News (1352)
As the world continues to see advancements in the use of digital tools for development and growth, African countries are not left behind. Many African governments aim to leverage collaborations with other countries to fast-track their adoption of technology, and development subsequently.
Yesterday September 13, 2023, India’s Union Cabinet approved a Memorandum of Understanding (MoU) the country signed with Sierra Leone to advance digital transformation initiatives and bilateral cooperation.
Signed on June 12, 2023, the memorandum will see a collaboration between India's Ministry of Electronics and Information Technology and Sierra Leone's Ministry of Information and Communications. It focuses on sharing successful Digital Solutions implemented at a population scale.
Key objectives of the MoU include promoting closer cooperation, exchanging experiences, and sharing digital technology-based solutions to drive digital transformation in both countries. The partnership is also expected to create employment opportunities in the IT sector.
Effective from the date of signature, the MoU will remain in force for three years. It aims to enhance cooperation in both Government-to-Government (G2G) and Business-to-Business (B2B) domains, particularly in Digital Public Infrastructure (DPI).
The MoU signing marks a significant step toward digital empowerment and cooperation between India and Sierra Leone, promising positive transformation in both nations' digital landscapes. Activities implemented under its framework will be funded by regular operating allocations from both administrations, underscoring their commitment to the collaboration.
Hikmatu Bilali
Tanzania aims to become one of the leaders in the digital sector in Africa. To achieve this goal, the executive is focused on building a strong digital infrastructure.
The Tanzanian government is currently working on the implementation of several citizen-centric digital infrastructures, including the construction of a National Enterprise Services Bus (NESB), a GovTech Innovation Center, and a National Services Directory.
The projects were announced by the Minister of Information, Communication, and Information Technology, Nape Nnauye (photo), at the end of the "Connect-to-Connect 2023" summit held from Saturday, September 9 to Sunday, September 10 in Zanzibar.
In his concluding address, the Minister specified that the National Enterprise Services Bus will facilitate the transparent sharing of data between public and private sector companies. The creation of the GovTech Innovation Centre and the Tanzanian Services Directory is a crucial step in improving the dissemination of information services for government and private entities.
The said initiatives are part of the "Revised National ICT Policy 2023", which aims to create a sound policy environment to narrow the smart device penetration gap in the country and drive digital transformation.
The revised policy “seeks to strengthen the research and innovation ecosystem, encouraging individuals and innovators to generate creative solutions for addressing pressing social issues and also prioritizes cyber security and the development of future-ready ICT human resources in the country,” explained Minister Nape Nnauye.
Tanzania recently multiplied partnerships with other countries and international companies to accelerate the digital transformation of its economy. The government also announced several investments in the Zanzibar Archipelago aimed at making the island a technological innovation hub par excellence in Africa.
According to the Minister of ICT, these initiatives have enabled Tanzania to rank among the top digital performers in Africa. Among other things, the country ranks 23rd worldwide on the World Bank's GovTech 2022 Maturity Index (GTMI).
Samira Njoya
Apart from science and technology, engineering is one of the most important sectors of the Nigerian economy. It is therefore important for professionals in the sector to digitize their activities to capitalize on the digital opportunities.
The Nigerian Society of Engineers (NSE), the umbrella organization of engineering professionals in Nigeria, inaugurated its Innovation Center in Abuja on Wednesday, September 13.
According to its executives, the new center will serve as a sanctuary for engineers and professionals to collaborate and innovate, and offer training and resources to facilitate the adoption of digital technologies by businesses and organizations.
According to Tasiu Sa'ad Gidari-Wudil, President of the Nigerian Society of Engineers, the aim of the center is to empower Nigerian engineers, allowing them to deliver on what is expected from them. "The innovation hub is where Engineers will come with ideas, research and develop” those ideas before commercializing the end products to the public and stakeholders, he added.
The 600 million naira ($780,000) center will integrate technologies, services, tools and data analysis. It will also offer smart business solutions to members, facilitating the learning curve by providing available resources, with an e-library accessible both online and on company premises.
The implementation of the center is in line with one of the administration's priorities to ensure ease of doing business and greater transparency within the profession.
Once completed, the center will also serve as a space to explore the immense potential of artificial intelligence and the Internet of Things. The idea is to find solutions to complex challenges, revolutionizing industries and the way we interact with the world around us.
