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Bridging Borders, Boosting Business: Why Africa must prioritise Digital Public Infrastructure

Thu, Apr 10 2025 2:29 PM
in Ghana General News, Technology
bridging borders boosting business why africa must prioritise digital public infrastructure
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Imagine a world where every citizen can access government services with ease, small businesses can expand into new markets, and women have equal access to financial opportunities. Digital Public Infrastructure (DPI) is key to making this a reality.

DPI is a digital network that crisscrosses the economy, connecting people, data, and money in the same way that roads connect people and goods. More than a set of digital tools, DPI enables shared, interoperable systems that improve service delivery, enhance trade, and expand economic participation. As South Africa assumes the G20 presidency, African leaders have an opportunity to drive a new approach to digital transformation, laying the foundation for a secure, efficient, and interconnected economy.

A Smarter Approach to Public Services

Social programs intended to support vulnerable populations are often plagued by inefficiencies, including fraud, misallocation of resources, fragmented data systems, and bureaucratic bottlenecks. DPI can eliminate many of these issues by integrating digital identity systems, payments, and data-sharing mechanisms. India’s Andhra Pradesh state, for example, linked biometric IDs to welfare payments, reducing fraud in a rural employment program by 40% and saving the government nine times its investment. Similarly, during the COVID-19 pandemic, Brazil leveraged digital ID and payments to deliver emergency aid to 70 million people, ensuring funds reached those who needed them most. African nations can adopt similar strategies to build more resilient social protection systems.

The traditional model—where each ministry builds its own standalone digital system—wastes resources and limits efficiency. Even the wealthiest nations struggle with this fragmented approach. DPI offers a smarter alternative: national platforms that reduce duplication, lower costs, and improve service delivery. Open-source technology makes digital transformation even more affordable, ensuring that governments can scale up solutions without heavy licensing fees.

The key is getting a robust digital ID system with an independent verifier of these digital IDs that becomes the single source of truth for each person’s online digital presence. This will ensure that there is no duplicate digital identity and will prevent fraud, corruption, or leakages—bringing trust and integrity into the digital ecosystem.

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Fueling Trade and Private Sector Innovation

For African nations aiming to expand trade under the African Continental Free Trade Area (AfCFTA), DPI is indispensable. Without trusted digital systems, cross-border commerce remains slow and cumbersome. DPI provides the foundation for secure payments, standardized credentialing, and seamless data sharing. A Malawian entrepreneur, for example, could verify their identity through DPI, demonstrate the quality of their products, and conduct a secure transaction with a South African buyer—reducing barriers and increasing trust. By streamlining these processes, DPI turns trade agreements into real economic gains for businesses across the continent.

DPI is also a catalyst for private sector innovation. Open banking, powered by DPI, allows financial institutions to securely share customer data (with consent), making transactions more seamless, reducing fraud, and expanding access to financial products. Brazil’s open finance model has enabled more than 800 financial institutions—ranging from banks to credit unions and fintech startups—to offer more competitive services. African nations can build on this model to encourage innovation and competition, ensuring that small businesses and startups can scale up while reaching underserved populations.

Ensuring Inclusion and Safeguards

Women and marginalized communities often face the greatest barriers to financial and digital inclusion. Expanding access to DPI ensures that they can open bank accounts, access credit, and participate in the digital economy. India’s experience demonstrates this potential: between 2011 and 2021, digital banking adoption more than doubled, closing the gender gap in financial access.

DPI also makes digital services more accessible in rural areas. Existing infrastructure, such as post offices, can serve as community access points for payments, social programs, and vital services, eliminating the need for costly new networks.

However, the benefits of DPI depend on strong governance. Without safeguards, digital systems can be misused for surveillance, exclusion, or fraud. Data protection laws, secure authentication methods, and transparent oversight are essential for building trust. The UN’s Universal DPI Safeguards Framework provides a roadmap for responsible implementation. African nations have the opportunity to lead by example, embedding accountability and resilience into digital systems to protect citizens’ rights.

Seizing the Moment

South Africa’s G20 presidency is an historic opportunity to position Africa at the forefront of global digital transformation. By prioritizing DPI, South Africa can shape global conversations, starting by driving concrete, country-led use cases and informing the continent. African leaders must seize this moment to build interoperable, inclusive systems that serve their people. To lead, Africa must showcase real-world DPI successes, foster collaboration, and create a digital future that delivers for all.

*******

 Ms. Nonkqubela Thathakahle Jordan-Dyani serves as the Director-General of the Department of Communications and Digital Technologies in South Africa while Dr Paulin Basinga is the Africa Director for the Gates Foundation.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

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