Podcast 🎧 & blog: The digital Africa briefing, with Lacina Koné

Putting digital transformation to work for the benefit of society means taking an extra step, to Lacina Koné. The CEO of Smart Africa supports the idea that on the way from digital buzz to business success, efficient digital government can be key in attracting and retaining top talent and investments. On the path towards a digital Africa, though, a mix of deep-rooted challenges and bold steps to take awaits. Dive in this briefing on the state of digital transformation for business and society in Africa, with Lacina Koné, the CEO of Smart Africa.

Challenges to full digital transformation in Africa

Africa’s digital transformation journey is marked by significant challenges that require strategic interventions to overcome. The critical areas that need attention to ensure the continent can fully leverage digital opportunities revolve around connectivity, regulatory fragmentation, and refocusing digital skills.

Infrastructure gaps, meaningful connectivity

One of the foremost challenges in Africa’s digital transformation is the infrastructure gap. While global internet connectivity averages around 64%, Africa lags with only 46% of its population having internet access. This disparity is not just about coverage but extends to meaningful connectivity – where the infrastructure exists but is underutilised.

“Connectivity becomes meaningful when it’s affordable, accessible, and provides local content that incentivises use. This gap is primarily due to a chronic infrastructure gap and usage gap. Many areas are covered by internet infrastructure, but people are not using it due to various reasons,” Koné warns.

“Affordability? It’s too expensive for many people. Other reasons are the lack of smart devices, people need affordable devices to access the internet, and the need for local content. Users need a reason to use the internet beyond just social media. Furthermore, cyber hygiene is crucial – people need to trust the technology they are using. These are the primary challenges we face. Only then can we achieve meaningful connectivity across the continent,” Koné explains.

The regulatory and policy situation

Regulation and policy harmonisation are critical to fostering an environment conducive to digital growth. “Regulation can make or break a nation. What makes Estonia and Singapore successful today is their agile regulations that foster innovation and economic growth. In Africa, however, many of our regulations are outdated and not designed to foster innovation; they often act as barriers to development,” he says.

To overcome this, African nations need to reform their regulatory frameworks to support innovation and economic growth. A process that, in Koné’s view, can also make Africa a more attractive market for international investors. This involves creating common standards in telecom, cybersecurity, data protection, and e-signatures, ensuring that policies are conducive to business operations and investment.

“We need to look at over 50 countries and identify the common denominators in their laws, such as telecom law, cybersecurity law, data protection law, and e-signature law. By doing so, we can ensure that policies are conducive to investment and can support the scaling of economic power across the continent.”

What skills are the right skills?

The lack of digital skills is another significant barrier to Africa’s digital transformation. With 70% of Africa’s population under 30, there is a pressing need to reform education systems to align with industry needs. Traditional education often does not equip young people with the skills demanded by the tech industry, leading to a mismatch between education and employment opportunities.

“Major tech companies today do not hire young people based on traditional degrees alone; they hire them based on skills. This means short certification programs and demonstrable skills are more valuable than bachelor’s or master’s degrees in many cases. Africa has a young population, but our education systems have not reformed adequately to equip young people with the skills needed for the digital age.”

“Therefore, we need to focus on upskilling and reskilling our youth to bridge this gap, ensuring that our young population is prepared to participate in, and drive, the digital economy. Addressing this skills gap is essential for the continent’s digital future,” Koné explains.

Trust, harmonisation, PPPs. Ingredients and goals

To the ultimate end of making digital transformation work for the economy and society, though, there is no actor operating in silos. The very three things Koné identifies – as both ingredients and goals – on the way to a digital Africa revolve around collaboration.

Trust in technology

Trust is a fundamental aspect of digital transformation. Users need to feel secure when using digital services, which can be achieved through robust security measures and privacy-by-design approaches.

“In the context of government services, creating a secure digital environment where users can trust the processes and systems is vital. And trust is not just about the technology itself, but also about how it is presented and used, ” Koné says.

“People need to understand that technology is not a black box full of risks; it can be a tool for significant benefits if used correctly. By building trust through security measures and transparent processes, we can encourage broader adoption and more meaningful use of digital services,” Koné says.

Policy harmonisation

Policy harmonisation across African countries is essential to create a cohesive digital market. Koné discusses the need for aligning various regulatory frameworks, including telecom, cybersecurity, and data protection laws, to facilitate smoother operations for investors and businesses. This alignment makes Africa a more attractive market by reducing unpredictability and ensuring that policies are supportive of digital growth. It allows businesses to expand across multiple countries without facing significant regulatory hurdles. For nations in the continent, it means creating a larger, unified market that can attract more significant investment and drive economic growth.

Harmonising African regulations also with international standards, particularly those of Europe, is a strategic move to enhance cross-border cooperation and make Africa an attractive market for global investors. A key ground will be ensuring that Africa’s digital identification systems, for example, are compatible with European standards – such as the eIDAS framework. This compatibility can facilitate smoother integration with global systems, and ensure that African digital identities are recognised and trusted internationally.

The role of partnerships

Public-private partnerships are essential for addressing complex challenges like infrastructure development and digital inclusion. The private sector drives innovation, and effective collaboration between the public and private sectors can accelerate digital transformation.

“For instance, telecom operators invest in infrastructure, but to close the usage gap, there needs to be collaboration on making services affordable and available. This involves creating incentives for telecom operators to invest in both urban and rural areas, ensuring broader access to digital services.”

On an international level, partnerships are vital for technology transfer and sustainable project development. “Africa is shifting from a narrative of aid to one of business and win-win partnerships. By focusing on long-term sustainability and involving the private sector from the start, we can ensure that digital transformation projects are scalable and continue beyond government terms. This approach fosters lasting change and drives economic growth,” Koné highlights.

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