New Africa-Europe Digital Economy Partnership

Accelerating the Achievement of the Sustainable Development Goals

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ThisreportwaswrittenbytheAU-EUDigitalEconomyTaskForce(AU-EUDETF).ThemembersoftheDETFnamedinthisdocumentsupporttheoverallframework,althoughtheydonotnecessarilyagreewitheverysinglestatementinthedocument.NeithertheEuropeanCommissionnoranypersonactingonbehalfoftheCommissionisresponsiblefortheusewhichmightbemadeofthefollowinginformation.ThecontentsofthisreportarethesoleresponsibilityoftheAU-EUDETF.AlthoughCommissionstaffactingassecretariatfacilitatedthepreparationofthereport,theviewsexpressedinthisdocumentreflectthe

opinionoftheAU-EUDETFandmaynotinanycircumstancesberegardedasreflectinganofficialpositionoftheEuropeanCommission.

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Forewordby

VicePresidentAndrusAnsip,CommissionersAmaniAbuZeid,MariyaGabriel,NevenMimica

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(signatures)

ForewordbyCo-ChairsUrsulaOwusu-Ekuful,MinisterofCommunicationsofGhanaandPierreGuislain,Vice-PresidentofAfricanDevelopmentBank

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(signatures)

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Co-chairUrsulaUrsulaOwusu-EkufulMinisterofCommunicationsofGhanaCo-ChairPierreGuislainVice-President of AfricanDevelopmentBankSherpa:DoviAmouzouAranchaGonzálezExecutive Director InternationalTradeCentre(ITC)Sherpa:MartinLabbeBihEpseFofangJanetShuforFounderofTassahAcademyMariaManuelaCristinaState Secretary of the RomanianPresidencySherpa:MariaDoleanuH.R.H.PrincessAbzeDjigmaChair of the H.R.H. Princess AbzeDjigmaFoundationSherpa:AntonMartensHishamEzzAl-ArabManagingDirectorofCIBEgyptSherpa:RamAkersAmbroiseFayolleVice-President,EuropeanInvestmentBankSherpa:BenoitDenis

H.E.IbrahimaGuimbaSaidouMinister Special Advisor to thePresidentofNigerBoutheinaGuermaziDirectorforDigitalDevelopment,WorldBankSherpa:XavierDecosterMatsGranrydDirectorGeneralofGSMASherpa:AfkeSchaartMarekHelmVicePresidentofNortalintheMiddleEastSherpa:PeeterSmittChristineLeurquinVP, Institutional Relations &Communications,SESSherpa:LaetitiaZarkanAnouarMaaroufMinister of Communications of theGovernmentofTunisiaSherpa:M’hamedDallaBrunoMettlingPresidentofOrangeMENASherpa:MatthieuBelloirGunterNookeGIZCommissionerforAfricaSherpa:BjörnRichter

JeanPhilbertNsengimaniaHonoraryChairpersonoftheAllianceforAffordableInternetA4AISherpa:SoniaJorgeDoreenBogdanDirector of the TelecommunicationsDevelopmentBureauatITUSherpa:SofieMaddensJeanVanWetterManagingDirectorofEnabelSherpa:KirstenVanCampMichaelPittelkowExecutive Economic DevelopmentCooperationatSAPSherpa:KarolinaTelejkoSiimSikkutGovernment CIO of the Ministry ofCommunicationsofEstoniaSherpa:KadiAvingoJonathanSteverCoFounderandManagingDirectorofImpactHubKigaliSherpa:EskinderMamoMarcVancoppenolleVP and Global Head of GovernmentRelationsatNokiaSherpa:BrahimGhribiLacinaKonéDirectorGeneralofSmartAfricaSherpa:DidierNkurikiyimfura

CONTENT

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Introduction.............................................................................................................................................................9

1. Acceleratingtheachievementofuniversalaccesstoaffordablebroadband...........................................16

1.1 Definingtheproblem...........................................................................................................................18

1.2 Policyrecommendationsandproposedactions.................................................................................21

2. Guaranteeingessentialskillsforall,ineducationandVocationalEducationandTraining(VET),toenablecitizenstothriveinthedigitalage.....................................................................................................................23

2.1 Definingtheproblem...........................................................................................................................24

2.2 PolicyrecommendationsandProposedActions................................................................................27

3. Improvingthebusinessenvironmentandfacilitationaccesstofinanceandbusinesssupportservicestoboostdigitallyenabledentrepreneurship..........................................................................................................30

3.1 Definingtheproblem...........................................................................................................................32

3.2 PolicyRecommendationsandProposedActions................................................................................35

4. AcceleratingtheadoptionofeServicesandthefurtherdevelopmentofthedigitaleconomyforachievingtheSustainabelDevelopmentGoals..................................................................................................37

4.1.Definingtheproblem...............................................................................................................................38

4.1.1eGovernance......................................................................................................................................38

4.1.2.eCommerce.......................................................................................................................................41

4.1.3. DigitalFinancialServicesasthemeanstoachievegreaterfinancialinclusion..........................44

4.2.PolicyRecommendationsandProposedActions....................................................................................45

ANNEXI.Repositoryofexistingpractices..........................................................................................................48

GoalI.Acceleratingtheachievementofuniversalaccesstoaffordablebroadband....................................48

GoalII.Guaranteeingessentialskillsforall,ineducationandVocationalEducationandTraining(VET),toenablecitizenstothriveinthedigitalage.....................................................................................................49

GoalIII.Improvingthebusinessenvironmentandfacilitatingaccesstofinanceandbusinesssupportservicestoboostdigitallyenabledentrepreneurship...................................................................................54

GoalIV.AcceleratingtheadoptionofeServicesandthefurtherdevelopmentofthedigitaleconomyforachievingtheSustainableDevelopmentGoals(SDGs)..................................................................................58

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EXECUTIVESUMMARY

Home to the youngest population in theworld, Africa isprogressingrapidly indigitaladoption.Over thepast tenyears, the continent has recorded the highest growthglobally in Internetaccess,moving from2.1% in2005 to24.4%in20181.TheprogressisnotonlyvisibleinInternetconnectivity but also in mobile-cellular telephonesubscriptionsandinhouseholdswithacomputer,andthetrendisaffectingtheeconomyasawhole.GSMAreportedthat the “mobile economy” accounted for 6.7% of theoverallGDPinAfricain2016,representingUS$153billion.This is forecasted to reach7.6% (US$214billion) of theoverall African GDP by 2020. Technology-relatedproductivitygainsincrucialsectors(i.e.financialservices,education,health, retail,agriculture,andgovernment) inAfricaarepredictedtoreachbetweenUS$148bnandUS$318bnby2025.2

The digital economy in Africa provides not onlyopportunities for increased job creation and data foractionable insights, but also the basis for recognisisnghumanrights,acceleratingaccesstoqualitybasicservices,improving transparency and accountability ofgovernments, and enhancing democracy. eServices canimprove all areas of public and basic service delivery.eHealth can increase access and the quality of carethrough telemedicine and hospital informationmanagement systems; eEducation and eLearning cansupporttheestablishmentofcollectivedigitaleducationalresources,andvirtualrealitycanincreaseaccessofyouthsinremoteareastoqualityVET;smallholderagriculturecanbenefit from market information and early warningsystems,andgovernancecanbeimprovedthroughtheuseofdigitalcivicregistries,civictech,etc.

