart Africa, in collaboration with the Digital This report finds that despite promising
Impact Alliance, organised this study to movement towards the adoption and use of the
understand individual country progress, blueprint and similar approaches in Africa, actual
benchmarked against the Digital Economy progress towards creating a digital economy is
Blueprint for Africa. This blueprint, endorsed happening at a different pace across African
by the member states of the Smart Africa countries. There are variations in how countries
Alliance, is a framework for developing and define and promote digital transformation and
achieving a digital economy. Pioneered by the the creation of a digital economy, as well as
government of Kenya, the blueprint highlights varying areas of prioritisation and degrees of
five pillars as a foundation for creating a success in key strategic areas at the country
digital economy and underscores the need for level. It is therefore important to understand
countries to adopt user-centric and whole-of- the various challenges faced by countries in
government processes in promoting outcomes their digital transformation journeys, as well as
for the whole-of-society. the best practices used and lessons they have
learned along the way.
After reaching out to member states within the
Smart Africa network, 10 countries responded The following are some of the key takeaways of
and expressed formal interest in such a this study and where more information can be
benchmarking assessment. They include found within this report:

Key Takeaways
Progress Towards a Digital Economy Digital Economy Strategic Planning
1. (Section III): The benchmarking 2. (Section 4.1): Most countries have ICT
assessment revealed that there has been strategies or plans in place, though very few
significant progress in Africa across all five are specific to creating a digital economy.
pillars of the Digital Economy Blueprint, despite Countries have mobilised considerable political
weaknesses in areas both unique and common will in recent years and pursued global and
to the countries profiled. The progress measured regional alignment, but efforts to renew these
across these pillars is both in absolute and relative strategies (with a focus on digital economy
terms, meaning that the gap between Africa and whole-of-government coordination) are
and the rest of the world (as proxied by these 10 just beginning. That being said, updating
countries) is shrinking when it comes to digital strategies often requires significant resources
government services provision and achievement and time from governments, a challenge that
across other areas of digital economy. cannot be underestimated.

1 This vision is perhaps best embodied by the recent African Union Digital Transformation Strategy for Africa (2020-2030). For more information, see: African
Union, “The Digital Transformation Strategy for Africa (2020-2030),” African Union. Retrieved from: https://au.int/sites/default/files/documents/38507-doc-dts-
english.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 8
 National Strategic Coordination mile connectivity. However, there are still
3. and Silos (Section 4.2): A majority several challenges, notably in coordinating
of countries have been making substantive infrastructure investment and rollout, extending
policy and strategy changes in recent years, connectivity to low-income and marginalised
improving fragmented digital governance by populations, and creating incentives for private
deploying coordinated ICT strategies and sector infrastructure investments (particularly
harmonized policy and regulatory frameworks. in rural areas).
However, siloed investments and a lack of
Emergency Planning and Sectoral
cooperation between ministries continue to 7. Plans (Section 4.6): In light of the
create problems for national and sectoral
decision-making, often making it difficult to COVID-19 pandemic, most countries
design and deploy ICT strategies and plans in highlighted the need to have updated ICT
a coordinated manner. strategies for disaster and emergency
management in place, in order to improve
Funding, Affordability, and digital preparedness. Additionally, while this
4. Procurement (Section 4.3): Across study found that most countries surveyed
the board, countries have had some success have existing ICT sectoral plans in key areas
in catalysing the necessary political will like health and education, they often lack
and policies to finance digital infrastructure sectoral ICT strategies in important areas like
development and other digital economy commerce, as well as cross-cutting areas like
initiatives. However, limited ICT funding is still gender and disability. To this end, countries
a challenge, as is acquiring private-sector and are working hard to create supportive sectoral
sectoral investments. Some countries also policies and improve their emergency planning.
struggle with improving connectivity and digital
Digital Skills and Human Capacity
literacy because of issues of affordability,
and challenges in procurement often create
8. (Section 4.7): Countries are taking
negative downstream effects for ICT access, proactive steps to address gaps in ICT skills
challenging the continued improvement of and talent development. However, they still
digital government services. face challenges in improving connectivity and
creating an enabling ecosystem, which affects
User-Centered Government Services the talent pipeline for the government and the
5. (Section 4.4): Countries across this private sector. Developing human capacity
study are experiencing a paradigm shift entails promoting a culture of innovation and
towards user-centred government services. entrepreneurship across society, as well as
They have made progress in this regard upskilling and improving the capacity of the
because of increased political will and existing government workforce.
movement towards the digitalisation of
Regional Collaboration and Global
government administration, anchored around 9. Alignment (Section 4.8): Regional
the needs of businesses and citizens. Still,
some countries lack centralised mechanisms collaboration has been happening at the
for managing change and require clear, nexus of policy frameworks, digital platforms,
holistic digital change management strategies and peer learning, with particular success
to improve the success of their transformations. in regional policy harmonisation and global
alignment. However, progress is still early,
ICT Infrastructure and Access (Section and continued cooperation with institutions
6. 4.5): Most countries in this study have like Smart Africa, the African Union, and other
made significant progress in improving access regional blocs will be critical to promoting
to ICT infrastructure and connectivity in the knowledge sharing, trade, and digital
last decade, with support from public-private economic integration across the continent.
partnerships and a renewed focus on last-

Based on these key takeaways, this report to unlock the digital economy. We hope that
proposes a “call-to-action” for member states these recommendations will help countries
of the Smart Africa Alliance, focused on the better understand the learnings from this
need to renew national ICT strategies and benchmarking assessment as they move
improve government coordination in order towards unlocking the digital economy.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 9
I.
Introduction
I. Introduction That being said, the use of ICTs has in recent
decades allowed for tremendous growth and
As noted by the International Telecommunications expansion in the size and scope of the digital
Union (ITU), information and communication economy.7 Alongside these rapid
technologies (ICTs) “can help accelerate technological changes and the ICT-enabled
progress towards every single one of the 17 dividends of economic integration has come
United Nations Sustainable Development increasing recognition of the unique role that
Goals (SDGs).”2 ICTs have provided a means governments play in promoting an enabling
to deliver goods and services in areas ICT ecosystem for the digital economy (at the
such as health care, education, finance, national, regional, and global levels). This is
commerce, governance, and agriculture with particularly true in Africa, where the
unprecedented scale, speed, and accuracy.3 digitalisation of existing sectors of the
Such technologies can also have a multiplier economy through ICT has frequently allowed
effect in the development of social and developing countries to leapfrog antiquated
economic capital and can thereby “… help and ineffective infrastructure and pursue new
to reduce poverty and hunger, boost health opportunities,8 as well as modernise
outcomes, create new jobs, mitigate climate economies and improve transparency and
change, improve energy efficiency, and make government accountability.9
cities and communities sustainable.”4
The adoption and use of ICTs for development
The COVID-19 pandemic has also (ICT4D) is also happening at different paces
underscored how widely ICTs have permeated and varying degrees across the different
the lives of people around the world, as well countries on the African continent. In order for
as our collective reliance on digital tools countries in Africa to cooperate and achieve
and services to function in our personal and a vision for a digital and interconnected
professional lives. Nevertheless, many remain market,10 it is important to first recognise the
unconnected and unable to experience the unique role to be played by governments in
full benefits of digital transformation,5 and
there remains a huge divide between internet
adoption and use in the Global North and that
The adoption and use of ICTs
in low- and middle-income countries, with only for development (ICT4D) is
19% internet usage in the least-developed happening at different paces
countries (LDCs) versus 87% in high-income
countries.6 This divide is particularly acute
and varying degrees across
in Africa, where increasing connectivity is the different countries on the
transforming the continent and integrating African continent.
people into the digital economy.

2 “ITU’s approach to using ICTs to achieve the United Nations Sustainable Development Goals,” ITUNews, October 23, 2018: Overview Section. Retrieved
from: https://news.itu.int/icts-united-nations-sustainable-development-goals/.
3 Ibid.
4 Ibid.
5 United Nations High-Level Panel on Digital Cooperation, “Report of the Secretary-General: Roadmap for Digital Cooperation,” United Nations, June 2020: 2.
Retrieved from: https://www.un.org/en/content/digital-cooperation-roadmap/assets/pdf/Roadmap_for_Digital_Cooperation_EN.pdf.
6 Ibid.
7 According to the recent Digital Cooperation Roadmap, achieving universal, affordable, and quality internet access in Africa by 2030 may cost as much as
US $100 billion. See: United Nations High-Level Panel on Digital Cooperation, “Report of the Secretary-General: Roadmap for Digital Cooperation,” United
Nations, June 2020: 7. Retrieved from: https://www.un.org/en/content/digital-cooperation-roadmap/assets/pdf/Roadmap_for_Digital_Cooperation_EN.pdf.
8 This is perhaps particularly true in areas such as mobile penetration and digital identification, but also in adoption and use of frontier technologies
like blockchain, small-scale satellite, and the internet of things. For more information on this concept and (in part) its relevance to Africa, see: UNCTAD,
“Leapfrogging: Look Before You Leap,” Policy Brief, no. 71 (December 2018): 3. Retrieved from: https://unctad.org/en/PublicationsLibrary/presspb2018d8_
en.pdf.
9 EU-AU Digital Economy Task Force, “New Africa-Europe Digital Economy Partnership: Accelerating the Achievement of the Sustainable Development Goals,”
European Commission: 7. Retrieved from: https://ec.europa.eu/digital-single-market/en/news/new-africa-europe-digital-economy-partnership-report-eu-au-
digital-economy-task-force.
10 This vision is expressed in the Africa Continental Free Trade Area (AfCFTA) plan to create a single continental market for goods and services.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 11
promoting and guiding the transformation of for how to strengthen digital economy
the digital economy. By using digital tools and planning and development. This report in
services to transform existing infrastructure particular aims to understand the unique role
and institutions, as well as learn from their of government in progress towards a digital
neighbors and regional peers, governments economy among a subset of Smart Africa
can prioritise a paradigm shift in how member states in areas such as strategy,
businesses and citizens engage with the planning, and implementation.
local economy. They can also integrate their
economy with that of Africa and the rest of the The specific objectives of the study are
globe, in the process promoting the inclusion summarised below in Figure 1.
and well-being of their citizens.

Smart Africa Partnership for Digital

Economy Strategy and Planning FIGURE 1
As countries converge towards the single
digital market and a shared digital
Objectives of
transformation agenda, harmonising national Benchmarking Assessment
ICT strategies and regulatory frameworks
becomes critical, and governments play a
unique role in guiding the digital transformation To benchmark country progress
of their economies. To this end, Smart Africa towards digital economy in the ten
partnered with the Digital Impact Alliance identified member states, as described
(DIAL) to understand the importance of digital in the five pillars of the Digital Economy
government in particular, as well as how
Blueprint
governments can promote and enact a
national digital transformation agenda.
To identify the status of ICT
Smart Africa is a commitment from African strategies and plans and challenges to
heads of state and government to accelerate their successful implementation, as well
sustainable socioeconomic development, as barriers hindering the planning and
transforming the continent into a knowledge achievement of digital economy
economy through affordable access to
broadband internet and the use of ICTs. To provide high-level guidance and
Their goal is to create a single digital market
recommendations for Smart Africa on digital
that enables cross-border collaboration
economy strategic planning through a call-
and economic integration across the entire
to-action for Smart Africa Member States
continent,11 as well as understand how
countries can work, learn, and transform
together in pursuit of digital economy. To provide conclusions, if possible,
Bringing its own expertise, DIAL helped about best practices and common
Smart Africa to mobilise governments to learnings, as well as create replicable
participate in this study, as well as document learning and insights outside the scope of
their key learnings and challenges. this study

This study has sought to not only benchmark

countries’ progress, but also create
actionable insights and recommendations

11 Transforming Africa Summit, “The Smart Africa Manifesto,” Endorsed by Heads of State and Government in Kigali, (October 2013): 3. Retrieved from:
http://www.smartafrica.org/new/wp-content/uploads/2019/01/smart_africa_manifesto_2013_-_english_version.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 12
II.
Methodology for
Benchmarking
Assessment
II. Methodology for Benchmarking Assessment

D I GITAL ECONOM Y BLUEPRI NT FO R AFRI CA

CROSS CUTTING ISSUES
Policy and Regulatory Emerging Trends Data

DIGITAL ECONOMY PILLARS

Innovation
Digital Digital Infrastructure Driven Digital Skills
Government Business Entrepreneur- and Values
ship

ECOSYSTEM
Government Citizens Private Sector

CROSS CUTTING ISSUES

Integrated Ecosystem Green ICT Security

FIGURE 2 12

2.1. Framework for Analysis economy strategies.15 Implicit in the Blueprint

The figure above outlines the main pillars of is the understanding that countries need to be
the Digital Economy Blueprint.13 The blueprint the drivers of their own digital transformation,
was developed by the government of Kenya and that shared learning and insights among
as its contribution to the Smart Africa Alliance member states will help them strengthen
flagship projects14 and was later adopted by regional collaboration and integration while
Smart Africa member states as a reference also driving specific and concrete national
document for developing their own digital development objectives.

12 For more information on Figure 2, please see: Republic of Kenya, “Digital Economy Blueprint: Powering Kenya’s Transformation,” Government of the
Republic of Kenya (2019): 26-28. Retrieved from: https://ca.go.ke/wp-content/uploads/2019/05/Kenyas-Digital-Economy-Blueprint.pdf.
13 Ibid., 26-28.
14 Ibid., 11.
15 Ibid., 11.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 14
For this study, the five pillars identified in
FIGURE 3
the Digital Economy Blueprint were used as
key areas in assessing progress towards Pillars of the Kenya
creation of a digital economy, with emphasis
on the critical role of government. Through
Digital Economy Blueprint
its pillars, the blueprint reflects a whole-of-
society approach to digital transformation by
acknowledging the contributions and roles of Digital Government:
diverse actors across many different sectors
of the economy. A detailed explanation of the
1 The presence and use of
digital services and platforms
pillars and their relevance to the benchmarking to enable public service delivery
exercise can be found to the right in Figure 3.16
Digital Business:
In providing for the key role of digital
government (Pillar One) as a driver for the 2 The development of a robust
marketplace for digital trade,
digital transformation of the economy, this digital financial services, and
study has also leveraged previous work digital content
done by ITU and DIAL to understand the
need for a whole-of-government approach
Infrastructure:
3
(WGA) to investing in digital transformation.17
The availability of affordable,
First pioneered in the United Kingdom in
accessible, resilient, and
the late 1990s,18 WGA refers to horizontally reliable infrastructure
integrated government which delivers digital
services in a more integrated and coordinated
manner.19 With this approach, ministries and Innovation-Driven
other agencies promote collaboration and
alignment by cooperating on targeted, cross-
4 Entrepreneurship:
The presence of an ecosystem
cutting services, a model applied successfully that supports homegrown firms
to generate world-class products
by countries as diverse as Estonia and India
and services that help to widen
in developing digital government capacity.20
and deepen digital economic
transformation
In addition to the benchmarking assessment,
the research team also conducted interviews
and discussions with country representatives Digital Skills and Values:
to evaluate the role of government and
summarise related successes and
5 The development of a digitally
skilled workforce that is grounded on
sound ethical practices and socio-
challenges. A review of relevant country
cultural values
benchmarking results was used to inform
the design of interview questions and guide
discussions with countries.

16 Ibid., 11.
17 The SDG Digital Investment Framework, developed by ITU and DIAL, takes the WGA principle one step further into the digital investment realm. It helps
policymakers identify reusable ICT building blocks (e.g., digital ID, messaging, and payment services) that can deliver priority SDG use cases. See: DIAL and
ITU, “SDG Digital Investment Framework: A Whole-of-Government Approach to Investing in Digital Technologies to Achieve the SDGs,” ITU (2019). Retrieved
from: https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-DIGITAL.02-2019-PDF-E.pdf.
18 Ling, Tom, “Delivering Joined-Up Government in the UK: Dimensions, Issues and Problems,” Public Administration 80, no. 4 (December 2002): 615.
Retrieved from: https://onlinelibrary.wiley.com/doi/epdf/10.1111/1467-9299.00321.
19 DIAL and ITU, “SDG Digital Investment Framework: A Whole-of-Government Approach to Investing in Digital Technologies to Achieve the SDGs,” ITU
(2019): 11. Retrieved from: https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-DIGITAL.02-2019-PDF-E.pdf.
20 OECD, “OECD Public Governance Reviews: Estonia: Fostering Strategic Capacity across Governments and Digital Services across Borders: Summary
of Key Findings,” OECD, Paris (2015): 4-5. Retrieved from: http://www.oecd.org/gov/key-findings-estonia.pdf; Noshir Kaka et al., “Digital India: Technology to
transform a connected nation,” McKinsey Global Institute, March 2019. Retrieved from:
https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/digital-india-technology-to-transform-a-connected-nation.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 15
2.2. Country Selection
Smart Africa issued invitations to participate in Smart Africa member states would not be
this study to all member countries. The study able to participate in the study as designed.
selected the first 10 countries that expressed The 10 countries selected are shown below in
interest in participating, recognising that all Figure 4.

FIGURE 4

Participating Smart Africa Member Countries21

BURKINA FASO

NIGER

SENEGAL

SIERRA LEONE

CÔTE D’IVOIRE BENIN

GHANA
KENYA
GABON

ANGOLA

21 Disclaimer: The geographic designations employed and the presentation of material on this map do not imply the expression of any opinion whatsoever
on the part of the Smart Africa Alliance or Digital Impact Alliance/United Nations Foundation concerning the legal status of any country, territory, city or of its
authorities, or concerning the delimitation of its frontiers or boundaries.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 16
2.3. Benchmarking Assessment In accordance with these criteria, a holistic
Process assessment of the digital development
ecosystem was carried out, resulting in the
This benchmarking assessment created country
selection of the indices listed below in Figure 5.
profiles using a range of existing indices
(These indices and their methodologies will be
as proxies for each pillar, supplemented by
briefly discussed in Section III, while a detailed
subsequent qualitative data collection (see
assessment can be found in Appendix B.)
Section 3.3). The selection of appropriate
indices for each pillar was based on the
For an objective analysis of the countries
following criteria:
and the current situation, secondary data
1. Reputation and trustworthiness of the from various sources was also examined.
organisation that prepared the index This literature review included more than 70
publications from reputable sources, such
2. Global and African recognition in areas
as the UN and World Bank, helping to create
associated with each index
a portrait of each country’s progress with
3. Sub-indicators that reliably match the regards to the digital economy and
pillars of the blueprint informing primary data analysis and the
4. Existence of data for the associated study’s recommendations.
indices in the 10 selected countries

FIGURE 5

Indices Used for Benchmarking Assessment Using Secondary Data

INDEX PILLAR ORGANISATION MEASURES

Online Service Index Digital Government UNDESA Overall level of digital

(OSI) government services

Global Digital Business World Economic Administrative

Competitiveness Forum requirements to start
Index (GCI) – and end businesses,
Business Dynamism and entrepreneurial
culture

Africa Infrastructure Infrastructure African Development ICT, electricity,

Development Index Bank transportation, water
(AIDI) supply and sanitation,
etc.

