Africa’s digital economy is growing, but fragmentation and affordability gaps remain critical challenges that must be addressed, the International Finance Corporation (IFC), a member of the World Bank Group, has said.
Speaking at the ongoing 3i Africa Summit in Accra, IFC’s Division Director for West Africa and the Gulf of Guinea Nathalie Kouassi Akon said on Thursday that sub-Saharan Africa must address these lingering bottlenecks for the digital economy to make a meaningful and holistic impact on citizens.
Akon acknowledged the rapid increase in internet use in sub-Saharan Africa, noting that 191 million more people used digital payments between 2014 and 2021.
Despite this progress, she said many African digital ecosystems remain fragmented, limiting growth opportunities for businesses and cross-border trade, with only 22 percent of the population actually using mobile internet.
“There has been significant expansion in access, but without addressing fragmentation, affordability, and productivity gaps. Payment platforms work, but not always with each other. Data exists but does not move easily or safely, which hinders effective communication and collaboration between different payment platforms and systems,” she said.
Akon urged the continent to create payment systems that work well together, improve digital identity systems, speed up safe data sharing, and improve connectivity as essential steps to support cross-border trade and strengthen Africa’s digital economy. Enditem