{"id":568945,"date":"2020-02-09T04:15:55","date_gmt":"2020-02-09T04:15:55","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/09\/africa-could-be-transformed-by-the-digital-economy-but-only-if-its-infrastructure-is-strengthened\/"},"modified":"2020-02-09T04:15:55","modified_gmt":"2020-02-09T04:15:55","slug":"africa-could-be-transformed-by-the-digital-economy-but-only-if-its-infrastructure-is-strengthened","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/09\/africa-could-be-transformed-by-the-digital-economy-but-only-if-its-infrastructure-is-strengthened\/","title":{"rendered":"Africa could be transformed by the digital economy \u2014 but only if its infrastructure is strengthened"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-07\"><\/a> <strong>African countries could be transformed by the digital economy \u2014 but only they invest in infrastructure<\/strong><strong>: <\/strong>Africa must tackle significant deficits in its digital infrastructure to capitalize on the strong economic prospects that a digital transformation would afford, Vice President of the World Bank for Africa Hafez Ghanem writes, in an excerpt from the <a href=\"https:\/\/www.brookings.edu\/wp-content\/uploads\/2020\/01\/ForesightAfrica2020_20200110.pdf\">Foresight Africa 2020-2030 report (pdf)<\/a> republished as <a href=\"https:\/\/www.brookings.edu\/blog\/africa-in-focus\/2020\/02\/07\/shooting-for-the-moon-an-agenda-to-bridge-africas-digital-divide\/\">a Brookings blog post<\/a>. GDP growth in the continent could increase by 2% per year if the African Union\u2019s goal of universal and affordable internet coverage is reached, and fast internet could increase the probability of employment to 13.2% from 6.9%, he says, citing World Bank data. But internet penetration within the continent is very low, standing at an average of 39.6% compared to the global average of 62.7%. And, on average, countries in Africa spend 1.1% of GDP on digital investment, while developed economies spend an average of 3.2%. At the same time, the continent has seen the world\u2019s highest rate of increase in internet use and connectivity, with internet users increasing from 4.5 mn to 523 mn in two decades.<\/p>\n<p><strong>The private sector needs to be supported to play a key role in the process: <\/strong>The AU, supported by the World Bank, has recently launched <a href=\"https:\/\/www.worldbank.org\/en\/news\/feature\/2019\/05\/06\/achieving-africas-digital-transformation-is-an-ambition-that-requires-game-changing-cooperation\">the Digital Moonshot initiative<\/a>, which aims to accelerate the rate of internet use on the continent. Key to its success is ensuring that policies and institutions are in place to encourage private sector investment \u2014 which should cover half its estimated USD 80-100 bn cost over 10 years, Ghanem writes. The initiative has five key elements: Investing in digital infrastructure, with an emphasis on private sector investment; investing in a digitally capable workforce; investing in digital platforms, developed by both the public and private sectors; developing digital financial services to spur financial inclusion; and encouraging digital entrepreneurship and innovation.<\/p>\n<p><strong>Egypt is on its way to harnessing this potential:<\/strong> As one of the most populous and influential countries in Africa, Egypt has an important role to play in realizing the Digital Moonshot vision, Makhtar Diop, World Bank vice president for infrastructure, said last year in an <a href=\"https:\/\/www.egypttoday.com\/Article\/3\/67519\/Interview-World-Bank%E2%80%99s-VP-talks-Egypt-s-future-with-digital\">interview with<\/a><a href=\"https:\/\/www.egypttoday.com\/Article\/3\/67519\/Interview-World-Bank%E2%80%99s-VP-talks-Egypt-s-future-with-digital\">Business Today<\/a>. According to <a href=\"https:\/\/data.worldbank.org\/indicator\/IT.NET.USER.ZS?locations=EG\">World Bank statistics<\/a>, internet usage in Egypt in 2018 was significantly higher than African average, with 47% of population online. As of last year, the IT sector accounted for 3.1% of GDP, with the government <a href=\"https:\/\/www.egypttoday.com\/Article\/3\/67519\/Interview-World-Bank%E2%80%99s-VP-talks-Egypt-s-future-with-digital\">aiming to double this<\/a> to about 6% by 2025. And a USD 1 bn loan approved by the World Bank in December 2018 is designed to support Egypt in building digital infrastructure and platforms, particularly through creating innovative public-private partnerships and encouraging collaboration between digital technology and other sectors, such as transport and energy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>African countries could be transformed by the digital economy \u2014 but only they invest in infrastructure: Africa must tackle significant deficits in its digital infrastructure to capitalize on the strong economic prospects that a digital transformation would afford, Vice President of the World Bank for Africa Hafez Ghanem writes, in an excerpt from the Foresight [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":568946,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9272],"tags":[7098,810,2936,72,7111,1510,321],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-568945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-africa","tag-african-union","tag-digital-economy","tag-enterpriseam","tag-infrastructure","tag-the-macro-picture","tag-world-bank","wpautop","entry"],"acf":{"mongo_id":"6af396a9-d1f1-4c05-8753-e0847b76d316","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2020\/2\/113.jpg","photo_position":"above","related_issue":[568924],"teaser":"","voice_url":""},"yoast_head":"<!