Global Innovation Innovation-Driven World Intellectual Multidimensional

Index (GII) Entrepreneurship Property Organization, facets of innovation
INSEAD, Cornell present in a country’s
University innovation ecosystem

Global Digital Skills World Economic Years of schooling

Competitiveness and Values Forum and skills of both
Index (GCI) – Skills current and future
workforce

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 17
2.4. Primary Data Collection countries. Country delegations also presented
and Analysis on their successes, challenges, and visions for
e-government and a digital economy.22
The data analysis for this project was carried
out using a holistic triangulation approach that
Web Survey
considered different data collection methods
and data sources to provide comprehensive A web survey, which included more than 30
insights. This approach considered both questions on the topics of inquiry, was sent
secondary data (collected through literature to the delegates. All participants were mid-
review and indices) as well as primary data level government officials tasked with devising
(collected through focus group discussions, a and implementing national ICT strategies and
web survey, and semi-structed interviews with plans. The survey, which was administered on
country representatives). Assessment of this the first day of the virtual workshop and used
data used a holistic analysis of the individual a mix of question styles, largely focused on
datasets, which are enumerated below. open-ended response. It was filled out by one
(Some country delegations were not able to to three individual respondents in each country
participate in all data collection activities, as ahead of the key informant interviews.23
indicated below in Figure 6.)
Key Informant Interviews
Focus Group Discussion (Virtual Workshop) After analysing the results of the survey and
A focus group discussion conducted in a virtual focus group discussion, the research team
workshop format brought together a wide range developed and implemented semi-structured key
of government stakeholders from participating informant interviews. These interviews concluded
member states to discuss successes and the data collection process and included both
challenges relating to digital economies. This general questions for all interviewees and
forum allowed the research team to engage questions targeted to specific country contexts
respondents and validate information on the based on findings from previously collected
state of the digital economy within the selected primary and secondary data.

FIGURE 6

Participation of Countries in Primary Data Collection Activities

COUNTRY
KEY INFORMANT
COUNTRY WEB SURVEY PRESENTATION
INTERVIEW
(Focus Group)

ANGOLA YES YES YES

BENIN YES NO YES

BURKINA FASO YES YES YES

CÔTE D’IVOIRE YES YES YES

GABON YES YES YES

GHANA YES YES YES

KENYA YES YES YES

NIGER YES YES YES

SENEGAL NO YES YES

SIERRA LEONE YES YES YES

22 The only country unable to make a presentation during this workshop was Benin.
23 The research team did not receive a response to the survey from the delegation of Senegal.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 18
 III.
State of the
Digital Economy:
Benchmarking
Progress Against
the Digital
Economy Pillars

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 19
III. State of the index of the 2018 E-Government Development
Index (EGDI) indicating the scope and quality
Digital Economy: of internet services.27 EGDI is prepared by
the United Nations Department of Social and
Benchmarking Economic Affairs (UNDESA) and aims to

Progress Against measure the overall level of digital government

the Digital Economy

Pillars Case Study:
Progress across the five pillars of the digital E-Services Portal in Benin
economy is being made, but at differing rates
across countries, with countries often having
success in different areas. This section will In 2020, the government of Benin launched a
explore this difference by using secondary national e-services portal that will be a single
data to benchmark the current state of the point of entry to all government public services.
digital economy in the selected countries. As While hosted by the Ministry of Digitisation,
noted in Section II, this analysis uses specific the project was coordinated by the Beninese
benchmarks—in accordance with selected Information Systems and Services Agency
proxy indices—to measure progress in specific (ASSI), with technical support from Cybernetica
areas or pillars.24 (Note: The results of this and Open SI.28 At the moment, the portal
benchmarking analysis for each country can provides information about some 250 public
be found in Appendix A.) services, and featured information will be added
for more services throughout the year.29

3.1. Digital Government The goal of the project is to digitise public

The Digital Government pillar is focused on services and promote harmonised public
increasing the quantity and quality of digital administration across government.30 This is
government services that are available to meant to streamline public services to citizens
citizens and businesses within a country.25 and businesses and improve government
Digital government plays a key role in accountability. As highlighted by Beninese
unlocking the digital economy. It can lead officials, the platform was built on top of the
to an increase in tax and other revenue, an Estonian X-Road interoperability platform,
increase in employee productivity, a reduction with the goal of connecting different systems
in service delivery costs, improvements in the and databases across sectors31 and creating
ease of doing business, more support for ICT a digitally integrated government. This will be
job creation, and the development of local supported in the coming years by digital ID and
manufacturing of ICT tools and infrastructure, will help lay the foundation for national digital
among other things.26 economy platforms and services.

The Digital Government was benchmarked using

FIGURE 7
the Online Service Index (OSI), a component

24 A full methodology for this chapter can be found in Section III, while the full secondary information on countries can be found in the appendices, which also
provide best practices for a digital economy (i.e., achievements and initiatives) across countries.
25 Republic of Kenya, “Digital Economy Blueprint: Powering Kenya’s Transformation,” Government of the Republic of Kenya (2019): 33-34. Retrieved from:
https://ca.go.ke/wp-content/uploads/2019/05/Kenyas-Digital-Economy-Blueprint.pdf.
26 Ibid.
27 Some of the 50+ indicators create the basis for the Online Service Index. For more information, please see Appendix B.
28 Ibid.
29 Hankewitz, Sten, “Estonia’s e-Governance Academy Helps Deliver Digital Services in Benin and Ukraine,” Estonian World, April 16, 2020. Retrieved from:
https://estonianworld.com/technology/estonias-e-governance-academy-helps-deliver-digital-services-in-benin-and-ukraine/.
30 Ibid.
31 Sourced from an interview with Beninese officials as part of this study.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 20
FIGURE 8
Comparison of the Digital Government Pillar Among
Participating Countries

services.32 The OSI was selected as an countries, and that growth and development in
appropriate metric because it demonstrates an this area is rapid and ongoing.
objective assessment of a government’s digital
presence (e.g., national portal, e-services Should this pattern and pace of change for
portal, e-participation portal, websites of digital government in these countries continue
related ministries) by researchers who are (see Figure 9 on next page), then the majority
experts in public administration at UNDESA. of the ten countries may soon come close
to closing their gaps with more developed
When the progress of the 10 countries countries. This continued expansion and
towards digital government over the past improvement of digital government services
decade was examined using this benchmark, would benefit governments by improving the
an interesting picture emerged. As seen above efficiency of services and increasing citizen
in Figure 8, all 10 countries are trending participation. It would also benefit the citizens
upwards at a seemingly faster rate than many and businesses of the ten countries by
of the higher-ranked countries in the world. providing them with more robust, reliable, and
This may mean that the 10 countries are rolling secure government services.
out their digital government services at a
significantly faster pace than most developed
countries in the world, with the caveat that they All 10 countries are trending
were oftentimes starting from lower levels of upwards at a seemingly faster
online services and digital government. rate than many of the higher-
However, it also shows that digital government
has become a growing priority for African ranked countries in the world.

32 For more on the methodology of the EGDI as used for this pillar, please see Appendix B. See: United Nations Department of Economic and Social Affairs
(UNDESA), “United Nations: E-Government Survey 2018,” United Nations (2018): 83-124. https://publicadministration.un.org/publications/content/PDFs/
UN%20E-Government%20Survey%202018%20English.pdf..

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 21
FIGURE 9
Evolution of Digital Government Services From 2010 to 2018

3.1 Key Takeaways

Progress in Digital Government: While a gap remains between the highest-ranked countries
in Africa and the rest of world in terms of digital government, significant progress has been made
by these 10 countries. Much of this growth in e-government services is the result of rapid changes
in the last 10 years, speaking to increased digitization of government services.

Quality and Availability of Online Services: Seven of the 10 countries in the study score
higher than the African median in terms of digital government, and two (Ghana and Kenya) score
higher than the global median. This suggests that the quality and availability of online government
services was above the African median for most countries in this study.

Proliferation of Digital ID: Another positive sign is the proliferation of digital ID systems
in almost all the countries, albeit at different stages of universal rollout. A good example is
Kenya, with the deployment of its National Integrated Identity Management System, known as
Huduma Namba.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 22
3.2. Digital Business The Digital Business pillar was
The Digital Business pillar refers to the level benchmarked using the Business
of business activities that are either related to Dynamism component of the
the digital economy or take place in a digital
medium. Examples include digital payment
Global Competitiveness Index
systems, digital financial services, and legal (GCI) from 2019.
frameworks to enforce contracts and protect
consumers.33 This pillar not only emphasises the (WEF) as part of the Global Competitiveness
development of a robust consumer marketplace Report.36 The Business Dynamism component
using digital technologies, but also calls for e- is comprised of two indicators—administrative
commerce platforms to expand beyond national requirements and entrepreneurial culture—
borders and integrate with the rest of Africa.34 and was used exclusively to proxy this pillar.
This component of the GCI was selected
The Digital Business pillar was benchmarked because it provides a close approximation
using the Business Dynamism component of the digitalisation level of the business
of the Global Competitiveness Index (GCI) operations taking place in a country.37
from 2019.35 GCI is a comprehensive index
that takes into account various aspects of A comparison between digital government and
a country’s competitiveness, and it was business dynamism (the latter of which is shown
prepared by the World Economic Forum below in Figure 10) does not show a direct

FIGURE 10
Comparison of the Digital Business Pillar Among Participating Countries

33 Ibid., 38.
34 Ibid., 39.
35 For more on the methodology of the Business Dynamism component of the GCI as used for this pillar, please see Ok good. See also: Schwab,
Klaus, ed., “The Global Competitiveness Report 2019,” World Economic Forum (2019): 623-624. Retrieved from: http://www3.weforum.org/docs/WEF_
TheGlobalCompetitivenessReport2019.pdf.
36 Ibid.
37 Since there is a 2019 iteration, the GCI Business Dynamism component also supports analysis on the current state of digital business operations in the
countries.
38 OECD, “Productivity Growth in the Digital Age,” OECD, Paris (2019): 3-6. Retrieved from: https://www.oecd.org/going-digital/productivity-growth-in-the-
digital-age.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 23
relationship. This suggests that there is a more
complex story to be told about the relationship
between business dynamism and the provision
of online services.38 In other words, the provision
Case Study:
of online services—either as part of government Mobile Money Interoperability
or the private sector—does not tell the full story in Ghana
of business dynamism in a digital economy.

Some studies have indicated a bidirectional,

reciprocal relationship between e-government The Mobile Money Interoperability platform
deployment (digital government) and was launched by the government of Ghana
the digitalisation of the economy (digital in May 2018 to enable cross-network
economy),39 but there are also studies that mobile money transactions.42 The project
suggest the relationship is stronger for wealthier was the result of a joint collaboration
countries.40 This could indicate that there are between the Ghana Interbank Payment and
likely more factors to consider in evaluating the Settlement Systems Limited (GhIPSS), the
strong relationship between digital government
Bank of Ghana, FinTech firms, and other
and areas like digital business (and innovation-
telecommunications companies.43
driven entrepreneurship) in a region like Africa
than in countries with higher levels of per capita
The objective of the platform is to boost
income.41 Despite this, the benchmarking
assessment of this pillar also noted that there access to and improve the efficiency of
is a wide range of positive success stories in financial services,44 while also promoting
many countries (see Appendix C for selected digital financial inclusion and cashless
best practices). transactions for Ghanaian citizens.45 This
project laid the foundation for creating a
In the context of this study, the fact that countries digital economy in Ghana by making it easier
at a wide range of income levels have had to transfer funds across wallets on different
relative success in this pillar—and across various
networks, enabling businesses to accept
levels of digitalisation and digital government
payments from a wider range of accounts, and
deployment—suggests an equally if not more
important role to be played by other aspects increasing the volume of mobile transactions.46
of digital business, such as legal frameworks, As noted by Ghanaian officials, the platform
developed regional markets, and private-sector has had some success, reducing the siloing
digitalisation. By focusing on providing open of telecom operators and allowing banks and
payment systems and digital financial service operators to work together.47
opportunities as part of a digital transformation
agenda, many of the countries profiled in this
study may soon come close to closing the gap FIGURE 11
with some of the high-income countries most
advanced in business dynamism.

39 Zhao, Fang, et al., “E-government Development and the Digital Economy: A Reciprocal Relationship,” Internet Research, 25, no. 5 (2015): 734-766.
Retrieved from: https://doi.org/10.1108/IntR-02-2014-0055.
40 Oliveira Almeida, Gustavo de and Moraes Zouain, Deborah, “E-Government Impact on the Doing Business Rankings and New Business Ownership Rate:
An Analysis of the Dynamics Based on Countries’ Income From 2008 to 2014,” IADIS International Journal, 13, no. 1 (2015): 40. Retrieved from: http://www.
iadisportal.org/ijwi/papers/2015131103.pdf.
41 Ibid.
42 “Ghana’s First Mobile Money Interoperability System Deepens Financial Inclusion and Promotes Cashless Agenda,” AFI Global, May 16, 2018. Retrieved
from: https://www.afi-global.org/news/2018/05/ghanas-first-mobile-money-interoperability-system-deepens-financial-inclusion.
43 “Ghana Advances on Mobile Money Interoperability,” ITWeb, December 5, 2018. Retrieved from: https://itweb.africa/content/GxwQD71ZEXaMlPVo.
44 “Interoperability Between Fintech Providers in Ghana,” Oradian (accessed on July 15, 2020). Retrieved from: https://oradian.com/interoperability-between-
fintech-providers-in-ghana/.
45 “Ghana’s First Mobile Money Interoperability System Deepens Financial Inclusion and Promotes Cashless Agenda,” AFI Global, May 16, 2018. Retrieved
from: https://www.afi-global.org/news/2018/05/ghanas-first-mobile-money-interoperability-system-deepens-financial-inclusion.
46 “Mobile Money Interoperability up by Over 350% in First Quarter,” Joy Online, April 28. 2020. Retrieved from: https://www.myjoyonline.com/business/finance/
mobile-money-interoperability-up-by-over-350-in-first-quarter/.
47 Sourced from an interview with Ghanaian officials as part of this study.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 24
3.2 Key Takeaways
Progress Towards Business Dynamism Increasing: Five countries (Kenya, Cote d’Ivoire,
Senegal, Ghana, and Benin) are above the African median in this index, with one (Kenya) scoring
above the global median.48 This perhaps speaks to the strengths countries have experienced in
the mobile economy in recent years, through increases in the adoption of smartphones and the
proliferation of digital financial services.
Range and Distribution of Scores: There is a wide range and distribution of scores and rankings
in this pillar, and there does not seem to be a close relationship to digital government (as measured by
OSI proxy). For example, countries at similar levels in the OSI for the Digital Government pillar—Gabon
and Cote d’Ivoire – have huge variations in their levels of business dynamism.