Africahastheopportunitytoharnessthedigitaleconomyas a driver of sustainable and inclusive growth andinnovationtoachievethesustainabledevelopmentgoalsthroughICTs—butifitfailstoharnesstheseopportunities,itseconomiesrisk isolation,stagnationandan increasingdigital divide.With adequate investment in connectivity,suitablereforms,supporttopolicydialogueandtechnicalassistance; Africa may be able to accelerate growthmodels, allowing the digital economy to influence allsectors of the economy and society. The result may be

1 ITUWorldTelecommunication/ICTIndicatorsdatabase.Website.2 Manyika, J. et al. (2013) Lions go digital: The Internet’s

transformative potential in Africa. McKinsey Global Institute.Website.

3 SmartAfricaAllianceoverview.Website.

newfound inclusiveness, sustainability, growth andpovertyreduction.

Africa’sleadershiphasastatedambitiontocreateaSingleDigitalmarketinthecontinent. Africangovernmentshavecommitted to accelerate sustainable socio-economicdevelopment on the continent by adopting the AfricanUnionAgenda2063andtheAfricanContinentalFreeTradeArea (AfCFTA), while substantial harmonisation work istakingplaceatthelevelofthemajorityofRECs.Inaddition,initiatives suchas theSmartAfricaAlliance3 arebringingnew additional African-made solutions in boosting thedigitaleconomyinthecontinent.

IntheEuropeanUnion,theDigitalSingleMarketiscreatingaspaceofcompetitivenessandinnovationandacommonmarketformorethan500millionpeople.Itisbasedonacomprehensive set of policies, programmes andregulationsdesignedtoremovenationalbarriers,promoteconnectivity, digital skills, research, innovation andentrepreneurship. It includesmeasurestosupportdigitaltrade and eCommerce and the interoperability ofeGovernmentservices.Atthesametime,itaddressesthechallenges of the protection of citizen’s rights, includingtheirrighttoprivacy.

TheaimofbothAfricaandtheEUistocooperateinordertobetterconnectthetwomarketsandaccelerationoftheachievementoftheSustainableDevelopmentGoalsbasedon a digital partnership based on a shared vision andcommonprinciples.

InhisStateoftheUnionspeechinSeptember2018,4EUCommission President Juncker proposed a new Africa-Europe Alliance for Sustainable Investment and Jobs,seekingtodriveforward intercontinentalcooperationonanequalfooting.

Thealliance’slong-termaimistocreateacomprehensivecontinent-to-continent free trade agreement betweenAfrica and the EU, building on the AfCFTA. Among thespecific actions triggered by the Alliance, four thematictask forces were set up on digital solutions, energy,transportandagriculture.

4 EuropeanCommission(2018)StateoftheUnion2018:Towardsanew ‘Africa - Europe Alliance’ to deepen economic relations andboost investmentandjobsandCommunicationonanewAfrica–Europe Alliance for Sustainable Investment and Jobs. 12.9.2018COM(2018)643.

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ThepurposeoftheDigitalEconomyTaskForce(DETF)istoguide the EU and AU when prioritising actions forcooperation. With this aim, this Task Force provides aplatform of partnership for the private sector, donors,internationalorganisations, financial institutionsandcivilsocietybasedonasharedunderstandingofhowanalreadyevolvingAfricandigitaltransformationcanachievecross-border integration, accelerate sustainable developmentandbringbenefitstoallcitizens.

Over the last 6months, the EU-AU DETF hasworked indeveloping a shared vision, a set of common agreedprinciplesandalistofpolicyrecommendationsandactionsfocusingonfourmainobjectives.

AsharedvisionThe parties of the DETF share a long-term vision of aninclusive digital economy and society in which everycitizen—notably women and young people—has theopportunity to participate in the digital world. Dueattention is given to the challengesof jobdisplacement,disinformation, protection of both privacy and humanrights. A more harmonised set of policies, rules andlegislation at the regional and continental level lead toincreased investment, while workers and consumers’rights are protected. eGovernment services areinteroperableandaccessibleregardlessofthecountryoforigin;digitalentrepreneursareabletosetupbusinesseswith ease at low administrative costs and data. Digitalgoods, services and physical products associated withintra-Africandigitaltradecirculatefreelyacrossborders.A multi stakeholder partnership based on commonprinciplesAchieving the above vision requires concerted politicalsupport, the involvement of governments and themobilisationof theprivatesector,civil society,academiaand internationalorganisationsthathaveaclear interestincreatingprosperityonthecontinent.Suchapartnershipmustbegroundedoncommonprinciples:

1. Africanleadership2. Human-centredapproach3. Digital-by-defaultservices4. Buildontheexistinginstitutionalframework5. Freeflowofdata6. MutualbenefitbetweenAfricaandEurope7. Atransparent,predictableandstableregulatory

environment

8. Politicalleadershipbasedonrespectfordemocracyandhumanrights

9. Improvedstakeholdercoordination10. Climatesustainability11. Inclusiveandsustainabledevelopment

Recommendations:

1. Acceleratingtheachievementofuniversalaccesstoaffordablebroadband

Ø Boost investment in telecom infrastructure from thelocalaccesstonetworkstoaninterconnectedcontinentanddeveloping financial instruments thatare tailoredfor the investment specificity of each infrastructureproject through partnerships between investors,government, financial institutions and internationaldonors.

Ø Promote a favourable regulatory environment forcompetitive and harmonised regional markets in thefieldofconnectivity.

Ø ConnectruralAfricathroughnewbusinessmodelsandpartnerships.

Ø Promote measures that increase affordability ofbroadbandandtechnologytocitizensandprotectthemfromcyberthreats.2. Guaranteeingessentialskillsforall,ineducation

andVocationalEducationandTraining(VET),toenablecitizenstothriveinthedigitalage.

Ø Worktowardsdevelopingpartnershipsthroughamulti-stakeholderAfricanAlliance forDigitalSkillsand Jobs,which involves African and European partners, toengageinpolicydialogueandraiseawarenessamongpolicymakerstodevelopdigital-by-defaultpoliciesandto harmonise efforts at the continental, regional andnational level, based on a thorough assessment ofmarketopportunities.