Samira Njoya
For several years now, Cassava Technologies, through its subsidiaries Liquid Intelligent and Liquid Dataport, has been stepping up investments in connectivity infrastructures in Africa.
Earlier today, September 13, Liquid Intelligent Technologies, one of the subsidiaries of pan-African group Cassava Technologies, announced the launch of two fiber optic routes: one linking Kenya and Ethiopia, the other Zambia and Malawi. The aim is to improve broadband connectivity in these countries and stimulate technological innovation.
“All initiatives undertaken by businesses under Cassava Technologies work towards realizing our vision of a digitally connected future that leaves no African behind. The completion of these fiber links is yet another milestone achieved by Liquid, as it continues to lay the foundations of economic growth through increased access to high-speed connectivity,” says Hardy Pemhiwa, CEO of Cassava Technologies.
The about 1,000-km route linking Nairobi (Kenya) to Mega (Ethiopia) is being built in partnership with the Kenya Electricity Transmission Company (KETRACO) and Ethiopia Electric Power (EEP). It offers a capacity of four terabytes per second and will enable Ethiopian companies to access Kenyan data centers and the cloud. "Kenyan and Ethiopian businesses are rapidly adopting digital technologies, and this new link will enable trade and investment between these two great nations in our region," says Adil El Youssefi, CEO of Liquid Intelligent Technologies Rest of Africa.
The second route (711 kilometers long) provides a direct and reliable connection to content caches and data centers in South Africa.
Earlier this year, the pan-African company signed a partnership with Zambia to accelerate the country's digital transformation and provide reliable, and affordable connectivity to the population. Last May, it also announced the construction of roads linking Mombasa in Kenya to Muanda in the DRC, via Rwanda and Uganda.
Adoni Conrad Quenum
Mauritania, like several African countries, is stepping up efforts to develop entrepreneurship and support startups and SMEs. For more efficiency, the country needs a framework that will govern all of its actions.
On Saturday, September 9, the Mauritanian Parliament approved the Startup Act, the draft startup law in Mauritania, the Ministry of Digital Transformation announced this in a press release published by local media.
"The purpose of this law is to promote the creation and promotion of startups in Mauritania [by focusing on] creativity, innovation, the use of new technologies, the achievement of high added value as well as national and international competitiveness," the release informs.
The draft law was initiated by private and public stakeholders of the Mauritanian tech industry in March 2022. On September 7, 2023, it was presented to Ministers at the Ministerial Council held that day. The law is part of the Islamic Republic of Mauritania's overall strategy for the development of the digital economy and innovation. Its main objective is to define an incentive-based legal and institutional framework for the creation and development of young technology companies in Mauritania.
According to the country's authorities, the law includes provisions such as conditions for granting the startup label and support as well as conditions for access to tax, customs, and miscellaneous incentives to facilitate the installation and development of startups.
Once promulgated by the President of the Republic and implemented, the Startup Act should facilitate startups’ access to financing and investment, both locally and internationally. The aim is to label 300 startups over the next five years, support a dozen or so entrepreneurial support institutions –therefore helping create 3,000 direct jobs– and contribute to the digital economy at a rate of around 2.5 million MRU ($66,000) in sales per labeled startup.
Samira Njoya
Before Interswitch, Flutterwave, and Nala integrated this payment method developed by the American firm Alphabet.
Interswitch, a Nigerian financial technology startup, has integrated Google Pay into its Interswitch Payment Gateway (IPG) platform, according to a press release issued on Monday, September 11.
“Merchants can now store payment details within Google Wallet. This integration facilitates a smoother checkout process on the Interswitch platform, heightening the user experience. Additionally, the collaboration enables the acceptance of international cards on the Interswitch Payment Gateway, positioning businesses to seamlessly cater to a broader international clientele,” the release reads.
Interswitch, founded in 2002 by Mitchell Elegbe, became a unicorn in 2019 following the acquisition of 20% of its shares by US giant Visa. It has made a name for itself in the African fintech world, and during the COVID-19 pandemic, it proved to be the alternative of choice for commercial transactions in Nigeria and across the continent.
"By integrating Google Pay into our Payment Gateway, we are empowering businesses to harness the potential of a global customer base while ensuring secure and reliable payments," said Muyiwa Asagba, Managing Director of Digital Commerce and Merchant Acquisition at Interswitch.
