By For the African continent to unlock its vast economic potential, it must look to the example set by other large emerging markets like India which has embraced digitisation and innovation and transformed its economy. For Africa to achieve similar success, it must adopt these strategies, leveraging technology including Digital Public Infrastructure (DPI) and Unified Data Highways (UDH) to enhance productivity, increase access to services, and build a resilient economy capable of competing on the global stage.
This is a key finding from a recently released report from Boston Consulting Group (BCG) and the Japan International Cooperation Agency (JICA), entitled: Unified Data Highways: The Next Frontier of Digital Public Infrastructure.
India and Africa are already closely aligned as key trading partners. The differentiator for India has been its embracing of technology at a national level with a clear strategy – something which has turned it into an economic powerhouse – and home to a technology sector valued at over $245bn.
Takeshi Oikawa, Managing Director and Partner at BCG, Nairobi says: “Several African countries have recognised the importance of embracing digital transformation and have engaged in the development of national strategies for data governance, digitisation and skills development.”
Despite these encouraging developments, there is important structural work that needs to be done.
“The key lies in fostering collaboration, establishing sustainable models, and upholding the highest standards of privacy and data governance,” explains Yushi Nagano, the Head of the JICA DX Lab.
Digital Public Infrastructure (DPI), as defined at the G20 2023 conference, is a set of shared digital systems that are secure and interoperable, built on open standards, to provide equitable access to public and private services at scale. DPI comprises three pillars – Identity, Payments, and Data Sharing infrastructure, which are known as UDH.
This report introduces 15 guiding principles encompassing the governance, technology, and execution of UDH, offering a comprehensive roadmap for nations to leverage UDH in driving inclusive socio-economic development through data-driven innovation.
UDH have already shown remarkable potential in advancing high-impact use cases across multiple sectors, unlocking substantial economic and social value. For instance, UDH can streamline the digital delivery of government services, seamlessly integrate patient health records to enable personalised healthcare, provide agri-tech advisory services to boost farmer productivity and income, optimise household energy consumption, and enhance public transportation through integrated, multi-modal systems. Notable examples of impactful UDH in India include Digilocker for government services, the Ayushman Bharat Digital Mission (ABDM) for healthcare, and the India Urban Data Exchange (IUDX) for smart cities. Globally, Estonia has achieved an impressive 2% annual GDP savings using X-Road for digital public service delivery, while Kenya’s Agricultural Observatory Platform (KAOP) is providing tailored advisory to over 250,000 farmers in digitally underserved areas.
“Unified Data Highways are set to redefine how we harness data, unlocking unprecedented economic and social benefits. The key to their success lies in building them with a clear vision, supported by robust governance, innovative technology, and strong partnerships”, says Saibal Chakraborty, BCG Managing Director and Partner, and lead author of the report.
The benefits for African economies to develop integrated technology frameworks are clear.
A report released by the World Bank earlier in the year highlighted that as recently as 2021, over 400 million citizens in Sub-Saharan Africa could not access critical public services as they did not have proof of identification. Enhancing digital infrastructure will allow for the closing of this gap and lift the quality of life for citizens.
The same report found that in Nigeria and Tanzania, extreme poverty declined by about 7% after three or more years of exposure to internet coverage, while labour force participation and wage employment increased by up to 8%.
As the continent is embracing higher degrees of internet and mobile connectivity and adoption of innovative financial technology (fintech) offerings, this is fuelling further investment with the likes of Egypt, Nigeria, Kenya and South Africa standing out as technology hubs.
Africa’s rapid digital adoption means that they are ideally positioned to not only transform key sectors including e-government, healthcare and agriculture, but also take a share of between $3 and $4 trillion in economic benefits that will be unlocked in emerging markets by 2030.
Oikawa concludes: “This report aims to provide a comprehensive framework for understanding and implementing Unified Data Highways. It seeks to guide policymakers, industry leaders, businesses, donor agencies, and other stakeholders on how to effectively leverage UDH to unlock significant economic and social value. By outlining 15 guiding principles across governance, technology, and execution, the report offers a strategic roadmap for building robust, scalable, and inclusive UDH.”
