Embracing digital transformation to realize our potential
"Thus she has lain / Black through the years / Over the white seas / Rime white and cold.
Brigands ungentled / Icicle bold / Took her young daughters / Sold her strong sons.
Now she is rising / Remember her pain / Remember the losses / Her screams loud and vain"
This remarkable poem by Maya Angelou, from which I share some excerpts, masterfully captures the pain and suffering our continent has endured. It highlights our resilience, blending lamentation with celebration to reflect the strength and pride of Africa. This sentiment will forever be part of our history.
The pains of lamentation have turned into cries of revolt that led us to the struggles for National Liberation, the conquest of our sovereignty, and subsequently the enormous challenge of rebuilding societies with serious basic survival challenges where access to essential goods, healthcare, and education still today constitute barriers to our development.
International aid, meaning external to the African continent, has been the model adopted practically since the independence movements. Africa has grown in its essential indicators, although the speed of this evolution has not allowed us to ambitiously move beyond survival challenges in a structured and confident manner.
However, I believe that Africa, supported by its trajectory, must aspire to a new poem. The lamentation and celebration of our journey will persist in the stories that generations will keep alive. But across the four corners of the world, there is the vibration of a dynamic planet, full of activities where great imbalances persist. Between the cycle of raw material capture, transformation, and wealth creation that promotes regional development, the African continent reflects the contradiction of possessing much of the raw material without it impacting its development in a commensurate way. Yes, Africa needs to aspire to development equivalent to its potential. A new poem from a conscious Africa should rise and echo in every home, school, and narrative about our continent.
Several studies illustrate the enormous contradiction of the African continent. The most glaring evidence highlights the disparity between the volume of external aid (about 50 billion USD) () and the estimated value of loss due to various inefficiencies (DRM) (500 billion USD). The conclusion is obvious: Africa does not need aid; it needs a new poem that inspires a new financing model for its development process, which must have at its core the boldness commensurate with its immense potential.
Naturally, various dimensions must be projected, but I believe that digital, particularly for the African region, has a strategic significance due to its accelerating and transformative potential. The world is witnessing technological evolutions at a speed never experienced before. This fact is leading to an accelerated adoption attempt in all societies, which are facing enormous difficulties in managing this authentic digital transformation.
In Europe, we witness the accelerated development of Estonia following its independence in 1991, with a strong focus on digital transformation. Estonia heavily invested in the digitalization of its society through bold reforms that introduced the "digital first" concept in the provision of public services, supported by a highly robust interoperability platform (X-ROAD) and digital identification (e-residency). As a result of this bold digital transformation, Estonia saw its GDP per capita grow from USD 2.6K in 1993 to USD 29.8K in 2023, along with a significant rise in its development indicators (HDI), leading to an overall improvement in quality of life.
In Asia, we have witnessed the "awakening" of the continent. South Korea is an impressive example of how investing in technological transformation and valuing culture can elevate a country's development levels. South Korea's per capita GDP growth has transformed it from one of the poorest countries to one of the wealthiest economies in the world. Its development strategy, rooted in innovation and technology, fostered the rise of global conglomerates like Samsung, LG, and Hyundai, which have become global leaders. With one of the best education systems in the world, cutting-edge technology, and a globally influential cultural presence, South Korea has completely transformed.
China began a series of deep economic reforms in the 1970s that led to the experimentation of capitalism in a controlled environment. The creation of Special Economic Zones (SEZs), with liberal policies and strong tax incentives supported by massive investments in education, research, development, and innovation--particularly prioritizing science and advanced technologies--enabled the rise of major economic players such as Huawei, Alibaba, and Tencent, which emerged as global leaders in emerging technologies. A strong focus on education, innovation, and development led to China's economic boom. Shenzhen, Zhuhai, Xiamen, Shantou, Hainan, and Pudong are examples of Chinese territories that contributed across various sectors to China's consistent 9.5% annual GDP growth. Today, China competes for global economic leadership.
In Kenya, the M-PESA revolution spurred innovation in the financial system by replacing traditional bank branches with mobile phones offering financial services. This created unprecedented financial inclusion in the country (96% of households now have access to financial services), resulting in an economic boom, increasing daily GDP per capira and reducing extreme poverty by 2%, while also boosting employment levels.
