World Bank urges African economies to slash data costs to unlock digital potential
By Isaac AIDOO, Accra
Chief Economist for the World Bank’s Africa region, Andrew Dabalen has called on African countries to significantly reduce data costs to harness the power of digital technology and drive development.
Dabalen made the call at the launch of the 2023 Country Policy and Institutional Assessment (CPIA), a publication by the World Bank that assesses the policy and institutional structures of its member countries in sub-Saharan Africa.
The economist emphasized that digitization presents a tremendous opportunity for Africa to boost productivity in both the public and private sectors.
However, he noted that much of the continent’s digital technology remains underutilized, with the untapped potential of digital technology being one of Africa’s most significant resources. To unlock this potential, Dabalen stressed the need for a drastic reduction in data costs, which are substantially higher in Africa than in the rest of the world.
He noted that “what is interesting about digitization is the potential that is still unused and unexploited. And in particular, especially for private sector firms, the productive use of digital technologies is still very low. So 80% of Africans live within an area that is covered by 3G or 4G technology and only 22% of them use it productively.”
For Dabalen, there is a massive unexploited potential, especially for small enterprises or medium enterprises. There are opportunities to reach out to farmers, to and to increase their productivity and their competitiveness and profitability through digitisation so “that’s where there’s a huge potential.”
“The cost of using digital technologies is high in Africa, and it’s not freeing up the market. So, that has to come down,” he said. Additionally, Dabalen urged African countries to equip their youth with the necessary technology skills to develop homegrown applications that cater to the continent’s unique needs.
By reducing data costs and investing in local talent, Africa can unlock its digital potential, drive innovation, and accelerate economic growth.
