News (1792)
By improving payment systems and enhancing the trustworthiness of credentials, African SMEs can engage more effectively in international trade. This fosters economic inclusivity, drives innovation, and opens new markets, ultimately contributing to sustainable economic development across the continent.
Director of Fintech and Innovation at the Bank of Ghana, Kwame Oppong, announced the successful completion of a cross-border transaction using Ghana’s eCedi and a Singaporean stablecoin. This was during the just ended 3i Africa summit held from 13-15 May in Accra. It marks the first proof of concept for Project DESFT (Digital Economy Semi-Fungible Token).
Project DESFT aims to support African SMEs in global trade by addressing trust and payment challenges. “.. we have rigorously tested a cross-border payment solution built upon the principles of Purpose Bound Money (PBM) and conducted real trade experiments which fully align with our predetermined objectives,” Oppong stated
According to the IMF “Central Bank Digital Currency's Role in Promoting Financial Inclusion” 2023 report, Central Bank Digital Currencies (CBDCs) can enhance financial inclusion by enabling households to efficiently transfer funds and access savings, insurance, and credit. This improved access supports financial wellness, reduces poverty, and promotes shared prosperity. The World Bank highlights financial inclusion as crucial for reducing poverty and boosting prosperity, by fostering entrepreneurship, investment, and productivity, and studies show a strong link between digital financial inclusion and economic growth.
The eCedi is set to enhance Ghana’s payment ecosystem by promoting growth, innovation, and improved consumer experiences. Its compatibility with the DESFT system and verifiable credentials can facilitate international trade for Ghanaian MSMEs.
Hikmatu Bilali
Despite their crucial role in the entrepreneurial landscape and their potential to drive economic development, small and medium-sized enterprises (SMEs) in sub-Saharan Africa face limited access to financing.
Singapore-based fintech company Proxtera announced a partnership with Ghana's Development Bank of Ghana (DBG) on Wednesday, May 15, during the 3iAfrica Summit in Accra. The collaboration aims to establish a digital platform offering $100 million in loans to Ghanaian small and medium-sized enterprises (SMEs).
Kwamina Duker, CEO of DBG, highlighted the platform's potential to streamline the loan application process and reduce borrowing costs for SMEs over time. “If today, it takes about three to six months to get a loan, with a huge amount of documentation, and we can cut that down to turnaround of literally a real time of 24 hours… then we can appreciate the benefits of digitalization,” he stated.
Through the partnership, DBG will leverage Proxtera's digital platform to provide loans for SME growth and expansion. Eligible businesses must be Ghanaian-owned and operating within the country, with a sound financial plan. Priority will be given to SMEs in key sectors like agriculture, manufacturing, information and communication technology (ICT), and other high-value-added industries.
This collaboration marks a significant step towards digital financial inclusion in Ghana. By facilitating access to financing for SMEs, the partnership is expected to stimulate economic growth, create jobs, and strengthen the country's economic fabric. It aligns with Ghana's national financial inclusion and development strategy, developed in collaboration with the World Bank, which aims to increase financial inclusion from 58% in 2020 to 85% by 2023.
Samira Njoya
Algeria aims to position itself as a regional leader in technology and innovation. To achieve this ambition, the country is partnering with more advanced players in the field.
Algeria and China have signed a memorandum of cooperation to bolster collaboration in the fields of digitization and the digital economy, according to a May 16 statement from Algeria's High Commission for Digitization.
The agreement, formalized during a visit to China by a delegation led by High Commissioner Meriem Benmouloud (pictured, left), underscores the commitment to digital cooperation between Algerian President Abdelmadjid Tebboune and his Chinese counterpart.
This new partnership aligns with the High Commission's digitization action plan, which is currently shaping Algeria's national digital transformation strategy for 2024-2029. It follows a similar agreement signed earlier this year between the High Commission and Huawei, aimed at accelerating the country's digital transition.
The Algeria-China collaboration will explore avenues for cooperation across various digital domains. Training programs and expertise transfer will be implemented to enhance local digital skills and foster technological innovation. This collaboration will allow Algeria to leverage China's experience and knowledge in information technology, facilitating the government's goals of economic development and modernization.