Ø Mainstream digital skills and responsible onlinebehaviouramongallcitizenstoenablethemtobeactiveand successful participants in the digital society andraiseawarenessofrisksintermsofdigitalrights,onlinesafetyandsecurity.

Ø Promote digital and transversal skills in schools andother educational institutions, by reviewing educationcurricula in accordance with the evolving needs andtrendsinthedigitaleconomyandsociety.

Facilitatedigitalskillsdevelopmentacrossallsectorsoftheeconomythatusetechnologywithaspecificfocusongovernments,administrations,serviceprovidersandcivilsocietythroughtheprovisionofdigitalandtransversal

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skillstothoseenteringoralreadyengagedinthelabourmarket,includingICTprofessionalsanddigitalentrepreneurs.

3. Improving the business environment andfacilitatingaccesstofinanceandbusinesssupportservices to boost digitally enabledentrepreneurship.

Ø EstablishandstrengthenpartnershipsbetweenAfricanand European partners, as well as among Africanregionalactors, toharmoniseeffortsrelatedtodigitalentrepreneurship at the continental, regional andnationallevel.

Ø Adapt the local regulatory framework to the DigitalEconomy at all levels throughout the value chain, toensure flexibility andeaseof doingbusiness todigitalenterprises of all sizes, MSMEs, start-ups and socialenterprises.

Ø Contribute to the creation of an enabling ecosystemthataddressesall interrelatedbarriersandneedsandimprove advisory services to stimulate digitalentrepreneurship for digital enterprises, includingMSMEs,start-upsandsocialenterprises.

Ø Facilitateaccesstofinanceandfundingmechanismsfordigital enterprises of all sizes, MSMEs, start-ups andsocialenterprises,atalllevels.

4. AcceleratingtheadoptionofeServicesandthefurtherdevelopmentofthedigitaleconomyforachievingtheSustainableDevelopmentGoals(SDGs).

Ø Make a priority in deploying the essential enablingbuilding blocks of eGovernance services like eID,digitalising and interconnecting public registries,cashless government and open data for innovation;with the goal of enabling the Digital Economy whileassuringmoreinclusivesocieties,whereaccesstobasicrightsandservicesisensured.

Ø IntegratetheprovisionofeServices,developedbyboththepublicandprivatesector,withadequatelegalactsandregulationatall levels,ensuringthatdataneededto provide eServices for the community is openlyavailablewhilefullyrespectingdataprotectionrights.

Ø Encourage intra-African integration in digital trade toachievewider participationby enterprises in national,regional and international e-commerce, especiallycross-border,asanenabler forunprecedentedmarketopportunitiesforall.

Ø Encourage action towards achieving interoperabilityand provide even further benefits to citizens andbusinesses, building on success stories in the Africancontinent on the development and uptake of digitalfinancialservices.

Crosscuttingrecommendations:

F In linewith theprinciple thatsetshumansatthe centreof thedigitaleconomyandsociety, focusshouldbegiventoequippingAfricanpeoplewiththenecessaryskillsforthedigitalage,inordertoenablethemtotakefullbenefitoftheopportunitiesprovidedbythedigitaleconomy.

FCreate coordination structures building on the existing structures at national, regional and continental level. Thestructuresshouldinvolveallrelevantpolicymakers(digital,finance,infrastructure,education,health,agriculture,etc.),financing institutions, donors, investors, the private sector (including start-ups representatives), civil society andacademia; and they must ensure cross-sectorial dialogue on policy development, coordination of investments,identificationoftechnicalassistanceandcapacitybuildingneeds,andharmonisationofrulesatregionalandcontinentallevel.

FDevelopdigitaleconomyrelatedpoliciesandregulationinareassuchastelecom,dataeconomy,dataprotectionandprivacy,start-uplaws,eCommerceandeGovernment;andpreparebankableprojectsforinvestorswiththesupportofTechnicalAssistanceandCapacityBuildingprogrammes.

FEnsuresynergiesofthemanyinitiativesunderimplementationonissuessuchasmappingofinfrastructure,populationdensity,regulatoryframeworksandotherdatagathering,seekingtoscaleupandincreasetheirimpact.

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Introduction

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The rise of digital technologies offers the opportunity tounlock new pathways to rapid economic growth,promoteeconomicmobility,stimulateinnovation,createjobs and accelerate equal access to quality publicservices.This,coupledwiththeconvergenceofmultipletechnologiesand theemergenceof globalplatforms, isdisrupting the existing socio-economic models, and inthe increasinglydigitalanddata-driveneconomy,newrulesare required togenerate trust,protectdataandIntellectualPropertyRights(IPRs),andensuresecurityacrosstheentirevaluechain.

Asdigitaltechnologiesexpandaccesstoglobalmarkets,creatingnetworkeconomiesandbridgingdistancesinacost-effective way, they deliver enormous productivitygains and increase access to basic services, earningpotential to improve quality of life. Only in 2016, theglobal digital economy was already worth US$ 11.5trillion—or15.5%ofglobalGDP—,anditisexpectedtoreach25%inlessthanadecade,faroutpacingthegrowthoftheanalogueeconomy.5

However,onemustalsobearinmindthatthesefiguresonlyrepresenttheformaleconomy;whileacrossAfrica,theinformaleconomycanamounttoanadditional40%on top of the formal economy, estimated at US$ 880billion.6

Fully aware of the need to create human-centeredpolicies adapted to the local context—and for theachievementoftheSDGsinparticular—theAfricanUnionhasastatedambitiontocreateaSingleDigitalmarketonthecontinent.Inthespiritofpartnership,theEuropeanUnion (EU) stands ready to share its experience inintegratingpreviouslyfragmentedmarkets.

IntheEU,theDigitalSingleMarketiscreatingaspaceofcompetitiveness and innovationanda commonmarketfor more than 500 million people. It is based on acomprehensive set of policies, programmes andregulations designed to remove national barriers,promoteconnectivity,digital skills, research, innovationand entrepreneurship. It includesmeasures to supportdigitaltradeandeCommerceandtheinteroperabilityofeGovernmentservices.Atthesametime,itaddressesthechallengesoftheprotectionofcitizen’srights,includingtheirrighttoprivacy.

5 HuaweiandOxfordEconomics(2017)DigitalSpillover:

MeasuringthetrueimpactoftheDigitalEconomy.Website.6 Medina, L. et al. (2017) IMF Working Paper: The Informal

EconomyinSub-SaharanAfrica:SizeandDeterminants.WorkingPaperNo.17/156.

In Africa,muchwork towards policy harmonisation forthedigitaleconomyisalreadyunderway,andmoreisinprogress at the national level, in regional cooperationsuchastheregionaleconomiccommunities(RECs),andatthepan-AfricanlevelcoordinatedbytheAfricanUnion.For instance, the COMESA Regional Economic block inAfricaiscurrentlyworkingtowardsthedigitaleconomicIntegration.Inthislight,theblock’sthemefortheyearsof 2018 and 2019 has been declared as “COMESA:TowardsDigitalEconomicIntegration”.