3.3. Infrastructure development across Africa.51 It was selected

The Infrastructure pillar is one of the most as a proxy for this pillar because it provides
critical pillars to the Digital Economy Blueprint a reliable source of information regarding
since it cross-cuts many of the others and infrastructure development in African countries.
offers some of the greatest opportunities for
expanding the digital economy. This pillar There are many positive success stories of
not only encompasses the development of physical and digital infrastructure expansion
digital infrastructure and reliable broadband and rollout among the countries in this study.
connectivity, but also focuses on logistical Since this index looks more broadly at physical
infrastructure (e.g., road, rail, air, etc.) and infrastructure, it is also important to note that
energy (e.g., electricity connections and some countries may lack the enabling utilities
affordability).49 Overall, an improvement in to support the rollout and sustainability of
infrastructure (often generated by investment the digital economy, such as well-developed
from both private-sector operators and road networks and a stable electrical grid.52
government initiatives) can yield benefits for In terms of digital infrastructure (as opposed
all stakeholders of a digital economy and to infrastructure more broadly), much work
mean the difference between a stagnant and a remains to be done, both within the selected
thriving digital economy.50 countries and across Africa. The greatest
constraints for continued development of ICT
The Infrastructure pillar was benchmarked using infrastructure for a majority of the 10 countries
the African Infrastructure Development Index include the limited availability of investment
(AIDI) from 2019. The AIDI is computed from
four sub-indices—Transportation Composite There are many positive
Index, Electricity Index, ICT Composite Index,
success stories of physical and
and Water Supply and Sanitation Index—and
was used to compare the infrastructure of the digital infrastructure expansion
10 countries in this study. AIDI is produced and rollout among the countries
by the African Development Bank and aims in this study.
to measure the progress of infrastructure

48 Please note that there are two countries—Niger and Sierra Leone—for which data was not available.
49 Ibid., 45.
50 Abid Hussain, Ali, et al., “Unlocking Private-Sector Financing in Emerging-Markets Infrastructure,” McKinsey & Company, October 10, 2019: 1-7.
Retrieved from: https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/unlocking-private-sector-financing-in-emerging-markets-
infrastructure.
51 For more on the methodology of AIDI as used for this pillar, please see Appendix B. See: “The Africa Infrastructure Development Index 2018,” African
Development Bank, July 2018: 17. Retrieved from: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Economic_Brief_-_The_Africa_
Infrastructure_Development_Index.pdf.
52 Ibid., 45.
53 Republic of Kenya, “Digital Economy Blueprint: Powering Kenya’s Transformation,” Government of the Republic of Kenya (2019): 46. https://ca.go.ke/wp-
content/uploads/2019/05/Kenyas-Digital-Economy-Blueprint.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 25
 funds and the high costs associated with
constructing digital infrastructure (for more on
Case Study: this, see Section 4.3).53
Broadband Fibre-Optic
Notably, as seen from a comparison of
Network in Gabon Figures 9 and 12, there is not a clear
relationship between infrastructure (in the
Since 2012, the Government of Gabon has
broad sense of the term) and the deployment
invested extensively in the construction of a of digital government services. That being
broadband fibre-optic network—some 1,100 said, governments at a range of wealth and
km as of 2018.54 This was possible because levels of infrastructure and digitalisation
of a migration of equipment and infrastructure, are having success in expanding digital
formerly connected to the SAT3 submarine connectivity, particularly in rural areas.
cable to tie down with the ACE cable.55 Another For example, some countries in Africa are
26 cities are expected to be connected to the investing in Smart Villages that are powered
Central African Backbone (CAB) network in by solar energy and other cost-effective
2020.56 The Gabonese expansion has been energy sources,62 while others are funding the
supported at various times by organisations creation of smart cities that will lead the way
like the African Development Bank57 and the
in addressing sustainable development.63
World Bank.58
This project was intended to improve regional Countries must take responsibility in
integration59 through communications spearheading the push towards a more
infrastructure in Central African countries, connected society that use initiatives and
supporting connection with the Republic of
incentives to support a digitised economy. To
Congo in particular.60 As noted by officials from
improve progress in terms of infrastructure,
Gabon, this has improved the speed of the
governments should pursue partnerships
country’s international communications and
made them significantly more dynamic and with the private sector and civil society that
fluid.61 Moreover, it has huge and continued generate investment opportunities, as well as
benefits for the growth of the digital economy incentivise not only broadband infrastructure
and inclusion in the country. but physical infrastructure (like electricity).
Indeed, governments may need to pursue well-
targeted investments, such as in green energy
FIGURE 12 sources, to support the development of their
digital economy.64

54 “Congo-Gabon: Toward Regional Digital Integration,” The World Bank, April 9, 2018. Retrieved from: https://www.worldbank.org/en/news/feature/2018/04/09/
congo-gabon-toward-regional-digital-integration.
55 International Evaluation Group (IEG) and The World Bank, “Internet and Mobile Connectivity: Central African Backbone Program (APL 1A and APL
2),” The World Bank Group, Report no. 126034 (June 4, 2018): 14. Retrieved from: https://documents.worldbank.org/en/publication/documents-reports/
documentdetail/668111530296585544/cameroon-chad-central-african-republic-sao-tome-and-principe-internet-and-mobile-connectivity-central-african-
backbone-program-apl-1a-and-apl-2.
56 “Gabon to Link Twenty-Six Cities to the Central Africa Backbone (CAB) Fibre Optic Network,” TechAfrica, March 9, 2020. Retrieved from:
https://www.techafricanews.com/2020/03/09/gabon-to-link-twenty-six-cities-to-the-central-africa-backbone-cab-fibre-optic-network/.
57 “African Development Bank Supports Gabon’s Optic Fiber Backbone Project,” African Development Bank, February 23, 2018. Retrieved from:
https://www.afdb.org/en/news-and-events/african-development-bank-supports-gabons-optic-fiber-backbone-project-17873.
58 Adepoju, Paul, “Congo, Gabon Launch Interconnected Fibre Optic Network,” ITWeb, April 13, 2020. Retrieved from: https://itweb.africa/content/
DZQ587VPxLlqzXy2.
59 African Development Bank, “Central Africa Regional Integration Strategy Paper 2019-2025,” African Development Bank Group, (June 2019): 12. Retrieved
from: https://www.afdb.org/sites/default/files/documents/strategy-documents/central_africa_risp_2019-_english_version_020619_final_version.pdf.
60 “Congo-Gabon: Toward Regional Digital Integration,” The World Bank, April 9, 2018. Retrieved from: https://www.worldbank.org/en/news/feature/2018/04/09/
congo-gabon-toward-regional-digital-integration.
61 Sourced from an interview with Gabonese officials as part of this study.
62 Hatim, Yahia, “Morocco Builds First Solar-Powered Village in Africa,” Morocco World News, October 23, 2019. Retrieved from: https://www.
moroccoworldnews.com/2019/10/285212/morocco-builds-first-solar-powered-village-in-africa/; Nikurunziza, Michel, “Smart Villages: Empowering Rural
Communities in ‘Niger 2.0’,” ITUNews, January 10, 2019. Retrieved from: https://news.itu.int/smart-villages-empowering-rural-communities-in-niger-2-0/.
63 Benin’s International Knowledge and Innovation City (IKIC) is a great example, since it will focus on higher education, research, and business incubation,
but will also lead with carbon-neutral policies that prioritise green spaces, renewable energy, and zero-emissions transport. For more information, see:
Presidency of the Republic of Benin, “Government Action Programme 2016-2021: Flagship Projects,” Revealing Benin: New Momentum (2016): 60. Retrieved
from: http://revealingbenin.com/wp-content/uploads/2017/03/The-project-sheets.pdf.
64 “Building Tomorrow’s Africa Today: West Africa Digital Entrepreneurship Program (WADEP),” The World Bank (2017). Retrieved from: http://documents1.
worldbank.org/curated/pt/963641556793151009/pdf/West-Africa-Digital-Entrepreneurship-Program-An-Initiative-of-the-Digital-Economy-for-Africa-DE4A.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 26
3.3 Key Takeaways
Progress in Infrastructure Lagging: The countries with the highest infrastructure scores include
Gabon, Senegal, and Ghana. However, these countries still fall significantly below the highest-
ranked country in Africa (Seychelles). The 10 countries are split equally above and below the African
median, which speaks to the wide net cast by this study in terms of country selection.
Digital vs. Physical Infrastructure: It is more difficult to generalise about this pillar because
it includes a range of infrastructure developments necessary for a digital economy but is not
specifically focused on digital infrastructure. Furthermore, there is not a clear relationship between
development in infrastructure and digital government or some of the other pillars, perhaps because
of differences between general infrastructure and digital infrastructure development.

3.4. Innovation-Driven
Entrepreneurship Case Study: Digital
The Innovation-Driven Entrepreneurship pillar Entrepreneurship in Senegal
refers to the level of innovation in a country,
and involves building an inclusive and Launched in 2018 by the government of
collaborative ecosystem that supports digital Senegal, the General Delegation for Rapid
businesses as they craft innovative products Entrepreneurship (DER)69 fund of US $50
and services.65 This pillar is specifically focused million70 has supported small financing,
on strengthening innovation capacity, creating incubation funding, equity financing, and
an enabling environment for entrepreneurs low-interest loans within the country. The
and businesses, and developing a support DER fund has also significantly catalysed
entrepreneurship in the country, specifically for
system for innovation through partnerships and
women and youth, and expanded opportunities
collaborations.66 A higher level of innovation
for employment creation.71
enables opportunities that yield many positive
benefits, such as microeconomic growth, The goal of the fund is to allow for innovation
improvements in quality of life, and a supportive in Senegal by enabling creators to think for the
entrepreneurial environment.67 future, investing in financial inclusion and small
and medium-sized enterprises. Notably, the
The Innovation-Driven Entrepreneurship pillar fund also adopts a hybrid public-private model,
was benchmarked using the Global Innovation focusing on a range of activities necessary
Index (GII) from 2019, which was used to for an innovation economy.72 As noted by
Senegalese officials, this project will hopefully
measure innovation and entrepreneurship in a
empower women and young people, as well
country. GII is prepared annually by the World
as allow for the inclusion of other marginalised
Intellectual Property Organization, INSEAD, and
groups in innovation-driven entrepreneurship.73
Cornell University to rank countries in terms of
their innovation input and output.68 The GII was FIGURE 13
selected as an appropriate metric because

65 Republic of Kenya, “Digital Economy Blueprint: Powering Kenya’s Transformation,” Government of the Republic of Kenya (2019): 56. Retrieved from:
https://ca.go.ke/wp-content/uploads/2019/05/Kenyas-Digital-Economy-Blueprint.pdf.
66 Ibid., 56.
67 Ibid., 56.
68 For more on the methodology of GII as used for this pillar, please see Appendix B. See: Dutta, Soumitra; Lavin, Bruno; and Wunsch-Vincent, Sacha, eds.,
“The Global Innovation Index (GII) 2019: Creating Healthy Lives – The Future of Medical Innovation,” Cornell University, INSTEAD, and the World Intellectual
Property Organization, (2019): 205-210. Retrieved from: https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2019.pdf.
69 “La Délégation Générale à l’Entreprenariat Rapide,” Government of Senegal, accessed July 15, 2020. Retrieved from: https://der.sn.
70 “DER Senegal: Innovative Government Funding for African Entrepreneurship,” ICT Works, December 19, 2019. Retrieved from: https://www.ictworks.org/
der-senegal-government-innovation/#.Xw8_AihKhPY.
71 Ibid.
72 Ibid.
73 Sourced from an interview with Senegalese officials as part of this study.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 27
FIGURE 14

Comparison of the Innovation-Driven Entrepreneurship Pillar Among

Participating Countries

it encapsulates many indicators related to insurmountable. Should progress continue at

innovation, research and development (R&D), its current rate, the majority of the 10 countries
business environment, entrepreneurship, etc. may soon come close to closing the gap and
surpassing the global median.
In benchmarking this pillar, it is worth noting
that the top country globally (Switzerland) Some studies have found that digitally
still scores only about 67% of the total intensive sectors of the economy are more
possible score, while the top country in Africa dynamic,74 but this does not necessarily
(South Africa) scores only half of that. This is correlate to innovation and entrepreneurship,
noteworthy because while there is a closer as there are a number of other innovative
relationship to the Digital Business pillar sectors that can make use of ICTs and other
in terms of country ranking, the absolute technologies to integrate entrepreneurs
level of progress in the Innovation-Driven into the digital economy.75 It is evident that
Entrepreneurship pillar seems to be much countries will need policies and regulations
lower than with the Digital Business pillar (at to help promote a thriving innovation and
least as proxied by these different indices). start-up culture, even in the more advanced
While there is still significant room for countries featured in this study (such as
incentivising entrepreneurship and potential Senegal and Kenya).76
for innovation across all countries, the gap
between the countries in this study and Furthermore, the digitalisation of government
wealthier, more developed countries is far from itself does not appear to be closely related

74 Calvino, Flavio and Criscuolo, Chiara, “Business Dynamics and Digitalization,” OECD Science, Technology and Innovation: Policy Papers, no. 62 (2019):
22-33. Retrieved from: https://doi.org/10.1787/6e0b011a-en.
75 Ibid.
76 ITU, “ICT Centric Innovation Ecosystem – Kenya: Country Review,” ITU, 2019: xvi. Retrieved from: https://www.itu.int/en/ITU-D/Innovation/Documents/
Publications/Kenya%20Country%20Review%20-%20ICT%20centric%20Innovation%202019.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 28
to success in innovation. Even with the right to international innovation networks and
vision, champions, and engagement, the knowledge flows, and investment in science
successful facilitation of an innovation culture and technology education. These types of
takes time, and governments have a huge role investments could help the 10 countries realise
to play in this process (notably by promoting the full potential of digital transformation,
digital skills and values). A successful supporting the advancement of startups,
innovation-driven entrepreneurship ecosystem SMEs, and other technology companies.77
entails investments in R&D, lowering barriers

3.4 Key Takeaways

Slower Progress Towards This Pillar: Four countries (Kenya, Senegal, Cote d’Ivoire, and
Ghana) are above the African median, with none scoring above the global median. Kenya
ranked highest among the African countries and is remarkably close to the global median,
consonant with its booming start-up scene and some of its progress on digital economy in
recent years.

Incomplete Picture of Innovation Economy: There are three countries (Sierra Leone,
Gabon, and Angola) for which data is not available. Therefore, the story of innovation-driven
entrepreneurship in these countries will have to be investigated through primary data and
other sources.

3.5. Digital Skills and Values

The Digital Skills and Values pillar refers to Digital skills for public sector
the development of digital skills, for both officials allow for improved
government and citizens alike, as being decision-making around
crucial in realising the full potential of digital
transformation.78 Digital skills for public sector digital strategy.
officials allow for improved decision-making
around digital strategy, and subsequently The Digital Skills and Values pillar was
increase the potential for successfully benchmarked using the Skills component
navigating digital strategy implementation.79 of the Global Competitiveness Index (GCI)
Such skills also allow for greater engagement from 2019, which focuses on the education
in the use and creation of digital technologies. and skills of the current workforce and future
As countries build their visions for a digital workforce.81 The GCI is a comprehensive
economy, they emphasise educational index prepared as part of the Global
opportunities and training as a means of Competitiveness Report by the World
achieving the skills and competencies required Economic Forum.82 The skills component
to excel in a digital economy.80 of the GCI was selected as an appropriate

77 “Building Tomorrow’s Africa Today: West Africa Digital Entrepreneurship Program (WADEP),” The World Bank, 2017. Retrieved from: http://documents1.
worldbank.org/curated/pt/963641556793151009/pdf/West-Africa-Digital-Entrepreneurship-Program-An-Initiative-of-the-Digital-Economy-for-Africa-DE4A.pdf.
78 Eggers, William D. and Bellman, Joel, “The Journey to Government’s Digital Transformation,” Deloitte Digital (2015): 4-11. Retrieved from:
https://www2.deloitte.com/content/dam/insights/us/articles/digital-transformation-in-government/DUP_1081_Journey-to-govt-digital-future_MASTER.pdf.
79 Ibid., 7.
80 Republic of Kenya, “Digital Economy Blueprint: Powering Kenya’s Transformation,” Government of the Republic of Kenya (2019): 60. Retrieved from:
https://ca.go.ke/wp-content/uploads/2019/05/Kenyas-Digital-Economy-Blueprint.pdf.
81 For more on the methodology of the skills component of the GCI as used for this pillar, please see Appendix B. See: Schwab, Klaus, ed., “The Global
Competitiveness Report 2019,” World Economic Forum (2019): 612. Retrieved from: http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf.
82 Ibid.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 29
FIGURE 15

Comparison of the Digital Skills and Values Pillar Among

Participating Countries

proxy because it encompasses may different As with innovation and entrepreneurship, the
aspects of the education and overall skill level role of government as a driver of inclusive
of a country’s citizens. GCI is also prepared by digital skills and values depends on policy and
a reputable organisation, and since there is a regulation, particularly around subsidies for
2019 iteration, it allows for an analysis of the procurement and connectivity for marginalised
current state of skills in the countries.83 groups and underserved populations. The
development of digital skills—including those
While there appears to be a lot of progress that go beyond technical capacity, such
among countries that are further along in as business acumen, willingness to work
the provision of digital government services collaboratively, and an entrepreneurial spirit—
(namely, Ghana and Kenya), this is not is crucial to ensuring a truly successful digital
necessarily causal; it could be that those transformation of the economy.84
countries had a strong pool of human capital
to begin with. Future progress to improve the
digital skills of citizens may come in the form While there appears to be a lot
of adaptive education policies and training of progress among countries that
programmes, while also creating strategies are further along in the provision
that take into consideration the realities
and local contexts within each country.
of digital government services
Examples include the Digischool and Youth (namely, Ghana and Kenya), this
Empowerment Centres in Kenya, which are is not necessarily causal.
referenced above in Figure 16.

83 Please note that data for Sierra Leone is from 2016, and data for Niger is missing.
84 Eggers, William D. and Bellman, Joel, “The Journey to Government’s Digital Transformation,” Deloitte Digital (2015): 9-10. Retrieved from: https://www2.
deloitte.com/content/dam/insights/us/articles/digital-transformation-in-government/DUP_1081_Journey-to-govt-digital-future_MASTER.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 30
 Case Study:
DigiSchool in Kenya

DigiSchool, the brand name for the Digital Literacy and digital technologies into the learning process
Programme (DLP), was launched in 2016 by the and education system.88 It aims to improve access
government of Kenya to improve digital skills to quality education in a cost-effective manner,
and values in the country.85 The programme was working to embed digital skills and education within
started to ensure children are prepared for today’s the future workforce of the digital economy. This
digital world and to transform learning in Kenya into project holds the promise of transformative change
a 21st century education system.86 The programme for the educational system and talent pipeline in
is executed through a multi-stakeholder approach Kenya, thus helping to promote a thriving digital
led by the Ministry of ICT and the ICT Authority.87 economy.

The project’s goal is to integrate ICT infrastructure

FIGURE 16

To move ahead in this pillar, a strong should also continue to focus on expanding
emphasis should be placed on the mobile internet coverage and bringing high-
development and retention of foundational speed internet to schools, specifically in more
skills and digital literacy. Governments will remote or rural areas. Even with advanced
need to promote not only technical but cross- ICT infrastructure and affordable and reliable
functional skills, as well as drive the creation connectivity, countries with a lower level of
of an innovation ecosystem, in order to keep education and digital skills will face hardships
pace with public and private-sector demand as they journey towards a fully digitised
for human and technical capacity. Countries society and economy.89

3.5 Key Takeaways

Some Progress Towards Pillar: Three countries (Kenya, Ghana, and Gabon) score higher
than the African median, with all three coming relatively close to the global median despite existing
disadvantages, such as accessibility and affordability of ICT.

