BTA2023 Digitalisation: The Catalyst for Africa’s Economic Transformation
The 2025 World Economic Forum (WEF) emphasized the transformative potential of digitalisation in driving Africa’s economic growth. Declaring the digital economy indispensable for the continent’s development, the forum positioned digitalisation as a key enabler for Africa’s progress.
The Urgent Need for a Digital African Economy
Over four days, global leaders and economic experts discussed pressing global challenges such as climate change, economic growth, and emerging technologies. In a session dedicated to Africa, a consensus emerged: adopting technologies like artificial intelligence (AI), the Internet of Things (IoT), and digitisation is essential for addressing Africa’s unique challenges. Botswana’s President, Duma Boko, described digitalisation as “the language of young people,” highlighting its potential to unlock opportunities for Africa’s youthful population.
The Africa Digital Trade Protocol
Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA), announced the imminent adoption of the Africa Digital Trade Protocol by African heads of state. This protocol aims to enhance digital trade and create an interconnected digital economy across the continent. Mr. Mene also stressed the importance of fostering intra-Africa trade, noting, “By 2050, Africa will have the youngest workforce in the world. Those jobs will have to be created within Africa, and the digital economy is key to that transformation.”
Addressing Payment System Fragmentation
Africa’s fragmented payment systems remain a significant barrier to seamless trade. Mene called for interoperable payment systems to facilitate intra-continental trade and address youth unemployment. “When I send money to Nigeria, it takes a detour. We need a seamless interoperable payment system to unlock the continent’s trade potential,” he said.
Driving Youth Entrepreneurship and SME Growth
The forum underscored the need to invest in digital infrastructure, support small and medium enterprises (SMEs), and embrace emerging technologies. These efforts would encourage youth entrepreneurship and attract trade financing, creating sustainable opportunities for Africa’s growing workforce.
A Digital Future for Africa
South African President Cyril Ramaphosa echoed support for digitalisation, stating that technologies like AI would enhance trade and development across the continent. The WEF projected that a fully digitalised African economy could add $1.5 trillion to the continent’s GDP by 2030, driving transformative change across agriculture, healthcare, education, and environmental sustainability. Digitalisation is no longer just an option for Africa—it is a necessity. With the right investments and policies, the continent stands poised to unlock its economic potential, addressing unemployment, fostering trade, and driving inclusive growth. As President Ramaphosa affirmed, “Digitalisation is the key to the Africa we want to see.”
