Africa lags in Digitalisation of Everything

Published 04 Nov,2021 via Business Daily - Africa’s digital transformation has reached a tipping point, and nothing will stop it. Like in other parts of the world the idea of Digitalisation of Everything (DOE) is spreading like wildfire. But despite the great impact that DOE has had globally, policymakers and regulators in Africa seem to be hesitant to create an enabling policy environment and this might undermine the innovation.

The global leadership that Africa is enjoying in mobile money was made possible by an enabling policy environment that fostered innovation. The digitalisation of the financial sector has since transformed the continent. In less than 10 years the sector has moved from an exclusive playing field for the rich to an inclusive environment where the poor too enjoy the services offered.

The entry of blockchain-based cryptocurrencies in the micro, small and medium enterprises (MSMEs) is also offering cheap loans and is fast-tracking poverty reduction in the continent. The ongoing disruption of the MSMEs sector could not have happened if the Capital Markets Authority did not provide a legal sandbox to try the innovation.