(Ecofin Agency) - Smart Africa Alliance started in 2013 with a goal to turn Africa into one big digital market by 2030. Digital technology is now a major force for development, making this mission even more important to solve many of Africa’s challenges. At the 2024 Digital Transformation Forum (ATDA) in Abidjan, Smart Africa’s CEO, Lacina Koné, talked to Ecofin Agency (EA) about the alliance’s projects and his hopes for Africa’s digital future.

EA: What are Smart Africa’s main projects?

Lacina Koné (LK): We are currently managing 34 initiatives grouped into four key areas: connectivity, innovation, transformation, and acceleration. Each member country of the alliance selects a flagship project based on its priorities in emerging technologies. We then develop a concept note, a master plan, and a pilot project. If the pilot succeeds, it’s handed over to private partners for national or continental deployment.

One example is the One Africa Network project, with the motto “Roam like at home”. It aims to eliminate roaming charges for Africans traveling between countries, similar to what exists in Europe. Pilots began in East Africa (Rwanda, Kenya, Uganda, Tanzania, etc.) and have expanded to West Africa with recent agreements involving Côte d’Ivoire, Ghana, Togo, and Benin.

Another critical project focuses on digital identity. Digital transformation isn’t possible without reliable citizen identification, as data always belongs to someone.

EA: What are the main challenges hindering digital growth in Africa and bridging the digital divide?

LK: The biggest challenge is the regulatory framework. It’s not just about creating rules but harmonizing them across the continent. With 1.4 billion people, Africa cannot be viewed through the lens of a single country. Policy harmonization is essential to attract investments.

Contrary to popular belief, the issue isn’t a lack of funds but the regulatory environment needed to secure them. Additionally, African states often focus on regulation without promoting innovation. Globally, the private sector drives innovation, with governments adapting to follow, except in rare cases like Estonia.

EA: Does Smart Africa invest in skill development for young Africans?

LK: Absolutely. Transformation starts with education. We’ve observed that even decision-makers often lack understanding of digital issues. We launched the Smart Africa Digital Academy (SADA) four years ago to address this. Today, it operates independently with $20 million in funding over five years.

SADA targets several groups: policymakers, tech-savvy public officials, tech entrepreneurs, and the general public. It focuses on STEM (science, technology, engineering, and mathematics) education with a hands-on learning approach rather than rote memorization.

However, national education reforms must complement these efforts. Major global tech companies now prioritize talent over degrees. We need to prepare our youth for this shift.

EA: Does Smart Africa advise governments on digital policies?

LK: Yes, that’s one of our core missions. We collaborate with partners like the GSMA (Global System for Mobile Communications Association) and the United Nations Economic Commission for Africa (UNECA) on topics such as taxing emerging technologies.

Each African country faces unique financial and sovereignty challenges. It’s vital to understand that the digital economy is a key driver for development, far more than agriculture, which is often seen as central.

For instance, digital technology enables banking without banks, telemedicine without hospitals, and online education without universities. This sector is crucial for speeding up socio-economic development. We work to help policymakers realize this and shift their perspectives. While revenue pressures sometimes lead governments to tax the digital sector, we advocate for them to explore its broader potential, such as formalizing the informal economy, which accounts for up to 70% of Africa's economic activity.

EA: What role can digital technology play in the African Continental Free Trade Area (AfCFTA), especially in cross-border payment interoperability?

LK: Africa has over 30 central banks. Countries with independent central banks often collaborate more easily on cross-border payments than those in monetary unions like WAEMU or CEMAC.

In 2023, we ran pilots between Ghana (cedi) and Togo (CFA) and between Rwanda and the Democratic Republic of Congo. These initiatives aim to lower transfer costs using mechanisms like mobile money. However, when currencies have to pass through the euro or dollar, costs rise. Interoperability requires coordinated political decisions, and innovation will be key to solving this challenge.

EA: Can you explain the Smart Africa Trust Alliance (SATA) project?

LK: SATA aims to interconnect African countries’ digital identification systems while respecting their sovereignty. For example, someone from Benin could access services in Côte d’Ivoire, like obtaining a SIM card, without their ID’s authenticity being questioned.

This project, already adopted by 14 countries (soon to include Côte d’Ivoire), enhances transparency and trust between states, facilitating the free movement of people and services.

EA: Does the digital sector have a bright future in Africa?

LK: Without a doubt. I would even say Africa’s future depends on digital technology. Unlike physical resources, information grows when shared.

Digital technology allows an entrepreneur in Côte d’Ivoire to target 1.4 billion African consumers with similar habits, whereas sectors like agriculture remain limited to local markets. Africa’s immense potential lies in its digital transformation.

Interview by Moutiou Adjibi Nourou