News (1786)
According to a report by consulting firm McKinsey & Company, the e-commerce market in Africa is rapidly expanding and is expected to reach $180 billion by 2024. This outlook is drawing increasing interest from international companies.
Chinese e-commerce firm AliExpress has made its debut in Ethiopia, partnering with local firm MKTY IT Services Plc. The partnership culminated in the opening of the continent’s first AliExpress showroom on Thursday, August 22.
The showroom, located in Addis Ababa, is designed to offer Ethiopian consumers a more interactive shopping experience, allowing Visitors to explore a wide range of products from around the world.
According to Yeshurun Alemayehu (photo), Ethiopia’s State Minister for Innovation and Technology, AliExpress’s entry into the Ethiopian market presents a significant opportunity for local businesses to engage in global trade.
The move aligns with Ethiopia’s efforts to attract foreign investment and boost its economy. Online commerce has been gaining traction in the country, with the Ministry of Trade and Regional Integration issuing approximately 45 e-commerce licenses by December 2023. However, the sector is still dominated by small, often fragile startups.
In that context, AliExpress’s presence is expected to create jobs, stimulate innovation among local startups, and provide a platform for Ethiopian products to reach international markets.
Samira Njoya
In a continent where access to formal banking services remains limited for many, providing citizens with unique digital identities can facilitate easier access to banking services and improve the efficiency of financial transactions, contributing to economic stability and growth.
Somalia has launched a digital identification system to advance digitalization and financial inclusion. To formalize this initiative, the National Identification and Registration Authority (NIRA) and the Somali Banking Association signed a Memorandum of Understanding (MoU), on August 25, at an event in Mogadishu. The event gathered several government officials.
“We have signed a Collaborative Partnership with 13 Somali banks, creating a vital link between Identity Certificates and banking services,” NIRA Director General Abdiweli Timacade revealed in a post on his X account.
The initiative, Developed by the Central Bank of Somalia in partnership with the World Bank, provides citizens with unique identification numbers to facilitate easier access to financial services.
The system is particularly significant for Somalia, where many people have historically been excluded from formal banking. The United Nations Industrial Development Organization (UNIDO) highlights in its 2020 ‘Somalia Financial Sector Technical Report’ that only about 15 percent of Somalia's population has a bank account, and fewer than 5 percent of these account holders actively use their accounts. This low active usage rate underscores the urgent need for Somalia's new digital identification system. The initiative aims to enhance access to financial services and promote greater participation, potentially increasing the number of active users and improving overall financial inclusion in the country.
It is expected to enhance the security and efficiency of financial transactions, reduce fraud and money laundering risks, and stimulate economic growth by broadening access to financial services.
Hikmatu Bilali
Fake diplomas are becoming increasingly prevalent in Africa. To address this issue, governments are turning to digital solutions that offer effective and long-lasting solutions.
The Democratic Republic of Congo (DRC) plans to launch a digital system to combat fake diplomas and certificates, education officials said on Thursday. National Education Minister Raissa Malu and Higher Education Minister Mukuna Marie Therese announced the initiative after a joint meeting. The system, called "Optsolution," will verify state diplomas and certificates in real time.
"Graduates applying to university will only need a 14-digit code. The Higher Education Ministry's system will then access the National Education database for applicant information," said Rodrigue Iyembo, a National Education Ministry expert.
DRC's system aims to cut verification times from 4-5 months to instant checks. Future plans include extending the platform to private sector diplomas.
The platform is part of DRC's National Digital Plan, aiming to digitize key sectors by 2025, with education as a priority.
This move comes as African countries struggle with a rise in fake diplomas. Ethiopia, after finding nearly 1,000 counterfeit certificates among 18,000 reviewed in 2023, contracted Swiss firm SICPA to certify diplomas using blockchain and QR codes.
Samira Njoya
Despite facing challenges, African nations are investing more in Information and Communication Technologies (ICT) across different industries. In the field of education, Uganda is aiming to make significant advancements.