COMESAiscurrentlyimplementingtheDigitalFreeTradeArea (DFTA) concept, which empowers traders toperform cross-border trade using ICT as a tool tominimisephysical barriers, andprovides themwith thenecessarydigital tools for theenhancementof internalandglobaltrade.

The DFTA concept comprises three trusts, namely:eTrade,eLegislationandeLogistics.Projectsunderthesetrustsareunderway,andaCOMESAonlinemarketisnowbeing implemented in all COMESA’s 21Member Statesunder the eTrade trust, enabling duty-free and quota-freetradewithintheregion.

Furthermore,all15countriesintheECOWASregionareimplementing a substantial number of digitalisationprogrammesbasedonjointlyagreedpolicies,whileotherregions of the continent continue to define similarstrategiesandadapttheirlegislationtothedigitalage.

In addition, several countries in Africa are currentlyincreasinginvestmenttowardstheexpansionofdigitalof

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thecontinent(i.e.BurkinaFasohas investedmorethanUS$180minits7,000Kmfibrebackbone7).

TheaimofbothAfricaandtheEUistocooperateinordertobetterconnectthetwomarket.

Africaintransformation

Home to the youngest population in the world, theAfrican continent has great potential to profit from adigital transformation,which could provide jobs to themillions of youthwho continue to enter theworkforceeachyear.Theprivatesectoristheprimaryengineforjobcreation,accountingforanestimated90%ofall jobs inthe developing world.8 Unlocking digitalentrepreneurshipisthereforevital.However,thepublicsector must also play an essential role as both a keyenabler and user of digital technology, as well as thepolicymakeroftheneweconomyalsobysupportingtheexistinglegislationtobedigitalcompliant.

The digital economy in Africa provides not onlyopportunities for increased job creation and data foractionable insights, but also the basis for recognisisnghuman rights, accelerating access to quality basicservices, improving transparency and accountability ofgovernments, and enhancing democracy. eServices canimprove all areas of public and basic service delivery.eHealth can increase access and the quality of carethrough telemedicine and hospital informationmanagement systems; eEducation and eLearning cansupport the establishment of collective digitaleducational resources, and virtual reality can increaseaccess of youths in remote areas to quality VET;smallholder agriculture can benefit from marketinformationandearlywarningsystems,andgovernancecanbeimprovedthroughtheuseofdigitalcivicregistries,civictech,etc.

Africahastheopportunitytoharnessthedigitaleconomyas a driver of sustainable and inclusive growth andinnovationtoachievethesustainabledevelopmentgoalsthrough ICTs—but if it fails to harness theseopportunities,itseconomiesriskisolation,stagnationandanincreasingdigitaldivide.Withadequateinvestmentinconnectivity,suitablereforms,supporttopolicydialogueandtechnicalassistance;Africamaybeabletoaccelerategrowthmodels,allowingthedigitaleconomytoinfluenceallsectorsoftheeconomyandsociety.Theresultmaybe 7 Adepoju, P. (2017) Construction begins on Burkina Faso's

US$180mfibreopticbackbone.ITWebAfrica. 8 World Bank (2012) World Development Report 2013: Jobs.

WashingtonDC:WorldBank.9 ITUWorldTelecommunication/ICTIndicatorsdatabase.Website.10 TheBureauofEconomicAnalysisoftheUnitedStatesDepartment

ofCommerceestimatestheshareofthedigitaleconomytobe6.5percentin2016fortheUnitedStates,andpredictsthatfrom2006

newfound inclusiveness, sustainability, growth andpovertyreduction.

AcceleratingconnectivityinAfricarequiresgovernments,the private sector and development actors to set anambitious, inclusive and sustainable vision. To ensurethatthedigitaleconomyacceleratestheachievementoftheSustainableDevelopmentGoals (SDGs), civil societyhas to be a key partner in carrying out this vision.Engagement of civil society organisations (CSOs) andrepresentativeswillensurethatthebenefitsofthedigitaleconomyarehuman-centered, increaseaccess tobasicservices and contribute to transparency, to realaccountability.

Africaisprogressingrapidlyindigitaladoption.Overthepast ten years, the continent has recorded the highestgrowthglobally inInternetaccess,movingfrom2.1%in2005to24.4%in2018.9TheprogressisnotonlyvisibleinInternet connectivity but also in mobile-cellulartelephone subscriptions and in households with acomputer, and the trend is affecting theeconomyas awhole. GSMA reported that the “mobile economy”accountedfor6.7%oftheoverallGDPinAfricain2016,representingUS$153billion.Thisisforecastedtoreach7.6%(US$214billion)oftheoverallAfricanGDPby2020.Thisprogressisalsoevidentindigitalfinancialservicesu,as Africa has become the reference for the eMoneyrevolutionstartingwithM-PesainKenya.

While a consensus on how to define andmeasure theimpactofthedigitaleconomyisonlyslowlyemerging,itsshareinglobalandAfricanGDPwillcontinuetogrowinthe coming years, likely outpacing the growth of theoveralleconomy.10Technology-relatedproductivitygainsincrucialsectors(i.e.financialservices,education,health,retail, agriculture, and government) in Africa are

to2016,thedigitaleconomygrewatanaverageannualrateof5.6percent,outpacingoverallU.S.economicgrowthof1.5percentperyear.Website.

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predictedtoreachbetweenUS$148bnandUS$318bnby2025.11

African governments have committed to acceleratesustainable socio-economic development on thecontinent by adopting the African Union Agenda 2063and the African Continental Free Trade Area (AfCFTA),while substantial harmonisationwork is taking place inmajorityof theRECs. Inaddition, initiativessuchas theSmart Africa Alliance12 are bringing new additionalAfrican-madesolutionsinboostingthedigitaleconomyinthecontinent.

Inthisvein,theconclusionsofthefirstAfriSTIForumheldin Marrakesh in April 2019 affirmed the potential ofscience, technology and innovation as a key means ofimplementation of the United Nations SDGs and theAfricanUnionAgenda2063.TheForumestablishedthatAfrica'sdevelopment challenges shouldbea trigger forinnovation, and that the technologies to achieve theSDGs are being produced in Africa and should beexplored.Furthermore,Africanpolicymakersagreedthatinadequate infrastructure, including researchinfrastructure, was hampering the potential of digitalsolutions to achieve the SDGs. This inadequacy confersadvantagestosomeandcandeepeninequalities.13

TheSDGsreflectaglobalconsensusontheimportanceofconnectivityandincludeaspecificindicatoronensuringuniversalandaffordableaccesstotheinternet14.Beyondthis specific targeton connectivity,digital inclusion is akeyenableroftheotherSDGsandassuch,isacriticaltooltoacceleratetheachievementofothergoals.