Thanks to this integration, "users can simply add their debit and credit cards to the Google Wallet app and feel confident that their financial information is safe and secure when they’re making a purchase or catching a train," says Jenny Cheng, vice president and general manager of Google Wallet.
Adoni Conrad Quenum
Africa’s most valued startup (with $3 billion in estimated value) will now be able to offer major currencies like the US dollar, the Euro, and pound sterling to users in Nigeria.
On Monday, September 11, Nigerian unicorn Flutterwave announced the launch of a new solution called "Swap". Designed in partnership with Wema Bank and Kadavra BDC, and backed by the Central Bank of Nigeria (CBN), the Swap solution is billed as a secure and reliable digital platform that will give Nigerians immediate access to foreign currency at competitive exchange rates.
“At Flutterwave, our dedication to innovation is matched only by our commitment to simplifying financial processes for endless possibilities. Swap represents a significant leap forward in how Nigerians will engage with foreign exchange,” said Olugbenga Agboola (photo, left), co-founder and CEO of the unicorn.
Indeed, Nigeria has been facing several foreign exchange problems in recent years. One of these is a $10 billion foreign exchange backlog, which the CBN aims to resolve within the next two weeks. This backlog includes dollar claims from manufacturers, importers, business and personal travel allowances, as well as medical bills incurred abroad.
According to CBN Acting Governor Folashodun Shonubi, Swap will solve two critical problems plaguing Nigeria's foreign exchange market: the lack of synergy between financial institutions and a heavy reliance on cash transactions.
In the short term, Flutterwave will introduce a convenient card-issuing system for Swap users. The company plans to distribute over 10 million of these cards to Nigerians by October, enabling them to quickly resolve issues such as Personal Travel Allowance (PTA), and Business Travel Allowance (BTA) to facilitate their educational pursuits, commercial endeavors, and various travel requirements.
Samira Njoya
Numerous African governments are now recognizing digitization as a pivotal driver of development. Consequently, they are actively aiming to utilize this technology to expedite their countries' progress and enhance the welfare of their citizens.
On September 8, Ghana and the Republic of South Korea signed a $2.2 million grant to bolster domestic revenue collection. The agreement was signed in Accra by Mr. John Ampontuah Kumah, representing the Ghanaian government, and the Country Director of the Korea International Cooperation Agency (KOICA), Mr. Dong Hyun Lee.
The partnership aims to establish a comprehensive master plan to modernize Ghana's tax systems and integrate them into digital structures, including Mobile Money (MoMo) platforms. It will be executed by the Ministry of Finance and the Ghana Revenue Authority (GRA) and will focus on building the capacities of revenue and tax officials. In addition to capacity building, it will also involve consultations to expand the Value Added Tax and income tax bases using the MoMo transactions database and promote e-invoicing for increased transparency in cross-border commercial transactions.
The implementation of the master plan is expected to have a lasting positive impact on the livelihoods of Ghanaians and contribute to the long-term transformation of the national economy.
Speaking at the agreement signing ceremony, Mr. Kumah expressed confidence in the master plan's potential to broaden Ghana's tax base and boost domestic revenue mobilization. This partnership represents “the tangible efforts and collaboration between two nations to improve the lives of our citizens and contribute to the sustainable development of Ghana,” he said.
Mr. Dong Hyun Lee underscored the role of tax revenues in driving socio-economic development. In that regard, he emphasized the need for robust institutional frameworks to ensure the effective implementation of the master plan, which will be customized to meet Ghana’s unique requirements in collaboration between Korean and Ghanaian tax experts.
Hikmatu Bilali
Between September 4 and 7, We Are Tech carried out an online survey into how users feel about the ongoing digitization trend in Africa, their uses, and their expectations. This survey provides interesting insights.
We want an innovative administration!
Administration is the first sector in which We Are Tech Africa’s survey respondents expect the most innovations to facilitate their daily lives and improve governance in their countries. Their second concern is education. Then agriculture. Other sectors lag far behind.
Evolving and diversified uses
When it comes to digital adoption, it's no surprise that social networks are the most widely used, followed by online media and financial services (mobile money and fintech). However, there has been a significant breakthrough in e-commerce, e-admin, e-education, and even artificial intelligence.