Ugandan authorities on Friday inaugurated the steering committee for an Augmented Virtual Reality (AVR) project at the Uganda Information Communication Technology (UICT) university. The project aims to introduce AVR into classrooms.
Fredrick E. Kitoogo, UICT's director, announced that “1,267 staff and students from UICT have been enrolled on the AVR platform, with 1,370 total logins recorded. 5000 educator licenses with 1267 already issued to UICT staff and students; and 750 enterprise licenses are yet to be distributed.”
The project is part of the Ugandan government's broader efforts to improve education quality through the use of new technologies. Authorities believe that virtual reality and augmented reality can create immersive and interactive learning environments, enhancing student engagement and motivation.
Uganda has also allowed smartphones, tablets, and computers in schools. “We are mindful of the fact that IT devices are expensive. So government has come up with projects like furnishing school computer labs. With time, government is coming up with measures to ensure that the cost of these devices is brought down so that they are as affordable as possible,” said Aminah Zawedde, Permanent Secretary of the Ministry of ICT.
Adoni Conrad Quenum
In 2023, Ethiopia launched a new artificial intelligence policy. To fully leverage the potential of this technology, the country is seeking strategic partnerships.
A delegation of Russian artificial intelligence (AI) experts, headed by Russia's Ambassador to Ethiopia, Evgeny Terekhin, visited the Ethiopian Artificial Intelligence Institute on Wednesday, August 21. They were welcomed by Taye Girma, the Institute's Deputy Director General.
The visit is part of the two countries' growing cooperation in the technology sector. As generative AI and large language models continue to advance, AI has become a key area of focus for their partnership.
Ethiopia adopted its national AI policy in July 2023. The policy outlines the country's strategy for leveraging AI to drive development, covering areas such as data management, human capital development, research and development, infrastructure, legal and ethical considerations, and international cooperation.
A partnership with Russia in AI could offer Ethiopia several benefits. It could facilitate technology and skills transfers, help develop AI applications tailored to local needs, and attract Russian investment in Ethiopia's tech sector, boosting innovation and job creation. For Russian companies, the cooperation could provide an opportunity to expand their influence in the AI domain in Africa.
Adoni Conrad Quenum
Expanding and maintaining robust network infrastructure is essential for improving internet accessibility, supporting economic growth and fostering innovation across Africa. The push for tech companies to contribute to network infrastructure costs is crucial for development, as it addresses the continent's growing digital demand.
South Africa's telecoms industry is urging technology companies to financially support the expansion of network infrastructure. This request was outlined in a report released by the Association of Comms and Technology (ACTforSA) on August 20.
Titled "Promoting Equitable Participation and Sustainable Growth: Exploring Policy, Commercial, Competition, and Socio-Economic Perspectives in South Africa's Over-the-Top (OTT) and Telco Ecosystem," the document argues that tech companies benefit from existing networks without contributing to the associated costs.
"The success of OTT platforms depends on a robust network infrastructure, but they are not currently contributing enough to its upkeep" said Nomvuyiso Batyi, CEO of ACT. "We believe OTTs should contribute to network upgrades and development."
The ACT is pushing for a "fair share" model where over-the-top (OTT) platforms — such as video, audio, and messaging services — would help fund the construction, maintenance and upgrades of the networks they rely on.
According to Statista, the revenue in the OTT video market alone in Africa is forecasted to reach $3.90 billion in 2024, with a compound annual growth rate (CAGR) of 8.30% from 2024 to 2029, leading to a projected market volume of US$5.81bn by 2029. Despite this growth, these platforms currently do not contribute to network infrastructure costs.
As OTT services continue to expand rapidly, their reliance on existing networks intensifies, placing an increasing financial burden on telecom operators responsible of building and maintaining the infrastructure.
Hikmatu Bilali
Expanding the backbone network positions Nigeria to better integrate into the global digital economy. The increased connectivity will also facilitate access to online education, healthcare and financial services, driving social and economic inclusion across Africa.
