News (1356)
Although the e-commerce sector in Africa is promising, it still faces numerous challenges. The development of this sector requires close collaboration between various stakeholders.
The Republic of Guinea plans to collaborate with the United Nations Conference on Trade and Development (UNCTAD) to boost its e-commerce sector. The Guinean Minister of Posts, Telecommunications, and Digital Economy, along with her team, discussed this initiative with Shamika Sirimanne, Director of Technology, Innovation, and Research at UNCTAD, on the sidelines of the World Summit on the Information Society held in Geneva from Monday, May 27 to Friday, May 31.
"The objective of this meeting was to explore avenues of cooperation between Guinea and UNCTAD, particularly in the field of e-commerce. Minister Pricemou presented the state of digitalization in Guinea, highlighting the challenges and opportunities," stated the ministry's communiqué.
During the meeting, Guinea sought UNCTAD's support for developing a regulatory framework conducive to the growth of e-commerce and for enhancing the digital skills of Guineans through technical assistance.
The UN organization welcomed this request and committed to facilitating contacts within the United Nations system to promote digital and postal services in Guinea. Additionally, it recommended close collaboration between the Ministry of Posts and the Ministry of Commerce to foster the development of trade in Guinea.
This meeting between the Guinean Ministry of Digital Economy and UNCTAD is part of the government's ongoing efforts to promote the e-commerce sector in Guinea. This rapidly growing sector was already valued at 10 million dollars in 2020, with an annual growth rate of 20%, according to the Foundation for E-commerce and Distance Selling (Fevad).
Samira Njoya
The introduction of new satellite connectivity options is crucial for Africa's development. Enhanced satellite communications can bridge the digital divide, providing reliable internet access to underserved and remote areas.
UAE-based satellite operator Yahsat and Zimbabwe’s SATCOM Technologies have partnered to provide satellite connectivity in Zimbabwe, Yahsat revealed on May 29. This comes just a week after the country authorized Starlink, signaling rapid advancements in the country's satellite communications landscape.
“We are proud to partner with SATCOM Technologies to bring our state-of-the-art satellite connectivity solutions to Zimbabwe. This strategic partnership demonstrates our commitment to improving connectivity across the continent, supporting the digital transformation journey of African nations and increasing access to essential services for all,” said Chief Commercial Officer of Yahsat Sulaiman Al Ali (pictured).
The two companies will be able to work closely with the Zimbabwean government to secure projects in several key sectors, including mining, agriculture, health, and education. The services are expected to go live in June this year.
Satellite technology is important in bridging the digital divide and improving access to essential services in Africa. In its 2022 report ‘Stronger Digital Voices from Africa: Building African Digital Foreign Policy and Diplomacy’, the International non-profit organization Diplo reveals that Africa primarily relies on mobile networks for internet access due to insufficient copper telecom infrastructure. While terrestrial and mobile networks dominate, satellites increasingly provide connectivity, especially in remote areas. It adds that countries like Algeria, Angola, Egypt, and Nigeria are adopting geosynchronous equatorial orbit (GEO) satellites for internet, while Low-Earth orbit (LEO) operators like Globalstar and SES are expanding, with Starlink's constellation of low-orbit satellites being a notable recent development.
Hikmatu Bilali
To fulfill its mission, the Digital Development Agency (ADD) requires the collaboration of multiple stakeholders. The Moroccan public entity has recently signed several partnerships to this end.
The Digital Development Agency (ADD), Morocco's agency in charge of implementing the national digital strategy, signed a series of strategic partnerships during the second edition of Gitex Africa, a technology fair being held in Marrakech since May 29th.
The partnerships involve Sénégal Numérique SA, the National Observatory for Children's Rights (ONDE), the National Agency for Digital Development of the Comoros (ANADEN Km), Crédit Agricole du Maroc, Indra (a Spanish leader in technological solutions), the Moroccan Agency for Tourism Development (SMIT), and APEBI (the Federation of Information Technology, Telecommunications, and Offshoring).
The agreement with Sénégal Numérique SA prioritizes knowledge and experience sharing as well as system interoperability. This collaboration aims to improve the efficiency of public and private services and promote digital inclusion alongside the development of digital platforms and applications.