Interestingly, countries with high levels of mobileconnectivity have made the most progress in meetingtheircommitmentstotheUNSustainableDevelopmentGoals15.

However,acceleratingthedigitaleconomyinAfricaalsocomeswithseveralchallenges.

Digitalisationandtechnologicalinnovationwillinevitablyhaveconsequences for theenvironmentandtheabilitytoreachtherelatedSDGs.Significantopportunitiesexisttousedigitaltransformationtofacilitatetheattainment

11 Manyika, J. et al. (2013) Lions go digital: The Internet’s

transformative potential in Africa. McKinsey GlobalInstitute.Website.

12 SmartAfricaAllianceoverview.Website.13 ConclusionsoftheAfriSTIForum2019.Website.

of the environmental and climate goals (e.g. by bettermonitoringtheenvironment,increasingthetransparencyof the environmental footprint, optimising the valuechain and decentralising or bottom up approaches),which all will also contribute to strengtheningdemocracies).However,thiswillalsoentailriskssuchasthe increasing resourceandenergydemand, aswell asthe social divide.Hence,digital transformationneedsastrong governance (public and private at all levels) toensure that it supports the achievement of allsustainabilitygoals.

Data and digital tools are emerging that provide newpossibilities for tracing materials throughout the valuechain and channelling environmental information toconsumers,empoweringthematthesametime.Digitalsystems help integrate information across multiplelifecyclesandvariousstakeholderinthevaluechain.

Circular approaches will involve connecting people,productsandsystems,anddigitaltechnologiescanmakethishappenwithgreatefficiency,creatingsignificantnewsourcesof value for citizens andeconomieswhilst alsocreatingnewchallengesforregulatorsandpolicymakers.

Digitaltechnologieswillincreasetheresourceefficiencyofassetsandprocesses,buttheextenttowhichtheywillpropelthedevelopmentofcircularbusinessmodelsandreduceenvironmentalimpactswilldependonthepolicyframework.Thechallengewillbetoapplytechnologiesinasystemicwaythatcapturescircularvalueandensuressustainability,andtokeepatotallife-cycleperspectiveinfinding solutions for both energy efficiency, the digitalsinglemarket and the circular economy agendas whilemaintaining consumer trust and empowerment andfurtheringthepublicinterest.

Furthermore,therearewidedisparitiesintechnologicaldevelopment between countries, with some comingclosetoa90%Internetcoveragewhileothersremainaslowaslessthanthe15%.Thedisparitiesarealsoevidentwithin countries, with high connectivity penetration inurban areas as opposed to the low levels in rural,unservedandunderservedareas.

14 SDG No. 9.C: “Significantly increase access to information andcommunications technology and strive to provide universal andaffordable access to the Internet in least developed countries by2020”15 GSMA(2018)MobileIndustryImpactReport:SDGs.Website.

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ThemajorityofcitizensinAfricaarelackinggovernment-issuedidentificationmeans,lockingthemoutofaccesstocritical public services, financial inclusion, andmarkets.Digital start-ups struggle to scale-up, and traditionalbusinessesareonlyslowlyadoptingdigital technologiesand platforms to boost productivity and sales.Furthermore,notallgovernmentsrecognisethepriorityto invest strategically and systematically in platforms,skills,entrepreneurship,opportunitiesofdigitalisationforequal access tobasic services, and thedevelopmentofdigitalinfrastructureforall.

To become tomorrow's innovators, entrepreneurs andleaders,Africa'spopulation—andparticularlyitswomenand young people—need to gain access to technologyandmarkets,andacquirethedigitalskillsthatwillallowthem to thrive in an increasingly digitised globaleconomy.Governmentsneed to findquickerandmoreeffective means to deliver inclusive, sustainable, cost-effectiveandqualityservices;aswellastointeractwiththeircitizens.MoreworkneedstobedonetopromoteICTserviceswithinAfricaandenableaffordableandfastservices16, and businesses need to use digital-centredmodels to connect with the hundreds of millions ofcustomers currently out of reach due to geography orincome.

TheDigitalEconomyTaskForce

InhisStateoftheUnionspeechdatedSeptember2018,17 EU Commission President Juncker proposed a newAfrica-Europe Alliance for Sustainable Investment andJobs, seeking to drive forward intercontinentalcooperationonanequalfooting.Thisproposalwaswellreceived by the African Union as both, the EuropeanUnionandtheAfricanUnion,areaimingforapartnershipformutualbenefit.

Thealliance’slong-termaimistocreateacomprehensivecontinent-to-continent free trade agreement betweenAfrica and the EU, building on the AfCFTA. Among thespecificactions triggeredby theAlliance, four thematictask forces were set up on digital solutions, energy,transportandagriculture.

ThepurposeoftheDigitalEconomyTaskForce(DETF)isto guide the EU and AU when prioritising actions forcooperation.With this aim, this Task Force provides aplatform of partnership for the private sector, donors,internationalorganisations,financialinstitutionsandcivilsociety based on a shared understanding of how analready evolving African digital transformation can achievecross-border integration,acceleratesustainabledevelopmentandbringbenefitstoallcitizens.

For this purpose, the European Commission and theAfricanUnionCommissioncalledupon20AfricanandEU 16 i.e.Cloudhostingservices 17 EuropeanCommission(2018)StateoftheUnion2018:Towardsa

new‘Africa-EuropeAlliance’todeepeneconomicrelationsandboostinvestmentandjobsandCommunicationonanewAfrica–

decision makers and representatives of internationalorganisations, the private sector, the internationalfinancialsectorandcivilsocietytosharetheirexpertiseindrafting this report.The task force ispresidedbyEUVice President Andrus Ansip, EU CommissionerMariyaGabriel, EU Commissioner Neven Mimica and AUCommissioner Amani Abou-Zeid. Two co-chairs havecoordinateditswork:MsUrsulaOwusu-Ekuful,Ministerof Communications of Ghana, and Mr Pierre Guislain,Vice-PresidentoftheAfricanDevelopmentBank.

The Task Force held its first meeting in Vienna on 18December 2018,where the principles for collaborationwere established. During the following sixmonths, theDETFdrewuppolicy recommendations and a concreteset of actions that can be taken forward by Africancountries, theEU, internationalorganisations, financinginstitutions,donorsandprivatestakeholders.BuildingontheworkofthesixthEU-AfricaBusinessForuminAbidjaninNovemberof2017,theTaskForcehassetfourmaingoals:

i. Accelerating the achievement of universal access toaffordablebroadband.

ii. Guaranteeingessentialskillsforall, ineducationandVocational Education and Training (VET), to enablecitizenstothriveinthedigitalage.