There are still obstacles to digitalization in Africa
According to respondents, the main obstacles to digitalization in Africa are high costs, poor connectivity, and a lack of promotion of new services.
ChatGPT is getting into daily habits
Of the respondents, 39% claim to use the OpenAI service, while 8% even claim to use it daily.
Cryptos remain attractive
While 63% of Internet users believe that cryptocurrencies are of no interest to them, 9% already own a wallet and 25% are considering opening one.
Greentech startups are rapidly emerging in Africa with firm conviction that new technologies will play a key role in supporting sustainable development on the continent.
Catalyst Fund, a private equity fund investing in early-stage, climate-focused startups in Africa, has reached the first closing of its $40 million fund. Last Wednesday, the fund announced a first closing, at $8.6 million, with support from investors like FSD Africa Investments (FSDAi), the Cisco Foundation, USAID (Prosper Africa), and technology investor Andrew Bredenkamp.
The Kenya-based fund, headed by French impact investor Maelis Carraro, plans to invest in around 40 start-ups, including 20 this year. Eligible companies will receive funding of up to $200,000 for pre-seed startups, $500,000 for seed-stage companies, and $1.5 million in Series A financing for more mature companies.
“By blending equity investments with hands-on venture building, we believe we can unlock tremendous potential for innovative companies on the continent. Supporting ventures at the pre-seed stage requires more than capital. Our venture builders are the engineers, data scientists, and growth marketing experts who can supercharge founders’ journeys toward building scalable and highly impactful ventures," says Maelis Carraro.
Climate change is a global reality but Africa is the continent most vulnerable to its adverse effects despite contributing just 3% of global carbon emissions. It is therefore important to invest in startups that are active in the fight against climate change on the continent. According to a report published, in February 2023, by technology business accelerator AfricArena, such startups raised a total of $1.17 billion in 2022, of which $863 million was invested in capital.
By strategically focusing on solutions in agri-tech and fisheries management, food systems, insurtech and climate fintech, cold chain, waste management, and water management, Catalyst Fund aims to accelerate sustainable green growth. It will focus on solutions that can enable communities to better prepare for and manage shocks, adapt livelihoods to climate impacts, and build long-term resilience.
Samira Njoya
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Despite SMEs making up the majority of businesses in developing countries, their engagement in international trade is limited compared to their economic importance. However, the emergence of the digital economy could create new opportunities for SMEs to actively participate in global economic networks.
Korea Technopark Association (KTPA) and the International Trade Centre (ITC) have signed a Letter of Intent to drive the digital transformation of small and medium-sized enterprises (SMEs) in developing countries. The partnership was announced in a press release issued by the ITC on Tuesday, September 5. This strategic partnership, with an initial focus on Kenya, seeks to foster innovation, facilitate technology transfer, and enhance small business capabilities.
In response to the challenges posed by the fourth industrial revolution, this collaboration will leverage the 'Korea Technopark Operational Model' (K-TP Model), serving as an innovative ecosystem. The model will promote cooperation among government entities, industries, research institutions, and academia.
The Letter of Intent outlines various initiatives, including the establishment of Technoparks in developing countries, the strengthening of innovation and technology ecosystems, and the creation of connections between Korean organizations and businesses in these regions.
The primary objective of this partnership, supported by the Ministry of SMEs and Startups of the Republic of Korea, is to support the digital transformation of Kenyan manufacturing SMEs, thereby enhancing Kenya's industrial innovation.
Youngjib Kim, Chairman of the Korea Technopark Association, expressed enthusiasm for the partnership, highlighting KTPA's commitment to fostering innovative ecosystems for manufacturing SMEs in developing nations and contributing to the Sustainable Development Goals.
The collaboration between KTPA and ITC represents a significant step toward promoting technological advancement and economic growth in developing countries through targeted digital transformation initiatives for SMEs.
Hikmatu Bilali
Internet for all is a major development challenge for East African countries. Despite the ambitions stated in national development plans, several countries are struggling to provide better connectivity for their populations. Setting up a joint project could provide a solution to that challenge.