Wide Variation Across Countries: There are three countries above the African median and
six below it, and there seems to be a wide range in levels of digital skills and values among the
selected countries. This suggests that there is a lot of progress still to be made in this area, even as
some countries have improved greatly in recent years.90

85 “About: Digital Literacy Trust,” Digital Literacy Trust (DLT) (accessed on July 15, 2020). Retrieved from: https://www.digitalliteracytrust.org/index.php/about/.
86 Ogolla, Kennedy, “Digital Literacy Programme in Kenya; Developing IT Skills in Children to Align Them to the Digital World and Changing Nature of Work-
Briefing Note,” The World Bank (accessed on July 15, 2020): 1-2. Retrieved from: http://pubdocs.worldbank.org/en/967221540488971590/Kennedy-Ogola-
Entry-Digital-Literacy-Kenya.pdf.
87 “What Is DigiSchool?” Government of Kenya (accessed on July 15, 2020). Retrieved from: http://www.icta.go.ke/digischool/about-digischool/.
88 Ogolla, Kennedy, “Digital Literacy Programme in Kenya; Developing IT Skills in Children to Align Them to the Digital World and Changing Nature of Work-
Briefing Note,” The World Bank (accessed on July 15, 2020): 1-2. Retrieved from: http://pubdocs.worldbank.org/en/967221540488971590/Kennedy-Ogola-
Entry-Digital-Literacy-Kenya.pdf.
89 Republic of Kenya, “Digital Economy Blueprint: Powering Kenya’s Transformation,” Government of the Republic of Kenya (2019): 60. Retrieved from:
https://ca.go.ke/wp-content/uploads/2019/05/Kenyas-Digital-Economy-Blueprint.pdf.
90 Please note that data for Niger, in particular, is missing in this index.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 31
 IV.
The Role of
Government in
Unlocking the
Digital Economy

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 32
IV. The Role of When asked in the survey whether they are
looking to develop or renew their ICT strategies
Government in in the next one to two years, six of the nine
countries said they are. This is in line with
Unlocking the findings from the interviews, signaling that

Digital Economy representatives believe there is momentum and

political will to change or update strategies.
This section details the findings of the primary During the interviews, several country officials
data collection activities, informed by the also expressed a need for support in developing
results of the benchmarking assessment of and updating strategies for ICT and the creation
secondary data documented in Section III. of a digital economy, and several expressed a
Before launching into a thematic analysis of our need for specific technical support.
findings with regards to the digital economy, we
will first look at the history of digital economy Another clear takeaway is that many
planning, policy, and development. strategies lack a timetable for actions and
key performance indicators (KPIs), which
can help countries increase their chances for
4.1. Digital Economy Planning: accountability and successful implementation.
Strategy, Policy, and Implementation Only two countries stated in the survey
When asked in the survey about their country’s that they had broken down KPIs or targets,
progress regarding ICT policy and strategic though some stated they are in the process of
plans, most government officials stated developing KPIs. The qualitative assessment
that their country has a national ICT policy, indicated that very few countries had them in
strategy, or strategic plan. Based on additional their strategies.91 While many countries had
qualitative assessment, it was found that five either a timetable or KPIs, only one country
countries have strategies that are more than had both, and that country had updated its
five years old and are in immediate need of strategy in the last five years. These findings
updating. Three countries had strategies less demonstrate that there is a long way to go in
than five years old, while one country was in adapting and updating ICT strategic planning
the process of drafting its strategy and one for digital economy, a need clearly articulated
country did not respond. by officials from a range of countries.

4.1 Key Takeaways

Strategic Implementation Requires Coordinated Planning: In the last 10 years, most countries
have made substantive changes to their national ICT strategies and planning, though strategies
frequently lack timetables and KPIs.

Need to Update or Renew Strategies: Many strategies need to be updated or renewed, and
countries require strategic and technical support in doing so.

Call-to-Action: Update national ICT strategies and plans with timetables and KPIs for delivery of
key outcomes across strategic issue areas.

91 This can be seen for a few participant countries that have national strategic plans providing context about their ICT goals, but they do not detail
specific actions to be taken since they lack timetables and KPIs. One challenge that arose was slow progress in the development of a robust and resilient
telecommunications infrastructure and technologies capable of connecting and covering the entire national territory, especially unserved and underserved
communities.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 33
4.2. Strategic Coordination and countries’ officials also responded that they
Silos Across Government lacked either leadership or a coordination
mechanism (a key driver of intragovernmental
Countries have experienced significant growth
coordination) and many said they experienced
in the depth and breadth of digital government
challenges related to stakeholder commitment
services and automation in recent years, and
and integration of common approaches.
this progress is only expected to continue as
countries collaborate and share best practices
Nearly all officials demonstrated an acute
in digital economy planning. Nevertheless, the
awareness of these challenges in their
continued expansion of digital government
own governments. In the interviews, they
requires addressing outstanding challenges
referenced the specific difficulties in
in national strategic coordination and the
coordination that they had encountered,
existence of silos across government.
including sectoral planning, silos, and
Coordination and horizontal integration are
procurement, as well as the steps they
important elements of digital government, so
were taking to address these issues. The
addressing these issues is critical in delivering
interviews also demonstrated that political
a whole-of-government approach to ICT
will among government officials participating
adoption and use, as well as promoting and
in the study was high, and there was a clear
investing in the digital economy.
desire for improved coordination and change
management across government.
Strategic Coordination
Coordination was a key element of responses
in the interviews. Government officials If we do not translate how
often focused on the important role of
ICT is going to affect specific
national ICT strategies and the need for
strategic frameworks and cross-government development objectives,
collaboration. In the survey, the respondents [government] will have difficulty
were asked whether their government was disbursing the necessary budget….
working towards the use of a WGA in the Some say that digital is a luxury
digital transformation of their economy and
government services.92 All representatives
because their priority is agriculture,
responded that their governments were, though health, roads etc. But this is an
it was clear from subsequent interviews that for issue of digital practitioners who
many this was more of an aspiration or ongoing do not make the connection
project rather than a fully executed reality. between the tech and real-life
Asked about where their country’s ICT strategy
problems such as reducing
was in terms of its development, a majority poverty, improving health.
of the officials interviewed indicated that the
strategy was being implemented. Only a
small number indicated that the strategy had Another key finding in this regard was that
been largely implemented already, and only there are challenges in the coordination of
one country responding indicated that they national policy and regulation for ICT and the
believed their strategy was well-coordinated digital economy, though countries are taking
across ministries. steps to address them. Many indicated that
there are difficulties with aligning national
When asked more directly through the policy and regulation with that of state and
interviews, many mentioned a challenge regional governments, particularly around
in coordinating digital strategies across e-government and data protection policies.
government branches. More than half of the Some countries are also still working to

92 For clarity of responses from the interview informants, they were told that whole of government refers to coordination and resource-sharing across
government ministries and agencies with the intent of achieving ICT policy/strategy objectives.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 34
address the balance between affordability and
the need to self-fund the development of ICT Projects are started, but
infrastructure through taxation. because [they are] siloed and
governance has not adapted, it is
Silos Across Government
difficult to execute [them]. So
Silos occur when there is a lack of horizontal
integration within governments and public
even if digital economy was led
authorities.93 Many country officials said that today by the Minister
silos were an issue for their government, but of Digital Economy […] would not
they were also becoming more proactive in have influence over projects
addressing them.
developed in other sectors.
In particular, governments are beginning to
address silos in governance, ICT platforms,
and funding, particularly in areas like sectoral ministries would often bring requests to the
planning, interoperability, and investment. government for funding projects, without
Countries with more advanced strategic coordinating with other ministries as part of a
planning, specifically around the provision larger strategic framework. Another country’s
of e-government services, had the most officials noted that national actors or officials
success in breaking down sectoral silos. in the ICT ministry were sometimes unaware
Additionally, countries that had succeeded in of what was in the sectoral plans of other
digitising a greater proportion of government ministries with regards to the use of ICT and
services also frequently demonstrated digital technologies, and that little effort was
stronger coordination in their governments, made to coordinate nationally or across the
pointing to the centrality of cross-government government. Together, these issues speak to
coordination to digital government. an acute need to remedy intra-governmental
coordination by not only improving high-level
Another issue was that sectoral silos led leadership and planning, but by breaking
to challenges in investment. One country’s down the existing silos that have developed in
officials noted that sectoral contracts for ICT these areas.

4.2 Key Takeaways

Need for WGA: Country officials increasingly recognise siloed investments and duplicative
efforts by ICT development partners as a problem, and they also recognise issues in coordination
between ICT ministries and promoting a whole-of-government approach.

Increased Coordination of Policy and Regulation: In recent years, some countries have made
substantive policy and strategy changes, specifically moving away from siloed approaches to digital
strategy implementation and towards coordinated national policy and regulatory frameworks.

Lack of Coordination and Silos: Country progress is sometimes undermined by a lack of

coordination and silos across government.

Call-to-Action: Improve policies and alignment across government to reduce silos in

governance, improve funding, and increase platform interoperability.

93 Crawford Urban, Michael, “Abandoning Silos: How Innovative Governments Are Collaborating Horizontally to Solve Complex Problems,” Mowat Center for
Policy Innovation (2018): 3. Retrieved from: https://munkschool.utoronto.ca/mowatcentre/wp-content/uploads/publications/178_abandoning_silos.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 35
4.3. Resource Mobilisation: centralise national data and web hosting.94
Funding, Affordability, and Despite some success in centralising
investment, however, most countries’
Procurement officials reported experiencing challenges
The issue of coordination is not only related in aligning investments for infrastructure
to challenges in design and implementation, projects, whether across government or in
but also investment in and procurement of collaboration with the private sector. Even
infrastructure, government services, common those governments that were most successful
frameworks, and data platforms. To this end, in rolling out physical and digital infrastructure
government officials participating in this study had some challenges in mobilising resources
were clear on the significance of resource and securing investment. One country’s
mobilisation for the creation of a digital officials identified the need to extend
economy, but also spoke to related issues in investment in physical infrastructure to
funding, affordability, and procurement. e-government and data protection activities,
though they also acknowledged that there
Funding the Digital Economy were challenges in governance and regulation
Survey respondents designated funding as that would need to be addressed before they
the second biggest challenge in realising could do so.
digital transformation, and officials in interviews
often perceived it as the biggest challenge
in realising their country’s vision for a digital Financial support is a key
government. When asked about the main
funding-related barriers to implementing digital
component as several countries…
projects, insufficient funding and insufficient have ambitions to develop
private-sector investments were the main initiatives relating to our strategies
impediments, with siloed sectoral investments but are often challenged by limited
being third. resources, particularly when local
Countries were most visibly making strides in
resources aren’t enough to deal
investment and financing for ICT infrastructure, with related ambitions.
often through partnerships and capital from the
private sector. However, many officials said
that funding in other areas was still a persistent Many officials pointed to the silos that
challenge and there was a continued need sometimes emerged in funding for
to secure funding for physical infrastructure government-backed projects, often because
using global and regional partnerships. Some of a lack of coordination between ministries
digital infrastructure investments seemed to be and/or agencies. Some of the many
possible using existing government resources, challenges that country officials reported as
but funding for other government-backed having created funding silos were non-
ICT initiatives, such as digital architecture or adaptive governance, IT procurement
national programmes, often required additional process across ministries, disproportionate
funding sources (in the form of loans, grants, investment in strategic sectors by multilateral
or public-private partnerships). organisations, and difficulty coordinating
investment and use of funding for
Notably, some countries had made progress e-government. Challenges in sectoral
in breaking down interoperability silos in their investments also touch on other challenges
governments by centralising investment. One such as coordination and governance,
country’s officials noted that while there was financing and procurement, and partnerships.
wide variation in the quality and integration Two countries’ officials specifically mentioned
of IT systems, they had aligned financing to that they were interested in resolving these

94 The goal of this project was to engage a standard mechanism for systems and services to improve the problem of siloed government architecture and
reduce wastage of funding.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 36
challenges using a WGA, a potential solution Government Procurement of Digital
for not only cross-government coordination Technologies
but funding and investment as well. Most countries in the survey seemed to
have unique issues in identifying and
Affordability of Digital Infrastructure, Tools, procuring technology, and while there are
and Services tailored solutions depending on the country,
The affordability of infrastructure, tools, government officials showed some desire for
and services was a significant issue increased centre-led procurement of digital
for governments, as it was an enabler technologies. When the delegates were asked
of improved outreach to citizens and about their main challenges in identifying
businesses, required substantial levels and procuring new technology from external
of cross-government coordination, and vendors, the two main issues mentioned were
improved the ability to invest in the digital a lack of a coordinated procurement strategy
economy. About half of the countries in the and policy (including taxation) and limited
study were below the African median for skills to operate and maintain new equipment.
infrastructure development, and many officials Other issues mentioned were funding and
spoke to the need for continued capital and donor alignment, equipment quality concerns,
partnerships to make infrastructure and other lack of maintenance support, integration with
ICT expenditures affordable. Interviewees legacy systems, technology transfer, licence
also indicated that countries understood the management issues, vendor lock-in, and
value of and need for universal and last-mile unexpected operational costs that are not
connectivity through various mechanisms identified during the procurement process.
aimed at reaching low-income and rural Officials from three of the countries stated in
populations. However, they sometimes the survey that they have no challenges in this
expressed difficulty in reaching out to and area, though there is some reason to believe
aligning their objectives with those of the that these are common challenges across
private sector and civil society, particularly most countries based on the study.
when faced with a lack of investment for a
project or initiative. While study participants believed that their
countries generally have adequate technical
One country official noted that challenges expertise to meet the requirements for
in affordability also created challenges in implementing their ICT strategies, there is
promoting digital literacy and innovation, still progress to be made in streamlining and
while another noted the specific need to improving procurement of ICT hardware and
create standards for the affordability of mobile services, whether for government or sectoral
networks for citizens to extend coverage projects. Some of the interviewees raised
(e.g., spending no more than 2% of income
on mobile and broadband network access).
Some countries were still struggling with the There is also the problem across
affordability of ICT tools and equipment in the government of low investment
areas like education and enterprise, often
having to subsidise and buy these products
in ICT, which we have seen in terms
through national schemes to help promote of resources to buy equipment, set
local access, though this was often a short- up of IT systems and platforms.
term solution. In this way, the affordability This creates challenges which can
of infrastructure and related systems and spillover deep into the development
services was still a challenge, though many
countries were taking steps in different areas
and implementation of IT systems
to begin addressing these issues. by the government.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 37
concerns about incidences where those technology products for all government-related
in charge of procuring technology or procurement, while others were more open to
evaluating an investment lacked necessary global goods. At least two officials interviewed
technical expertise. noted challenges around whether to adopt
and use open source technologies, though
This might be the result of a lack of skills or this seemed more prevalent among countries
simply an absence of coordination around that were further developed in the deployment
procurement between the branches of of e-government services and interoperable
government. It is worth noting that some government architecture.
countries prioritised local sourcing of

4.3 Key Takeaways

Funding for Digital Economy and Infrastructure: Countries have made important strides in
establishing partnerships and catalysing political will to fund digital economy development and
initiatives, with some success in aligning investment for digital infrastructure.

Difficulties Investing in Physical Infrastructure: Governments continue to be challenged by

the need to invest in physical infrastructure, whether through internal or external sources.

Need for Resource Mobilisation and Coordinated Investment: Difficulties in resource

mobilisation and a lack of coordination in investment are hindering the digital transformation of
financing. Governments, however, are moving to address these difficulties through the adoption of
more centralised or coordinated approaches.

Need to Coordinate Financing, Procurement, and Affordability for Digital Tools and
Services: Such centralised or coordinated approaches may have downstream effects for financing,
procurement, and affordability of digital tools and services, as government ministries often seem to
have widely different experiences across individual ministries and agencies.

Call-to-Action: Strengthen the coordination of financing, affordability, and procurement for ICT
tools and digital services.

4.4. Digital Change Management: Digital Change Management

Within Government
User-Centred Government
Across the board, survey respondents did
Services for Businesses not have an explicit ICT change management
and Citizens plan or strategy in place, though the national
While planning, coordination, and funding are strategies reviewed often discuss this need.
central for the creation of a digital economy, This does not necessarily mean that change
they sometimes mean little if countries do management practices are not taking place in
not also have strong procedures in place these countries, though it indicates an absence
for digital change management. Indeed, of a centralised, formal approach to managing
implementation of a clear and holistic digital change. Nevertheless, officials commented
change management strategy is something that change had taken place explicitly because
governments continue to have challenges of senior leadership. Many officials in the
with, even as they have had great success interviews were optimistic that political buy-in was
in prioritising a paradigm-shift towards user- increasing, though often not fast enough because
centred services for businesses and citizens. of challenges in communication and governance.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 38
Either way, while it is clear that political will were countries above the African median for
for change exists (often from leaders within digital government that were below it for digital
key ministries or agencies), it is actually high- business (and vice-versa).
level political leadership from officials such
as the president or prime minister which is Regarding other key areas of the digital
necessary to help catalyse change. This economy—like digital trade and digital
type of leadership and support is critical as financial services—the story was a bit more
governments navigate a paradigm shift away mixed. Many countries identified digital
from a government-centred approach to a identification as a missing foundational
seamless user-centric approach focused on element of government architecture, though
the needs of businesses and citizens. To this one that was frequently being worked
point, several officials responding indicated on. Without this, it was more difficult for
that responsible ICT ministries often need businesses to tap into a centralised institution
high-level support to enact a clear change and verify identity. That being said, it was
management strategy. clear from the interviews that governments
saw many businesses coming online, as well
User-Centred Services for Businesses as finding alternative ways of doing mobile
In terms of the economy, this paradigm shift payments through channels such as short
is happening in areas such as capacity message service (SMS). Many countries were
building, infrastructure, and tools and also continuing to work with the private sector,
services. Many countries have parts of their including mobile network operators (MNOs)
national ICT strategies and plans focusing and banks, to begin addressing the issue of
specifically on issues related to digital mobile payments.95
business, namely platform development,
digital services and delivery channels, and
e-government services for businesses. There are three strategy
According to survey respondents, some of the orientations for e-government:
many issues of importance included mobile (1) to improve the effectiveness
money interoperability, codes of conduct for
and synergies within public
e-commerce, growth in e-registration, support
for startups, and expansion of registration and administration, (2) accelerate
monitoring for businesses. the digitalization of administrative
procedures for businesses and
Some government officials identified citizens, such as filing
the provision of digital content for digital
government services as an important part of
for taxes and (3) to improve
their vision to reach businesses and build a citizen participation.
digital economy. In this regard, governments
seemed to be making great strides in
providing digital content and developing a User-Centred Services for Citizens
platform economy, as evidenced by analysis Digital inclusion was an increasingly important
of the Digital Business pillar and the interviews part of the paradigm shift towards user-
with government officials. However, some centered digital government services. In
countries continue to struggle with digitising presenting their vision for digital government
government and deploying digital government and digital economy during the workshop,
services for businesses. For example, even several countries presenting focused
as some countries were benchmarked on digital infrastructure and paperless
as being advanced in terms of digital administration and services, while others
government and business dynamism, there focused on issues of accessibility. These

95 One country was advanced enough in terms of digital ID to begin thinking about the integration of national payment systems into a single window, which
would help standardise systems and processes for many businesses across the economy.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 39
visions converged on a “user-centred” most common areas of success included
approach to public service provision where the development of digital identification and
the citizen’s experience is at the center of how national databases, though some countries still
public services are provided. Additionally, struggled with the issue of interoperability for
many countries mentioned that they had government services.
begun the process of moving towards national
schemes for digital identification, an important Overall, a complete paradigm shift towards
foundational element in the movement government-to-citizen services—consonant
towards digital government. with a WGA for digital government—was still
a challenge for many governments. Some
Some of the most commonly identified areas countries had challenges not only in extending
for digital inclusion that countries were working infrastructure to rural areas but getting citizens
on included e-payment, ICT for gender, to adopt and use digital platforms and services
financial inclusion, and ICT for disability. once they were connected to the internet.
In interviews, they often underscored this This was related to the issue of affordability;
by mentioning the need to develop digital while it was difficult to make mobile and
identification and electronic signature broadband internet services affordable for
technologies to make these activities secure urban populations, it was even harder to do
and accessible. Furthermore, several countries so for people in rural areas. One country
were having success in their shift towards struggled with the highly diffuse nature of its
e-government services, and many more population and the many regional languages
were actively in the process of redeveloping spoken, making it challenging to centralise and
their digital strategies and focusing on this translate national e-government services to
paradigm shift more clearly. Some of the include the whole population.

