MELISSA GOVENDER: Can development finance accelerate Africa’s drive towards a digital economy?

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A well-functioning digital economy is necessary to achieve faster economic growth, offer innovative products and services, and create more jobs

Fintech has dominated Africa’s unicorns — Flutterwave and Opay are perhaps the most eminent.

There are several areas that require concerted study and solutions, including enhancing digital skills and digital literacy and addressing the lack of affordable and sustainable internet connectivity. Various operations have already been carried out under this initiative, with a specific focus on digital literacy at secondary education institutions. In Cameroon, the World Bank implemented a secondary education and skills development project that was focused on capacitating students with market-relevant ICT skills.

While African countries have debated intra-continental trade for decades, current levels remain low at 14%-17%, compared with the EU's rate of 70%. However, Teufel explains that the AfCFTA free trade agreement is a game-changer for the continent and that the AfDB is working closely with all stakeholders to accelerate implementation, while investing at the same time in the development of the required hard and soft infrastructure.

 

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