EuropeAlliance for Sustainable Investment and Jobs. 12.9.2018COM(2018)643.

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iii. Improving the business environment and facilitatingaccess to finance and business support services toboostdigitallyenabledentrepreneurship.

iv. AcceleratingtheadoptionofeServicesandthefurtherdevelopmentofthedigitaleconomyforachievingtheSDGs.

Thereportbuildsuponavastliteratureonbestpractices,policy and market analyses, and draws on the EU’s

“Digital for Development” (D4D) policy18 and theaspirations of African Union Agenda 206319 —both ofwhich establish the core elements of digitaltransformation as a way of delivering the SDGs. Itcomplementstheworkcarriedoutbyotherorganisationsand cooperation frameworks active in the area ofdigitalisation,20 and defines theway forward for donorcoordination and Public-Private Partnerships (PPPs) toact jointly and coherently to implement the proposedactions.

Sharedvisionofadigitaleconomy

ThepartiesoftheDETFsharealong-termvisionofaninclusivedigitaleconomyandsocietyinwhicheverycitizen—notably women and young people—has the opportunity to participate in the digital world. Dueattentionisgiventothechallengesofjobdisplacement,disinformation,protectionofbothprivacyandhumanrights.Amoreharmonisedsetofpolicies,rulesandlegislationattheregionalandcontinentallevelleadtoincreased investment, while workers and consumers’ rights are protected. eGovernment services areinteroperable and accessible regardless of the country of origin, digital entrepreneurs are able to set upbusinesses with ease at low administrative costs and data. Digital goods, services and physical productsassociatedwithintra-Africandigitaltradecirculatefreelyacrossborders.

Such an ambitious vision requires concerted politicalsupport already emerging on the continent, theinvolvementofgovernments,andthemobilisationoftheprivate sector, civil society, academia and internationalorganisations that have a clear interest in creatingprosperityinthecontinent.

With this vision in mind, the work of the DETF hasbeenguidedbythefollowingmainprinciples:

1. The digital economy process is African-owned andAfrican-led, emerging from local, national, regionalandcontinentalcapacity.

2. Withhumansatthecentreofthedigitaleconomyandsociety,acceleratingthedigitaleconomyshouldalsotackle the existing—and otherwise growing—digitaldivide inmanycountries,payingspecialattentiontothe inclusion of all genders, unserved andunderserved population, persons with disabilities(PwD), refugees and displaced people. Allmeasuresshould be based on the principle of “leave no onebehind” by ensuring that access to affordablebroadbandconnectivity,digitalskillsandeServices is

18 TheEUDigitalforDevelopmentpolicy.Website.19 Agenda2063:TheAfricaWeWant.Website.20 Including, but not limited to: World Bank Group, International

Trade Centre (ITC), International Telecommunications Union

inclusive and does not reinforce or sustains existinginequalities.

3. Digital transformation is a forward-looking agendathat should aim to substantially contribute toachieving the SDGs. In many fields, the Africancontinent has a ‘no-legacy’ starting point, and thisallows leapfrogging development in all areas of life.The digital-by-default principle should be appliedwhensettinguporreformingpublicorprivateserviceswherefeasible.

4. The integrationprocess and regulatory convergenceaimingatthecontinentalsingledigitalmarketshouldbuild on the existing institutional framework of theRECs and the pan-African cooperation within theAfrican Union and the Smart Africa Alliance. TheAfCFTA should be the vehicle for digital marketsintegration, especially for eCommerce. Bothcontinents aim to establish collaboration of bothdigitalmarketstoboostdigitaleconomy.

5. Free flow of data between economies and acrosspolitical borders should be a key element in thedevelopment of an efficient digital economy in theAfricancontinent,aswellas increatingastrong link

(ITU), Regional Economic Communities (REC) in Africa, SmartAfrica,GSMA,I4Policy,AI41.

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with the EU’s Digital Single Market—all within theprivacyframeworksofMalaboconventionandGDPR.Furthermore, data localisation requirements shouldnothinder the competitivenessof national, regionaland continental economies or undermine domesticeconomicdiversification.

6. The digitalisation partnership between Africa andEurope isbasedonmutualbenefits.TheEUandtheinternational community will accompany with thenecessarysupport,especiallybysharingexperienceswith the digital economy and by supporting theimplementation of nationally, regionally andcontinentallydefinedactionplans.

7. The private sector and investors should be at theforefront of the partnership supported by atransparent, predictable and stable regulatoryenvironment;withparticularattentiontotheneedsoftheMSMEsand start-ups. In linewith thisprinciple,skills, knowledge, resources and philanthropy ofAfricandiaspora inEuropeasbridgebuilders shouldbeharnessed.

8. Strong political leadership based on respect for theprinciplesofdemocracyandhumanrightsshouldbethebasis for thedevelopmentof digital integration.Digital tools and services will be built only whileassuringtheadequatelevelofcitizenprotectionfromabuse,limitationstofreedomofspeechandaccesstoonline resources and networks; as well as thestrengthening of their digital skills to invoke theirrights.Clearlydefinedpolicyobjectivesshouldensure

thebestpracticeprinciplesof technologyneutrality,proportionality and predictability underpin allregulatoryactivity.

9. Recognising the vast number of initiatives aimed atassuringuniversalaccess tobroadband,digital skills,boostingentrepreneurshipandthedataeconomy,theproposedrecommendationsandactionsaimtocreatesynergies, avoid duplication of work and improvedonor coordination. Therefore, all means of digitalcollaboration will be utilised to implement to mosteffectiveandefficientwayofcooperation.

10. International commitments and present challengesrelatedtoclimatechangeandnaturalresourcesmustbe taken into account in order to ensure that thedigitaleconomyinAfricawillcontributetosustainableandinclusivedevelopment.

11. Development partners should strengthen efforts bysupportingpolicydialogue,buildingcapacitiesofcivilsociety and providing technical assistance toaccelerate digitalisation policies; and ensure thatdigitalisation opportunities are harnessed toaccelerate the achievement of inclusive, sustainabledevelopment.

CrosscuttingrecommendationsforacceleratingthedevelopmentofthedigitaleconomyinAfrica

F Inlinewiththeprinciplethatsetshumansatthecentreofthedigitaleconomyandsociety,focusshouldbegiventoequippingAfricanpeoplewiththenecessaryskillsforthedigitalage,inordertoenablethemtotake

fullbenefitoftheopportunitiesprovidedbythedigitaleconomy.

F Createcoordinationstructuresbuildingontheexistingstructuresatnational,regionalandcontinentallevel.Thestructuresshouldinvolveallrelevantpolicymakers(digital,finance,infrastructure,education,health,

agriculture,etc.),financinginstitutions,donors,investors,theprivatesector(includingstart-upsrepresentatives),civilsocietyandacademia;andtheymustensurecross-sectorialdialogueonpolicy

development,coordinationofinvestments,identificationoftechnicalassistanceandcapacitybuildingneeds,andharmonisationofrulesatregionalandcontinentallevel.

