COVID-19: How the digital economy can spur recovery

As policymakers across Africa acknowledge the pivotal role of digital technology in the continent's economic recovery and transformation, the full potential of this digital revolution has yet to be fully captured. The COVID-19 pandemic has underscored the importance of leveraging digital technology across sectors to drive Africa's economic response in times of crisis. In a recent interview on CNBC Africa, Ndau Naushu, the CEO of Africa Productivity Specialists, shed light on the necessity for embracing digital transformation and the critical role it can play in improving efficiencies and processes. Naushu emphasized that beyond being a way of doing things, digital transformation also entails a fundamental shift in mindset towards utilizing technology to enhance operations. The impact of the COVID-19 crisis on African economies has highlighted the urgent need to harness technology and address existing inefficiencies. While Africa's digital infrastructure may not currently meet the necessary standards, Naushu expressed optimism in the continent's growing focus on digital transformation. Collaboration between governments and the private sector in investing and developing infrastructure is key to bridging this gap. Naushu pointed out that although significant progress has been made in policy frameworks for digitization over the past five years, limited funding remains a critical challenge. To overcome this barrier, he proposed leveraging Africa's abundant natural resources to support infrastructure projects, urging a shift away from traditional funding constraints. By engaging with development partners and donors to invest in infrastructure, Africa can create sustainable pathways for technological advancement. Naushu stressed the importance of collective effort and cooperation in driving digital transformation, emphasizing the need for cohesive policies supported by strong technical leadership. By involving technology experts in policy-making processes and ensuring alignment from top leadership to grassroots levels, sustainable progress can be achieved. While acknowledging the complexities of implementation, Naushu advocated for proactive steps towards a culture of digitization and technology empowerment across the continent. The African Continental Free Trade Area Agreement (AfCFTA) emerged as a strategic enabler for digital transformation, offering an opportune platform to streamline trade processes and boost economic growth. Naushu highlighted the significance of digitizing customs procedures to address inefficiencies at borders, which often hinder trade activities. By integrating customs systems and implementing common payment platforms, digital transformation can enhance operational efficiencies, eliminate wasteful practices, and promote seamless trade flows. Streamlining border operations through digital solutions not only encourages market expansion for entrepreneurs but also deters corrupt practices that impede trade progression. Naushu's insights underscore the transformative potential of digital technology in reshaping Africa's economic landscape post-COVID-19. By prioritizing digital transformation, fostering collaboration, and investing in infrastructure, African nations can unlock new opportunities for growth, efficiency, and sustainable development.