From Fintech to AI, the region is leveraging technology to bridge gaps, foster inclusivity, and accelerate progress towards the SDGs
North Africa is undergoing a digital revolution, with technology emerging as a powerful catalyst for addressing socio-economic challenges.
From fintech solutions that enhance financial inclusion, to Artificial Intelligence revolutionizing healthcare, the region is leveraging innovation to bridge development gaps and accelerate attainment of the Sustainable Development Goals (SDGs).
Although challenges such as limited digital infrastructure, fragmented policies, and unequal access to technology continue to pose a challenge, the region's youth are championing initiatives that foster economic growth and promote social equity and resilience.
These youth-led initiatives have made North Africa a vibrant hub for digital innovation, with emerging technologies making strides in addressing long-standing development challenges.
The interplay between innovation, entrepreneurship, and youth dynamism is evident across sectors, signaling the region's readiness for a digital revolution.
Some of the trends innovative reshaping the region include:
Artificial Intelligence in Public Services
AI adoption is steadily gaining momentum in North Africa, particularly in healthcare and agriculture. For example, Morocco has introduced AI-powered tools for agricultural monitoring to optimise resource use and predict crop yields with greater accuracy.
Similarly, Tunisia is exploring AI in urban planning, using data-driven models to improve traffic management and enhance public transport systems.
Education Technology
EdTech platforms are revolutionising education by making learning accessible to marginalised communities. Platforms like Algeria's EDUS and Morocco's SmartSchool have tailored content to meet the linguistic and cultural needs of diverse populations. These initiatives also play a critical role in equipping the youth with skills for a digital economy.
Youth-led startups
Youth entrepreneurs are leading the charge in driving the digital innovation wave. Programmes like Flat6Labs in Tunisia and Egypt's RiseUp Summit are incubating young entrepreneurs, offering mentorship, funding, and networking opportunities. These hubs have nurtured numerous start-ups, including Instadeep, a Tunisian AI company that has gained global recognition for its machine-learning solutions.
Women in Technology
Efforts to empower women in technology are gaining traction, though challenges remain. Initiatives like SheTech Tunisia and Egypt's TechWomen Network are equipping women with the skills needed to lead in the tech industry. By offering mentorship, training, and networking, these initiatives are empowering a new generation of female tech leaders who are actively shaping the region's digital landscape, and helping close the gender gap in technology
Green technology
Digital tools are advancing green transitions. Solar-powered IoT devices, smart water management systems, and renewable energy platforms are being deployed in North Africa to combat climate challenges. For instance, Egypt's investment in solar farms, coupled with digital energy management systems, highlight the role of technology in advancing green transitions.
Overall, digital innovation has become critical in addressing the region's pressing challenges and advancing SDGs. In the region, where youth unemployment exceeds 25% and the impacts of climate change are intensifying, technology can offer scalable and inclusive solutions.
"Digital platforms can connect rural artisans to global markets. IoT technologies can optimise water and energy use in agriculture, a sector that employs about 30-40% of the workforce in some areas. Additionally, digital tools like blockchain can enhance supply chain transparency, while AI-driven data analytics can enable better decision-making for climate resilience," said Majdouline Khaled, the CEO and co-founder of AGARUW - a fashion-tech startup in Tunisia that develops and creates eco-friendly, adaptive, and online customized products.
She added: "At AGARUW, we use digital innovation to redefine sustainable practices. Our carbon footprint tracking system not only measures environmental impact but also educates businesses and artisans on how to reduce their emissions."
"In a region where 60% of the population is under 30 years old, leveraging on digital solutions is not just an opportunity, it's a necessity for shaping a more sustainable future," she said.
Challenges
While digital innovation across North Africa is driving progress, it also highlights systemic challenges spanning from infrastructure gaps, policy fragmentation, to exclusion and socio-economic disparities.
The region boasts examples of impactful youth-led initiatives and technology-driven solutions, yet these remain unevenly distributed across socio-economic, gender, and geographic lines.
The digital divide remains stark, with only 56% of the region's population having access to the internet, compared to a global average of 66%, according to an ITU report (2022). Rural areas are disproportionately affected, with connectivity rates often falling below 20%.
On gender gap, women in rural North Africa are 40% less likely than men to own a smartphone, limiting their access to digital opportunities, according to the GSMA Mobile Gender Gap Report 2023.
As the region continues its digital transformation, addressing these disparities is crucial to ensuring that innovation benefits all members of society, and not leave anyone behind.
"As an entrepreneur in North African, I recognise the interconnectedness of challenges and opportunities across the region. A growing population of educated youth is eager to engage in entrepreneurial activities. However, there are still some disparities in access to technology and resources across countries," said Abdelfattah Ben Ammar, the co-founder and managing director of DZ Hadina Tech - an Algerian start-up.
North Africa's digital economy suffers from inconsistent regulatory frameworks that limit cross-border collaboration and stifle innovation. For instance, the region ranks low on the ITU Global Cybersecurity Index, with countries like Algeria and Libya lagging in data protection legislation. This discourages foreign direct investment and inhibits the scalability of start-ups.
Limited infrastructure not only hampers education and healthcare access but also excludes rural entrepreneurs from participating in the digital economy, according to the World Bank's "Digital Economy for Africa (DE4A)" initiative, which also advocates for targeted investments in rural broadband to bridge these gaps and unlock the continent's potential.
A mismatch between education systems and market needs has left many young people unprepared for the demands of the digital economy. According to the World Economic Forum's Global Gender Gap Report 2023, North Africa continues to experience significant gender gaps in STEM fields, with women representing less than 15% of STEM graduates in some countries.
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On funding, the region attracted less than 5% of Africa's total tech funding in 2023, with most investments concentrated in Egypt. Entrepreneurs in smaller markets like Libya and Mauritania report significant difficulty in accessing seed funding. This lack of resources limits the ability of startups to scale and compete regionally or globally.
Data privacy concerns and cultural resistance to technology adoption remain significant challenges. In rural areas, there is often a lack of trust in digital tools, compounded by low digital literacy rates.
Solutions
For North Africa to fully harness the potential of digital innovation, the region needs to deal with the systemic barriers through collaborative efforts from governments, private sector players, and civil society.
To address these challenges, the African Union Digital Transformation Strategy (2020-2030) provides a comprehensive roadmap for regional regulatory harmonisation.
By aligning policies and fostering collaboration, this framework holds the potential to create a more integrated and dynamic digital ecosystem across North Africa.
The Summit of the Future provides a critical platform for stakeholders to commit to a Regional Digital Pact that prioritises harmonised digital policies to enable cross-border collaboration and innovation; investment in in foundational infrastructure to close the digital divide; and targeted programs that empower youth and marginalized groups to drive change.
By championing the Regional Digital Pact, North Africa can position itself as a leader in leveraging technology for sustainable development, fostering resilience, equity, and innovation.
Khouloud Ben Mansour Baghouri is a member of the AU Youth Office Panel of the Future and a former African Union Youth Ambassador of Peace.