F Developdigitaleconomyrelatedpoliciesandregulationinareassuchastelecom,dataeconomy,dataprotectionandprivacy,start-uplaws,eCommerceandeGovernment;andpreparebankableprojectsfor

investorswiththesupportofTechnicalAssistanceandCapacityBuildingprogrammes.

F Ensuresynergiesofthemanyinitiativesunderimplementationonissuessuchasmappingofinfrastructure,populationdensity,regulatoryframeworksandotherdatagathering,seekingtoscaleupandincreasetheir

impact.

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1. Acceleratingtheachievementofuniversalaccesstoaffordablebroadband

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Africa isalreadybenefitingenormously fromthedigitaleconomyand society. Traditional economic sectors areadoptingnewgrowthmodelswith risingmobile phonepenetration,enhancedbroadbandInternetaccess,andagrowinguseofeMoneyacrossthecontinent.

Thisunleashesnewopportunitiesforpeople,businessesand governments. The deployment of networkinfrastructure is accelerating, and the number andcapacity of undersea cables that provide Africa'sinternational connectivity have increased sharply inrecent years, as have national and transnationalterrestrial backbones. The construction of high-speed,fibreopticnetworksisacceleratingaswell,bringingdownthepriceforconnectivitytoaseventhofwhatitwasinsomestates.

SatellitetransmissionremainsimportantforAfrica,withsatellite bandwidth covering every square kilometre ofAfrica and providing connectivity beyond the reach ofterrestrial transmission networks. By June 2018 therewere still 724 million people living beyond a 10-kmrange, 469 million beyond a 25-km range, and 244million beyond a 50-km range of an operational fibreopticnetworknode.21

The interlinkages between infrastructure anddevelopment are also well established, facilitatingpoverty alleviation, equality, growth and specificdevelopment outcomes such as job creation, marketaccess,healthandeducation.22

But despite the advances in infrastructure, Internetadoption inAfrica is still low.Thereasons for this issueinclude lack of affordability, digital literacy and skills;language barriers, low access to reliable sources ofelectricity,andalackofaffordabledevices.

Thelackofaffordabilitystemsfromthesupplysideontheone hand, where the high taxation, high costs ofspectrum, highly patented technologies and lack ofmarket competition make deployment very expensive,especiallyinhard-to-reachareas.

The DETF aims to address key challenges facing digitalconnectivityinAfricabylookingatthreemainissues:

• Investment needs in the African connectivityinfrastructure — While investment in Internetconnectivityhasrisenatasteadypaceoverthepastyears, funds remain insufficient to ensure universalaccess to affordable broadband connectivity, asoperatorsfinddifficultiesinaccessingfinancingfromlocal commercial banks. A multi-stakeholderpartnership involving all operators in a country,governments, local regulators, and internationalpartners is necessary to define joint connectivitysolutions, along with joint public-private financing.Moreover, in most of the projects in rural areas,access to electricity will have to be tackled andincludedinthejointprojects.

• Affordabilityandaccesstonetworks,withafocusonunservedandunderservedareasandpopulations—InternetremainsoutofreachformanyAfricans.Largepartsof thecontinent'spopulation remainexcludedfrom the benefits of Internet access and thereforeremainmarginalisedwhencomparedtothesectorsofthepopulationthatarepartofthedigitaleconomy.Intotal,nearly300millionAfricanslivemorethan50kmfrom a fibre or cable broadband connection, andsubstantial disparities exist between rural areas—where nearly 60% of the population lives—and theurbanregions,betweencommunitiesthataremoreorless well-off, more or less educated, as well asbetweenmenandwomen.

• Fragmentation and lack of effectiveness of theregulatory framework and their implementation —The wholesale markets in Africa are generallyunderdeveloped,whilehightaxationratesandVSATslicense feesof telecomservicesandequipmentandcostlyspectrumlicencingregimesdiscourageprivateinvestment and competition. On a broaderperspective, regional harmonisation oftelecommunicationregulationanddigitalpolicieshasbeenanessentialaimforoveradecade—butisstillaworkinprogresswithsignificantregionaldifferences.At the continental level, harmonisation is missingdespite the policy guidelines provided through theReference Framework for the Harmonization ofTelecommunications/ICT Policies and Regulations inAfrica,adoptedbytheAfricanUnioninJune2008.

21HamiltonResearch(2017)AfricaBandwidthMaps.Website. 22StraubS.(2008)InfrastructureandGrowthinDevelopingCountries:

Recent Advances and Research Challenges. World Bank PolicyResearchWorkingPaperNo4460.

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1.1 Definingtheproblem

• InvestmentneedsintheAfricanconnectivityinfrastructure

While Africa' has witnessed a digital revolution in therecentyears,andthenumberofconnectedindividualsinAfrica has significantly increased (330 Million mobileInternetusersinQ42018comparedto17millionInternetusersin2005)23;Internetuserscontinuetorepresentonlya24.4%ofthecontinent'spopulation.24

AccordingtothedataofITUonthedeploymentofopticalfibre and backbone transmission networks, connectivitycapacityvariesstronglybylocation,withAfricaprimarilyconnectedatitsperipherywithinternationalconnectivityinfrastructure(i.e.submarinecables)25.Inthemeantime,countriesinthecentreofthecontinentcontinuetosufferfromadeficitofcross-border,backhaulandlocalaccesstonetworksbackboneconnectivity.

Thus, inequalities between States are significant.Landlocked countries suffer more from a lack ofconnectivitythanmoreadvancedcoastalcountriesinthenorth,southandwest.

The national backbone infrastructure and theinternational Internet connectivity are the two criticalbuildingblocks todriveaccess tobroadband further,asthegrowthofbroadbandsubscriptionshastogohandinhandwiththegrowthofnationalbackbonecapacitiesandinternationalInternetbandwidth.26

However, connectivity issues extend beyond the largesections of the population offline, and those who stillmakeitonlinearefacedwithconnectivityoptionsthataremuchlowerinqualitywhencomparedtootherregions.

