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Africa is witnessing a swift expansion of its digital economy. However, government measures that disrupt internet services and limit access to social media platforms carry significant implications.
Sub-Saharan Africa saw a nearly $1.74 billion loss in 2023 due to internet outages and social network restrictions, a 489.83% increase from the $295 million loss in 2022, according to data from UK specialist platform Top10VPN. Despite a decrease in the number of people affected by these restrictions from 133.1 million in 2022 to almost 84.8 million in 2023, the number of countries imposing restrictions increased from seven to ten.
Top10VPN attributes the rise in financial loss in 2023 to the extended duration of outages, which lasted 30,785 hours compared to 9,532 hours in 2022. Ethiopia, a large country in terms of demographics and economy, accounted for the highest number of hours of internet and social media impairment.
Ethiopian authorities restricted access to Facebook, YouTube, Telegram, and TikTok due to religious tensions, leading to a peak in VPN service demand at 3,651% above average. The blockades, implemented in early February, were not lifted until July. Amid tensions with militias in the northern Amhara region, the internet was cut off in August and partially restored in November. The restrictions, which lasted over 3,414 hours for the internet and over 11,496 hours for social media, resulted in a loss of around $1.59 billion, or 91.37% of the total losses in sub-Saharan Africa.
Two West African countries, Senegal and Guinea, also contributed significantly to the financial losses in 2023. Senegal, due to pro-Sonko political demonstrations, cut the internet for 135 hours and social networks for 3,811 hours, resulting in a loss of $57.4 million. In Guinea, authorities restricted social network use since November 2023 without officially stating the reasons, leading to estimated losses of $47.4 million for the 3,720 hours of social media restriction.
Other countries that resorted to internet or social media restrictions in 2023 include Mauritania ($38.5 million), Kenya ($27 million), Sudan ($12.4 million), Gabon ($5.4 million), Tanzania ($2.8 million), Chad ($800,000), and Zimbabwe ($500,000).
Adoni Conrad Quenum
In line with its digital transformation strategy, Tunisia is set to digitize all citizen services, encompassing even social services. This move is part of the country's broader initiative to dematerialize services.
Tunisia's Minister of Social Affairs, Malek Ezzahi, and Minister of Communication Technologies, Nizar Ben Neji, have inked a cooperation agreement aimed at digitizing access to social services. The agreement, signed in Tunis on January 10, is part of a broader initiative to simplify administrative procedures and enhance services for citizens and businesses alike.
The Ministry of Social Affairs, in a press release, detailed the agreement's provisions, which include the adoption of electronic signatures for online administrative procedures, digital identity, and non-material data exchange. The agreement also facilitates access to the Ministry's sectoral platforms via the citizen portal and introduces citizen mail for detailed notifications, thereby improving communication between the administration and citizens.
The initiative falls under the national digital transformation strategy, set for implementation through 2025. It specifically targets entities under the Ministry of Social Affairs' purview, including the national social security fund, the national pension and social welfare fund, the national health insurance fund, the office for Tunisians abroad, and the general committees for social promotion and labor and professional relations.
To realize the agreement's objectives, the Ministry of Communication Technologies will collaborate with the National Information Center, the National Agency for Electronic Authentication, the National Agency for Cybersecurity, and the Tunisian Post Office.
Plans are also underway to streamline the distribution process for "Labes" and "Aman" healthcare cards. These cards, which will replace paper health insurance booklets and healthcare booklets for low-income individuals, will be used to pay for health services and purchase medicines.
Samira Njoya
Internet access restrictions have increasingly become a norm in Africa in recent years. A variety of factors contribute to the intentional suspension of the Internet, including limitations on information access, armed conflicts, and coups d'état among others.
In 2023, network outages impacted 84.8 million Internet users in sub-Saharan Africa. These disruptions, which lasted for 30,785 hours, resulted in estimated economic losses of $1.74 billion.
The region ranks second after Europe ($4.02 billion), surpassing Asia and the Middle East and North Africa region ($1.44 billion). A recent report published on Tuesday, January 2, by UK technology firm Top10VPN, sheds light on the restrictions that led to these financial losses. The report indicates that Internet restrictions due to peaceful protests were the most economically damaging in 2023.