4.4 Key Takeaways

User-Centred Government Services Paradigm: Countries are experiencing a paradigm shift
from government-centred service provision to a user-centred approach, with a focus on the needs
and experience of users (i.e., businesses and citizens).

Prioritising Accessibility and Inclusion: By anchoring government as a procurer and user of

digital tools and services, governments are increasingly prioritising accessibility and inclusion for
businesses and citizens in the digital economy and taking concrete steps to enact such changes.

Challenges in Rallying Political Will for Change: Governments are still facing challenges
in reliably rallying political will for digital change management across government ministries and
implementing affordable IT solutions.

Difficulties in Creating an Enabling Business Environment: Governments are also having

some trouble creating the type of business environment needed for enterprises to succeed in the
digital economy, mainly because of challenges in innovation and digital skills across society.

Call-to-Action: Develop clear change management procedures and policies to ensure political
will and coordinated implementation of ICT planning.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 40
4.5. ICT Infrastructure: Private- a significant issue, particularly with industries.
Sector Collaboration and Last-Mile This points to the need for a common
framework for better coordination between the
Connectivity government branches, as well as between the
One of the areas where the themes government and the private sector.
mentioned so far have most commonly
intersected is digital infrastructure, as well When asked about the main stakeholders
as the corresponding need for access and for digital transformation within their country,
connectivity using private-sector collaboration more than half of country officials responded
and last-mile extension. As a result, countries that the private sector was one of the top two
are working with great success towards or three most important stakeholder groups.
securing investment and support for digital This finding is consistent with the results of
infrastructure, though they continue to work the interviews, as officials from governments
towards improved collaboration and the with varying levels of digital infrastructure
extension of last-mile connectivity. and availability of digital government services
frequently expressed the need for increased
Private-Sector Collaboration for collaboration with the private sector. Some of
Digital Infrastructure the common areas in which a need for private
Digital infrastructure encompasses a number sector collaboration was indicated was around
of critical areas for a digital economy— physical infrastructure, technical capacity, data
including broadband, telecommunications, and cloud infrastructure, and interoperable
fibre optics, etc—as well as a number systems (e.g., mobile telecommunications and
of critical areas for digital government, digital government services).
namely interoperable platforms and national
databases. Digital infrastructure is also key for
a number of emerging technologies, including The other [pressing] issue is
the internet of things (IoT), machine learning, about digital adoption. In other
drones, and smart cars.96 Furthermore, in words, how can we ensure that rural
expanding access to the digital economy,
it is important to close the digital divide by
communities are using the internet
ensuring adequate access to communication once the infrastructure is there. We
infrastructure by low-income, rural, and know that private operators are not
marginalized communities.97 necessarily interested in rural areas.
Hence, we need to work so that we
To this last point, officials in this study
said public-private partnerships (PPPs)— ensure that rural areas have access
partnerships between governments and the as well, maybe through certain
private sector—were key to their success incentives to mobile operators.
in investing in and constructing physical
and digital infrastructure, particularly in
the case of last-mile connectivity. That The two most common areas for government
being said, coordination with the private collaboration with the private sector involved
sector on investment was also a common infrastructure rollout and government
challenge that several countries were working architecture, particularly in areas such as
proactively to address. When asked about investment and capacity building. It was
the implementation of the national ICT clear that governments frequently viewed
strategy, country officials said that while the the private sector as bringing necessary
implementation had started, coordination was knowledge, leadership, and technical

96 Republic of Kenya, “Digital Economy Blueprint: Powering Kenya’s Transformation,” Government of the Republic of Kenya (2019): 44. Retrieved from:
https://ca.go.ke/wp-content/uploads/2019/05/Kenyas-Digital-Economy-Blueprint.pdf.
97 OECD, “Enhancing Access and Connectivity to Harness Digital Transformation,” OECD, Paris (2019): 4. Retrieved from: https://www.oecd.org/going-digital/
enhancing-access-digital-transformation.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 41
expertise that the public sector in their stages of their national digital economy
country was sometimes lacking. Some transformation were focused intently on
mentioned that public-private partnerships infrastructure and connectivity. This was
would be necessary to promote a culture of particularly true in areas like the expansion
innovation and entrepreneurship. of broadband and fibre optics, provision
of ICT equipment for education and digital
Last-Mile Connectivity for Rural Areas skills and values, increasing bandwidth and
A unifying theme of this work on infrastructure expanding coverage for MNOs, and extending
was the idea of last-mile connectivity, based government services to citizens in rural areas.
around the need to extend ICT infrastructure Closely related to the need for improving
to rural and remote areas through innovative digital skills and values in rural areas was
partnerships and solutions. As noted by inclusion and access, which were often core
ITU, universal connectivity—underpinned by themes of the infrastructure extension and
broadband connectivity and last-mile access— connectivity issues mentioned by officials in
is key to enabling the digital transformation of their responses.
economies across the globe.98
Countries in the study have made great
For many countries in this study, digital progress in improving the conditions of
infrastructure was a prerequisite for digital their infrastructure in the last two decades,
transformation and the expansion of the with a greater rate of change in the African
digital economy, one which superseded Infrastructure Development Index (AIDI) used
the development of harmonised strategic in the benchmarking (see Figure 14). Country
planning or inter-government planning. responses supported these developments and
Several countries that were still in the early changes seen in the index for this pillar.99

4.5 Key Takeaways

Public-Private Partnerships for Last-Mile Connectivity: Countries understand the value
and need for last-mile connectivity aimed at reaching low-income and rural populations, and
increasingly recognise public-private partnerships as necessary to extend digital access,
particularly in rural areas.

Difficulties Aligning and Coordinating Infrastructure Rollout: While countries have

made progress in investment and partnerships for infrastructure and connectivity during the
last 10 years, there is progress still to be made in aligning and coordinating investment and
implementation in this area.

Challenges in Aligning Objectives with Non-Government Actors: Governments sometimes

face challenges in reaching out to and aligning their objectives with the private sector and civil
society.

Call-to-Action: Enable the sustainable rollout of ICT infrastructure and last-mile connectivity
through public-private partnerships and innovative financing.

98 ITU, “The Last-Mile Internet Connectivity Toolkit: Solutions to Connect the Unconnected in Developing Countries,” (Draft, ITU, January 20, 2020):
5. Retrieved from: https://www.itu.int/en/ITU-D/Technology/Documents/RuralCommunications/20200120%20-%20ITU%20Last-Mile%20Internet%20
Connectivity%20Toolkit%20-%20DraftContent.pdf.
99 The great volume of projects around connectivity and digital infrastructure can be seen in Appendices B and C.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 42
4.6. Emergency Planning
and Sectoral Plans for [There is a] need to do work on
Digital Government public awareness and education,
Considering the COVID-19 pandemic,100 many investing in channels to improve
governments are having to redo their future awareness and use of digital
planning, particularly around emergency systems. When COVID began,
management and the creation of strong, people were against electronic
harmonised ICT sectoral plans. As such,
governments are increasingly attempting to
systems for emergency response,
use ICT policies and services to plan for the for instance, but now [there] is
future, with some success in areas like digital more awareness of the need for
health. That being said, sectoral silos continue these types of [digital] systems.
to impede harmonisation of planning across
government, and the downstream effects of
this lack of coordination are particularly evident
updated information and guidance, among
during emergencies like the recent pandemic.
other uses. These benefits were also seen in the
digital economy itself: small-business owners
Emergency Planning and Management
enabled online shopping, restaurants enabled
Across the board, officials expressed a clear citizens to easily access their services from
need to create coordinated ICT strategies for home, and religious gatherings offered their
disaster and emergency management, as well services virtually.
as integrate emergency planning into other
sectors, particularly in light of the COVID-19 While many officials spoke to the importance
pandemic. That said, only a third of countries of mobile payments and smartphone
surveyed had an updated ICT strategy for penetration in improving their preparedness
disaster and emergency management in for COVID-19, the lack of emergency planning
place. Governments with robust digital health on the whole was a shock to the existing
strategies were able to take advantage of the digital infrastructure. Countries reported
most ubiquitous technologies, such as mobile that they often experienced challenges with
telephony, radio, and television to disseminate high demand due to increased use during
critical messages. Many officials who had confinements. Furthermore, many interviewees
experience with health outbreaks had clearly noted that not all people were able to take
prioritised the use of digital technologies in advantage of digital services because of
health and emergency response for COVID-19. a lack of reliable technology infrastructure
Those governments were using mobile and low levels of ICT adoption, particularly
channels (e.g., voice, SMS, USSD, IVR) to in remote and rural communities where ICT
trace the contacts of infected persons, and infrastructure is limited or nonexistent. Some
they had often developed more resilient health survey respondents mentioned that they were
information systems. working with MNOs to increase bandwidth and
set up free or reduced-cost access points in
Several officials spoke to the importance of rural communities during this time.
government support for digital platforms and
services in allowing individuals to keep in touch Sectoral Plans for Digital Government
with relatives and friends during the pandemic.
This study sought to capture progress with
Those with smartphones were able to access
regards to country development of key sectoral
social media platforms and messaging
plans, which can help coordination across
applications for relevant information, as well
the whole of government and promotion of
as national dashboards for case counts and

100 Primary data collection for this study took place during April and May of 2020, when the COVID-19 pandemic was hitting the peak of its first wave in
locations across the globe, including Africa.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 43
key strategic areas like health, education, Digital health has long been prioritised
and agriculture. Sectoral plans can help by governments and is an area that has
governments develop specific goals for been prolific in its access to funding and
implementing ICT tools and services and resources.101
engaging stakeholders for the sector,
improving better implementation of ICT Planning in key sectors like health sometimes
strategy across government. also seemed to come at the expense of
sectoral planning in other important areas. For
Many officials in this study demonstrated example, e-commerce plans—an important
a focus on the three major sectors of the area for digital economy—were notably
economy; namely, health, education, and absent in many countries,102 and cross-cutting
agriculture. As indicated in the survey, digital strategies for disability and gender in digital
health strategies were frequently the most activities were frequently missing as well. Only
developed of all the sectoral ICT strategies, one-third of surveyed countries had an ICT
followed by digital education and agriculture sectoral plan for other important areas besides
strategies. This was not especially surprising, education, health, and agriculture. Putting
given the historical importance of these sectors such strategies in place could help ensure a
to both governments and the donor community. framework for a more equitable and inclusive
digital transformation while addressing
Digital health response was also frequently disparities in the adoption and use of digital
mentioned as a priority for governments, technology among marginalised populations.
particularly in response to COVID-19.

4.6 Key Takeaways

Range of Existing Sectoral Plans: Most countries have existing digital sectoral plans in at
least some key strategic areas, notably digital health, as well as e-government, digital economy,
and education.

Need for Updated Sectoral Plans: Countries are interested in new sectoral plans since existing
ones have often proved insufficient during emergencies, and other key sectors like agriculture and
tourism are underrepresented in their availability.

Need to Harmonise Sectoral Policies Across Government: Some countries also face
challenges in harmonising policies and in creating coordinated and adaptive governance around
their national and sectoral strategies.

Call-to-Action: Ensure harmonisation of sectoral policies in collaboration with the national ICT
ministry and other supporting agencies.

101 The World Health Organization and ITU have both recognised the importance of collaboration for e-Health in their governing body resolutions, and
developing a digital health strategy that provides clear direction to health system stakeholders is a key recommendation emphasised by the AU Digital
Transformation Strategy for Africa. For more information, see: WHO and ITU, “National eHealth Strategy Toolkit,” WHO and ITU (2012): 1-14. Retrieved from:
https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-E_HEALTH.05-2012-PDF-E.pdf; and African Union, “The Digital Transformation Strategy for Africa (2020-
2030),” African Union. Retrieved from: https://au.int/sites/default/files/documents/38507-doc-dts-english.pdf.
102 As countries prepare for increased cross-border movement of goods and services through the Africa Continental Free Trade Area (AfCFTA), developing
an e-commerce strategy, particularly addressing secure online payments, will be critical for countries seeking to capitalise on one of the world’s single
largest markets.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 44
4.7. Digital Skills and Capacity for
Governments and Citizens Digital skills and values
Countries recognise that human capacity and digital government are
development and a human-centered interrelated, as human capacity
transformation are key enablers of successful fuels digital government and
digital transformation. As a result, they are
taking proactive steps in this direction, with the digital economy at large.
particular success in addressing issues
related to literacy, connectivity, and inclusion. To their credit, several countries have
government agencies that are specifically
Upskilling of Civil Servants in charge of assessing the skills gap
Digital skills and values and digital government among civil servants, as well as organising
are interrelated, as human capacity fuels training opportunities and coordinating skills
digital government and the digital economy at development across government. That being
large. Among the countries surveyed, many said, ICT skills for government employees was
were steadily moving towards building out an area that seemed to require significant time
their own vision for human capacity and skills and resources that governments often did not
development, as well as creating a culture of immediately have. Additionally, to address
innovation and entrepreneurship. However, the need for cross-functional capabilities
it was clear that these issues also need to rather than technical expertise on its own,
be addressed alongside related enablers, governments expressed some movement
such as infrastructure and connectivity. Not toward whole-of-government processes in
only that, it was evident that governments managing human and technical capacity,
themselves had insufficient understanding and though this was in its early stages.
awareness of ICT, and the coordination and
use of digital technologies across government Fixing the Talent Pipeline
meant little if ICT skills and awareness were not Government talent is a subset of the national
mainstreamed into the training and duties of pool of talent, therefore it is important to not
civil servants. only address the immediate needs for human
and technical capacity in government, but
Despite progress in recent years, this is the also to promote ICT and STEM education
area in which the countries surveyed still more broadly. The benchmarking assessment
needed to make the most progress. The and interviews highlighted a need for more
benchmarking assessment of the Digital Skills comprehensive assessment of digital skills,
and Values pillar found that all of the countries ranging from basic literacy to advanced ICT
in the study were below the global median skills in such fields as artificial intelligence,
and many country scores were ranked low data analytics, and robotics. While countries
in the index. As indicated by officials from were clearly aware of this need, it was one of
multiple countries, this was often a result the areas in which countries had to make the
of low levels of digital literacy, insufficient most progress.
adoption of digital tools and services, and
the need to improve local content creation. Countries frequently related the challenge of
Several countries highlighted examples of change management to a lack of technical
expert panel discussions, short-term training, capacity across government, often due
and peer learning sessions within or across to a lack of awareness around the value
countries that could provide opportunities for and need for ICT. This had downstream
government employees to refresh ICT skills challenges in terms of change management
and learn about emerging technologies, and the mainstreaming of policies, as well
including 5G, data analytics, cyber security, as developing and maintaining government
and distributed ledgers. architecture and interoperable systems.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 45
Not only that, but countries also frequently • Enabling Education Policy: This includes
reiterated these problems as being closely universal access to education as well as
related to issues in ICT access and the revision of related school curricula.
connectivity. In other words, the barriers to Countries need to not only subsidise ICT
human capacity for governments reflected education, training, and equipment, but
broader challenges in the ability of government mainstream it into education curricula. For
to access and reach people across society example, Sierra Leone is devoting 21% of
using digital technologies. its national budget to achieve universal and
free education.104
This study also identified significant issues • Fostering a Technology and Innovation
around content development, the digitisation Culture: Governments play a significant
and translation of existing learning content, and role in creating incentives and fostering a
the need for improved and expanded digital culture that is more receptive to ICT use
platforms and systems to be put in place across and adoption. This can be done through
government and on behalf of society. Countries automating government processes such
were aware of these issues and highlighted as e-taxation, business registration, and
many positive successes in dealing with them in digitisation of other government services.
recent years. Several country officials said they More ICT adoption within government can
had developed or were developing national have a positive ripple effect in the economy
institutes for technology to help prioritise ICT as governments become responsible for
skills and education, with the hope of increasing creating key ICT building blocks such as
the pool of talent available to the public and digital ID, employing a significant number
private sectors. Notably, some governments of the local workforce, and having extensive
had also made it a priority to address the need transactions with private-sector actors and
to promote STEM education for young girls and citizens on a daily basis.
introduce them to careers involving ICT.
• Reinforcing ICT Entrepreneurship and the
School-to-Work Transition: The pace of
This study highlighted key issues relating
ICT innovation is constantly evolving, and
to digital skills and capacity, including the
education policy and curricula take a long
following:
time to change and implement. Therefore,
• Development of Learning Infrastructure: there is a need to encourage ICT-related
This includes the digitisation of content and entrepreneurship activity as well as partner
learning curricula, as well as improving with the private sector to create an enabling
connectivity in schools to provide things like ecosystem. Moreover, apprenticeship
distance learning and access to computers. and internship opportunities should be
For example, Angola has digitised primary encouraged for the recruitment of talent
school books for its student population, and and to foster collaboration and exchange
Côte d’Ivoire implemented a subsidy for between the government and learning
the acquisition of computers for students. institutions. For example, several countries
Countries such as Côte d’Ivoire, Ghana, and in this study—such as Sierra Leone, Niger,
Senegal have also been participating in the and Gabon—have established a network
second phase (from 2020 to 2023) of the of national and regional mentoring and
Transforming Education in Africa project, incubation centres to develop the next
which seeks to scale up an “e-school” generation of innovators and entrepreneurs.
model by supporting ICT in education policy
development.103