The partnership with ONDE aligns with ADD's "Digital Culture / Online Child Protection" action plan and focuses on fostering a safe and child-friendly digital environment.
ADD and Indra, the Spanish technology leader, will collaborate to develop innovative solutions specifically tailored to Morocco's needs. This partnership aims to enhance the country's digital competitiveness.
The agreement with Crédit Agricole du Maroc focuses on experience sharing, training programs, and skill exchange in the digital domain. This collaboration aligns with ADD's ongoing efforts to promote digital careers, raise digital awareness, and support the entrepreneurial ecosystem.
Meanwhile, the partnership with ANADEN Km, the Comoros' digital development agency, covers the sharing of experience, best practices and digital transformation strategies. It notably aims to improve human resource capacities through training and awareness programs focused on the appropriate use of digital tools.
A tripartite agreement between ADD, SMIT, and APEBI was also signed to spearhead the digitization of Morocco's tourism sector.
These collaborations build upon the agreement signed with Visa, a global leader in digital payments, on May 17th. This earlier partnership supports the government's initiatives in financial inclusion and digital development.
Morocco aims to position itself as a leading technology hub in the field of digital technologies in Africa. The country benefits from the support of foreign partners to achieve this goal.
American tech giant Oracle announced on Thursday, May 30, 2024, plans to open two public cloud regions in Morocco to provide cloud services to local and regional businesses across Africa.
“The upcoming new regions will enable Oracle customers and partners to migrate mission-critical workloads from their data centers to Oracle Cloud Infrastructure (OCI), while helping them comply with local regulations. As a result, customers and partners can access a wide range of cloud services to modernize their applications and innovate with AI, data, and analytics,” the group stated. The planned public cloud regions in Casablanca and Settat underscore Oracle’s commitment to Africa and will help drive the digital transformation of businesses, startups, universities, and investors in Morocco and throughout the region.
The memorandum of understanding establishing these two cloud regions was signed on May 29 between Oracle executives and Moroccan Investment Minister Mohcine Jazouli on the sidelines of GITEX Africa 2024.
“As one of the largest economies in Africa, and with strong business and cultural connections with West Africa, Maghreb, and Europe, Morocco offers unique growth opportunities for businesses that are aiming to accelerate their expansion by deploying the latest digital technologies,” said Richard Smith, Oracle’s Executive Vice President for Europe, Middle East & Africa, as quoted in the statement.
“The opening of Oracle’s public cloud in Morocco will accelerate the digital transformation throughout the region. This strategic expansion, with a hyperscaler like Oracle, positions Morocco as a unique player in the region and allows an even more dynamic development of skills, and growth opportunities,” said Ghita Mezzour, Morocco’s Minister Delegate to the Head of Government in charge of Digital Transition and Administrative Reform.
The digital transformation of African economies is gaining momentum, with Algeria digitizing its financial sector.
La Commission d'organisation et de surveillance des opérations de bourse (Cosob) d'Algérie, en collaboration avAlgeria plans to electronic stock exchange order submission on June 2nd, a release dated May 29th announces.
The initiative launched in collaboration between the Securities and Investments Organization and Monitoring Commission (COSOB) and the Government Authority for Electronic Certification aims to streamline stock market transactions by allowing investors to electronically submit buy and sell orders through authorized intermediaries.
For COSOB, the digitization plan aligns with "the dynamic growth of the financial and stock market in Algeria, fulfilling the commitment of President Abdelmadjid Tebboune to develop financial and stock markets to finance the economy,” informs the statement quoted by Algérie Presse Service.
This initiative comes on the heels of new mechanisms approved by COSOB last November to revitalize trading practices and stimulate activity on the Algiers Stock Exchange.
Algeria, like many African nations, is embracing digital transformation. In September 2023, the authorities established the High Commission for Digitalization, tasked with implementing the National Digital Transformation Strategy (2024-2029) and achieving a comprehensive digitalization of Algeria by 2034.
Adoni Conrad Quenum
During the inaugural edition of the GITEX Africa technology fair, Moroccan authorities launched the pilot phase of a digital skills training project for young people. One year later, they are committed to expanding it nationwide.