Ethiopia experienced an estimated $1.59 billion in lost earnings in 2023 due to the extended suspension of social networks, including Facebook, YouTube, Telegram, and TikTok from February to July. This decision was made by the government in response to religious tensions. Similar restrictions were imposed in the Amhara region in early August due to escalating tensions with local militias, resulting in over 11,496 hours of social media shutdown.
In 2023, two major network outages occurred in Senegal in response to large-scale protests, affecting 8.01 million people. According to data from the Top10VPN platform, the total duration of the blockages is estimated at 135 hours, with financial losses valued at $57.4 million. This led to a surge in demand for VPN services to bypass the imposed restrictions, with an increase of over 60,000%.
Several other countries also experienced blackouts due to public protests, including Guinea, Mauritania, Kenya, Sudan, Tanzania, Algeria, Chad, and Zimbabwe. The report by digital security and privacy research group Top10VPN also cites other reasons for social network censorship in Africa. These include information control, conflicts, military coups, and electoral interference as additional causes of Internet blocking.
Samira Njoya
Despite a downturn in sector investment, Africa’s tech ecosystem continues to draw interest. The continent is seeing an influx of new investors keen to support innovative start-ups.
BEI Monde, a subsidiary of the European Investment Bank (EIB), has pledged a $30 million investment in the Seedstars Africa Ventures I venture capital fund, as announced on Wednesday, January 10. This initiative is backed by the secretariat of the Organization of African, Caribbean, and Pacific States (OACPS) through the Boost Africa program with a contribution of $10 million, and by the European Union via the ACP Trust Fund with a sum of $20 million. The objective is to spur growth and job creation across the continent by investing in businesses that utilize digital technologies to provide essential services and enhance business efficiency.
“Encouraging and promoting innovation and digitalization is crucial to developing strong and sustainable economies. African entrepreneurs hold the key to the continent’s future, creating jobs, reducing inequality, and improving quality of life. The EIB, as part of Team Europe, is committed to supporting African businesses, and we are proud of the success of Boost Africa and the ACP Trust Fund,” stated EIB Vice-President Ambroise Fayolle.
Despite a 36% decrease in fundraising by African startups to $3.2 billion by 2023, as reported by TechCabal Insights, the introduction of a new venture capital entity focused on Africa is a positive development. Startups can now access this fresh funding source to realize their projects and/or initiate their startup’s growth phase.
Most investors active on the continent are drawn to the tech ecosystems of Kenya, South Africa, Egypt, and Nigeria. In 2023, startups from these four countries represented 74.9% of financing rounds on the continent. The first four deals of Seedstars Africa Ventures I affirm this trend, with the fund backing two Kenyan startups (Poa! Internet and Shamba Pride), one Nigerian (Beacon Power Services), and one French (Bizao) startup with a focus on Africa.
Adoni Conrad Quenum
Digitization is proving indispensable for Africans, streamlining processes and fostering accessibility, thereby contributing significantly to socio-economic development across various sectors. This technological shift is empowering individuals and communities, paving the way for enhanced efficiency and inclusivity in the digital era.
Nigerian citizens and foreign applicants seeking passports can now submit applications online, as the country launched its new digital platform on Monday, January 8. This marks a significant shift from the previous paper-based system, aiming to ease the process and reduce delays.
The launch was spearheaded by Interior Minister Dr. Olubunmi Tunji-Ojo, who inaugurated the portal following a demonstration session held last Friday. This aligns with the federal government's commitment to full automation of passport applications, announced by the minister in December.
"The new online system represents a significant win for Nigerians seeking passports. No longer will they contend with long queues, cumbersome paperwork, and opaque procedures. Instead, they can expect a faster, more transparent, and more secure path to obtaining travel documents," Tunji-Ojo stated.
The user-friendly platform allows applicants to upload passport photos and supporting documents directly, streamlining the process and eliminating the need for physical visits to immigration offices.
Fees vary depending on nationality and desired passport validity period. Nigerian applicants pay N25,000 for a 32-page passport valid for five years and N70,000 for a 64-page passport valid for ten years. Foreign applicants face a charge of $130 for a five-year, 32-page passport and $230 for a ten-year, 64-page passport.
Hikmatu Bilali
The United Nations has identified affordable internet access as a key sustainable development goal. However, some leaders, despite their ongoing efforts to develop their countries, are restricting internet access to their populations for various reasons.