-- 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innovation, adoption, and usage in the last ten years, according to the IMF, with almost 10% of GDP in transactions generated through mobile payments, compared to 7% of GDP in Asia\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/9\/2687.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597733,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/02\/made-in-africa-could-be-the-new-made-in-china-in-50-years\/","url_meta":{"origin":568945,"position":1},"title":"\u201cMade in Africa\u201d could be the new \u201cMade in China\u201d in 50 years","author":"enterpriseam admin","date":"2 May 2019","format":false,"excerpt":"\u201cMade in Africa\u201d could be the new \u201cMade in China\u201d in 50 years if enough focus is given to investing in manufacturing across the continent, our friend Carbon Holdings CEO Basil El-Baz writes for the Financial Times\u2019 Beyond Brics blog. Many economies in Africa have already been flourishing over the\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":569087,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/12\/your-top-infrastructure-stories-of-the-week-3\/","url_meta":{"origin":568945,"position":2},"title":"Your top infrastructure stories of the week","author":"enterpriseam admin","date":"12 February 2020","format":false,"excerpt":"German Eurogate and Italy\u2019s Conchip submitted technical and financial proposals for developing the second container terminal project in Damietta to the Transport Ministry yesterday, according to an official statement.African countries could be transformed by the digital economy if theyinvest in infrastructure like affordable internet coverage and increase probability of employment\u2026","rel":"","context":"In \"Africa\"","block_context":{"text":"Africa","link":"https:\/\/enterpriseam.com\/egypt\/tag\/africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":642783,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/08\/22\/of-solar-powered-mobile-network-towers-and-fintech-in-africa\/","url_meta":{"origin":568945,"position":3},"title":"Of solar-powered mobile network towers and fintech in Africa","author":"enterpriseam admin","date":"22 August 2017","format":false,"excerpt":"African telecom towers going green: Africa\u2019s booming telecom industry is encouraging the Mauritius-based Greenwish to plonk down USD 800 mn on solar-powered telecommunications towers across the continent, says Bloomberg. The project has the potential to turn a lot of wheels and could spur further economic growth, especially for energy-starved Sub-Saharan\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":593147,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/19\/correctly-implementing-afcfta-could-unlock-usd-3-tn-worth-of-growth-across-the-continent\/","url_meta":{"origin":568945,"position":4},"title":"Correctly implementing AfCFTA could unlock USD 3 tn-worth of growth across the continent","author":"enterpriseam admin","date":"19 November 2019","format":false,"excerpt":"Correctly implementing the African Continental Freetrade Agreement (AfCFTA) could unlock USD 3 tn-worth of growth across the continent, Baker McKenzie says. According to research from the law firm and Oxford Economics, countries need to double down on eliminating limitations related to infrastructure, resources, and other regional trade agreements that might\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/11\/3053.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":603156,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/16\/egypt-world-bank-discuss-boosting-support-for-african-infrastructure-projects\/","url_meta":{"origin":568945,"position":5},"title":"Egypt, World Bank discuss boosting support for African infrastructure projects","author":"enterpriseam admin","date":"16 April 2019","format":false,"excerpt":"Investment Minister Sahar Nasr discussed with World Bank Vice President for Infrastructure Makhtar Diop boosting support for infrastructure projects in Africa, the ministry said in a statement. Egypt also asked the World Bank to support Nile transportation infrastructure to boost integration between African countries.","rel":"","context":"In &quot;Infrastructure&quot;","block_context":{"text":"Infrastructure","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/infrastructure\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/568945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=568945"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/568945\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/568924"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/568946"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=568945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=568945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=568945"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=568945"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=568945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}