103 The ICT Transforming Education in Africa project is supported by the UNESCO and Korean Funds-in-Trust (KFIT) contribution by the Republic of Korea.
Mozambique, Rwanda, and Zimbabwe were participants in Phase 1 of the project from 2016 to 2019, and Côte d’Ivoire will be part of Phase II, alongside
Ghana and Senegal. For more information, see: “ICT Transforming Education in Africa,” UNESCO, accessed July 16, 2020. Retrieved from: https://en.unesco.
org/themes/ict-education/kfit.
104 Prisco, Joanna, “Sierra Leone Launches Program to Give 1.5 Million Children Free Education,” Global Citizen, August 23, 2018. Retrieved from:
https://www.globalcitizen.org/en/content/sierra-leone-children-free-education/.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 46
4.7 Key Takeaways
Defining a Vision for Digital Skills and Values: Countries are working on defining the terms of
their own unique vision for digital skills and capacity in their digital economy journey.
Focus on Human-Centred Digital Transformation: Connectivity, inclusion, and digital literacy,
as well as a culture of innovation and entrepreneurship, are increasingly being seen as important
foundational elements of an agenda for human-centred digital transformation.
Holistic Vision for Digital Skills and Values: The extension of citizen inclusion and access in
these areas is often closely related to demand for infrastructure, connectivity, and education at both
the national and local levels. It is also imperative that digital inclusion be in line with local priotrities
and cultural values, including customs and traditions.
Upskilling Civil Servants and Fixing the Talent Pipeline: There is still considerable progress
to be made in upskilling civil servants and fixing the talent pipeline for both government and the
private sector.
Call-to-Action: Strengthen digital skills and commit to policies that promote digital adoption,
literacy, and inclusion, in line with local values.

4.8. Regional Collaboration opportunity for cooperation and peer learning

and Global Alignment: Policy, on policy and regulation, and having access
to more knowledge and understanding of the
Platforms, and Peer Learning challenges and best practices. Several officials
Countries across Africa are recognising the noted that increased cooperation in these
value of digital cooperation and are working areas would be a key input for ICT and digital
to align national digital strategies, regulations, economy planning.
and infrastructure with regional frameworks
and initiatives, with the goal of improving By cooperating through such regional bodies,
national and shared regional outcomes. countries have begun to promote common
However, some countries have had more understanding around the legal and policy
success than others in promoting key regional frameworks for responsible and sustainable
policies and objectives, and many countries digital transformation. Most countries also
still struggle in pursuing global alignment and recognised the need for global alignment
investment related to digital cooperation. and partnerships, sometimes in requests
for support and funding, though it is notable
Policy and Regulatory Frameworks that the knowledge and capacity created by
This study clearly showed that most countries regional cooperation was more at the forefront
have been working to some extent towards
harmonising their ICT policy frameworks
through regional institutions, as well as We want to work with regional
providing for some sort of strategic alignment partners such as Smart Africa as
on national strategies.105 Participating officials
also noted that while there was progress
we develop our own national ICT
to be made in aligning national policies strategy to create alignment with
and regulations, they were interested in the regional frameworks.
premise of this study because it offered an

105 This is clearly the case with regards to support for the Digital Economy Blueprint, which has developed in recent years.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 47
in discussions and interviews. Regional objectives in this area, it is clear that demand
economic communities (RECs) like the for shared knowledge and capacity around
Economic Community of West African States infrastructure (and secondarily interoperable
(ECOWAS) have been important to progress platforms and systems between countries)
in these countries and have frequently is key to accelerating change in regional
supported countries in the promotion of economic integration.
harmonised regulatory frameworks in ICT
(e.g., e-commerce and cyber security).106 This was most evident in the peer learning
Countries in this study were also increasingly countries shared during the workshop, as
becoming aware of and participating in such well as the follow-up interviews. Officials
RECS and frameworks alongside their peers, said their governments were prioritising
and most officials demonstrated considerable domestic and regional ICT infrastructure
knowledge of past and present contributions of and platforms, laying the foundation for
their governments to such alliances. more regional integration and trade, and
many were working on regional e-commerce
All countries reiterated the value of the and mobile interoperability. Several country
collaboration and best practices sharing officials also mentioned infrastructure
they experienced through regional networks, demand in relation to the need for innovation
and not just the Smart Africa network. The and entrepreneurship, as well as the
importance of collaboration was most evident importance of strategies in helping to
in areas that required significant legal and coordinate infrastructure rollout.
regulatory work (and sometimes a high level
of political risk), including e-government,
digital identity, data privacy and protection,
and cybersecurity. Several countries noted The sharing of experience,
the importance of regional support in allowing capacity building and the sharing
ICT ministers and officials to seek and secure of best practices will allow—not
high-level political support within their own
governments. These findings are not surprising
only collaboration on our strategy
but speak to the high levels of sophistication for the digital economy but […] to
and risk that come with rolling out digital help us take charge of managing
government services, particularly around network equipment—the platforms,
safeguarding privacy.
applications that we will soon
Regional Platforms and Infrastructure install. We want to learn what
Increased regional cooperation has been techniques others have used as
incredibly important in catalysing digital we develop our own systems…
economy planning, but the need for digital
cooperation at the regional level is often
most accelerated by demand for initiatives
like infrastructure, which have shared value Best practices from neighbouring countries,
for bordering countries. To this end, regional as well as the rest of Africa, were critical to
networks are one of the best forums for the improvement of government architecture
countries to find alignment on such objectives. and the creation of domestic technology
They are also a less burdensome way to platforms, particularly in countries that were
share best practices and technical capacity, not as far along in terms of local hosting and
as well as pursue global alignment through digital services. A case in point is the West
funding and partnerships. While countries are Africa Unique Identification for Regional
experiencing challenges in standardising their Integration and Inclusion (WURI) Program,

106 UNECA, “Review of the Legal and Regulatory Frameworks in the Information and Communications Technology Sector in a Subset of African Countries,”
Economic Commission for Africa (2017): 4. Retrieved from: https://www.uneca.org/publications/review-legal-and-regulatory-frameworks-information-and-
communications-technology-sector.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 48
aimed at providing countries of ECOWAS with
a foundational building block of digital ID to Another main finding of this
support better delivery of social protection, study was that countries are at
health, and financial inclusion.107 Four of the
countries in this study (Côte d’Ivoire, Benin, different levels in their journey
Burkina Faso, and Niger) are part of this towards digital transformation.
initiative, and some spoke to its benefits.

Countries demonstrated cooperation around Several of the countries in this study were
supervising regional ICT broadband and taking an important lead on flagship projects
mobile infrastructure, and sometimes even within the Smart Africa network. Notable
in beginning to develop critical ICT building examples include high-tech parks from
blocks such as digital ID and electronic Angola, innovation and knowledge cities
payments. Such interoperable and reusable from Benin, the Smart Africa Scholarship
technology can help governments lay the Fund from Burkina Faso, cybersecurity from
foundation for digital government services Cote d’Ivoire, ICT industry development
while also being critical for regional from Gabon, smart e-payments from Ghana,
integration, tourism, and trade, a reality that digital economy from Kenya, smart villages
many officials recognised. Furthermore, from Niger, and broadband access and
collaboration and coordination with global the green economy from Senegal.109 While
actors such as donors, the private sector, these projects were often at different levels
and civil society were also recognised as of progress, officials indicated that they
being important in laying the foundation played an important role in catalysing political
for regional integrations, particularly with will within the government, and some said
regards to the technical capacity necessary that they had provided them a meaningful
for building and sustaining ICT platforms. opportunity to learn from their peers.
Such collaboration can yield benefits for
citizens living in that region, including Some country officials noted that more effort
lowering costs of mobile communication, as might be needed to mobilise resources and
in the case of the Central African Economic allow countries to effectively implement digital
and Monetary Community (CEMAC), of which economy strategies. While there was clearly
Gabon is a member.108 political will both within countries and from
Smart Africa to update or renew strategies,
Peer Learning Across Africa many members had a lot to do to begin this
Another main finding of this study was that process and indicated that they need regional
countries are at different levels in their journey and global support to catalyse change and
towards digital transformation. Using the Digital channel necessary resources. And while this
Economy Blueprint as a reference, countries study can in some ways be seen as a critical
scored differently on measures of digital step in doing this, the need for investment
governance, infrastructure development, ICT and partnership demonstrates that many
skills, and innovation. Countries can share countries are still just beginning their journeys
their successes, challenges, and knowledge with digital transformation. A lot of work was
through studies such as this one, as well still underway in securing the necessary
as participate in networks that support capital and knowledge through global and
accelerated action in areas of digital economy regional partnerships.
in which they might not be as strong.

107 This project is supported through financing from the World Bank. For more information, see: “Togo, Benin, Burkina Faso and Niger Join West Africa
Regional Identification Program to Help Millions of People Access Services,” The World Bank, April 28, 2020. Retrieved from: https://www.worldbank.org/en/
news/press-release/2020/04/28/togo-benin-burkina-faso-and-niger-join-west-africa-regional-identification-program-to-help-millions-of-people-access-services.
108 This regional community worked with MNOs in the region to establish a free roaming zone across member countries. For more information, see: Betu,
Alain, “CEMAC Workshop on Free Roaming,” GSMA Sub Saharan Africa, January 17, 2020. Retrieved from: https://www.gsma.com/subsaharanafrica/cemac-
workshop-on-free-roaming.
109 For more information on some of the projects highlighted by countries, see Appendices B and C.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 49
In recent years, regional bodies and Respondents expressed a lot of enthusiasm
membership organisations have taken on the about these opportunities to share lessons
role of convener for peer-learning initiatives, and recognise their value both as a source
both through hosting technical working groups of technical expertise and capacity building.
around digital economy and through flagship They also offer the advocacy and leadership
projects that provide proof of concept on support necessary for successful ICT strategy
certain ICT-related initiatives before they implementation, a milieu this study has sought
are scaled and adopted by other countries. to situate itself in.

4.8 Key Takeaways

Policies, Platforms, and Peer Learning: Regional collaboration has been happening at the
nexus of policy, platforms, and peer learning, often with a focus on digital economic integration and
cross-border trade.

Increased Global Alignment: These developments in regional collaboration and economic

integration are taking place in tandem with increased global alignment with donors, NGOs, and
multilateral institutions.

Challenges in Adoption and Implementation of Harmonised Approaches: Progress is still

early, and some countries face uphill challenges in adoption and implementation of harmonised
policy and regulatory approaches.

Need for Continued Partnership and Capacity Building: Countries continue to experience issues
in capacity building and aligning their objectives with those of the private sector and civil society.

Call-to-Action: Reinforce global and regional partnerships to promote common goals, including
regional integration and trade.

4.9. Benchmarking the Digital addressed as countries move forward on their

Transformation Journey: Key digital transformation journeys.
Themes and Takeaways A Paradigm Shift in Digital Government
Significant progress has been made in the last
As highlighted in section 4.4, this study
decade with regards to digital transformation
showed that there is a paradigm shift
in these countries, but the responses from
happening as governments continue to move
participating countries have revealed
service delivery away from a government-
challenges that need to be addressed if
centred approach towards a user-centric
countries are to be successful in unlocking
approach.110 The shift towards user-centred
the digital economy. This section will look at
government services is happening in different
the many ways in which the different findings
regions in Africa and includes such things
highlighted in the benchmarking assessment
as e-registration for businesses and e-citizen
and thematic analysis have intersected. It
services. It is significant that this paradigm
will also examine how progress made can be
shift is happening during the COVID-19
sustained and how issues identified can be
pandemic, a time when governments are

110 While this is not necessarily a new idea, it is somewhat new in Africa given the move towards digital government in the last 20 years. For more on the
idea of user-centred government, see: Data-Smart City Solutions. “Is User-Centered Government Really Attainable?” Government Technology, May 2, 2018.
Retrieved from: https://www.govtech.com/data/Is-User-Centered-Government-Really-Attainable.html.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 50
realising they have not gone far enough in rollout and last-mile connectivity (section 4.5),
digitally transforming the way people live and as well as promoting a dynamic and thriving
work in their countries.111 business culture that prioritises technological
innovation (section 4.7).
The pandemic is also forcing governments
to rethink their vision for digital societies. Renewed Focus on Digital Economy
Government officials participating in this Planning and Buy-In
study frequently referred to the COVID-19 These challenges speak to a need for more
pandemic as an inflection point that was or updated strategic planning for creating a
challenging many sectors and systems (as digital economy (see section 4.1). Officials
documented in section 4.6). They said they often expressed difficulty in drafting and
knew how devastating emergencies can be executing strategies, and several expressed
for businesses and citizens without necessary interest in designing new ICT roadmaps and
planning and mitigation and were looking to strategic plans from the ground up. There was
use the emergency as an opportunity to adapt a clear desire for the types of coordinated
to an increasingly digital future. and intentional processes that have been
mentioned before, including a WGA.112 While
A Coordinated and Intentional Approach to most governments appear to be taking steps
Government Planning towards WGA, issues like procurement,
The challenges in adapting to COVID-19 coordination, and policy alignment were
also point to broader challenges in how creating problems across the economy (see
the government plans, implements, and sections 4.2. and 4.3).
regulates its own vision for digital economy
within its country. As documented in section However, in order for a national roadmap
4.4, such planning may indeed warrant a to succeed, countries need supporting
more coordinated and intentional approach documents that are both visionary and
by governments to address not only the based on current facts and realities. These
technological aspect of this process, but documents should be anchored by high-
also the underlying organisational work level support, developed in consultation
cultures. Such an approach could help with public and private stakeholders, and be
effectively manage the disruptions caused easily understandable and communicable.
by the deployment of ICTs and promote the A clear vision for a digital economy would
acceptance of new electronic ways of doing be a strategy that includes timetables and
business and living life, as well as help grow key performance indicators (as was done in
the digital economy. Senegal), as well as a strategic plan outlining
a clear, holistic digital change management
This study showed that such approaches strategy (see section 4.4.)
were only successful as long as governments
took responsibility and ownership for
coordinating their implementation (see section Countries need new business
4.2). Despite rapid growth and expansion
of digital government, many governments
models, management cultures,
struggled to sustain digital government technologies, and processes
and provide digital services to all parts to improve the relationship
of society. Countries need new business between different drivers of
models, management cultures, technologies,
and processes to improve the relationship the economy.
between different drivers of the economy.
This will be critical in driving infrastructure

111 This study was finalised in August of 2020.

112 While most respondents acknowledged the need for a WGA implicitly, two respondents indicated it explicitly. Other countries mentioned the need for a
WGA in reference to centralising procurement and coordinating investment across government.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 51
Inclusive and Human-Centred Digital launched several initiatives to expand last-
Transformation mile connectivity, such as the Smart Villages
As shown in section 4.7, human capacity initiative in Niger.113 The extension of services
for digital transformation will be especially in rural areas requires addressing the demand
critical in sustaining political will for change, for infrastructure and last-mile connectivity
as well as creating the technical capacity (see section 4.5), but also the need to create
needed to digitally transform government inclusive policies in education and promote
and the economy. The aim of human outreach that helps train and include people
capacity development for governments from across society (see section 4.7).
is ultimately to improve the pool of talent
available to the public sector as well as the Achieving this goal requires stronger and
private sector and small businesses. But more harmonised sectoral plans, particularly
fixing the talent pipeline can also extend ICT for e-education but also in key areas such as
access, connectivity, and inclusion to people disability and gender (see section 4.7). This is
across society and ensure that individuals critical because it not only allows countries to
and families meaningfully reap the benefits fix the talent pipeline for the next generation,
of their participation in the digital economy. it ensures that the benefits of connectivity are
being actively used by targeted populations. In
As countries move towards a digital this regard, regional collaboration and global
economy, it will also be key to ensure alignment are also important, as is harmonising
that underprivileged populations are not national digital strategies and regulation
left behind. In this regard, countries have frameworks (see section 4.8).

113 This project is specifically geared towards improving rural connectivity, not only with regards to ICT infrastructure, but also other elements of access, such
as availability of content in the local language and in various formats.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 52
 V.
Call-to-Action:
Unlocking the Digital
Economy Through
Sustainable and
Inclusive Digital
Transformation

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 53
V. Call-to-Action: developing local talent, and promoting digital
sovereignty. Continued progress will enable
Unlocking the Digital African countries to take more ownership of
their digital transformation journey and avoid
Economy Through over-reliance on external resources.