Since November 24, 2023, the Guinean government has imposed restrictions on internet access and social media platforms including Facebook, WhatsApp, Telegram, Instagram, YouTube, and TikTok. According to the British platform Top10VPN, these measures have cost the country approximately $47.4 million. The Guinean authorities have not yet explained the restrictions.
This blackout, which has lasted over 40 days, is not the first instance of such restrictions. In May 2023, amidst popular protests, the government limited access to social media for three days. According to the 2022 annual report of the local telecom regulator ARPT, Guinean internet users experienced 3,720 hours of internet outages and social media restrictions in 2023, affecting 6.98 million mobile internet subscribers.
Earlier this year, the Guinean tech industry association RESTIC –Rassemblement des entreprises du secteur des technologies de l'information et de la communication– called for the immediate restoration of internet access in the country and appealed to the Economic Community of West African States (ECOWAS) for assistance in persuading the current regime.
Despite the ongoing digital transformation in Africa, several regimes have used internet restrictions to silence their populations. Senegal and Ethiopia, for instance, lost $57.5 million and $1.59 billion respectively in 2023 due to internet and social media blackouts, according to Top10VPN. Notably, Ethiopia is the second country to incur such significant losses due to internet and social media blackouts. It's worth noting that this practice is not exclusive to African countries. Amidst the war in Ukraine, Russia has resorted to similar measures, as have countries like Iran, Iraq, and Brazil.
Adoni Conrad Quenum
Digital skills are set to play a pivotal role in the upcoming global technological revolution. According to a report by the International Finance Corporation (IFC), the demand for digital skills is projected to grow at a faster pace in sub-Saharan Africa compared to other global markets.
The German Society for International Cooperation (GIZ) and the European Union (EU) launched a digital training program for Ivorian youth, named "WE.CODE", in Abidjan on Monday, January 8. The program aims to provide 300 young individuals, aged between 18 and 35, with the necessary digital skills for the job market, thereby facilitating their professional integration.
This initiative is a part of the Invest for Jobs program, co-funded by GIZ and the EU. "By offering programs tailored to the needs of the digital job market, we aim to equip our learners with the skills they need to excel in an increasingly connected world," said Marc Levesque, a representative of the Invest for Jobs program.
Selected candidates will receive training in full-stack development, data management, and IT security. The training will be conducted in collaboration with two major digital sector entities in Côte d'Ivoire, Epitech University and MStudio.
The WE.CODE program, implemented by the German Federal Ministry for Economic Cooperation and Development (BMZ), is developing a package of measures to support German, European, and African companies in investment activities that have a high employment impact in Africa. The program aims to create up to 100,000 jobs and improve working conditions and social protection in its eight African partner countries: Côte d'Ivoire, Egypt, Ethiopia, Ghana, Morocco, Rwanda, Senegal, and Tunisia.
Applications for the program can be submitted until Thursday, February 15, 2024, via the program's website.
Samira Njoya
High transaction costs in financial dealings are a significant issue across Africa. To address this problem, some actors are exploring the use of blockchain technology, with the endorsement of the Central Bank.
The Central Bank of Nigeria (CBN) has given its approval for the launch of a stablecoin, a type of crypto asset that maintains a steady value against an official currency, providing an alternative payment method. The stablecoin, named cNGN, is set to launch on February 27 and will be indexed to the naira. The Africa Stablecoin Consortium (ASC), a collective of Nigerian banks and fintech companies, is behind the initiative, aiming to elevate the naira to a global digital currency.
“The cNGN ushers in a new era of financial fluidity, bridging the Nigerian Naira with the global market through blockchain technology. Backed 1:1 by Naira reserves held in designated commercial banks, the cNGN Stablecoin transforms the Naira into a dynamic tool for worldwide remittances, commerce, trade, and investment,” the CSA stated.
This development comes two years after the CBN introduced the eNaira, a central bank digital currency launched in October 2021 to increase financial inclusion and facilitate financial transactions, particularly cross-border remittances, at a lower cost. However, a May 2023 report by the International Monetary Fund titled “Nigeria’s eNaira, One Year After” revealed that the adoption of the eNaira has not met the CBN’s expectations.
The CSA believes that the cNGN will address the shortcomings of the eNaira. Unlike the eNaira, the cNGN will not require a dedicated wallet and will be accessible on certain public blockchains like other cryptoassets.