Nigeria's Federal Government is set to begin deploying 90,000 kilometers of fiber-optic cable across the country within the next 6 months, according to Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy. This expansion aims to increase the nation's backbone network from 35,000 to 125,000 km, significantly enhancing connectivity and improving telecoms services nationwide.
Today, as I reflect on my time in office as Minister of Communications, Innovation & Digital Economy, I am proud of what we have collectively achieved over the last one year in laying a foundation for the growth of our digital economy.
— Dr. 'Bosun Tijani (@bosuntijani) August 21, 2024
The clarity that comes from our Strategic… pic.twitter.com/HZAdsIYZG7
Dr. Tijani disclosed this plan on August 21, while highlighting the Ministry's achievements over 2023. The project, which could start anytime between now and February 2025, is expected to create opportunities by stimulating a more vibrant digital ecosystem, connecting more communities and integrating more Nigerians into the digital economy.
Funding for this project is being finalized with partners to ensure aggregation. The Federal Executive Council (FEC) has approved a Special Purpose Vehicle (SPV) to oversee the project's delivery, the Minister further revealed.
According to Datareportal’s "Digital 2024: Nigeria" of January 2024, Nigeria’s internet penetration rate stood at around 45.5%, with approximately 103 millions internet users. Expanding the fiber-optic network is expected to significantly increase this penetration rate, address connectivity issues and reduce the digital divide, bringing internet access to underserved areas.
Hikmatu Bilali
As digital services become increasingly vital for economic activities, the availability of reliable data centres will support the growth of digital economies across Africa. This could foster a more interconnected and robust African digital ecosystem.
Africa’s leading carrier-neutral Tier III data center operator Raxio Group has officially inaugurated in Kinshasa its state-of-the-art data centre, Raxio DRC1, the group announced on August 22. This marks a significant milestone in the Democratic Republic of Congo’s digital transformation.
Hello DRC! Today marks the official inauguration of our Tier III certified data data centre in Kinshasa.
— Raxio Group (@raxio_group) August 22, 2024
Read the full market announcement:
👉🏼 https://t.co/hi7QLwJXh1#RaxioRDC #RaxioGroup pic.twitter.com/BqXGxkw781
This facility representing a $30 million investment has received Tier III accreditation from the Uptime Institute and becomes the country’s largest data center. Located in Limete area, the two-storey Raxio DRC1 spans 1,542 square meters and can accommodate up to 400 racks, delivering 1.5MW of IT power. The data centre is strategically positioned along key fibre routes, offering top-tier colocation and connectivity services, strongly emphasizing sustainability.
Raxio Group’s CEO, Robert Mullins, highlighted the importance of this facility in supporting the DR Congo’s burgeoning digital economy, stating :“With this facility, we are providing the critical infrastructure essential to supporting the digital economy and enhancing connectivity.”
The facility is part of Raxio’s broader strategy to build a pan-African digital backbone, with additional data centrers planned across the continent. The launch of Raxio DRC1 also lines up with the DRC government’s National Digital Plan (Plan National du Numérique), which aims to foster digital inclusion and economic growth through expansive digitalization.
The data centre is expected to play a key role in improving the country’s digital landscape by reducing latency for real-time applications and providing a reliable backbone for mobile and internet connectivity.
Raxio Group continues to expand its footprint with operational facilities in Uganda, Ethiopia, Mozambique, and now the DRC. The company is set to launch new centers in Côte d’Ivoire, Tanzania, and Angola, further solidifying its role in Africa’s digital transformation.
According to the "Africa Data Center Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis Up to 2029" by Mordor Intelligence, the African data center market is projected to grow at a compound annual rate (CAGR) of 12.34% from 2024 to 2029. The increasing digitalization demand for cloud services and expanding data centres across the continent are key drivers of this growth.
Hikmatu Bilali
Algerian authorities plan to ultimately send 450 local startups to China, South Korea, and the United States. The goal is, among other things, to boost the local tech sector.
Public startup accelerator Algeria Venture announced on Thursday that it is sending two delegations of 30 high-potential local startups to China and South Korea.
