The battle for digital sovereignty in Africa is intensifying as the continent navigates the complex interplay between global tech giants and local innovation ecosystems. This struggle spans multiple sectors, including mobile money and tech startups, and is shaped by a mixture of geopolitical, economic, and social dynamics.
Africa’s digital economy has seen significant growth, expanding from 1.1% of GDP (US$30 billion) in 2012 to 4.5% (US$115 billion) by 2020. Projections suggest it will reach 5.2% (US$180 billion) by 2025 and 8.5% (US$712 billion) by 2050, according to a study by Google and the International Finance Corporation.
In 2020, Africa hosted over 600 online marketplaces for physical goods, primarily concentrated in the top 10 countries. Remarkably, just 10 marketplaces accounted for 84% of the total online traffic. While most of these platforms were not accessible to international sellers, nearly 75% of online marketplace websites in Africa were operated by international entities.
Mobile Money: The Frontier of Digital Finance
The internet has rapidly evolved in Africa, with internet users growing from 570 million in 2022, more than double the figure from 2015. Nigeria, Africa’s largest market, leads with over 100 million mobile money users as of 2022, followed by Egypt (76 million) and South Africa (41 million). The proliferation of telecommunications infrastructure and increased mobile device usage have driven this surge, playing a pivotal role in Africa’s digital transformation.
Mobile money services have brought financial inclusion to millions, particularly in rural areas, with Kenya’s M-Pesa leading the charge. However, the entry of global tech giants such as Google, Apple, and Meta (formerly Facebook) into the mobile payments sector threatens Africa’s financial sovereignty. These companies, equipped with vast resources and superior technology, could dominate the sector, raising concerns over data control and financial autonomy.
The World Bank reports that broadband download speeds in Africa improved from 2.68 Mbps in 2019 to 8.18 Mbps by 2022. At the same time, the average cost of 1 GB of data fell from 10.5% of monthly Gross National Income (GNI) per capita in 2019 to 5% in 2021.
Concerns About Data Sovereignty
African governments are increasingly concerned about the influence of global tech giants, fearing that they could overshadow local initiatives and compromise national data control. The rise of platforms like WhatsApp Pay and Google Pay raises questions about the ownership and control of transactional data, potentially undermining local financial systems and innovations.
Digital Colonialism
The concept of “digital colonialism” is gaining traction in discussions about Africa’s digital future. This term refers to the exploitation of data and digital resources by foreign entities, drawing parallels with historical resource extraction during colonialism.
African countries are increasingly wary of foreign control over their citizens’ data, especially given the continent’s weak data protection laws and digital infrastructure. This vulnerability leaves African nations exposed to exploitation and heightens concerns about digital sovereignty.
Tech Startups: Innovation Amidst Challenges
Africa’s tech startup scene is thriving, with countries like Nigeria, Kenya, and South Africa leading the way. These startups drive innovation in areas such as fintech, healthtech, and agritech, creating jobs and diversifying economies. However, the reliance on foreign investment and technology raises concerns about digital sovereignty. While international partnerships have fuelled growth, they also risk ceding control over Africa’s digital infrastructure and data to foreign entities.
African Union’s Digital Transformation Strategy
In response to these challenges, the African Union (AU) has developed a Digital Transformation Strategy aimed at promoting digital sovereignty. A central goal is for Africa to become a producer, not merely a consumer, in the global digital economy.
Key initiatives include the development of a Digital Single Market (DSM) by 2030, aimed at harmonising regulations across the continent, and a common data policy framework to ensure Africa retains control over its digital resources. However, the success of these initiatives hinges on the ability of African nations to collaborate effectively and resist external pressures from powerful global players.
Global Geopolitics and African Digital Sovereignty
Africa’s digital sovereignty is also shaped by global geopolitical dynamics. The continent is at the crossroads of competing interests from global powers, such as the United States, China, and the European Union, all of which have their own agendas in Africa’s digital space.
The AU’s strategy involves collaborating with multiple international partners to bridge infrastructure gaps and build local digital capacities. However, this approach requires careful navigation to avoid creating new forms of dependency that could undermine Africa’s digital independence.
Initiatives such as the EU’s Global Gateway and China’s Belt and Road Initiative highlight the geopolitical stakes. While these partnerships offer opportunities for infrastructure development and technology transfer, they also raise concerns about Africa’s ability to maintain control over its digital assets.
As Africa continues to embrace digitalisation, the challenge will be to balance the benefits of global partnerships with the need to retain control over its digital resources. The future of Africa’s digital economy depends on fostering local innovation, building resilient digital ecosystems, and ensuring inclusivity and sustainability. Ultimately, Africa’s fight for digital sovereignty is crucial in shaping the continent’s digital future and avoiding dependence on external powers.
