The Ghanaian government has made digital technology a cornerstone of its socioeconomic development strategy. The administration plans to launch a $5 million fund to support technological innovation across the country.

Ursula Owusu-Ekuful (photo, center), Ghana’s Minister of Communications and Digitalisation, officially unveiled the country’s new Digital Economy Policy and Strategy last week. This roadmap aims to harness digital technologies to spur economic growth, improve public services, and ensure equitable access to digital resources.

The strategy focuses on five key pillars: entrepreneurship, digital skills, digital government, universal access, and emerging technologies.

According to the minister, the policy is designed to enhance and accelerate Ghana’s ongoing digital transformation efforts. Ghana currently ranks 108th globally on the 2024 E-Government Development Index (EGDI) by the United Nations Department of Economic and Social Affairs (UNDESA), with a score of 0.6316 out of 1. While this places the country above the averages for West Africa (0.3957) and the African continent (0.4247), it remains slightly below the global average of 0.6382.

In the ICT Development Index, Ghana scores 66.2 out of 100, according to the International Telecommunication Union (ITU), which also recognizes Ghana as a global leader in cybersecurity practices.

“By aligning digital efforts with job creation and GDP growth, the policy aims to ensure that technology becomes a powerful engine for inclusive development, reducing poverty and enhancing prosperity for all Ghanaians,” the Ministry of Communications and Digitalisation stated in a news release.

A joint study by the International Finance Corporation (IFC) and Google forecasts that Africa’s digital economy will be worth at least $712 billion by 2050, representing approximately 8.5% of the continent’s GDP.   In Ghana, data from the Ghana Statistical Service (GSS) reveals that the ICT sector contributed GHS 21 billion ($1.36 billion) to GDP in 2022, accounting for about 4% of the economy. This marks a significant increase compared to its contribution of GHS 4.4 billion in 2016.

By Isaac K. Kassouwi,

Editing by Sèna D. B. de Sodji

Smart Africa Alliance started in 2013 with a goal to turn Africa into one big digital market by 2030. Digital technology is now a major force for development, making this mission even more important to solve many of Africa’s challenges. At the 2024 Digital Transformation Forum (ATDA) in Abidjan, Smart Africa’s CEO, Lacina Koné, talked to Ecofin Agency (EA) about the alliance’s projects and his hopes for Africa’s digital future.

WAT: What are Smart Africa’s main projects?

Lacina Koné (LK): We are currently managing 34 initiatives grouped into four key areas: connectivity, innovation, transformation, and acceleration. Each member country of the alliance selects a flagship project based on its priorities in emerging technologies. We then develop a concept note, a master plan, and a pilot project. If the pilot succeeds, it’s handed over to private partners for national or continental deployment.

One example is the One Africa Network project, with the motto “Roam like at home”. It aims to eliminate roaming charges for Africans traveling between countries, similar to what exists in Europe. Pilots began in East Africa (Rwanda, Kenya, Uganda, Tanzania, etc.) and have expanded to West Africa with recent agreements involving Côte d’Ivoire, Ghana, Togo, and Benin.

Another critical project focuses on digital identity. Digital transformation isn’t possible without reliable citizen identification, as data always belongs to someone.

WAT: What are the main challenges hindering digital growth in Africa and bridging the digital divide?

LK: The biggest challenge is the regulatory framework. It’s not just about creating rules but harmonizing them across the continent. With 1.4 billion people, Africa cannot be viewed through the lens of a single country. Policy harmonization is essential to attract investments.

Contrary to popular belief, the issue isn’t a lack of funds but the regulatory environment needed to secure them. Additionally, African states often focus on regulation without promoting innovation. Globally, the private sector drives innovation, with governments adapting to follow, except in rare cases like Estonia.

WAT: Does Smart Africa invest in skill development for young Africans?

LK: Absolutely. Transformation starts with education. We’ve observed that even decision-makers often lack understanding of digital issues. We launched the Smart Africa Digital Academy (SADA) four years ago to address this. Today, it operates independently with $20 million in funding over five years.