In Africa, various initiatives have aimed to accelerate development through digital technology. Rwanda's Vision 2020 and Kigali Innovation City (with a 7.2% annual GDP growth from 2000 to 2019), Tunisia's Startup Act (Growth of GDP), the fintech boom in Nigeria (growth of GDP), Ethiopia's Digital Ethiopia 2025 (1.7% of GDP), South Africa and Cape Verde's e-government initiatives (growing of GDP), Morocco's Digital Transformation Strategy (Improve EGDI), and Egypt's investments in the national ICT sector (more than 5.8% of GDP) are all examples of a continent eager to embrace digital technology to accelerate its development process.
Despite the numerous success stories around the world, the tremendous potential of technological innovations remains underutilized, often being exploited at the pace of the strategic interests of more advanced nations. Africa, naturally, has different priorities and should have strategies tailored to its own needs.
More advanced societies, with well-established health and education systems and extremely high levels of well-being, will naturally be more conservative in embracing all the transformational potential of new technologies. Established interests, aging populations, and traditional (legacy) systems represent significant investments whose profitability must be ensured. This will be the great challenge for more developed regions in harnessing all the potential that digital offers.
Here lies Africa's opportunity, the genesis of the new poem. Africa presents enormous structural weaknesses that cripple even our self-esteem. To envision and aspire to a globally leading Africa is practically heretical when confronted with the basic survival challenges that still persist. But it is precisely in this context of near-structural fragility, which has led us to be the continent with the youngest population in the world, that our opportunity lies.
Focusing on our potential, notably as holders of much of the raw materials essential to global development, Africa must identify "shortcuts" and "triggers" to accelerate our development process. But this exercise cannot be "undermined" from the start by our inability to "disconnect" from past poems.
In the digital age, where artificial intelligence, blockchain and fintech present themselves as future alternatives, Africa cannot envision building a financial system based on models still predominant in more advanced regions. The challenges and pains of "evolved" territories related to change management cannot be adopted by a region that is practically "green field." Urgently, an African vision harmonized for our territory is needed, so that Africa can quickly develop a financial ecosystem, supported by all technological potential, that is far more advanced than that of the northern countries, which will inevitably face different resistances. The African financial system should not be based on concrete infrastructures representing traditional banking but rather on digital infrastructures with all their reach, security, and reliability that technological innovations allow. Naturally, the organizational, legislative, and operational architecture must be built with "digital by design," "made in Africa," and mainly "made for Africa." In mind.
In this same line of thinking, Africa must embrace the process of empowering our continent. With a very low literacy rate, around 65% in Sub-Saharan Africa, we cannot address this challenge by copying outdated education models from more "evolved" countries. Digital, with all its transformational potential, allows us to envision new, much more effective ways of transmitting knowledge. Europe and America, with traditional education systems, have an average of 1 teacher for every 13/14 pupils, while Sub-Saharan Africa has an average of 1 teacher for every 37 pupils. To envision an academy in the same way as northern countries would perpetuate the gaps. Africa has a unique opportunity to build an educational architecture "digital by design," ensuring a 1:1 digital Student/Device ratio, thus guaranteeing a medium-term competitive advantage over territories that, despite recognizing digital's potential for education, are slow in its maximization. Recent concerns about the potential of artificial intelligence should be seen from the African continent's perspective as an opportunity to accelerate our development process. The African educational system should be strongly based on digital technology, using virtual and augmented reality, as well as artificial intelligence, as fundamental tools not only for transmitting knowledge but also to ensure that African culture is properly represented in the digital sphere.
In the health system, we will face similar challenges, where Sub-Saharan Africa, with ratio of 1.98 to 37 beds per 10.000 population, presents a huge deficit compared to Europe(20 to 220 beds) and Americas ( 4 to 56), and with much more sophisticated doctors and equipment. New technologies, such as remote measurement devices, remote diagnosis solutions, telemedicine, teleconsultation, and artificial intelligence, can dramatically improve the quality of health services.
Industries across various sectors are currently undergoing significant transformations due to the potential that digital offers. One of the most emblematic use cases of 5G is precisely for industry, allowing for faster and more profitable production.
The examples mentioned above apply transversally to all areas of our societies. Digital is provoking an authentic transformation in how we do things. Despite the devastating effect of the pandemic, that catastrophe allowed the world to accelerate its transformation process and increased the certainty that digital transformation is an inevitable reality.
It is therefore my conviction that a new African poem must be based on an accelerated digital transformation of the territory as a foundation to leverage all our potential, shorten distances, and place Africa on the path to sustainable development, in line with our immense potential. Studies have highlighted that there is a direct correlation between inefficient public services and instability, being this an extra incentive to improve service delivery thru innovation and technology.