Beyond the focus on training and technology transfer, potential projects could encompass developing advanced digital infrastructure, digitizing public services to improve efficiency, and creating an environment conducive to technological innovation and digital entrepreneurship. These initiatives aim to position Algeria as a prominent player in the digital economy within Africa and beyond.
Samira Njoya
Djibouti currently has only one operational data center. Known as the Djibouti Data Center (DDC), it is a Tier 3 facility that was commissioned in 2013.
Pan-African data center specialist PAIX Data Centres announced a joint venture with the Djibouti Sovereign Fund (FSD) on Tuesday, May 14. The partnership aims to build a cloud-neutral and carrier-neutral data center in Djibouti to address the growing demand for connectivity, content delivery networks, social media, and cloud computing services.
Dubbed JIB1, the new facility will boast roughly 50,000 square feet (approximately 4,645 square meters) of usable space up to 5 megawatts of computing capacity. The first phase of the project is slated for completion by 2026.
JIB1 will bolster Djibouti's telecommunications infrastructure as the nation undergoes a rapid digital transformation. Djibouti boasts connections to ten submarine cables, with three more under construction. However, the country currently has only one data center, the Djibouti Data Center (DDC), a Tier 3 facility launched in 2013.
"As the heart of Africa's digital economy, Djibouti plays a strategic role in facilitating connectivity between Africa, the Middle East, and Asia, PAIX Djibouti will serve as a catalyst for digital inclusion and economic development, empowering businesses to unlock new opportunities and realize their full potential in the digital age," said Jean-André Gbarssin, CEO of the FSD.
Isaac K. Kassouwi
As African governments increasingly embrace digitalization to drive economic growth, international collaborations are essential for achieving this goal. These initiatives also help bridge the gap between African and global tech hubs, ensuring the continent remains competitive in the global digital economy.
The Federal Executive Council (FEC) has approved the conversion of a Federal Government property in San Francisco into the Nigerian Digital Technology Exchange Program Hub, also known as the Nigeria Startup House, Minister of Communications, Innovation and Digital Economy Bosun Tijani announced May 14 on X (formerly Twitter). This initiative aims to enhance Nigeria's global tech presence, attract foreign investment, and boost the visibility of Nigeria's startup ecosystem.
“As we work towards achieving key elements of our Trade and IEC Strategic Blueprint Pillars, the Nigerian Startup House will play a critical role in promoting Nigeria’s economic interest, attracting Foreign Direct Investment and improving the visibility and positioning of Nigeria’s Startup Ecosystem to attract funding and expertise from global markets and organisations represented in the San Francisco Bay Area and beyond,” said the Minister.
The hub in the San Francisco Bay Area - a major center for startup funding and innovation - will help Nigerian startups access capital, expertise, and market opportunities.
Ownership of the Nigeria Startup House will remain with the Federal Government, represented by the Federal Ministry of Communications, Innovation, and Digital Economy (FMCIDE) and the Ministry of Foreign Affairs (MFA). It will be managed by a consortium of Nigerian tech companies, which will fund its operations.
As part of its strategy to foster a robust startup ecosystem, the Nigerian government has launched various initiatives. The Digital and Creative Enterprise (IDICE) program stands out, with a $618 million investment to promote entrepreneurship and innovation in the digital technology and creative industries, particularly for youth employment. According to the "Ecosystem Report: Nigerian Startup Scene 2023," this initiative is expected to contribute $6.4 billion to the Nigerian economy.
The report also highlights the Three Million Tech Talents (3MTT) program, which seeks to equip young individuals with essential tech skills while positioning Nigeria as a talent exporter. Additionally, the Nigerian Startup Act, passed in October 2022, underscores the government's commitment to establishing the digital economy as a fundamental component of its economic framework. These initiatives reflect Nigeria's growing support for the startup ecosystem and digitalization.
Hikmatu Bilali
Djibouti has embarked on an ambitious effort to digitize its public services. This initiative aims to allow the country to reap the full benefits of the digital economy.
The Djiboutian government announced the upcoming launch of two new digital services: e-Cabinet and e-Building Permit. Unveiled at the 8th Council of Ministers session on Tuesday, May 14th, these initiatives aim to modernize governance, enhance administrative efficiency, and offer a digital solution for building permits.