During the second edition of GITEX Africa (May 29-June 31) in Marrakech, Morocco, the Moroccan Ministry of Digital Transition and Administrative Reform signed an agreement on Wednesday, May 29, with the country’s Deposit and Consignment Fund, CDG, and Maroc Numeric Cluster to expand the JobInTech program nationwide. The goal is to equip 15,000 young people with digital skills by 2026.
JobInTech offers training programs lasting from 3 to 6 months. These are free of charge, as they are fully funded by the Ministry of Digital Transition and Administrative Reform in partnership with CDG. The aim is to develop a talent pool, support the national digital ecosystem, and provide young people with opportunities to enhance their employability through reskilling and upskilling training.
The national expansion of the project follows the success of its pilot phase, during which over a thousand young people were trained along the Casablanca-Rabat axis, achieving a professional integration rate of around 73%. This implementation is part of the Morocco Digital 2030 strategy, which aims to make the kingdom a regional leader in digital education. To this end, Moroccan authorities have formed multiple partnerships with entities such as the Chinese tech firm Huawei, American companies Oracle and Cisco Systems, and the United Nations Educational, Scientific and Cultural Organization (UNESCO).
The pilot phase of JobInTech was launched during the first edition of GITEX Africa on June 2, 2023. The JobInTech training programs cover various technology segments, including software development, data analysis, and artificial intelligence.
Adoni Conrad Quenum
Investments in digital sectors are vital for Africa's development, providing a blueprint for integrating digital and sustainable solutions to stimulate economic growth. Enhanced connectivity and e-mobility initiatives will create jobs, lower transaction costs, and improve access to services and markets, promoting sustainable development across the continent.
Kenya's digital and sustainable mobility sectors received a $250 million investment from the US International Development Finance Corporation (DFC) during President William Ruto's state visit to Washington, DFC announced on May 23.
“With this week’s announcements, DFC is doubling down on its commitments to Kenya’s development, with investments into energy, e-mobility, and infrastructure,” said DFC CEO Scott Nathan.
The financing, a mix of loans and grants, targets key Kenyan companies including M-KOPA, BasiGo, Mogo Auto, Roam Electric, and Pezesha Africa Limited.
M-KOPA secured $51 million to enhance digital connectivity and provide affordable smartphones, with plans to expand its production facility. Mogo Auto Kenya and BasiGo received $10 million each to support used vehicle loans and electric bus manufacturing. Roam Electric also received $10 million for electric vehicle development and charging infrastructure, while Pezesha was granted $500,000 to improve SME credit scoring algorithms using advanced technologies.
This move aligns with Kenya’s Digital Economy Blueprint, which aims for universal digital access and participation. The USAID Digital Ecosystem Country Assessment (DECA) 2020 highlights Kenya’s robust ICT infrastructure, with 95% of the population covered by 2G, 88% by 3G, and 61% by 4G, and plans for 5G rollout.
President Ruto’s visit to Washington emphasized strengthened US-Kenya relations and investments in digital and renewable energy. With support from the US government, DFC, and tech giants, Kenya is set for significant advancements in digital and sustainable energy sectors, driving technological growth, economic development, and job creation.
Hikmatu Bilali
Less than 2% of global data centers are located in Africa. However, since the Covid-19 pandemic, cloud computing has garnered increasing interest, becoming a valuable alternative for businesses looking to digitize.
Orange Middle East & Africa (OMEA) and Amazon Web Services, Inc. (AWS) announced on Wednesday, May 29, the signing of a partnership on the sidelines of the GITEX Africa technology fair in Morocco. The initiative aims to introduce AWS Wavelength in Morocco and Senegal by the end of the year. This solution will enable startups, businesses, and public agencies to process and store their data locally.
“The announcement of AWS Wavelength Zones for North & West Africa is a major achievement in our strategy to foster the cloud transformation of African businesses. We will help Moroccan and Senegalese organizations of all sizes benefit from AWS, while ensuring local data hosting in Orange’s secure data centers, along with our best connectivity solutions,” said Jérôme Hénique, CEO of Orange Middle East and Africa.