Sustainable and The benchmarking report also notes that a

Inclusive Digital number of barriers and challenges still exist
and outlines a set of actions to address them.
Transformation The following recommendations were echoed
by other regional initiatives and frameworks,
The benchmarking report highlights that
including the AU’s Digital Transformation
countries have made significant progress
Strategy for Africa 2020 – 2030,114 and offer
in developing their digital economy as they
governments a roadmap for how to update
work towards the local and regional goals
their digital economy strategies and plans.
of creating a single digital market in Africa,

FIGURE 17

Call-to-Action: Unlocking the Digital Economy Through Sustainable

and Inclusive Digital Transformation

1 Update national
ICT strategies and
plans with KPIs and
2 Improve policies and
alignment across
government to reduce
3 Strengthen the
coordination of
financing, affordability,
4 Develop clear change
management
procedures and policies
timetables for delivery silos in governance, and procurement for ICT to ensure political will
of key outcomes across improve funding, and tools and digital services and coordinated
strategic issue areas increase platform implementation of ICT
interoperability planning

5 Enable the
sustainable rollout
of ICT infrastructure and
6 Ensure
harmonisation
of sectoral policies in
7 Strengthen the digital
skills and values of
citizens by committing
8 Reinforce African
partnerships
and integration with
last-mile connectivity collaboration with the to policies to promote regional and continental
through public-private national ICT ministry connectivity, inclusion, institutions that promote
partnerships and and other supporting and digital literacy collaboration and trade
innovative financing agencies

Each action item in the figure above is detailed below:

Update national ICT strategies and plans up-to-date national ICT strategies with focus
1. with KPIs for delivery of key outcomes areas, and few of them included timetables and
across strategic issue areas: In order to be KPIs. To address this, governments need to
successful in coordinating the adoption and use document strategic planning, produce a timeline for
of technologies across society, countries need achievement of their objectives, and develop KPIs
clear roadmaps and visions that identify relevant to support monitoring and evaluation of progress
issue areas and paths to addressing them. This towards a digital economy.
study found that only a few of the countries have

114 African Union, “The Digital Transformation Strategy for Africa,” African Union (2020). Retrieved from: https://au.int/sites/default/files/documents/38507-doc-
dts-english.pdf.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 54
 Improve policies and alignment across significant. Ensuring the sustainable rollout of ICT
2. government to reduce silos in governance, infrastructure requires governments to secure
improve funding, and increase platform funding, particularly for core ICT infrastructure
interoperability: Synchronising ICT investments and platforms such as digital identity, which are
across government requires innovative approaches catalysts for digital inclusion and connectivity,
in governance, funding, and interoperability, so as to and create an enabling policy and regulatory
avoid siloed planning, investment, and systems. This environment that incentivises different stakeholders
may entail the adoption of centralised procurement, (e.g., private-sector and other funders) to invest in
deployment of enterprise architecture frameworks for infrastructure development and maintenance.
interoperable systems, harmonisation of IT systems
Ensure harmonisation of sectoral policies in
and authorities, and the introduction of cost-efficient 6. collaboration with the national ICT ministry
measures for IT resources across government.
and other supporting agencies: The COVID-19
Such coordinated and centralised approaches
pandemic has brought to the fore the continued
would need to be across the whole of government
problem of siloed sectoral planning in government,
and be accompanied by supporting policies so
as well as related challenges in emergency response
as to provide for more efficient and sustainable
management. While countries in this study often
institutions, platforms, and governance.
demonstrated successful strategies in areas like
Strengthen the coordination of financing, digital health, education, and agriculture, there is
3. affordability, and procurement for ICT tools still a need to strengthen the coordination of digital
and digital services: Financing and procurement of deployment across different government ministries.
ICT infrastructure and services are still major issues Addressing these issues requires updating and
for governments. To overcome them, governments harmonising sectoral plans with the national ICT
need to devise innovative financing models that strategy, creating a coordinating institution, and
promote the efficient use of existing resources on promoting policies that make government more
the one hand, and investment incentives for the proactive and adaptive in the use of digital technology
private sector and other development partners on for emergency planning and response.
the other. This includes putting in place centralised
Strengthen the digital skills and values
procurement mechanisms and other processes that 7. of citizens by committing to policies to
provide better value for the money and encouraging
promote connectivity, inclusion, and digital
public-private partnerships in developing ICT
literacy: Countries still face challenges around
infrastructure and reducing the cost of access.
digital literacy as well as adaptability and
Develop clear change management availability of ICT services in local languages and
4. procedures and policies to ensure contexts. Improving the digital skills and values of
political will and coordinated implementation citizens and local content creation necessitates
of ICT planning: The digital transformation of the working with the private sector, civil society, and
economy, as well as the further development of local creators to improve access to education,
digital government, necessitates top-level anchoring, particularly for marginalised and low-income
including political will and change management for communities; encourage digital literacy and
digital investment, planning, and implementation. upskilling; and promote a culture of innovation
In discussing these issues, countries repeatedly and entrepreneurship.
raised the need for an update of the institutional
Reinforce African partnerships and
frameworks, models of governance, and operational 8. integration with regional and continental
processes underpinning public service delivery.
institutions that promote collaboration and
Anchoring from the highest levels of government,
trade: Regional and continental collaboration is key
namely the president or prime minister’s office,
to promoting economic integration in Africa and
can help build momentum for new procedures and
pursuing global alignment and partnerships. This
policies for digital change management.
study showed that countries have made great gains
Enable the sustainable rollout of ICT by working together, but there is a continued need to
5. infrastructure and last-mile connectivity pursue joint initiatives that will help achieve regional
through public-private partnerships and and global alignment with donors and partners.
innovative financing: Countries in this study were Countries stand to benefit from regional collaboration
at different stages of infrastructure development, through harmonising digital economy policies and
with different levels of connectivity and internet plans, collaborating on platforms and infrastructure
penetration. Problems relating to infrastructure development, and participating in peer learning
development, digital access, and inclusion remain networks alongside other governments.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 55
 VI.
Conclusion

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 56
VI. Conclusion In support of these aims, DIAL
This report sought not only to highlight the
differences within countries with regards to the
and Smart Africa together
Digital Economy Blueprint, but also to learn believe that there is an important
from successful initiatives that can be replicated role to be played by government
by peers and help countries collectively move in promoting and sustaining the
forward towards a stronger digital economy.
By benchmarking the performance of countries benefits of digital transformation.
according to the blueprint, we hoped to To this end, we urge all Smart
underscore the importance of our analysis for Africa member states and their
the planning of digital economy strategies.
By improving their strategies as outlined
partners to read this report and
in the thematic analysis and call-to-action, embrace this call-to-action. It
governments can continue towards transforming is only through continued peer
the digital economy in their countries. learning and regional support
The 10 countries participating in this study that countries across Africa
have all made significant progress in will be successful in building
building their digital economies. In recent inclusive digital economies,
years, they have had particular success in
improving the capacity and performance
achieving the UN Sustainable
of digital government, as evidenced by the Development Goals, and
benchmarking assessment of the Digital transforming of Africa into a
Government pillar in Section 3.1. This study single digital market by 2030.
also highlights positive development across
the board in terms of the five pillars. The strong
political commitment of all countries and the
In support of these aims, DIAL and Smart
progress observed over the last decade will
Africa together believe that there is an
be important to sustain for more countries to
important role to be played by government
rise above the global median across all five
in promoting and sustaining the benefits of
pillars of the Digital Economy Blueprint, as
digital transformation. To this end, we urge all
well as to mainstream key takeaways and
Smart Africa member states and their partners
recommendations featured in the thematic
to read this report and embrace this call-
analysis and call-to-action.
to-action. It is only through continued peer
learning and regional support that countries
To ensure that positive developments do not
across Africa will be successful in building
lose pace, continued collaboration, as well as
inclusive digital economies, achieving the
informed choices and concrete actions, are
UN Sustainable Development Goals, and
needed. As highlighted in the call-to-action,
transforming Africa into a single digital market
this includes sustaining strong political will
by 2030.
for ICT strategies and planning at the highest
levels of government, as well as improving
coordination and change management. It will
also be important for countries to address
issues such as financing, infrastructure,
sectoral planning, digital skills and values, and
regional integration. This can be strengthened
through a focus on digital government and
user-centric services provision, as supported
by common foundational elements like digital ID
and payment systems, as well as related laws,
policies, and regulations.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 57
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75. Zhao, Fang; Wallis, Joseph; and Singh, Mohini, “E-Government Development and the Digital
Economy: A Reciprocal Relationship,” Internet Research, 25, no. 5 (2015): 734-766. Retrieved
from: https://doi.org/10.1108/IntR-02-2014-0055.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 63
 Appendices
A. Country Profiles: Benchmarking Progress Towards Digital Economy
The following appendix contains profiles of each country featured in this study, as mapped against
the five pillars of the Digital Economy Blueprint. Each figure shows their progress against African
and global medians for the pillars in question, as well as their individual positions in African and
global rankings. A detailed methodology of benchmarking indices is provided in Appendix B.

Angola

FIGURE 18: Country Profile of Angola in Terms of the Five Pillars of the Digital Economy Blueprint

Benin

FIGURE 19: Country Profile of Benin in Terms of the Five Pillars of the Digital Economy Blueprint

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 64
Burkina Faso

FIGURE 20: Country Profile of Burkina Faso in Terms of the Five Pillars of the Digital Economy Blueprint

Côte d’Ivoire

FIGURE 21: Country Profile of Côte d’Ivoire in Terms of the Five Pillars of the Digital Economy Blueprint

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 65
Gabon

FIGURE 22: Country Profile of Gabon in Terms of the Five Pillars of the Digital Economy Blueprint

Ghana

FIGURE 23: Country Profile of Ghana in Terms of the Five Pillars of the Digital Economy Blueprint

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 66
Kenya

FIGURE 24: Country Profile of Kenya in Terms of the Five Pillars of the Digital Economy Blueprint

Niger

FIGURE 25: Country Profile of Niger in Terms of the Five Pillars of the Digital Economy Blueprint

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 67
Senegal

FIGURE 26: Country Profile of Senegal in Terms of the Five Pillars of the Digital Economy Blueprint

Sierra Leone

FIGURE 27: Country Profile of Sierra Leone in Terms of the Five Pillars of the Digital Economy Blueprint

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 68
B. Detailed Methodology of Benchmarking Indices
Digital Government: Online Service Index by Data Team Coordinators who provided
support throughout the assessment period.
The Online Service Index (OSI) is considered
Researchers were instructed and trained to
an appropriate proxy for the Digital
assume the mind-set of an average citizen
Government pillar of the Digital Economy user in assessing sites. Thus, responses
Blueprint, as it demonstrates an objective were generally based on whether the relevant
assessment of the government’s digital features could be found and accessed easily,
presence (e.g., national portal, e-services not whether they in fact exist but are hidden
portal, e-participation portal, websites of somewhere in the site(s). The key point is that
related ministries) by researchers who the average user needs to find information and
are experts in public administration. The features quickly and intuitively for a site to be
E-Participation Index was also considered as “usable” with content readily discoverable by
a proxy for Digital Government, but its more the intended beneficiaries.116
limited scope led to Online Service Index
being used. Some of the 50+ indicators of the Online
Service Index are as follows:
The following information and description • Existence of support for authentication or
are taken directly from the description for the digital ID
E-Government Survey 2018:115 • Existence of up-to-date information on
the portal
The Online Service Index (OSI) is a composite
• Existence of an open government data
normalized score derived on the basis on an
Online Service Questionnaire. The 2018 Online
policy online
Service Questionnaire (OSQ) consists of a list of • Information about citizens’ rights to access
140 questions. Each question calls for a binary government information
response. Every positive answer generates • Existence of an outcome of an e-consultation
“more in-depth question” inside and across resulting in new policy decisions
the patterns. The outcome is an enhanced • Existence of support for all official
quantitative survey with a wider range of point languages
distributions reflecting the differences in the
levels of e-government development among
Member States. Digital Business: Global Competitiveness
To arrive at a set of Online Service Index (OSI) Index (Business Dynamism Component)
values for 2018, a total of 206 online United The Business Dynamism component of
Nations Volunteer (UNV) researchers from 89 the Global Competitiveness Index (GCI)
countries covering 66 languages, assessed is considered an appropriate proxy for
each country’s national website in the native
the Digital Business pillar of this study, as
language, including the national portal,
it provides a close approximation of the
e-services portal and e-participation portal, as
well as the websites of the related ministries
digitalisation level of the business operations
of education, labor, social services, health, taking place in a country. The GCI is
finance and environment, as applicable. The prepared by the World Economic Forum, and
UNVs included qualified graduate students it is possible to use the 2019 iteration in this
and volunteers from universities in the field of study. While the Business sub-index of the
public administration. Digital Adoption Index (DAI) by the World
To ensure consistency of assessments, all the Bank was also considered, its underlying
researchers were provided with a rigorous indicators are much more limited compared
training by e-government and online service to the selected index in terms of representing
delivery experts with years of experience the level of Digital Business in a country.
in conducting the assessments and guided

115 United Nations Department of Economic and Social Affairs (UNDESA), “United Nations: E-Government Survey 2018,” United Nations (2018): 83-124;
204-205. Retrieved from: https://publicadministration.un.org/egovkb/en-us/Reports/UN-E-Government-Survey-2018#:~:text=The%20United%20Nations%20
E-Government,launched%20on%20July%2019%202018.&text=The%20disparity%20in%20e-government,both%20Africa%20and%20Oceania%20regions.
116 Ibid., 204-205.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 69
The following information is taken from the The following information is taken from the
description for the Global Competitiveness description for the AIDI 2018:119
Report:117 The following three steps are used in calculating
The GCI is a “composite indicator”; its AIDI (the Sub-regional AIDI calculation
computation is based on successive procedure is not included here for brevity):
aggregations of scores, from the indicator level
Step 1: Normalization Procedure. Since
(the most disaggregated level) to the overall
the components of the AIDI are originally
score (the highest level). At every aggregation
measured in different units, the observations
level, each measure is computed by taking
are “standardized” or “normalized” to permit
the average of the scores of its components.
averaging, with the average regarded as a
The overall GCI score is the average of the
composite index. The normalization procedure
scores of the 12 pillars. In total, there are 103
used is the min–max formula applied to all
indicators distributed across the 12 pillars.
observed values of each component during the
Indicators are sourced from international
period 2000–2010. This procedure adjusts the
organizations, academic institutions, and non-
“normalized component” to take values between
governmental organizations.118
0 and 100 over the indicated period.

The sub-indices and indicators of the Business Step 2: Calculate a Composite Index for
Dynamism component of the GCI are as follows: each Component. The composite index is
calculated as a weighted average of indicators
• Administrative requirements (50%)
for each component that comprise more
• Cost of starting a business than one indicator. The weights are based
• Time to start a business on the inverse of the standard deviation of
• Insolvency recovery rate each normalized component yt= (σtot/σx)*xt;
• Insolvency regulatory framework where σtot is given by 1/σtot=Σx (1/σx) and
• Entrepreneurial culture (50%) σx is the standard deviation of the normalized
• Attitudes towards entrepreneurial risk component x. The rationale for step 2 is
• Willingness to delegate authority to reduce the impact of the most volatile
• Growth of innovative companies components on the composite index and
consequently the volatility of the rankings.
• Companies embracing disruptive ideas
Step 3: Generate the AIDI Composite Index: The
AIDI composite Index is computed using the
Infrastructure: Africa Infrastructure sub-indices of the four components and using
Development Index the same method described in step 2.120
The Africa Infrastructure Development Index
(AIDI) is considered an appropriate proxy The sub-indices and indicators of the AIDI are
for the Infrastructure pillar of this study, as as follows:
it provides a reliable source of information • Transport Composite Index
regarding the infrastructure of African countries. • Total paved roads
The AIDI also has a 2019 iteration, which (km per 10,000 inhabitants)
means the current state of the infrastructure • Total road network
of the countries is represented. The Tele- (km per km2 of exploitable land area)
communication Infrastructure Index (TII) was • Electricity Index
also considered, but its sub-indicators are • Total electricity production
limited in scope regarding infrastructure, which (kWh per inhabitant)
led to the selection of AIDI. While the AIDI does
• ICT Composite Index
not focus simply on digital infrastructure, this is
• Total phone subscriptions (per 100
consistent with the blueprint, which is inclusive
inhabitants)
to a wider range of infrastructure requirements
for a digital economy.