Developed by the Ministry of Digital Economy and Innovation with technical support from the National Agency for State Information Systems (ANSIE), e-Cabinet expands the government's document management capabilities. This platform caters to high-level decision-making by providing advanced features for managing proposals, agendas, reference documents, and legal texts throughout their lifecycle. Additionally, it ensures seamless interaction between various government systems, centralizing document management and fostering secure communication.
As for the e-Building Permit platform, it will replace the current building permit issuance system which is now considered outdated. This new solution includes an online portal offering significant advantages for all stakeholders involved in the building permit issuance process. Key features include simplified permit submission, online payments, and real-time tracking of applications.
The deployment of these platforms is part of the "Djibouti Fondement Numérique," a project that also includes the development of national broadband infrastructure, the promotion of e-learning, and the improvement of the quality of telecommunications services at affordable prices.
These digital solutions are expected to digitize government decision-making processes, facilitate secure communication and document sharing between ministries and government entities, and significantly save time in processing services.
Samira Njoya
Nigeria aims to expand its fiber optic network to at least 125,000 km to ensure complete coverage and offer high-speed internet services to its entire population.
Nigeria's Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, announced the approval of a special purpose vehicle (SPV) on May 14. The SPV will oversee the construction of an additional 90,000 kilometers of terrestrial fiber optic cables, significantly expanding the country's broadband infrastructure.
This decision, made during the Federal Executive Council (FEC) meeting, is expected to benefit Nigerians across the board, particularly the nation's burgeoning startup ecosystem.
"Building on our existing work with the Broadband Alliance," Tijani wrote on a social media platform (formerly known as Twitter), "this increased connectivity will help plug the current non-consumption gap by connecting over 200,000 educational, healthcare and social institutions across Nigeria, ensuring that a larger section of our society can be included in the benefits of internet connectivity."
Partnering with public and private stakeholders, the SPV will build the additional fiber optic network, extending Nigeria's national connectivity backbone to at least 125,000 kilometers, up from the current 35,000 kilometers. Upon completion, this will position Nigeria with the third-longest terrestrial fiber optic backbone in Africa, behind Egypt and South Africa.
The fiber optic expansion is expected to have a substantial impact on the Nigerian economy. It is projected to increase internet penetration beyond 70%, potentially reduce internet access costs by over 60%, and connect at least half of the estimated 33 million Nigerians currently without internet access. Additionally, it could drive GDP growth from $472.6 billion in 2022 to $502 billion within the next four years.
Samira Njoya
By mitigating cyber threats and ensuring the integrity of digital transactions, this move demonstrates a commitment to strengthening regulatory frameworks to support the burgeoning digital economy, which is essential for driving innovation and advancing economic development across the continent.
President Bola Tinubu (pictured) has directed the Central Bank of Nigeria to pause the implementation of the controversial cybersecurity levy policy for a comprehensive review. This follows the House of Representatives' call last Thursday, May 9, to retract the directive imposing a 0.5 percent levy on electronic transactions.
The CBN circular issued on May 6, 2024, mandated financial institutions to enforce the levy under the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024. President Tinubu's directive urges a pause on the levy's implementation, reflecting his commitment to easing economic burdens on Nigerians amidst ongoing reforms.
The levy proposal was met with resistance from Nigerians, including the Nigeria Labour Congress (NLC). Under the leadership of President Joe Ajaero, the group argued that this imposition could worsen the economic plight of Nigerians. Ajaero emphasized the need for withdrawing the levy, highlighting broader concerns regarding its potential adverse effects on efforts to promote financial inclusion. He asserted, “We propose a joint effort between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity strategies that won’t impose an undue burden on the people.”
In the 2021 report “Taxing the digital economy in sub-Saharan Africa,” authored by Celia Becker and published by the International Bar Association, Professor H Sama Nwana, a technology and telecommunications consultant with Cenerva, highlights the adverse effects of digital taxes. He states, “Digital taxes in various forms are not only regressive, but they also disenfranchise poor and marginalized groups such as the informal sector, women, and the youth in rural areas – who need the internet the most.”