In addition to establishing the first AWS Wavelength zones in Africa, this initiative also marks the introduction of the first Wavelength zones in countries without existing AWS regions or local zones. As part of the partnership, Orange will handle the hosting of services in its data centers, ensuring optimal security and reliability for users.
This partnership comes at a time when the demand for IT services in Africa continues to grow, attracting cloud computing operators. According to a report published in February by the audit and consulting firm PricewaterhouseCoopers (PwC), more than 80% of African businesses that have already partially or fully migrated to the cloud plan to increase their investments in this technology due to its positive impacts on their operations.
The introduction of AWS Wavelength is expected to allow customers to benefit from the cloud's on-demand, pay-as-you-go pricing model. This will enable them to keep their data localized while enjoying the same reliable, secure, and high-performance infrastructure as AWS regions.
Samira Njoya
By enhancing digital infrastructure and connectivity, initiatives across the continent benefit citizens and contribute to broader advancement. Additionally, connecting with neighboring countries promotes regional integration and collaboration, paving the way for shared prosperity throughout Africa.
Zambia's Information Minister, Felix Mutati (pictured), recently announced plans to connect the country to eight neighboring nations next month via fiber optic cables, according to a May 27th Facebook post by the Ministry. This initiative aims to position Zambia as a regional connectivity hub and bolster the national digital sector.
Minister Mutati highlighted Zambia's existing connection to Angola. “Zambia has completed connecting itself to Angola by optic fiber and the next target is Mozambique,” he said.
According to the World Bank, in its “Accelerating Digital Transformation in Zambia DIGITAL ECONOMY DIAGNOSTIC” 2020 report, Zambia’s Broadband affordability meets international benchmarks, and mobile phone usage has grown to 15.5 million subscriptions in 2019, with 63.5 percent using broadband. The digital infrastructure is established, allowing focus on its utilization, reliability, and security. However, last-mile connectivity remains a gap, limiting digital system use in sparsely populated areas where it could reduce transaction costs and improve access to services and markets. These proactive ICT measures are expected to drive economic growth, enhance connectivity, and solidify Zambia's regional ICT hub status.
Hikmatu Bilali
Chad is grappling with significant challenges in digital development, which have led to considerable delays in this sector. Over the next five years, the new president is determined to tackle these issues and promote inclusive digital development.
Newly elected Chadian President Mahamat Idriss Déby is championing digital technology as a cornerstone of national development. His program outlines a series of initiatives to accelerate Chad's ongoing digital transformation and usher the country into the digital age.
Déby's vision hinges on achieving full internet connectivity across Chad by 2029. This ambitious goal necessitates upgrading digital and telecommunications infrastructure to deliver high-speed, affordable internet access nationwide, with a particular focus on bridging the digital divide in rural areas.
Education is another pillar of Déby's plan. He proposes integrating digital technologies into the national curriculum, ensuring internet access in all schools, and equipping teachers with the skills to deliver digital education programs. By preparing young generations for the digital job market, Chad aims to secure its future prosperity.
Recognizing the importance of e-government, Déby prioritizes digitizing public services to enhance efficiency, transparency, and accessibility. His plan involves establishing a unified national portal, consolidating services offered by each ministry, and implementing a unique digital identity system. Citizens will be able to conduct a variety of administrative tasks online, streamlining processes and reducing time and costs compared to traditional methods.
To nurture a vibrant ecosystem for small and medium-sized enterprises (SMEs) and technological innovation, President Déby proposes supporting entrepreneurs through tax incentives, funding, and dedicated infrastructure. "Entrepreneurial initiatives and young people will be supported through partnerships, sponsorships, and mentorships with partner countries," the action plan states. "They will have facilitated access to various administrations to simplify administrative procedures and receive guidance." Additionally, technological incubators will be established to foster startups and innovative projects, providing environments conducive to creativity and development.
President Déby's plan envisions transforming Chad into an open, connected, and prosperous nation by 2029, offering equal opportunities for all citizens. By strengthening digital infrastructure, modernizing public services, and fostering innovation, Chad aspires to become a key player in Africa's digital economy.
Samira Njoya
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In recent years, Africa has struggled to attract the necessary capital to strengthen its technology sector. However, upcoming investments are expected to further bridge the digital divide across the continent.