The 15-day trips aim to expose Algerian startups to leading tech hubs, foster interactions with innovation leaders, and explore potential collaborations with global companies.
Explaining the purpose of these isits, Sidali Zerrouki, CEO of Algeria Venture, said, "These visits will provide startups with a global perspective and allow them to learn from the best international practices."
The initiative is part of Algeria Venture's Algerian Startup Exchange Program (ASEP), which supports the growth of local startups. ASEP aims to connect Algerian startups with global tech companies to benefit from their expertise, resources, and opportunities.
In 2023, Chinese startups attracted $27.4 billion in funding, according to the 2023 edition of the "State Of Venture" report by CB Insights, a strategic analysis company based on AI for business intelligence. Meanwhile, South Korean startups raised $9.8 billion in 2023, according to data from the Ministry of SMEs and Startups.
Adoni Conrad Quenum
As digital payments gain popularity in Africa, new laws introduced may hinder innovation in this sector.
Somali merchants launched protests on Monday, August 19, opposing a newly implemented 5% flat tax on electronic payments, especially those made via mobile phones. The levy, considered "inappropriate," adds to the existing financial burdens faced by the country's businesses.
"One of the main benefits of digital transactions is that they provide financial inclusion for people traditionally excluded from the formal banking sector. By taxing these transactions, the government effectively discourages the use of digital financial services, pushing people back toward cash transactions, which are less safe, less efficient, and less transparent," explained Abdillahi Hashi Abib, a member of the Somali Federal Parliament.
The tax, which went into effect on Sunday, August 18, is directly deducted from business accounts at the point of sale. The government intends to use the revenue to fund infrastructure and enhance security in the country, which has been battling an Islamist insurgency led by the Shebab militants for over fifteen years.
Defending the measure, Finance Minister Bihi Iman Egeh says it is a transparent tax established by a 1984 law, already approved by Parliament. He added that merchants' concerns stem from misunderstandings, without providing further details.
The implementation of this tax comes exactly one year after the introduction of a standardized QR code designed to facilitate contactless payments in Somalia and improve financial inclusion. The tax is expected to be passed on to consumers, with a limited effect on the overall profitability of businesses.
Samira Njoya
More...
With the multiplication of digital transformation across Africa, cybersecurity has become a top priority for countries across the continent. To protect themselves and their institutions from potential threats, they are taking steps to strengthen their cyber defense.
Chinese tech company Huawei launched a cybersecurity training program for Zimbabwean government officials in Harare on Monday, aiming to strengthen their defenses against online threats.
The four-day course brings together 100 officials from various ministries. The curriculum covers global cybersecurity trends and data security governance.
"Huawei takes cybersecurity seriously, and we have made it a top priority in all of our operations and product development. Huawei invests heavily in research and development to ensure our technologies are secure and resilient against evolving cyber threats," said Yang Shengwan, managing director of Huawei Zimbabwe.
This initiative comes as digital transformation accelerates across Africa. Zimbabwe ranked 24th with a score of 47.7 out of 100 in the International Telecommunication Union's (ITU) Information and Communication Technology Development Index in 2024, up from 42.7 in 2023. In the ITU's Global Cybersecurity Index, Harare placed 17th in 2020 with a score of 36.49.
Adoni Conrad Quenum
Last July, TerraPay raised $95 million to expand digital payments across the continent. The company continues its efforts by involving African stakeholders in its initiatives.
British payment solutions provider TerraPay has partnered with several mobile money operators, including Africa's Mpesa and Sama Money, to create the Wallet Interoperability Council, announces a press release dated August 20.
With that council, the British firm aims to interconnect mobile money operators to facilitate cross-border payments and fund transfers.
“This initiative addresses real market challenges and has the potential to reshape perceptions around wallet usage for cross border commerce; thus, enabling easy access for interoperability within the council's wallet participants globally,” said Sekou Kane Diallo, Deputy CEO and CIO of Sama Money.
