Digitalisation of economic sectors will kick-start a new growth cycle after COVID-19, according to the 2021 edition of Africa’s Development Dynamics’ report.
The report, released on Thursday, said the response to the COVID-19 crisis had built momentum for Africa’s digital transformation to overcome the pandemic and create more productive jobs.
“Only 35 per cent of intermediary cities are connected to terrestrial fibre-optic networks. Connecting them can have a strong multiplier effect, since 73 per cent of Africans will live in intermediary cities and rural areas by 2040,” it said.
The AfDD report also suggested that the governments could increase investment in the development of Africa’s workforce skills and provide social protection for informal ‘iWorkers.’
“Recent surveys show that many iWorkers face unpredictable and lower compensation than the national minimum wage, and they do not benefit from standard labour conditions as in formal employment. Expanding and adapting social protection systems to this new reality is critical to address vulnerability,” it stated.
It further stressed on the importance for the governments to remove barriers that prevent smaller firms from competing and growing in the digital age.
It stated, “Venture capital funding for Africa’s start-ups grew sevenfold between 2015 and 2019, yet the funding ecosystem for entrepreneurs remains fragile and inadequate. Half the most dynamic start-ups are based in only five cities: Cape Town, Lagos, Johannesburg, Nairobi and Cairo.”
Also, the report urged the government to update regulations and harmonise them at both regional and continental levels.
“Currently, only 28 countries in Africa have personal data protection legislation in place, while 11 have adopted substantive laws on cybercrime,” the reported added.
Get real time update about this post categories directly on your device, subscribe now.