U.S. payments giant Mastercard (MA.N) and the African Development Bank (AfDB) announced a wide-ranging partnership on Friday to bring digital access to 100 million people and businesses across Africa over the next decade.
The initiative, dubbed the Mobilizing Access to the Digital Economy (MADE) Alliance: Africa, was unveiled during the U.S.-Africa Business Forum hosted by the U.S. Chamber of Commerce.
"Across Africa, people are driving new growth and opportunity, and Mastercard wants to support their success," said Michael Miebach, Mastercard CEO. "This Alliance builds on the innovations and investments we are already making with partners in 45 countries to enhance Africa’s digital infrastructure and accelerate inclusive growth."
The AfDB will dedicate $300 million to support the alliance's programs. These funds will be used to bolster digital infrastructure and incentivize ecosystem players to improve digital access. Mastercard, in turn, will focus on registering 15 million users on its Community Pass platform within five years. To achieve this, they will develop interoperable digital infrastructure to facilitate participation from various stakeholders within the digital ecosystem.
The initial phase of the project will prioritize the agricultural sector and empower women. A pilot program launching this year will target three million farmers in Kenya, Tanzania, and Nigeria. Working with local banks, the program will provide these farmers with digital identities and access to high-quality seeds and agricultural inputs. The alliance plans to expand its reach to Uganda, Ethiopia, Ghana, and other African regions.
This project aligns with the digital innovation investments announced by U.S. Vice President Kamala Harris during the forum. These initiatives aim to provide large-scale digital access across Africa, a move that comes amidst a decline in foreign investment on the continent. According to the United Nations, foreign direct investment in Africa dropped from $80 billion in 2021 to $45 billion in 2022.
Samira Njoya
Investment commitments in the digital sector are crucial for African development. With its vast underserved population, Africa can greatly benefit from enhanced digital connectivity. These investments address critical barriers like affordability and adoption, fostering an inclusive digital society.
The International Telecommunication Union (ITU) announced, on May 27, $4.8 billion in new investment commitments to boost global connectivity. This brings total pledges through its Partner2Connect Digital Coalition (P2C) to $50.96 billion, nearing its $100 billion target for 2026.
The announcements were made at the World Summit on the Information Society (WSIS)+20 Forum in Geneva. The new pledges leverage artificial intelligence (AI) to enhance digital access and inclusion.
"Closing the digital divide requires a team effort, and today we scored a huge win for global connectivity," said ITU Secretary-General Doreen Bogdan-Martin.
Key commitments include $106 million from Elle International to improve digital connectivity for 20 million women and girls in South Africa and a new pledge from Microsoft to prioritize AI projects that include people with disabilities, among others.
According to the ITU, approximately 5.4 billion people (67 percent of the world’s population) were using the Internet as of 2023, leaving 2.6 billion people still offline. This statistic underscores the significance of ongoing investments in digital connectivity, particularly in regions like Africa. With a substantial portion of the global population still disconnected, initiatives aimed at increasing digital inclusion are crucial for fostering a more inclusive digital society.
Hikmatu Bilali
Bilateral relations between Italy and Tunisia date back to the 1980s. Over time and with the evolving global context, the two countries have successfully expanded their exchanges in various fields. They now aim to extend this cooperation to the fourth industrial revolution.
On Monday, May 27, Italy and Tunisia declared their commitment to intensifying collaboration in the digital realm. This new phase emphasizes the promotion of economic and industrial collaboration initiatives in artificial intelligence (AI) and digital transition research. A memorandum of intent was inked by Adolfo Urso, Italy’s Ministry of Enterprises and Made in Italy (Mimit), and Nizar Ben Néji, Tunisia’s Minister of Communication Technologies.
According to the Tunisian Ministry of Communication Technologies, this announcement mirrors a mutual aspiration to bolster economic and industrial cooperation initiatives, boost investments, and foster joint ventures between Tunisian and Italian firms via business forums, seminars, and workshops. These events are organized with the participation of governmental institutions and the backing of associations and organizations representing entrepreneurs.