Hikmatu Bilali
Cameroon is making a strong push towards digitizing services for its citizens. As a result, the biometric identity card has become crucial for accessing these services.
Cameroon and German-Portuguese consortium INCM-Augentic have partnered for a new secure identification system. According to reports by national radio CRTV, on May 13, Cameroon's Delegate General for National Security (DGSN), Martin Mbarga Nguele, signed a contract in that regard with Labinot Carreti, CEO of INCM-Augentic. Financial details were not disclosed, but Augentic will reportedly finance the turnkey project.
This project includes the construction of 68 state-of-the-art multifunctional centers across Cameroon's 10 regions and 58 departments. Additionally, it involves the renovation of 219 existing identification stations to modernize them. The new identification system will introduce an application for scheduling appointments online and will ensure widespread availability throughout the country, stated Labinot Carreti. "We will also ensure the dispatch of cards through all identification stations across the Cameroonian territory," he added. This system is expected to enable the issuance of the National Identity Card (CNI) within 48 hours of submitting the application, by the end of 2024.
On December 29, 2023, Martin Mbarga Nguele announced that the Head of State authorized the establishment of this new system, including an online pre-enrollment platform. Three autonomous CNI production centers will be built in Yaoundé (Centre), Douala (Littoral), and Garoua (North), as well as modern enrollment centers in each regional capital, he explained. He affirmed that this new system would be operational this year, based on assurances given during the New Year's greetings presentation on January 24. It will be similar to the system implemented for biometric passports, for which a contract worth XAF131 billion (200 million euros) was awarded to INCM-Augentic.
Increase in Costs
This contract mandated the consortium to build and operate the infrastructure. According to the German embassy in Cameroon, the company invested 30 million euros in constructing the national passport production center. The investments made by the providers justify the increase in the cost of the stamp, which rose from XAF75,000 to 110,000, stated the Minister of Finance, Louis Paul Motaze, at the time. According to the head of the Cameroonian Police, the investment made by the providers will justify an increase in the CNI cost, whose current issuance fee is XAF2,800.
This initiative comes as some citizens have been waiting for a year or even years to obtain their CNI, thus exceeding the regulatory three-month waiting period. This situation led to a social media campaign under the slogan "Je veux ma CNI (I want my ID card)." The government attributed these delays to the need to secure the Cameroonian identity, in a context where frauds could compromise its reliability. In addition to the CNI, other identity documents such as residence cards, resident cards, refugee cards, police professional cards, and national disability cards will also be produced within 48 hours.
Patricia Ngo Ngouem
African countries are implementing various projects to keep pace with the continent's accelerating digital transformation. Senegal, for instance, is becoming the first Francophone country in Africa to explore digital terrestrial radio.
Senegal's telecoms regulator, the Telecommunications and Postal Regulatory Authority (ARTP), launched a pilot project for digital terrestrial radio on Wednesday, May 8th.
The initiative seeks an alternative to traditional analog FM broadcasting, which suffers from frequency saturation, particularly in some Senegalese regions.
"The International Telecommunication Union (ITU) set the standard for digital terrestrial radio in the VHF band (174-220 MHz) in 2006," said Abdou Karim Sall, ARTP director. "Stakeholders later explored solutions for FM frequency shortages in Africa, but studies proved inconclusive. Faced with this shortage, ARTP felt it was time to launch this project."
The switch to digital radio aligns with the ITU's goal of transitioning all television and radio signals to digital. The transition to digital television is underway in several African countries, though facing delays. Digital radio has had limited uptake on the continent, making Senegal the first Francophone country to explore digital frequencies.
The new technology offers several benefits, including improved sound quality (often impacted by distance, interference, and weather), access to more radio stations, and the ability to pause and record live broadcasts.
Adoni Conrad Quenum
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Kenya Space Agency launched its Strategic Plan 2023-2027 yesterday May 13 to boost the nation's space economy and socioeconomic development.
The plan targets key areas, including coordination, capability development, and research. It aims to create and deploy homegrown satellites, advance space education and research, and establish strategic alliances with international space organizations.
The global adoption of blockchain technology is accelerating. Governments around the world are taking notice, exploring its potential to bring greater transparency and efficiency to their operations.