117 Schwab, Klaus, ed., “The Global Competitiveness Report 2019,” World Economic Forum (2019): 623-624. Retrieved from: http://www3.weforum.org/docs/
WEF_TheGlobalCompetitivenessReport2019.pdf.
118 Ibid., 2.
119 “The Africa Infrastructure Development Index 2018,” African Development Bank, July 2018. Retrieved from: https://www.afdb.org/fileadmin/uploads/afdb/
Documents/Publications/Economic_Brief_-_The_Africa_Infrastructure_Development_Index.pdf.
120 Ibid., 17.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 70
 • Number of internet users (per 100 The Global Innovation Index (GII) is the
inhabitants) average of the Innovation Input and Output
• Fixed broadband internet subscribers Sub-Indices, which are as follows:
(per 100 inhabitants) • The Innovation Input Sub-Index is the average
• International internet bandwidth (Mbps) of the following five pillar scores:
• Water Supply and Sanitation Composite • Institutions
Index (WSS) • Human Capital and Research
• Improved water source (% of population • Infrastructure
with access) • Market Sophistication
• Improved sanitation facilities (% of • Business Sophistication
population with access) • The Innovation Output Sub-Index is the
average of the following two pillar scores:
• Knowledge and Technology Outputs
Innovation-Driven Entrepreneurship:
• Creative Outputs
Global Innovation Index
The Global Innovation Index (GII) is
considered an appropriate proxy for the Digital Skills and Values: Global
Innovation-Driven Entrepreneurship pillar of Competitiveness Index (Skills Component)
this study, as it captures many indicators in The Skills Component of the Global
the subjects of innovation, R&D, business Competitiveness Index (GCI) is considered
environment, entrepreneurship, and more. The an appropriate proxy for the Innovation-
GII has a 2019 iteration, which strengthens Driven Entrepreneurship pillar of this study,
its selection for current trends in innovation as it includes many different aspects of the
culture. The ICT Development Index (IDI) was education level and overall skill level of a
also considered, but it did not include several country’s citizens. The GCI is prepared by
of the 10 countries and measures only a small the World Economic Forum (WEF), and it
part of the total level of innovation. is possible to use the 2019 iteration in this
study. Another alternative was the Human
The following information is based on the Capital Index, a component of the EGDI that
Global Innovation Index 2018121: incorporates four indicators and is more limited
This year GII provides detailed innovation metrics in scope.
for 129 economies. All economies covered
represent 91.8% of the world’s population and The following information is based on the
96.8% of the world’s GDP [in purchasing power Global Competitiveness Report 2019:124
parity current international dollars].122 The GCI is a “composite indicator”; its
computation is based on successive
The GII relies on two sub-indices—the
aggregations of scores, from the indicator level
Innovation Input Sub-Index and the Innovation (the most disaggregated level) to the overall
Output Sub-Index—each built around pillars. score (the highest level). At every aggregation
It is comprised of seven pillars, each divided level, each measure is computed by taking
into three sub-pillars, which include two to the average of the scores of its components.
five individual indicators. Sub-pillar scores are The overall GCI score is the average of the
calculated using the weighted average of its scores of the 12 pillars. In total, there are 103
individual indicators. The number of indicators indicators distributed across the 12 pillars.
reached a total of eighty this year. The pillar Indicators are sourced from international
scores are calculated using the weighted organizations, academic institutions, and non-
average of its sub-pillar scores.123 governmental organizations.125

121 Dutta, Soumitra; Lavin, Bruno; and Wunsch-Vincent, Sacha, eds., “The Global Innovation Index (GII) 2019: Creating Healthy Lives – The Future of Medical
Innovation,” Cornell University, INSTEAD, and the World Intellectual Property Organization, (2019). Retrieved from: https://www.wipo.int/edocs/pubdocs/en/
wipo_pub_gii_2019.pdf.
122 Ibid., 9.
123 Ibid., 9.
124 Schwab, Klaus, ed., “The Global Competitiveness Report 2019,” World Economic Forum (2019): 612. Retrieved from: http://www3.weforum.org/docs/
WEF_TheGlobalCompetitivenessReport2019.pdf.
125 Ibid., 2.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 71
The sub-indices and indicators of the Skills - Digital skills among active population
component of the GCI are as follows: - Ease of finding skilled employees
• Current workforce (50%) • Future workforce (50%)
• Education of current workforce (50%) • Education of future workforce (50%)
- Mean years of schooling - School life expectancy
• Skills of current workforce (50%) • Skills of future workforce (50%)
- Extent of staff training - Critical thinking in teaching
- Quality of vocational training - Pupil-to-teacher ratio in primary
- Skillset of graduates education

C. Selected Best Practices for a Digital Economy

Below are some of the many identified best practices being put forth by countries in areas relevant
to the Digital Economy Blueprint. Where no reference is cited, the source is primary data collection
activities identified in Section II of this report.

Digital Government Digital Business

The rapid development in digital government While there is a gap between the best
is evidenced most clearly in various initiatives countries in the world and Africa with regards
that have been undertaken in these countries in to digital business (i.e., the United States and
recent years. Some notable examples include: Mauritius), as well as this study’s selected
• Ghana – The successful rollout of the countries, progress is being made. Some
e-Parliament system to allow a paperless notable examples include:
flow of information within its parliament.126 • Kenya – The creation of iTax, an online
• Kenya – The implementation of Huduma, platform where users can file taxes and
a national e-citizen portal that will enable request tax compliance certificates, has
more effective delivery of all government enhanced revenue collection in Kenya.130
services.127 • Ghana – The Mobile Money Interoperability
• Benin – The development of a national (MII) system was launched in 2018 to enable
e-services portal that will be a single point cross-mobile money transactions. The MII will
of entry to all public services provided by deepen financial inclusion in the country.131
the government.128 • Sierra Leone – The use of blockchain, in
• Burkina Faso – The establishment of partnership with the UN and Kiva.org,
the e-Burkina Project, which improves is helping the unbanked in Sierra Leone
the capacity and use of ICT by public build credit histories, aiming to increase
and private administrations through extension and inclusion of digital financial
e-services.129 services within the country.132
• Burkina Faso – The development of the G-Cloud
project, in collaboration with Alcatel Lucent,
aims to be a cloud platform for the benefit of
administration, businesses, and citizens.133
126 Ahiabenu, Kwami, “e-Parliament: Bringing Citizens Closer to Parliament,” Graphic Online, July 20, 2016. Retrieved from: https://www.graphic.com.gh/
features/opinion/e-parliament-bringing-citizens-closer-to-parliament.html.
127 “Huduma Centres to Be Rollout in All Counties,” The Standard, April 29, 2014. Retrieved from: https://www.standardmedia.co.ke/business/
article/2000110484/huduma-centres-to-be-rollout-in-all-counties.
128 Hankewitz, Sten, “Estonia’s e-Governance Academy Helps Deliver Digital Services in Benin and Ukraine,” Estonian World, April 16, 2020. Retrieved from:
https://estonianworld.com/technology/estonias-e-governance-academy-helps-deliver-digital-services-in-benin-and-ukraine/.
129 “Project Appraisal Document on a Proposed Credit in the Amount of EUR 18.8 Million to Burkina Faso for the eBurkina Project,” The World Bank (2016).
Retrieved from: http://documents.worldbank.org/curated/en/297631484073715323/pdf/eBurkina-PAD-P155645-12292016.pdf.
130 Kamau, Stephen, “ITAX KRA Website Kenya Manual: Registration, Returns, Compliance Certificate, Pin Checker,” TUKO, 2019. Retrieved from:
https://www.tuko.co.ke/269092-itax-kra-website-kenya-manual-registration-returns-compliance-certificate-pin-checker.html.
131 “Ghana’s First Mobile Money Interoperability System Deepens Financial Inclusion and Promotes Cashless Agenda,” AFI Global, May 16, 201. Retrieved
from: https://www.afi-global.org/news/2018/05/ghanas-first-mobile-money-interoperability-system-deepens-financial-inclusion.
132 Huang, Roger, “Sierra Leone to Credit Score the Unbanked with Blockchain,” Forbes, January 23, 2019. Retrieved from: https://www.forbes.com/sites/
rogerhuang/2019/01/23/kiva-partners-with-un-and-sierra-leone-to-credit-score-the-unbanked-with-blockchain/.
133 “G-Cloud: Burkina Faso Entrusts Its Cloud Services to Alcatel Lucent,” VueTel, February 3, 2016. Retrieved from: https://www.vuetel.com/en/g-cloud-
burkina-faso-entrusts-its-cloud-services-to-alcatel-lucent/.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 72
Infrastructure • Cote d’Ivoire – The establishment of the
While there is some gap between the countries Digital Youth Foundation to incubate and
in this study and countries in the rest of Africa, support innovative startups.138
let alone the rest of the world, progress is • Ghana – The development of Accra Digital
being made. Some notable examples include: Centre, a technology park designed to
• Gabon – Large investments have been create an ecosystem for digital innovation
made since 2012 in the construction of a and entrepreneurship.139
broadband fibre optic network, which is • Kenya – The creation of iHub, a tech incubator
intended to improve the communications that provides a co-working space for
infrastructure between other countries in the developers and entrepreneurs to connect.140
Central African sub-region.134 • Senegal – The establishment of the General
• Senegal – The construction of Digital Centres Delegation for Rapid Entrepreneurship
in each of its 45 departments, which will (DER) to catalyse entrepreneurship,
enable numerous administrative services to specifically for women and youth.141
be made available to citizens by 2025. This • Gabon – The existence of a network of
project is part of the ongoing Administrative incubators, innovation entrepreneurship,
Services Digitalisation and Computation and NGOs. For example: JB Gabon, a
Programme.135 member of Junior Achievement Worldwide,
• Kenya – The implementation of a National that instructs youth on entrepreneurship,
Optical Fibre Backbone Infrastructure financial literacy, and work readiness.142
(NOFBI) that will grow the fibre network to
50,000 km.136
Digital Skills and Values
• Benin – The establishment of a project, in
collaboration with the Alliance for Affordable While there is a gap between the highest-
Internet (A4AI), that will improve digital ranked countries in the world and this study’s
connectivity and usage in the country.137 selected countries regarding digital skills and
values, efforts are being made by countries to
change the current situation. For instance:
Innovation-Driven Entrepreneurship • Kenya – The creation of the Digital Literacy
While a gap remains between the highest- Programme, known as Digischool, to
ranked countries in the world (especially ensure that every student is prepared to
Switzerland) and this study’s selected thrive in a global digital world,143 and the
countries in terms of innovation-driven establishment of Youth Empowerment
entrepreneurship, there are markers of Centres across the country with broadband
progress. Some notable examples include: access to facilitate digital skills and allow
young people to search for work.144

134 These countries include Cameroon, the Central African Republic, Chad, Sao Tome and Principe, and the Democratic Republic of the Congo (DRC). For
more information, see: “Gabon: Leading ICT-Connected Country in Central and Western Africa Thanks to Judicious Investments,” The World Bank, June 15,
2018. Retrieved from: https://www.worldbank.org/en/news/feature/2018/06/25/gabon-leading-ict-connected-country-in-central-and-western-africa-thanks-to-
judicious-investments.
135 “Senegal: Government Announces Construction of Digital Centers in All Departments,” Ecofin Agency, July 23, 2019. Retrieved from:
https://www.ecofinagency.com/telecom/2307-40344-senegal-government-announces-construction-of-digital-centers-in-all-departments.
136 Republic of Kenya, “The National Broadband Strategy: A Vision 2030 Flagship Project,” Government of the Republic of Kenya (2013): 41. Retrieved from:
http://icta.go.ke/pdf/The_National_Broadband_Strategy.pdf.
137 “Benin and A4AI Join Forces to Accelerate Progress on Affordable, Universal Broadband Access,” Alliance for Affordable Internet (A4AI), October 18, 2019.
Retrieved from: https://a4ai.org/benin-and-a4ai-join-forces-to-accelerate-progress-on-affordable-universal-broadband-access/.
138 “Fondation Jeunesse Numerique – Accompanying Innovative Digital Projects From Young Ivorians,” ITU (accessed on July 13, 2020). Retrieved from:
https://www.itu.int/net4/wsis/archive/stocktaking/Project/Details?projectId=1488301393.
139 “Accra Digital Centre,” Government of Ghana (accessed on July 14, 2020). Retrieved from: http://adc.gov.gh/.
140 Delex, Niyongabo, “iHub, Kenyan Tech Incubator Becomes Africa’s First to Digitize All Assets,” Region Week, November 8, 2018. Retrieved from:
https://regionweek.com/kenya-tech-incubator-ihub-becomes-first2-digitize-assets/.
141 “DER Senegal: Innovative Government Funding for African Entrepreneurship,” ICT Works, December 19, 2018. Retrieved from: https://www.ictworks.org/
der-senegal-government-innovation/#.Xup5-kBFxPY.
142 “Radia Garrigues: CEO of an Incubator Providing Gabon’s Youth With Skills for the Future,” The World Bank, March 8, 2019. Retrieved from:
https://www.worldbank.org/en/news/feature/2019/03/08/radia-garrigues-ceo-of-an-incubator-providing-gabons-youth-with-skills-for-the-future.
143 “Digischool,” Government of Kenya (accessed on July 14, 2020). Retrieved from: http://icta.go.ke/digischool/.
144 “Gov’t to Establish Youth Empowerment Centers in Sub Counties,” Kenya’s Watching, August 12, 2019. Retrieved from: https://www.kbc.co.ke/govt-to-
establish-youth-empowerment-centers-in-sub-counties/.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 73
• Gabon – With heavy investments made in • Senegal – The country is making efforts
infrastructure, the cost of internet access to develop an Education Management
has fallen since 2010 and the number of Information System (EMIS) to help monitor
internet subscribers has grown, providing performance in its education system.146
people with access to distance learning and
governments with the ability to collect data
to help formulate development policies.145

D. Smart Africa Initiatives for a Digital Economy

Smart Africa has several initiatives that aim for the harmonisation of ICT policy, legal and regulatory
frameworks, and standards.

Smart Broadband Strategy Africa member states. The expected results

The goal of this project is to create a smart of this project are affordable roaming costs
for the average African, as well as keeping
broadband strategy document that addresses
the intra-African traffic within the boundaries
the issue of broadband and internet infrastructure
of the continent.
in Africa. It also involves developing a central
database for all information related to broadband Cloud and Data Centres for Africa
and internet infrastructure in Africa.
The goal of this project is to reduce the
dependency on infrastructure located outside
The Intra-African Connectivity Project of Africa through faster download and upload
The goal of this project is to create a speeds, as well as local hosting of content
connected Africa that will make internet and services.
and broadband accessible and affordable.
It involves the use of voice, SMS, and data The Startup Acts
traffic generated and destined for Africa, Following the release of the Africa Blueprint for
which will stay within the boundaries of Startups and ICT Ecosystems as part of the flagship
the continent, as well as a data protection project led by Tunisia, the Smart Africa Secretariat
framework that will be outlined to protect is now working on the dissemination of the best
businesses and individuals. practices of the blueprint through the following:
1. Providing technical assistance for the devel-
Bulk Purchase of Wholesale Submarine opment of Startup Acts for member states
and Satellite Internet Bandwidth 2. Supporting the implementation of the
Smart Africa has launched an initiative that recommendations of the blueprint
aims to make broadband affordable for its 3. Activating the Smart Africa working group to
member states by working to secure an coordinate all activities related to startups
agreement with international broadband and innovation ecosystem development
providers for long-term bulk submarine and/
or satellite bandwidth. The goal of this project Blueprint on ICT Skills Development
is to reduce the cost of broadband internet for and Capacity
Africa to an average of $2 per 1GB. The goal of this project is the development of a
comprehensive blueprint guide for the member
The One Africa Network Project states of Smart Africa. It will enable them to
OAN aims to make intra-African effectively identify the ICT skill development
communication secure and affordable, and capacity-building needs towards an
supporting millions of Africans in Smart African digital market and economy.

145 “Gabon: Leading ICT-Connected Country in Central and Western Africa Thanks to Judicious Investments,” The World Bank, June 25, 2018. Retrieved
from: https://www.worldbank.org/en/news/feature/2018/06/25/gabon-leading-ict-connected-country-in-central-and-western-africa-thanks-to-judicious-investments.
146 “EDUPAC: Simplifying Education Management,” Management and ERP Portal (accessed on July 14, 2020). Retrieved from: https://emis.africa/landing/
index.php?country=sn.

Unlocking the Digital Economy in Africa: Benchmarking the Digital Transformation Journey | 74
E. Strategic Development: Designing Digital Economy Plans
In 1996, the Economic Commission for Africa Step 2: Development of the National ICT
(ECA) Council of Ministers adopted the African Policy Framework
Information Society Initiative (AISI) Resolution The journey towards a fully developed
as an ICT for Development framework.147 This digital economy may typically start with the
declaration was a thorough, regional ICT4D development of a national ICT strategy or
framework that built on the work of the UN roadmap. These national ICT documents should
Economic Commission for Africa (UNECA) and provide the visionary direction of a country’s
broadly articulated the foundation and building ambition in developing a digital economy and
blocks for regional digital cooperation in how it plans to pursue a digital transformation
Africa. Subsequent declarations followed from agenda in the coming years. They should
the World Summit on the Information Society also outline the vision of elevating the digital
(WSIS), a two-phase, UN-sponsored global economy, bringing citizens out of poverty, and
summit between 2003 and 2005. meeting the Sustainable Development Goals.

Around the same time period, UNECA launched Governments and other institutions create
a framework named the National Information policies to provide the necessary conceptual
and Communication Infrastructure (NICI) and institutional framework for the coordination
Initiative in 2004 and developed a blueprint and integration of technical and social
for ICT for development strategies in Africa,148 interventions by all stakeholders, ranging
one of the first steps in ICT for development from government to civil society to the private
policy and planning in Africa. More recently, sector. This coherence among the actions of
the AU adopted its own Digital Transformation various public, private, and civil entities avoids
Strategy for Africa,149 a key element in achieving contradictions in the implementation of projects.
the common agenda of promoting regional
economic integration by 2030.150 Step 3: ICT Programme Implementation
Implementation of an ICT strategy and/or
The following are key steps in the digital economy
strategic plan should reaffirm national political
planning and strategic development process
will to meet the objectives and goals set out
promoted by Smart Africa in particular.151
and thereby contribute to the achievement of
the overall national vision. A key component
Step 1: Determining the National
of implementation is a dedicated office at the
Development Priorities
ministry or agency level to carry out monitoring
The national ICT policy and plan should and evaluation activities that monitor
be developed within the national planning progress and implementation of the plan.
framework and consequently contribute to the Implementation should also help establish a
national development priorities. A country’s credible and flexible institutional framework to
national development plan comprises broad implement and manage the policy, including
goals and aspirations for the economy and offers an overall responsible ministry for coordinating
a long-term perspective. It should identify the role ICT activity and projects, as well as policy-level
that different sectors of society need to play in and technical implementation organs, namely,
reaching those goals, as well as a shared long- ICT implementation and regulatory agencies.
term strategic framework for how more detailed, Additionally, an ICT strategic implementation
cross-cutting planning can take place across plan should break down KPIs with target dates,
government while also including different sectors providing goals and objectives for how the
and stakeholder groups within society. vision can be achieved.
147 UNECA, “The African Information Society Initiative (AISI): A Decade’s Perspective,” Economic Commission for Africa (2008): 1-10. Retrieved from:
https://repository.uneca.org/handle/10855/14949.
148 Ibid., 13-22.
149 African Union, “The Digital Transformation Strategy for Africa (2020-2030),” African Union (accessed on July 16, 2020). Retrieved from:
https://au.int/sites/default/files/documents/38507-doc-dts-english.pdf.
150 The DTS was developed in collaboration with other partners and builds on initiatives and frameworks, including the Policy and Regulatory Initiative for
Digital Africa (PRIDA). PRIDA is a joint initiative of the AU, EU, and ITU that aims to enable Africa to reap the benefits of digitalisation. For more information,
see: “Policy and Regulatory Initiative for Digital Africa (PRIDA),” ITU (accessed on July 14, 2020). Retrieved from: https://www.itu.int/en/ITU-D/Projects/ITU-EC-
ACP/PRIDA/Pages/default.aspx.
151 These steps have been sourced from conversations and material shared between DIAL and the Smart Africa Alliance.

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