The ministry further explained that this new phase stems from a mutual interest in fostering bilateral cooperation for technology transfer. This is achieved through the exchange of experiences and knowledge in research, innovation, and skill development. The shared goal is to facilitate and implement projects in the public, private, and joint sectors, incorporating stakeholders from both nations in the context of applying AI to industry and related research sectors.
This new commitment for digital cooperation follows a previous agreement on September 29, 2023. On that day, the two nations, represented by Tunisia’s National Cybersecurity Agency (ANCS) and its Italian equivalent, signed a memorandum of understanding on bilateral cooperation in cybersecurity and digital trust services. This agreement aimed to intensify the exchange of experiences and expertise between the two institutions, develop specialized skills to safeguard cyberspace, ensure digital sovereignty, and enhance response speed and vigilance levels to effectively identify and address cyber risks.
Italian Minister Adolfo Urso also announced the establishment of a center dedicated to sustainable development in Tunisia, in partnership with Italy and the United Nations Development Programme (UNDP). He described the center as an opportunity to draw in expertise and investment, contributing to inclusive growth and enhancing the quality of services provided to institutions and citizens. According to Urso, this multilateral platform can serve as a catalyst for the development of AI technology and its multiple applications at both national and cross-border levels.
Boasting a youthful population, Africa is experiencing a boom in its startup industry. Digital innovations are flourishing, with countries like Nigeria and Kenya at the forefront of this new economic driver. This has fostered a technically advanced environment, albeit one with some lingering weaknesses.
Africa's innovative ecosystem has seen explosive growth over the past decade, according to the International Trade Center (ITC). In 2010, the continent had just a handful of tech hubs, essential support structures for young, resource-constrained businesses. By 2021, that number skyrocketed to 1,031, a 60% increase from the 643 hubs recorded in 2019. The ITC attributes this boom, at least in part, to the COVID-19 pandemic, which accelerated digitization across Africa.
Nigeria, South Africa, and Kenya Lead the Way
The report, "Tech Hubs in Africa, accelerating start-ups for resilient growth" (3rd edition), reveals that Nigeria leads the continent with 164 tech hubs, followed by South Africa (96) and Kenya (90). Interestingly, 53% of African tech hubs prioritize community building, while only 45% offer business support programs.
Eight Models of Support
The ITC categorizes tech hubs into eight distinct models based on their business models and services. Accelerators provide intensive, cohort-based programs with mentorship. Incubators offer early-stage startups resources like training, mentoring, and sometimes funding. Innovation centers foster creative ideas and help entrepreneurs build their businesses.
For hands-on creation and testing, hackerspaces, makerspaces, and fab labs offer access to equipment, tools, and skills development. Coworking spaces provide physical workspaces that boost productivity, collaboration, and networking. Venture builders help high-growth companies access resources for rapid expansion. Tech parks cluster tech companies to stimulate innovation and interaction. Finally, venture capital firms offer capital, mentorship, and access to new technologies.
Spécificités
Among the various hub types, incubators are the most prevalent. However, access to local venture capital remains a significant hurdle.
Source : ITC
Training and networking events are the most commonly offered services, with financing being a weaker area.
Source : ITC
Specialization for Impact
Many tech hubs are moving away from a one-size-fits-all approach. By specializing in specific demographics or sectors, they can optimize their support. Over half (52%) of hubs target specific sectors in their programs, with agriculture (22%), fintech (17%), and e-commerce (11%) leading the pack. These sectors are not only highly active in terms of investment and startups, but also offer immense opportunities for social impact.
Gender Focus
Many hubs also prioritize supporting specific populations. While many cater to various groups, young people and students are the most common targets, followed by female founders and women in general.
Source : ITC
Challenges and the Road Ahead
The COVID-19 pandemic forced 73% of tech hubs to close their physical locations in 2020. While the remaining 27% adapted with strict safety protocols, the closure significantly impacted platform revenue, leading to the closure of 8% of hubs. Many transitioned to remote training models, but financing remains the biggest challenge. The ITC report emphasizes the need for sustainable funding models, potentially through grants or external support. Additionally, favorable policies that attract investors and encourage innovation are crucial for the continued growth of Africa's dynamic tech hub ecosystem.
Muriel Edjo