“More than just a currency, cNGN shortens settlement times, enabling payments that traverse the globe swiftly, mirroring the speed of a text message and at a fraction of the cost. This breakthrough paves the way for instantaneous financial transactions, seamlessly connecting Nigeria’s vibrant economy with international markets and offering unprecedented efficiency in both domestic and global financial interactions,” the statement read.
Adoni Conrad Quenum
Across Africa, progress in bridging the digital divide remains uneven, with some regions lagging despite efforts by governments and international organizations. Initiatives to create a critical mass of digital specialists continue to fall short, leaving many countries struggling to fully capitalize on the digital revolution.
Commonwealth Business Women Africa (CBW-A), a Nigerian organization focused on empowering African women in leadership and entrepreneurship, has partnered with educational technology firm Kodris Africa to train one million girls in coding across 22 African countries.
The initiative aims to transform the teaching of science, technology, engineering, and mathematics (STEM) subjects and promote gender equality in the tech industry. According to Kodris Africa CEO Mugumo Munene, the program equips young girls with 21st-century skills such as design thinking, critical thinking, and algorithmic thinking. “The coding skills they acquire will also lead them to online environments where they can pick jobs as soon as they attain the age of 18, deliver remotely, and receive payments from the comfort of their homes,” he added.
As Africa navigates the ongoing technological revolution, initiatives like the U.S. government’s TechWomen program aim to increase the representation of African women in STEM professions. Networks such as the WomenTech Network support women in various tech roles, fostering an environment conducive to their self-fulfillment.
“Across Africa, the underrepresentation of girls in STEM fields remains a significant challenge,” said Nana Wanjau, CBW-A’s Vice President for Africa. “According to UNESCO, women make up only 28% of STEM graduates globally, and the situation is even starker in Africa, where girls often face cultural barriers and limited access to quality STEM education,” she explained.
Adoni Conrad Quenum
As digital proficiency becomes increasingly vital across multiple sectors, pressure is mounting on governments to bridge the skills gap and equip citizens with the tools to thrive in the digital age.
In a bid to bridge the digital gap and equip young Liberians with the tools to succeed in the 21st century, local IT company 231Data launched a free digital transformation training program on January 2nd.
"Our objective is to narrow the digital divide in Liberia by providing a significant segment of the population, particularly women and youth, with fundamental digital skills," said Niahson Porte, CEO of 231Data, at the program's inauguration in Paynesville.
The month-long initiative, backed by the Liberia Telecommunications Authority (LTA), aligns with the goals of the World Summit on the Information Society (WSIS), a global platform addressing the challenges and opportunities of the digital age.
The program targets Liberians aged 11 to 35, focusing on demographics often left behind in the digital revolution. Starting with an initial 60 trainees in Paynesville, the program aims to reach 10,000 across the country over the next two years.
Each session comprises two hours of training per day for two weeks, with 15 participants per group to ensure personalized attention. The curriculum covers essential skills like computer literacy, internet navigation, and basic software applications.
The program's ambitions go beyond technical proficiency. It seeks to empower individuals and communities to access education and information online, bridge the digital divide, and contribute to Liberia's economic development.
Samira Njoya
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Building on its recent foray into Senegal, British financial technology company TerraPay has secured a strategic partnership in Mali.
Orange Finances Money Mali and British fintech firm TerraPay have joined forces to enable seamless cross-border mobile money transfers for Malian users, connecting them to a vast network across Africa and the world.
The partnership, announced Monday, empowers Orange Money Mali customers to directly receive funds from multiple countries through TerraPay's global platform. "This strategic collaboration simplifies transactions, making them quick and secure, enhances the customer experience for Orange Money users, and strengthens financial inclusion in Mali," said Djeneba Tandjigora, Chief of Transfer Services and Core Business at Orange Finances Money Mali.
Mobile money has revolutionized African finance, with the continent leading the globe in adoption. According to the GSMA's "State of the Industry Report on Mobile Money 2023," Africa boasts 781 million active accounts, representing 48.81% of the world's total. This translates to a 17% surge compared to 2021.
"With a direct connection to Orange Finances Money Mali, TerraPay can ensure a seamless cross-border payment experience, reducing operational issues and providing prompt assistance to our partner’s clients," said Amel Kane, Regional Sales Manager Francophone West Africa at TerraPay.