The East African Community (EAC) will be launching an Eastern Africa Regional Digital Integration Project (EA-RDIP 2023-2028) in the coming months. Daniel Murenzi, CAE's Senior ICT Officer, announced the 10th edition of the East African Internet Governance Forum (EA-IGF), held on Tuesday, September 5, in Kigali, Rwanda. The project aims to meet the connectivity needs of countries in the Horn of Africa.
"The Eastern Africa Regional Digital Integration Project is in response to the discussions and recommendations of the 9th East Africa Internet Governance Forum and aims to drive digital market integration by expanding broadband connectivity and improving the digital service environment," said Daniel Murenzi.
The five-year World Bank-backed project aligns with regional priorities, focusing on the need to bridge the digital divide, reduce connectivity costs, and empower marginalized groups such as youth, people with disabilities, and women. The aim is to boost access to broadband and digital services, fostering the development and integration of digital markets in East Africa.
To achieve this goal, the EAC relies on the Internet and partnerships between member states. Strategies will be put in place to ensure that Internet access is affordable for all. In January, East Africa boasted 23.1% Internet penetration, benefiting 110.7 million people, equivalent to 8.4% of its population.
Once implemented, the project will support cross-border connectivity, data harmonization, e-commerce regulations and policies, and the removal of trade barriers, to establish a single digital market.
Samira Njoya
Since 2011, Congo has been served by a single international fiber subsea cable, the WACS. Frequent outages on this infrastructure disrupt Internet services.
On Thursday, September 7, the Congolese Minister of Posts, Telecommunications and the Digital Economy, Léon-Juste Ibombo, launched the construction of a second national backbone network, resulting from Congo's recent connection to the new 2Africa subsea cable.
The 2Africa subsea cable, initiated by Meta (Facebook's parent company), will enable data transmission between Pointe-Noire and Brazzaville at a very high speed of up to 10 gigabytes per second.
According to the Minister of Telecoms, the new network will improve and further strengthen the capacity of what already exists. "The construction of the new Matombi backbone network, which will serve Pointe-Noire, Brazzaville, and the other cities, is the concrete expression of a strong ambition to improve the speed and reliability of electronic communications, facilitate trade and access to international markets, foster technological innovation and encourage the emergence of startups, and strengthen Congo's participation in the global digital economy," he said.
2Africa is the second international subsea cable the Republic of Congo is connected to. In 2011, the country connected to the WACS (West Africa Cable System) cable, on which it mainly depends for broadband Internet services. However, frequent outages on this infrastructure cause disruption to Internet services.
When completed in 2024, the 2Africa cable will be 45,000 km long, making it the longest in the world. It will serve a geographical area (Africa, Middle East, Europe) home to some three billion people, or 36% of the world's population.
In Congo, 2Africa should not only reduce the cost of Internet services but also extend access to these services to millions more people. According to the latest data from the regulator, the country currently has 3.05 million Internet users, equivalent to a penetration rate of 54%.
Samira Njoya
Nigeria aims to become one of the leaders in the African digital economy. To achieve its goal, it is signing partnerships with countries that share the same objectives.
Nigeria's Minister of Communication, Innovation, and Digital Economy, Bosun Tijani, signed two memorandums of understanding in New Delhi, India, last Wednesday. The first agreement, signed with the Indian Ministry of Electronics and Information Technology, aims to share the best digital solutions that would benefit citizens in both countries.
The second partnership, signed with the Central Square Foundation team, a non-profit organization working to ensure quality school education in India, aims to develop solutions that leverage technology to facilitate education in Nigeria.
“The collaboration between our countries gives us a platform to build on the upward trajectory of digital transformation as a driver of economic growth,” Dr. Bosun Tijani indicated in a post on X (formerly Twitter).
The MoU were signed on the sidelines of the 18th G20 Summit, to be held from Saturday, September 9 to Sunday, September 10 in New Delhi. They come at a time when the Nigerian government is stepping up efforts to attract additional investors to the country, increase funding to support Nigerian innovators and expand resources for local entrepreneurs. With such initiatives, the government wants to create one million jobs in the digital economy and improve digital literacy among the youth.
By choosing India to support those digital projects, Nigeria is making a strategic move. Indeed, in less than 10 years, India's digital penetration rate has more than doubled. In 2015, the world's fifth-largest economy launched "Digital India", an ambitious program to transform India into "a digital society and knowledge economy."
Samira Njoya