Ghana is poised to become the first African nation to adopt blockchain technology for its government operations, according to Vice-President Mahamudu Bawumia. The announcement was made during the 14th regional conference and annual general meeting of the heads of anti-corruption agencies in the Commonwealth of Africa, held in Accra from May 6 to May 11.
"We are going to adopt blockchain technology for government to ensure that all data and transactions in the Government space are transparent and tamper-proof, no one can change them, and so ours could well become the first blockchain-powered government in Africa," stated Bawumia.
This initiative is part of Ghana's Digitalization Strategy, which has been in place since 2017. The strategy has enabled the government to collect 201 billion GH₵ (approximately $14.2 billion) since 2023 through the digitization of public services via the Ghana.gov platform. Additionally, the new digital ID card has allowed the government to detect 404,707 fictitious names on the payroll of the National Service System and 29,000 phantom pensioners.
By adopting blockchain, Ghana aims to secure government data in a fail-safe manner. According to Bawumia, this technology will serve as a bulwark against corruption by monitoring every modification made to digital data.
Blockchain is an advanced database mechanism that allows for transparent sharing of information across a network. It can be used to record contracts, financial transactions, digital assets, votes, and much more, in a decentralized and secure manner.
Samira Njoya
Two months ago, about ten Central and West African countries experienced an internet disruption for several days. The inconvenience has occurred again.
Internet services have been disrupted in several East African countries since Sunday, May 12. NetBlocks, a British organization that monitors internet restrictions worldwide, attributes the incident to failures in the SEACOM and EASSY submarine cable systems serving the region. According to NetBlocks, the disruptions impact millions of users, including in Tanzania, Mozambique, Malawi, Burundi, Rwanda, Madagascar, Comoros, Uganda, Somalia, and Kenya. Sierra Leone, a West African country, is also slightly affected by these disruptions.
This marks the second occurrence this year of internet disruptions in Africa due to incidents involving submarine cables that serve the continent. In March, similar outages affected the WACS, MainOne, ACE, SAT3, Seacom/TGN, AAE1, and EIG cables, impacting a number of West, Central, and Southern African countries. Some of these cables have yet to be repaired.
In the affected countries, efforts are underway to address the situation, involving both telecom operators and Internet service providers, as well as public authorities. Nape Moses Nnauye, the Tanzanian Minister of ICT, stated, “There are ongoing efforts to solve the problem. As they continue to solve the problem, we will have very low access to internet and international voice calls.”
Isaac K. Kassouwi
In today’s rapidly evolving digital landscape, initiatives that transcend connectivity barriers are pivotal. They equip businesses to thrive in a competitive global arena. By enhancing connectivity, these efforts not only streamline operations but also catalyze the adoption of cutting-edge technologies. The expansion of markets, as a result, leads to a robust economic upturn and the creation of new job opportunities, marking a significant stride in collective progress.
Avanti Communications has partnered with Q-KON to introduce Low-Earth-Orbit (LEO) satellite services in South Africa. The leading global multi-orbit satellite technology provider announced this in a tweet posted today May 13.
Kyle Whitehill, CEO of Avanti Communications emphasizes the partnership's strategic significance, catering to diverse customer needs and giving “our customers in South Africa the assurance that all their unique problems can be solved through our services. This is particularly important for our enterprise customers in South Africa where the need for resilience is key.”
This partnership addresses regional connectivity obstacles by harnessing Q-KON's Eutelsat OneWeb service, powered by its advanced Smart Satellite Service technologies. By integrating LEO services with existing GEO offerings, the alliance enhances Avanti's multi-orbit solution. The introduction of LEO connectivity holds the promise of improved solutions for South African businesses, highlighting a shared dedication to innovation and customer-centricity.
Space in Africa released a report in 2022 delving into the hurdles Africa encounters in connecting its population to the internet. Titled "The State and Future of LEO Satellite Internet Connectivity in Africa," the report identifies poor infrastructure, affordability issues, and a perception that some areas are not ready for internet access. Nonetheless, cooperative endeavors are starting to reshape the continent's internet landscape. Additionally, the report references MIT research indicating that due to limitations with terrestrial systems, satellites are poised to significantly increase connectivity across Africa in the next five years.
Hikmatu Bilali