Digital inclusion as Africa's economic game-changer
By prioritising fintech, rural connectivity, gender inclusion and youth empowerment, it can bridge the global digital divide and redefine Africa's future.
Image: File
In Uganda's remote Buheesi village, a school once disconnected from the world now accesses digital textbooks and submits reports in real time, thanks to a pilot program merging rural electrification with fibre-optic deployment.
This transformation underscores the power of digital inclusion, a force that can reshape economies and empower millions.
At its core, financial technology (fintech), the use of digital platforms like mobile apps and blockchain to deliver banking, payments and investment services, drives this change by making financial systems accessible to the underserved.
For Africa, with 18% of the global population but less than 1% of the world's data centre capacity, digital inclusion is not just about connectivity; it is about economic sovereignty and global competitiveness.
South Africa, with its industrial strength and technological promise, is poised to lead this revolution.
By prioritising fintech, rural connectivity, gender inclusion and youth empowerment, it can bridge the global digital divide and redefine Africa's future.
The digital economy is the backbone of modern progress, with monumental stakes.
The United Nations' Sustainable Development Goal 9 calls for resilient infrastructure and innovation to close digital gaps, a priority echoed globally.
India's digital payment revolution exemplifies this: over 1.2 billion people use the Unified Payments Interface (UPI), a real-time payment system that enables instant bank transfers via mobile apps, slashing transaction costs and boosting financial inclusion.
Africa, however, lags significantly.
With mobile subscriptions projected to reach 1.4 billion by 2024, the continent has a foundation—yet only 24% of SubSaharan Africans use the internet, compared to the global average of 66%. High data costs exacerbate this divide.
Globally, 1GB of mobile data averages $2.59, but in Africa, prices range from $0.38 in Malawi to $43.75 in Zimbabwe. South Africa's $2.04 (R34.69) is near the global mean but burdens low-income users. This gap is economic, not just technological.
As artificial intelligence (AI) reshapes industries, Africa's digital lag could deepen inequalities—unless bold action is taken.
South Africa's Path to Bridging Africa's strength lies in its people. With 362 million youths aged 15-24 by 2025, the continent boasts the world's youngest population.
Fintech is catalysing change: Kenya's M-Pesa and Nigeria's Flutterwave have brought millions into the financial fold, with mobile money driving inclusion rates above 80% in parts of East Africa.
Yet, high data costs and limited rural connectivity stifle progress, especially outside urban centres. South Africa faces load-shedding and affordability challenges that hinder its digital ambitions.
To seize this moment, Africa must extend digital infrastructure to rural areas, using shared networks and renewable energy. Only then can its youth and entrepreneurs fully engage in the digital economy.
South Africa stands as Africa's economic and technological frontrunner, with Cape Town's vibrant tech hub and Johannesburg's financial ecosystem.
Yet, its digital landscape is uneven. High-speed internet covers just 64% of the population, with only 24% using it regularly.
Rural connectivity lags, worsened by power outages, while data costs remain a hurdle. The steep price of mobile data burdens low-income households, limiting access to digital tools for education, entrepreneurship and financial inclusion.
Initiatives like TooMuchWifi, providing affordable internet to 400,000 low-income South Africans, highlight the need for broader solutions.
While updated figures are limited, high data costs clearly disproportionately affect low-income groups, who pay more per MB for smaller bundles.
Still, South Africa has tools to lead. Projects like SA Connect aim to expand broadband and private-sector efforts, like MTN's 5G rollout, show promise.
To bridge the divide, South Africa must scale public-private partnerships, subsidize access and expand digital literacy.
Fintech, emulating East Africa's mobile money success, could boost rural inclusion. Policy must foster an ecosystem where innovation thrives.
Digital inclusion demands equity, especially for women and youth. In Africa's informal sector—home to 85% of jobs—women and youth dominate, with 92.1% and 95.8% participation rates, respectively.
Yet, financial service access remains limited.
In South Africa, the gender gap in financial inclusion is narrow, but rural and youth divides persist: only 56% of rural residents are financially included.
Fintech can change this.
The Women Farmers Programme, training over 1,300 South African women in digital skills since 2018, shows the power of targeted intervention. Youth-focused efforts, like CodeTribe, which equips young South Africans with coding skills and Malawi's Tech Hubs, empowering 19,000 with digital literacy, unlock economic potential.