TerraPay's robust network spans over 120 countries for receiving funds, and over 210 for sending, and connects to over 7.5 billion bank accounts and 2.1 billion mobile wallets worldwide.
Adoni Conrad Quenum
In 2021, Gabon launched a three-year acceleration plan to transform its economy. To carry out its projects, the country is receiving support from key partners such as the World Bank.
The government of Gabon and the World Bank have signed a $68.5 million loan agreement to fund the country's digital transformation project, "Gabon numérique", according to a press release issued by the financial institution on Tuesday, January 2.
The funding aims to accelerate the adoption of digitized public services, increase the number of people with a unique identifier, and strengthen data protection, cybersecurity, and secure data exchanges within the public sector.
"Digital transformation has been at the center of the country’s economic and social transformation for the past decade. This is critical to promote opportunities for all Gabonese citizens and residents. It will benefit individuals and businesses by improving the affordability, availability, and quality of public service delivery," said Cheick Kante, World Bank Country Director for Gabon.
The loan agreement comes as the country is accelerating its digital transformation projects. In July, an agreement was signed with the Indian group Shapporji-Pallonji for the construction of a national data center. Other projects, such as the digitization of the healthcare system, education, civil registration, and numerous citizen services, are currently underway in the country.
The World Bank's support is expected to back the implementation of these projects, address persistent inequalities in accessing public services, and contribute to the provision of a single identity for all citizens to facilitate their access to public services, including social protection, health insurance, and public procurement.
Samira Njoya
Generative artificial intelligence (AI) has achieved remarkable strides in 2023, with its deployment accelerating globally. The technology’s transformative potential is finding significant traction in Africa. However, its full adoption on the continent requires careful consideration and the implementation of several precautionary measures.
With interest growing for artificial intelligence in Africa, Seydina Moussa Ndiaye, a member of the United Nations' AI advisory body, urges African nations to exercise control over the burgeoning field. In an interview with UN News, he expresses concern that Africa could become a testing ground for new AI solutions without adequate oversight.
Ndiaye, who has contributed to the digital transformation of higher education in Senegal and the development of the Pan-African AI strategy, warned that the combination of AI and advances in biotechnology could be exploited, with Africa potentially serving as the testing site for these new solutions.
“The power of AI combined with advances in biotechnology or technology could be used, and Africa could be the place where all these new solutions are actually being tested,” he said.
He criticized the current regulatory framework, arguing that it fails to account for certain aspects and is ineffective in applying existing ideas and regulations. "In concrete terms, and when you don’t control these things, it could happen without anyone knowing. We could have Africa being used as a Guinea pig to test new solutions, and this could be a great, great threat for the continent," Ndiaye cautioned.
Despite these concerns, Ndiaye acknowledged the immense potential AI holds for Africa, particularly in sectors such as agriculture and healthcare, where it could address issues including staff shortages. He also highlighted the role of AI in promoting African cultural identities, which he believes have struggled to gain global recognition.
In response to the opportunities and challenges presented by AI in Africa, Ndiaye revealed plans for a forthcoming pan-African strategy aimed at guiding the development of the technology across the continent.
After developing various e-health applications, the Canadian firm is looking to take on new challenges in the healthcare technology sector.
Yulcom Technologies, a Canadian IT and AI consulting firm with operations across Africa, announced a $2 million two-year investment in developing an AI-powered medical diagnostic aid system.
"Our solution contributes to solving a major public health issue, that of supporting medical staff who are under pressure from a shortage of healthcare workers," said Yulcom’s CEO, Youmani Jérôme Lankoandé, on Wednesday.
Across Africa and the world, AI is increasingly infiltrating diverse sectors, including healthcare, where its potential for revolutionizing diagnosis is attracting substantial interest. Yulcom, led by Burkina Faso-born entrepreneur Lankoandé, is joining this wave with its upcoming Diagnostic Assistance System.
"YULCOM puts forward an innovative vision in the design of AI models that can reduce waiting times for specialist consultations and improve survival rates for patients in the most remote or under-served areas," explains Komi Sodoké, Yulcom's director of AI Projects.
However, concerns regarding AI ethics and responsible use remain prominent. In November, 18 countries, including Nigeria, signed an agreement to prevent AI misuse. The United Nations also established an AI advisory committee to underscore responsible AI development and implementation.
Adoni Conrad Quenum