SADA targets several groups: policymakers, tech-savvy public officials, tech entrepreneurs, and the general public. It focuses on STEM (science, technology, engineering, and mathematics) education with a hands-on learning approach rather than rote memorization.

However, national education reforms must complement these efforts. Major global tech companies now prioritize talent over degrees. We need to prepare our youth for this shift.

WAT: Does Smart Africa advise governments on digital policies?

LK: Yes, that’s one of our core missions. We collaborate with partners like the GSMA and the United Nations Economic Commission for Africa (UNECA) on topics such as taxing emerging technologies.

Each African country faces unique financial and sovereignty challenges. It’s vital to understand that the digital economy is a key driver for development, far more than agriculture, which is often seen as central.

For instance, digital technology enables banking without banks, telemedicine without hospitals, and online education without universities. This sector is crucial for speeding up socio-economic development. We work to help policymakers realize this and shift their perspectives. While revenue pressures sometimes lead governments to tax the digital sector, we advocate for them to explore its broader potential, such as formalizing the informal economy, which accounts for up to 70% of Africa's economic activity.

WAT: What role can digital technology play in the African Continental Free Trade Area (AfCFTA), especially in cross-border payment interoperability?

LK: Africa has over 30 central banks. Countries with independent central banks often collaborate more easily on cross-border payments than those in monetary unions like WAEMU or CEMAC.

In 2023, we ran pilots between Ghana (cedi) and Togo (CFA) and between Rwanda and the Democratic Republic of Congo. These initiatives aim to lower transfer costs using mechanisms like mobile money. However, when currencies have to pass through the euro or dollar, costs rise. Interoperability requires coordinated political decisions, and innovation will be key to solving this challenge.

WAT: Can you explain the Smart Africa Trust Alliance (SATA) project?

LK: SATA aims to interconnect African countries’ digital identification systems while respecting their sovereignty. For example, someone from Benin could access services in Côte d’Ivoire, like obtaining a SIM card, without their ID’s authenticity being questioned. This project, already adopted by 15 countries, enhances transparency and trust between states, facilitating the free movement of people and services.

WAT: Does the digital sector have a bright future in Africa?

LK: Without a doubt. I would even say Africa’s future depends on digital technology. Unlike physical resources, information grows when shared. Digital technology allows an entrepreneur in Côte d’Ivoire to target 1.4 billion African consumers with similar habits, whereas sectors like agriculture remain limited to local markets. Africa’s immense potential lies in its digital transformation.

Interview by Moutiou Adjibi Nourou

The Djiboutian government is committed to using digital technology to drive the country's economic growth. To do so, they aim to secure the nation's growing digital infrastructure.

Djibouti has unveiled its National Cybersecurity Strategy for 2024-2030, a comprehensive framework aimed at bolstering its digital security and advancing its goal of becoming a reliable regional digital hub. The strategy, developed by the National Cybersecurity Authority (ANCS), was officially released on Thursday, November 28.

The document is built around five key pillars: strengthening institutions and governance frameworks, protecting critical infrastructure, intensifying efforts against cybercrime, providing cybersecurity training for citizens and experts, and fostering national and international cooperation.

The launch coincides with the inaugural edition of the Hackathon Cybersecurity – Djibouti 2024. This event seeks to harness local talent to tackle technological challenges in cybersecurity. The strategy aligns with the “Djibouti Vision 2035” national development plan, which prioritizes digital transformation and resilience against cybercrime.

According to the Global Cybersecurity Index 2024 published by the International Telecommunication Union (ITU) in September, Djibouti has shown notable commitment to cybersecurity, though significant improvements are needed. The country is ranked in Tier 4 with a score of 31.47 out of 100, underscoring the urgency of building stronger capabilities.

With the new strategy, Djibouti aims to not only improve its ranking but also create a secure and resilient digital ecosystem essential for fostering a thriving digital economy. These efforts are expected to position the country as a key cybersecurity player in East Africa, attract greater investment, and enhance its competitiveness on the regional and global stages.

By Samira Njoya,

Editing by Sèna D. B. de Sodji