Increasing connectivity is key to accelerating Africa’s growth

Driving greater connectivity is Africa’s most significant growth opportunity. With 1.3 billion people and a combined gross domestic product of $3.5-trillion, Africa is already the world’s biggest growth market. And with the youngest population in the world – almost 60% are under 25 – it is well placed to grow.

But this won’t be possible without increasing connectivity and digitisation across the continent.

With just eight years to go to reach the Sustainable Development Goals, connectivity, internet access and mobile telephony are key to solving some of the continent’s most pressing challenges and unlocking new pathways for rapid economic growth, innovation, job creation and access to services. The World Bank estimates that every 10% increase in mobile internet penetration in Africa could generate a 2.5% increase in gross domestic product.

The African Union’s Digital Transformation Strategy (2020-2030) aspires to universal digital access and a single pan-African digital market by the end of the decade. This would have a profound impact on business and innovation, but will only happen if governments and regulators implement the necessary policy frameworks to enable the mobile industry to scale up its services.

More than 60% of Africa is now covered by 4G mobile phone networks and the continent also has about 570 million internet users in 2022 – this has more than doubled since 2015.

However, meeting the ambition of the African Union’s strategy will require not just connectivity but also accessibility and affordability of power supply and mobile devices, as well as relevant content to incentivise ongoing connections and use. Policymakers will need to continue to create an enabling environment for innovation and scale within the digital technologies sector to continue to unlock opportunities for growth.

Read in Daily Maverick: “Strategic development in digital industrial hubs can unlock Africa’s economic transformation”

In Rwanda, the government is already demonstrating what enlightened policies can achieve. The country has invested heavily in digital infrastructure: 90% of the country now has access to broadband internet, and 75% of the population has cellphones.

They are investing to create a digitally savvy workforce to build robust digital economies and competitive markets. They are building digital platforms to offer products and services through digital channels. The development of digital financial services in the country is enhancing financial inclusion and in partnership with the private sector they are creating an ecosystem to encourage digital entrepreneurship and innovation.

Leaping ahead