Digital inclusion as Africa’s economic game-changer

In Uganda’s remote Buheesi village, a school once disconnected from the world now accesses digital textbooks and submits reports in real time, thanks to a pilot program merging rural electrification with fibre-optic deployment.

This transformation underscores the power of digital inclusion, a force that can reshape economies and empower millions.

At its core, financial technology (fintech), the use of digital platforms like mobile apps and blockchain to deliver banking, payments and investment services, drives this change by making financial systems accessible to the underserved.

For Africa, with 18% of the global population but less than 1% of the world’s data centre capacity, digital inclusion is not just about connectivity; it is about economic sovereignty and global competitiveness.

South Africa, with its industrial strength and technological promise, is poised to lead this revolution.

By prioritising fintech, rural connectivity, gender inclusion and youth empowerment, it can bridge the global digital divide and redefine Africa’s future.

The digital economy is the backbone of modern progress, with monumental stakes.

The United Nations’ Sustainable Development Goal 9 calls for resilient infrastructure and innovation to close digital gaps, a priority echoed globally.

India’s digital payment revolution exemplifies this: over 1.2 billion people use the Unified Payments Interface (UPI), a real-time payment system that enables instant bank transfers via mobile apps, slashing transaction costs and boosting financial inclusion.

Africa, however, lags significantly.

With mobile subscriptions projected to reach 1.4 billion by 2024, the continent has a foundation—yet only 24% of SubSaharan Africans use the internet, compared to the global average of 66%. High data costs exacerbate this divide.

Globally, 1GB of mobile data averages $2.59, but in Africa, prices range from $0.38 in Malawi to $43.75 in Zimbabwe. South Africa’s $2.04 (R34.69) is near the global mean but burdens low-income users. This gap is economic, not just technological.

As artificial intelligence (AI) reshapes industries, Africa’s digital lag could deepen inequalities—unless bold action is taken.

South Africa’s Path to Bridging Africa’s strength lies in its people. With 362 million youths aged 15-24 by 2025, the continent boasts the world’s youngest population.

Fintech is catalysing change: Kenya’s M-Pesa and Nigeria’s Flutterwave have brought millions into the financial fold, with mobile money driving inclusion rates above 80% in parts of East Africa.

Yet, high data costs and limited rural connectivity stifle progress, especially outside urban centres. South Africa faces load-shedding and affordability challenges that hinder its digital ambitions.

To seize this moment, Africa must extend digital infrastructure to rural areas, using shared networks and renewable energy. Only then can its youth and entrepreneurs fully engage in the digital economy.

South Africa stands as Africa’s economic and technological frontrunner, with Cape Town’s vibrant tech hub and Johannesburg’s financial ecosystem.

Yet, its digital landscape is uneven. High-speed internet covers just 64% of the population, with only 24% using it regularly.

Rural connectivity lags, worsened by power outages, while data costs remain a hurdle. The steep price of mobile data burdens low-income households, limiting access to digital tools for education, entrepreneurship and financial inclusion.

Initiatives like TooMuchWifi, providing affordable internet to 400,000 low-income South Africans, highlight the need for broader solutions.

While updated figures are limited, high data costs clearly disproportionately affect low-income groups, who pay more per MB for smaller bundles.

Still, South Africa has tools to lead. Projects like SA Connect aim to expand broadband and private-sector efforts, like MTN’s 5G rollout, show promise.

To bridge the divide, South Africa must scale public-private partnerships, subsidize access and expand digital literacy.

Fintech, emulating East Africa’s mobile money success, could boost rural inclusion. Policy must foster an ecosystem where innovation thrives.

Digital inclusion demands equity, especially for women and youth. In Africa’s informal sector—home to 85% of jobs—women and youth dominate, with 92.1% and 95.8% participation rates, respectively.

Yet, financial service access remains limited.

In South Africa, the gender gap in financial inclusion is narrow, but rural and youth divides persist: only 56% of rural residents are financially included.

Fintech can change this.

The Women Farmers Programme, training over 1,300 South African women in digital skills since 2018, shows the power of targeted intervention. Youth-focused efforts, like CodeTribe, which equips young South Africans with coding skills and Malawi’s Tech Hubs, empowering 19,000 with digital literacy, unlock economic potential.

South Africa’s Path to Bridging must amplify such programs, ensuring women and youth lead—not just participate—in the digital revolution.

South Africa faces a defining choice: pioneer Africa’s digital transformation or risk irrelevance.

The path forward demands bold steps.

First, invest in rural infrastructure—shared digital networks and renewable energy can deliver connectivity.

Second, prioritize digital literacy programs for women, youth and rural communities. Third, foster an innovation ecosystem by supporting fintech startups and government-industry collaboration. Kenya and Nigeria offer models: Kenya’s Safaricom and Nigeria’s MTN Nigeria provide data plans below $1 per GB, driving inclusion.

South Africa can emulate these through policy reforms and competition.

The rewards are immense: closing the digital divide could boost GDP, create jobs and elevate South Africa’s global10. As AI and digital services redefine competitiveness, delay is not an option.

Business leaders and policymakers must act, positioning South Africa as Africa’s digital beacon. The future waits for no one—let us shape it today.

Nomvula Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She is an MBA candidate at Henley Business School, South Africa.

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