China and Africa cooperate to enhance digital infrastructure, which has emerged as a cornerstone of their evolving economic partnership. Over the past decade, substantial investments from Chinese enterprises have facilitated the construction of essential digital frameworks across Africa.
That includes initiatives such as laying extensive fibre optic cables, establishing robust 5G networks and creating data centres that ensure high-speed connectivity. As a direct consequence of this collaboration, millions of people are now connected, and local economies are being transformed through expanded e-commerce opportunities. Notably, the surge in digital trade has opened new avenues for economic growth in African nations, attracting vital investments and fostering entrepreneurship.
Moreover, Chinese companies have played a crucial role in this transformative process by offering technical support, financial backing, and infrastructure development. Consequently, these efforts have contributed to a vibrant marketplace where an increasing number of online shoppers can access a diverse range of goods and services. Additionally, efforts to promote sustainable development are evident in the improvements to service trade and the establishment of resilient financial infrastructures. By leveraging advancements in digital technology, the partnership optimises sectors such as transport and tourism, enhancing operational efficiency and user experiences.
Why does this matter?
Furthermore, as financial technology (fintech) rapidly evolves, there is a focus on bolstering the stability of financial systems in African countries. By harnessing technologies like blockchain, IoT, and AI, Chinese financial institutions collaborate with local partners to create innovative service models, addressing financial risks and fostering an investment-friendly environment. Through initiatives like the Belt and Road Initiative, both regions are committed to advancing digital transformation while ensuring economic growth aligns with sustainable practices that benefit future generations.
African perspectives are vital for developing AI solutions tailored to the continent’s unique challenges, according to US officials. At the Global Inclusivity and AI: Africa Conference, the acting Special Envoy for Critical and Emerging Technology, Dr Seth Center, and Deputy Assistant Secretary of State for African Affairs, Joy Basu, emphasised the importance of African representation in shaping global AI policies.
The event focused on fostering deeper conversations about AI’s potential role in Africa’s development. Basu praised the diverse voices from across the continent and stressed the need for African leaders to influence AI’s future applications, especially in sectors like agriculture and healthcare. The conference marked a pivotal step in increasing African engagement in critical technology discussions, which are already being supported in global forums like the G20 and the United Nations.
AI could help Africa achieve its Sustainable Development Goals, addressing key challenges across agriculture, healthcare, and education, according to Dr Seth Center. He noted the transformative role AI can play in boosting economic development, reducing poverty, and improving healthcare access. However, collaboration, both regional and global, will be essential to ensuring that AI is developed responsibly.
Startups and entrepreneurs will play a significant role in shaping Africa’s AI landscape, with many countries already crafting national AI strategies. The African Union is also working on governance frameworks to enable cross-border collaboration. These efforts will help unlock opportunities for innovation, ensuring AI’s benefits reach all parts of the continent.
Stakeholders are urging a concerted effort to close Africa’s digital infrastructure gap, which is seen as a critical factor for the continent’s economic growth and prosperity. Specifically, the disparity between Africa’s large population and its small contribution to global GDP underscores the need for enhanced digital connectivity.
Stakeholders believe that Africa can unlock its economic potential and improve its overall quality of life by addressing infrastructure deficiencies, such as the significant fibre network gaps. Therefore, they advocate for increased investment in broadband services and expanded fibre networks to drive sustainable development and technological advancement.
Industry leaders call on governments and private sector entities to collaborate more effectively in creating supportive regulatory frameworks for digital infrastructure. In particular, such regulations are essential for fostering investment and ensuring that digital growth is rapid and sustainable. Governments, regulatory bodies, and businesses can develop policies that promote fair competition and infrastructure expansion by working together. Consequently, this collaborative approach is crucial for overcoming existing barriers and enabling Africa to leverage digital technology for enhanced innovation and economic opportunities.
Huawei and Vodacom Tanzania have launched the DigiTruck initiative, a groundbreaking program to enhance digital education and skills across Tanzania. The initiative aligns with the Tanzanian government’s vision of promoting innovation, inclusion, and sustainable development through digital technologies. DigiTruck seeks to empower individuals with the skills necessary to thrive in an increasingly digital world by focusing on underserved populations, particularly youth and women.
The DigiTruck program is designed to provide digital skills training and education, with plans to cover ten regions in its first year. By the end of the second year, the initiative aims to reach all areas of Tanzania, benefiting thousands of individuals. A vital feature of this initiative is its emphasis on inclusion, as the DigiTruck will serve as a mobile classroom equipped with innovative ICT solutions. The setup will make quality education more accessible, especially for those in remote areas.
The DigiTruck initiative is supported by a Memorandum of Understanding (MoU) signed on 15 February 2024 between Huawei and Vodacom Tanzania. This agreement outlines plans for collaboration in corporate social responsibility, startup acceleration, and digital skills development.
Huawei’s global experience with DigiTruck initiatives in 18 other countries, impacting over 93,000 people, underscores the program’s potential to transform lives through digital education.