The launch of this association comes at a time when mobile money solutions are rapidly expanding across the continent. According to the "State of the Industry Report on Mobile Money 2024" by the GSM Association (GSMA), the value of mobile money transactions in Sub-Saharan Africa reached a staggering $912 billion in 2023, a 22% increase from the previous year. The same report shows that Africa accounts for 835 million of the 1.75 billion registered mobile money accounts worldwide, representing 47.7% of the accounts.
Adoni Conrad Quenum
In Nigeria, financial inclusion remains a challenge, as 36% of the population lacks access to banking services. Efforts are underway to expand financial services and ensure that everyone can benefit from technological and financial advancements.
On Monday, August 19, in Lagos, Nigerian businessman Tony Elumelu launched the operations of the new digital microfinance bank, UCEE Microfinance Bank. This institution is a subsidiary of United Capital Group, a major investment bank, and aims to harness the synergy between technology and finance to reach financially excluded populations in Nigeria.
During the launch, United Capital Group CEO Peter Ashade praised UCEE Microfinance Bank's hybrid model, which combines traditional microfinance with digital innovations. "In today's market, it is essential to provide solutions that cater to both tech-savvy customers and those who prefer traditional banking. UCEE is well-positioned to address these diverse needs," he stated.
UCEE Microfinance Bank offers a mobile application that allows users to manage their accounts, access loans, and conduct transactions with ease, no matter where they are. Additionally, a USSD code will be introduced for customers in rural areas and those without smartphones.
The launch of UCEE, the seventh subsidiary of the group, marks a significant milestone in expanding access to financial services for all, particularly marginalized populations. This initiative is expected not only to support individuals and businesses in achieving their financial goals but also to help bridge the financial inclusion gap in Nigeria.
According to a report by EFInA, an organization that promotes inclusive finance in Nigeria, financial inclusion in the country has seen significant growth, rising from 56% in 2020 to 64% in 2023, reflecting ongoing efforts to make financial services more accessible to everyone.
Samira Njoya
Agriculture is a strategic economic sector that generates wealth and employment in Africa. However, a number of countries are still struggling to organize it effectively. Digital technology can help to overcome this weakness
The Federal Ministry of Agriculture and Food Security has inaugurated a Technical Working Group (TWG) focused on developing a seamless database to accurately identify Nigerian farmers, a press release by the Federal Ministry of Information and National Orientation dated August 17 revealed. The initiative, led by Permanent Secretary Mr. Temitope Fashedemi, aims to improve the distribution of agricultural inputs and support to farmers across the country.
During the inauguration ceremony, held recently at the Ministry’s Conference Room in Abuja, Fashedemi emphasized the importance of this initiative in shaping the future of Nigeria's agricultural sector. He noted that a reliable database would enable the Ministry to more effectively deliver services and resources to the farmers who need them most.
To achieve this goal, the Ministry plans to collaborate with the National Identity Management Commission (NIMC), which will play a crucial role in creating a robust database. The Permanent Secretary highlighted that this collaboration would help ensure the accuracy and completeness of the data collected, thereby enhancing the Ministry's ability to implement agricultural programs efficiently.
The TWG, comprising members from the technical departments of the Ministry and NIMC, has been tasked with developing effective modalities for collaboration between the Ministry and NIMC. The group's Terms of Reference (TOR) include creating a comprehensive work plan with clear timelines and roles, designing data collection tools to capture essential farmer information such as identification details, farm size, and crop types, and identifying training programs for field officers and data collectors to ensure data accuracy, the release further stated.
The database will help assess financial credibility for connecting farmers to microfinance and subsidy programs, facilitating access to credit and aid.
According to the latest data from the World Bank, agriculture, forestry, and fishing contributed approximately 22.72% to Nigeria’s GDP in 2023. This underscores the importance of the government's initiative to develop a comprehensive database of farmers. With agriculture being such a vital part of the economy, accurate data collection will enable a more targeted and effective distribution of resources, ultimately enhancing productivity and supporting economic growth.
Hikmatu Bilali