But how to achieve this? Certainly not with the current model where we are in "copy-paste mode", doing what others have done before. Africa must lead the digital appropriation, not copy it. We have a continent with survival challenges that digital can mitigate. We have a young population open to new things. And we have very little "legacy" infrastructure, which is a great advantage. These dimensions should lead us to think differently, act differently, and believe differently.
The first challenge lies within ourselves. Believing is undoubtedly the first step. Raising our self-esteem to levels that allow us to dare to elevate Africa to its potential. Introducing the concept of 'Open Innovation' and co-creation at the strategic center of a new model for the African continent. Only a united front that addresses the challenges of our territory in a homogeneous way will allow us to reach the limits of our potential. Finally, fully embracing the principle of experimentation and openness to change. Only a continent that, at the core of its transformation efforts, embraces openness to change will be effective in achieving this bold objective. The principle of 'sandbox' should be one of the structural elements in Africa's digital transformation process. A strong educational system, supported by emerging technologies and a curriculum focused on openness and innovation, will be crucial for instilling confidence in the African population in the building of a new era, a new Africa, a new Poem.
The internet as an essential commodity should be the foundation of the new poem. Every African should have access to adequate digital equipment and be connected to the internet. This should be the basis of African development. The subsidization of this goal should be at the top of the continent's priorities. This goal implies significant investments in energy and communication technologies, whether from telecom operators or satellites. The creation of this digital highway should be seen as one of the most structural elements in the fight against extreme poverty due to its potential to address education, health, and economic issues. Africa must aspire to have the most advanced connectivity technologies to ensure not only universal access but also the provision of essential services to its citizens.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
However, this new paradigm of "made for Africa" implies not only the digital highway but also the existence of a content and application production ecosystem for all areas of society, from education to health, commerce, security, justice, public administration, agriculture, fisheries, the financial system... The creation of an ecosystem conducive to the production of "for Africa" , content, will be essential. Naturally, in addition to stimulating African academies with significant investment in research and development, it will be crucial for Africa to adopt two concepts: Open Innovation and Open Source.
Africa needs to adopt approaches that promote technological autonomy, local value creation, and community involvement. It is in this context that the concept of Open Innovation and the use of Open Source technologies can become the pillars of digital development on the continent. Although the African continent has advanced in adopting digital technologies, many countries still face excessive dependence on foreign technological solutions, a lack of adequate infrastructure, and limited capacity. The importation of proprietary technologies burdens budgets and limits the ability to adapt these tools to local realities. Moreover, the creation of innovative content that reflects the needs and cultural specificities of the continent has been scarce, reinforcing the digital divide. This paradigm needs to change. To overcome these challenges, the new poem must adopt a collaborative approach involving universities, startups, governments, and civil society. And this is where Open Innovation and the use of Open Source Technologies become central. Imagine a pan-African network of digital innovation hubs where universities collaborate with tech startups and local governments to co-create solutions for African challenges, such as sustainable agriculture, digital health, and financial inclusion. This collaborative environment can be fueled by a digital ecosystem that encourages applied research and youth entrepreneurship, using open-source solutions. Yes, Open source should be at the heart of the African Digital landscape.
With an open-source infrastructure and a culture of open innovation on a regional scale, I strongly believe that the conditions will be created for a new African narrative, where our positioning will be to extend a hand, yes, but from a perspective of partnership, to establish agreements for the export of finished products and not raw materials.
Naturally, policies such as imposing restrictions on the export of raw materials (a tax on raw materials) from the continent could stimulate the concentration of transformation technologies within our continent.
As an African who hopes that the forthcoming "Summit of the Future" will bring a new vision for Africa, I deeply hope that the current African leaders will rise to meet the expectations of the families of this rich continent. Aware of the immense wealth and potential of our continent, let us confidently and boldly embrace the opportunities of the digital age, and with one voice declare a new poem for Africa. The ambition is to build an Africa that matches its potential with a strategy "made for Africans."
Hélio Varela, born in São Vicente, Cape Verde, is a seasoned professional with 33 years of experience in the Information and Communication Technology sector, having worked across Europe and Africa in both public and private spheres. Known for his visionary leadership in digital governance in Cabo Verde, he currently serves as CTIO at Unitel T+, CEO of CV Internet Exchange Point and as a member of African Experts Network for the Office of the Special Advisor on Africa.