South Africa's Path to Bridging must amplify such programs, ensuring women and youth lead—not just participate—in the digital revolution.
South Africa faces a defining choice: pioneer Africa's digital transformation or risk irrelevance.
The path forward demands bold steps.
First, invest in rural infrastructure—shared digital networks and renewable energy can deliver connectivity.
Second, prioritize digital literacy programs for women, youth and rural communities. Third, foster an innovation ecosystem by supporting fintech startups and government-industry collaboration. Kenya and Nigeria offer models: Kenya's Safaricom and Nigeria's MTN Nigeria provide data plans below $1 per GB, driving inclusion.
South Africa can emulate these through policy reforms and competition.
The rewards are immense: closing the digital divide could boost GDP, create jobs and elevate South Africa's global10. As AI and digital services redefine competitiveness, delay is not an option.
Business leaders and policymakers must act, positioning South Africa as Africa's digital beacon. The future waits for no one—let us shape it today.
Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa.
Image: Supplied
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
2 days ago
- The Citizen
Sallies Village resident to represent SA at Global Youth Summit in Nepal
Sallies Village resident and United Nations Brand Ambassador Lerato Maris (31) has been selected as an international delegate and award recipient at the Global Youth Leadership Summit and Award 2025, taking place in Kathmandu, Nepal from June 20 to 24. The summit aims to gather young leaders, innovators, peacemakers, youth activists and civil society pioneers from around the world in a single forum to share their contributions, experiences and knowledge on pertinent global issues. 'It is truly an honour to know that a small-town girl from Brakpan can have a major impact internationally through sheer passion and dedication in being a leader and mentor, and also holding up the pride of the United Nations in everything I do in effecting transformative change,' she said. The political activist and influencer also bagged a nomination and was shortlisted in the WeAreTheCity Rising Star Awards 2025 in the Public Sector category. These awards, now in their 11th year, continue to spotlight the achievements of women, showcasing the female talent pipeline and the next generation of future leaders. ALSO READ: WATCH: Kwa-Thema's Deep Level residents face danger as housing structures collapse Lerato was also shortlisted for the 2025 Southern Africa OSPAs (Outstanding Security Performance Awards) in the category Most Outstanding Female Security Professional. These awards recognise and reward outstanding performance across the security sector. 'The OSPAs are based on identified factors which contribute to security excellence and are designed to promote the security field and show the world that security is a fundamental and vitally important factor in business success,' explained Lerato. 'The United Nations is a massive organisation when it comes to security. Its crucial roles in addressing threats to international peace and promoting peaceful conflict resolution through international co-operation are all executed through mechanisms of diplomatic efforts, sanctions and regimes. 'It is my honour to be a nominee recipient for the UN through these awards.' According to Lerato, her dreams of being a global leader, philanthropist and mentor, all stem from her pride and hometown. 'To the youth and future leaders rising up from Brakpan – if your dreams don't scare you, then they are not big enough,' she said. 'We possess so much more than we credit ourselves, and it is time to show the world that as much as we aim for the moon, we definitely will land amongst the stars.' In addition, Lerato is also currently nominated for the FREESA Young Leaders Awards 2025 in the Politics and Government category. This category recognises young leaders who are actively engaged in politics and government affairs, demonstrating a commitment to improving their communities and the nation as a whole. Nominees in this category may have initiated positive policy changes, advocated for democratic rights, or shown exceptional leadership within political or governmental institutions. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
4 days ago
- Daily Maverick
Africa can benefit from new global climate alliances
In the wake of America's climate commitment reversals, Africa must make the most of its solid partnerships with Europe and China. US President Donald Trump's attack on the global climate agenda is a risk in a world that increasingly suffers more intense extreme weather events and negative climate impacts. But as fresh climate leadership emerges, new alliances are beginning to look promising. One is a new France-China initiative that is the vanguard of a broader European Union (EU)-China partnership on climate change. Can Africa become a net beneficiary of these movements? In March this year, when Chinese Foreign Minister Wang Yi hosted his French counterpart, Jean-Noël Barrot, he reiterated China's commitment to international cooperation to address climate challenges and the need for global climate governance. Then in May, France's environmental minister, Agnès Pannier-Runacher, met China's ecology and environment minister, Huang Runqiu, regarding Washington's changed position on climate. This year, China restated its pledge to the Paris Agreement and to promote the United Nations (UN) Climate Change Conference (COP30) in Belém, Brazil, in November. France committed to advocating for a closer partnership between the EU and China, which – if declared at the Beijing-Brussels summit in July – would be a landmark agreement. The EU has long been recognised as a leading voice in the UN Framework Convention on Climate Change negotiations, and has made important strides to decrease its member states' emissions. China, often labelled as a laggard in the negotiations, is in fact a leading nation in energy transition – especially on the roll-out of renewable energy and electric vehicles. It has the largest increase in renewable energy build and electric vehicle development globally. China appears to have surpassed its emissions peak target in 2025, originally scheduled for 2030, and seems on track to achieve its net zero target by 2060, or possibly earlier. It is also recognised as the leading global supplier of renewable energy technologies. Green growth has been an important part of its economic success in recent years, resulting in the World Economic Forum recognising China as a driver of the global transition. Africa, on the other hand, continues to experience regular climate catastrophes, despite its minuscule contributions to greenhouse gas emissions. Pockets of excellence on the continent include Namibia's green hydrogen, mega solar farms in Morocco, wind energy in Kenya and energy transition procurement stimulus in South Africa. But the World Resources Institute says 80% of the global energy deficit is in Africa, which in 2022 received only 2% of global renewable energy investment. Africa already has strong relationships with the EU and China. There is the Africa-EU Green Energy Initiative with the goal of 50,000MW of new renewables by 2030 to benefit 100 million people in Africa. The EU and individual European countries are supporting Just Energy Transitions in Senegal and South Africa. The EU-Africa Global Gateway Investment Package has pledged €150-million for energy infrastructure projects in Africa. China partners with 40 African countries on solar, wind, hydropower and biomass projects. This has resulted in 120GW of new power and 66,000km of grid lines. The newly launched Africa Solar Belt initiative has promise. Since 2010, a fifth of China's renewable energy foreign direct investments and construction activity have been in Africa, valued at $66-million. African and Chinese ministers met this month to assess implementation of outcomes from the 2024 Forum on China-Africa Cooperation (Focac) Summit. The progress report indicated that Chinese enterprises are partnering in African clean energy projects to the tune of $2.94-billion, and a Special Fund for Green Industrialisation has been established. Given these strong foundations, Africa must be assertive and proactive in its relationships with the EU and China. A value-add can also be developed by triangulating the Africa-Europe-China partnerships in climate and energy projects. Africa should use upcoming meetings – like the African Union-EU Summit later this year marking the partnership's 25th anniversary – to promote the continent's green development ambitions and improve climate adaptation and disaster management capacity. Africa should also lead in the further roll-out of the Focac Beijing Action Plan (2025-2027). This must go beyond technical assistance and capacity-building to genuine industrialisation partnerships involving the local beneficiation of low-carbon economy enablers like Africa's critical minerals. The finance agenda must include achieving the increased targets agreed to at COP28, and should address one of the core obstacles – Africa's unwieldy debt burden. The figures are alarming. Total external debt stands at about 24.5% of combined gross domestic product, totalling $685.5-billion, with debt servicing projected to cost $88.7-billion in 2025. Twenty African countries are facing bankruptcy, and the EU and China are major creditors for African debt. One significant initiative to pursue is innovative financing through such mechanisms as 'debt for climate swaps', cancelling debt in favour of climate action. A second is using the carbon credit market mechanisms in article 6 of the Paris Agreement to Africa's advantage. Africa should pursue this approach not only in its bilateral summits with these key partners, but also lobby to have this prioritised in the key forums including the 2025 Beijing-Brussels Summit, Johannesburg G20 and COP30. This will deepen existing alliances and attract other potential partners to be part of a great African climate action story. DM
eNCA
7 days ago
- eNCA
Clicking into the future, the rise of e-Government
JOHANNESBURG - The digital revolution is changing how governments around the world work. From paperwork to power clicks, South Africa is also fast-tracking its digital future. The country now ranks 40th on the United Nations global e-Government Development Index, climbing from 65th just two years ago. Over 130 government services have already been digitised. Professor Busani Ngcaweni from the Wits School of Governance says one major driver was the Covid-19 pandemic. He says when the pandemic forced the country into lockdown, government had to rely on technology to continue delivering services. That necessity drove rapid digital transformation. But while progress is being made, the road ahead won't be without potholes. Ngcaweni and other experts have stressed that digital transformation must strengthen public institutions, not weaken them.
