Digital transformation could increase regional economic growth and provide fresh opportunities for growth through innovationWhile the Fourth Industrial Revolution brings with it global concerns of deepening inequality, in Africa, new evidence suggests that digitalisation and big data could bring more inclusive growth through real job creation.
These statistics indicate a severe infrastructure deficit and the need for deeper investments in the digital economy for Africa to keep pace and avoid falling further behind the international norm Despite this, Africa still lags behind other digital economies around the world, with comparatively low access to digital technologies. Some examples from theTwenty-four percent of Africans have access to the internet.While 90% of the households in advanced countries have access to fixed broadband services, the median penetration rate in Africa is just 2%; 16 of 51 countries in Africa have household penetration rates below 1%.
Digital entrepreneurship and innovation ecosystems must be fostered so that existing businesses can be transformed to offer new products and services. These must contribute to employment growth and skills development, and enhance the competitiveness and productivity of economies. The full economic potential of digital technologies cannot benefit only a small elite if they are to have a real and lasting impact on Africa’s development. The continent has two options: harness the opportunities presented by the digital revolution to foster new opportunities through connectedness and greater economic inclusion; or run the risk of isolation, widening inequalities and market stagnation.