IBM has teamed up with WWF-Germany to develop an AI-driven solution aimed at safeguarding African forest elephants, a species facing severe threats from poaching and habitat loss. This new technology will use AI to accurately identify individual elephants from camera trap photos, enhancing conservation efforts and allowing for more precise tracking of these endangered animals.
The partnership will combine IBM’s technological expertise with WWF’s conservation knowledge to create an AI-powered tool that could revolutionise how elephants are monitored. By focusing on image recognition, the technology aims to identify elephants by their unique physical features, such as heads and tusks, much like human fingerprints.
Additionally, the collaboration will employ IBM Environmental Intelligence to monitor and analyse biomass and vegetation in elephant habitats. The data will be crucial in predicting elephant movements and assessing the ecosystem services provided by these animals, such as carbon sequestration. Such insights could also pave the way for sustainable finance investments by quantifying the carbon services offered by elephants.
IBM emphasised the broader potential of this initiative, highlighting its role in supporting nature restoration and contributing to global climate change efforts. By integrating advanced technology with conservation strategies, the partnership seeks to make a lasting positive impact on both the environment and sustainable development.
This paper, based on a survey to central banks, analyses the development, motivations and concerns of central bank digital currencies (CBDCs) in Africa relative to other emerging and developing regions.
Like their peers, a key motivation for African central banks is achieving greater payment system efficiency. Central banks in Africa also place more emphasis on financial inclusion. These factors could foster CBDC issuance and favour the adoption.
In the recent announcement from the Ministry of technology and science of Zambia Mr Felix Mutati, the central financial institutions in Zambia will soon introduce legislation that would regulate the cryptoassests, and in particular Central Bank Digital Currency (CBDC).
The Zambian Minister for technology and science, pointed out in the statement that: ‘there is a need for a policy framework that supports this revolutionary technology.’
In his words, Zambia is seeking the opportunity to embrace this innovative finance technology and will use the regulatory framework ‘as part of deliberate measures to achieve an inclusive digital economy for Zambia’. ‘Cryptocurrency will be a driver for financial inclusion and a change maker for Zambia’s economy’ he added.
Nigeria is the first African country that introduced the digital version of its national currency. The e-Naira currency has been in use for more than a year now, but still lacks mass adoption. In a country of 200 million people, only 0.5% is using e-Naira on a daily basis. The Nigerian government is already using some of the programmability features of digital money, and it’s looking now to enhance them. According to reports from Bloomberg, the Nigerian government is seeking help from the US private tech companies to improve technology behind the virtual currency. Final idea is that at the end of this process, the Central bank of Nigeria achieves full custody and know-how on the technology needed to run a virtual currency environment.
The Nigerian government confirmed that they are looking at: ‘developing additional features and enhancements.”
Titled ‘Shaping the future with Africa’, the strategy notes that Germany’s cooperation with Africa will be based on respect and reciprocity, and anchored into Africa’s priorities and initiatives. Moreover, ‘the BMZ wants to engage in a dialogue with Africa rather than about Africa. It advocates for the voices of African states and the AU to be heard appropriately within multilateral fora.’
Digital transformation features among the focus areas for development cooperation (as part of a broader cluster titled ’employment, fair trade, migration and digital transformation’). First and foremost, Germany intends to contribute to the growth of digital economies across Africa by providing support in areas such as (a) enhancing relevant economic and political frameworks; (b) creating digital markets; (c) enabling secure, universal internet access and bridging digital divides; (d) fostering legal standards and data privacy regulations; (d) stimulating the creation of jobs in the ICT sector. Mobilising investments in digital infrastructures and supporting the implementation of the African Common Free Trade Area are also envisioned.
But supporting digital transformation across Africa relates to more than the digital economy. BMZ will also be directing its development cooperation towards supporting (a) enhancing women’s economic participation, including through providing training for women with a special focus on digital expertise; (b) the digitalisation of healthcare; and (c) the digitalisation of the public sector and the use of digital technology to strengthen political participation.
The US government has launched a Digital Transformation with Africa (DTA) initiative dedicated to ‘expand[ing] digital access and literacy and strengthen[ing] digital enabling environments across the continent’. The USA plans to dedicate over US$350 million to this initiative, which is expected to support the implementation of both the African Union’s Digital Transformation Strategy and the US Strategy Towards Sub-Saharan Africa. DTA’s objectives revolve around three pillars:
Digital economy and infrastructure: (a) expanding access to an open, interoperable, reliable, and secure internet; (b) expanding access to key enabling digital technologies, platforms, and services and scale the African technology and innovation ecosystem; (c) facilitating investment, trade, and partnerships in Africa’s digital economy.
Human capital development: (a) facilitating inclusive access to digital skills and literacy, particularly for youth and women; (b) fostering inclusive participation in the digital economy; (c) strengthening the capacity of public sector employees to deliver digital services.
Digital enabling environment: (a) strengthening the capacities of authorities and regulators to develop, implement, and enforce sound policies and regulations; (b) supporting policies and regulations that promote competition, innovation, and investment; (c) promoting governance that strengthens and sustains an open, interoperable, reliable, and secure digital ecosystem.