Mobile Internet users in Africa experience the mostprolonged delays in Internet speed—particularly whencomparedtoEurope,27andtheoverallqualityandstabilityofInternetconnectionsinAfricaaregenerallyinferiortothosefoundintherestoftheworld.Thecontinenthasthe 23 GSMA(2019)TheMobileEconomy.Website.24 ITU(2018)WorldTelecommunication/ICTIndicatorsdatabase.25 ITU(2019)BroadbandMaps.Website.26 Idem.27 Idem.28 ITU(2016)ICTFactsandFigures.Website.Seealso:GSMAMobile

ConnectivityIndex.Website.29 Woodhouse, T., and Thakur, D. (2018) Improving Mobile

Broadband Quality of Service in Low- and Middle-IncomeCountries.WashingtonDC:WebFoundation.

lowest international connectivity in the globe,with halfthebandwidthofAsiaand thePacificand20 times lessthan that in Europe.28 The slowest median downloadspeeds were found in African countries (0.82 Mbps),followedbyLatinAmericaandtheCaribbean(1.16Mbps),anda vastgapwas identifiedbetween lowandmiddle-incomecountries(LMICs)andcountriesinNorthAmerica(wheremedian download speedswere 4.76Mbps) andEurope(7.06Mbps).29

According to theAlliance forAffordable Internet (A4AI),significant investments will be required to achieveuniversalaccesstobroadbandconnectivity,totallinguptoapproximately US$112 billion, including about US$20billion in satellite investment costs in themost remoterural areas, as well as about US$18 billion to providedigitalskillstoallAfricans.30TheWorldBankisleadingthe“DigitalMooshotforAfrica”initiativeandhascommittedUS$ 25 billion to the required investment, which isexpected to motivate additional investment resourcesfrom multilateral development banks, continuedinvestment from the private sector and investments bythegovernmentsinAfrica.

However, in order to reachAfrican citizens in unservedand underserved areas and populations, a mix oftechnologies, public engagement and new businessmodels31arealsorequired.

The latter may include support and incentives forcommunity networks, or rural service providers using anumberofoptimaltechnologysolutions32.

Forexample,connectingpubliclibraries—aswellasotherpublic buildings—and offering WiFi and dedicatedterminals would allow people to get online and accesstechnology regardless of their resources. Given highpricesfordatainmanycountriesrelativetoincomes,as

30 Alliance for Affordable Internet & Xalam Analytics (2019)Modelling Investment Requirements to Achieve the DigitalMoonshootforAfrica2021&2030ConnectivityTargets.PreparedfortheWorldBank.PreliminaryObservationsofMarchMay2019.

31 ExamplesofnewbusinessmodelscanbeconsultedattheGuidetoHigh-SpeedBroadbandInvestment.

32 SeeexamplesatAllianceforAffordableInternet(2018)2018AffordabilityReport.Website.

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wellasdistrustaboutthevalueofwhat isonline,afreepublic option can be a vital stepping-stone towards'private'access.

Overall,solutionsshalladdressconnectivityissuesspanningacrosstheinternational,backhaulandlocallevel:

i. International connectivity: Countries inAfrica areprogressively linked toundersea Internet cablesor cross-borderterrestrialfibrelinks(particularlyforland-lockedcountries),whilesatellitetransmission(includingthelatestgenerationofKa-bandsatellites)remainsextremelyimportantforAfricaduetoitscoverageofareasoutofreach.33Increasingthenumberofinternationalconnectionspercountrywillincreasecompetitionandbringdownprices,acceleratingthetransitiontoafunctionaldigitaleconomy.

ii. Backhaul:Onceconnectedtohigh-speedInternetattheborder,countriesinAfricarequirebackbonestocarryInternet traffic from the edge to urban and rural centres. Furthermore, backhaul or metro networks arenecessaryforconnectivitytoextendfurther.InternetExchangePoints(IXPs)canalsohelptoreducecostsbydecreasing theuseof international circuitsand improve latency.SESestimates thatabout30%of the ruralpopulation will never be reachable with a fibre backbone. Hence, amix of technologies (mobile, satellite,microwaveandemergenttechnologies)shouldbeconsideredtoprovidereliable,quicklydeployableandcost-efficientinfrastructureconnectivitytoadapttotheconditionsrequiredtoreachbackhaulconnectivity.

iii. Local Access Networks:Once high-speed connectivity arrives at a population centre via international andbackhaulconnectivity,telecomoperatorsmayuseittoprovidedigitalcontentandservices(suchaswirelineandwirelessaccess)topeople,businesses,andgovernments.

• Affordabilityandaccesstonetworks,withafocusonunservedandunderservedareasandpopulations

Trafficcongestion,unstablereception,limitedcoverage,slowInternetspeedsandpoweroutagesconstitutesomeofthemainreasonswhypeopledonotconnect,althoughtheymayverywellhaveaccesstotheInternet.

Fromagenderperspective,mobileistheprimarymeansofInternetaccessforwomeninLMICs34.However,socialnormsanddisparitiesbetweenmenandwomenintermsof education and income influence women’s access toand use ofmobile technology, and often contribute towomen experiencing these barriers more acutely thanmen.

Furthermore, traditional telecommunications businessmodels fail in the field of rural Internet access, astechnologiesusedforhigherpopulationdensityareasarenot adequate and high capital expenditure makes therisksrelatedtoinvestmentveryhigh.

In rural, remote areas with sparse and spread-outpopulation, a viable business case for private actors toinvest in connectivity on their own is often lacking.

33 HamiltonResearch(2017)AfricaBandwidthMaps.Website.34 AccordingtoastudybyWorldreaderandOpera,KenyanwomenspendmoretimeontheInternetcomparedtotheirmalecounterparts.WomennotablyusetheInternetforhealth,education,economy,andpublic service information topics more thanmen do. About half of

Coverage intheseareascannotbeachievedbyasingleoperatorandhastobetackledwithsolutionsincluding—butnot limitedto—extensivenetworksharingmodelsbetween operators and new business models (thatregulatory frameworks should allow) and by anappropriate use of universal service financingmechanisms,includinguniversalservicefunds.

Covering this population in a commercially sustainablewayrequirestakingactionstochangethebusinesscaseof connectivity in these areas. Accuratelymapping theexisting coverage and population distribution withaccurategeoreferenceddatawill allowbetter targetingofinvestmentsbyoperators.

Thus, expanding coverage is more of an economicchallengethanatechnicalone,asareaswithoutcoveragearetypicallyrurallocationswithlowpopulationdensities,lowpercapitaincomelevels,andlessdevelopedornon-existent infrastructure. This results in lower disposableincomeand revenueexpectations (up to ten times lessthan in theurbanequivalent, andusuallyaround three

femalerespondentssaidthattheyspendoverKES1,000tobuymobiledata plan,while only a third of themale respondents are doing so.Increasedcompetitionwilldrivepricesdownandincreaseconsumers’purchasingpower,primarilybenefittingwomen.

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times lower average revenue per user), presenting asignificant obstacle to extending the reach ofcommerciallysustainableinfrastructure.

• Fragmentationandlackofeffectivenessoftheregulatoryframeworkanditsimplementation

A forward-facing digital policy that encourages privateinvestmentrequiresclearandimpartialgroundrulesoverthe medium and long-term, creating an equal playingfield for all actors. Any distortion in the level ofcompetition must be avoided, including existingmonopoliesininfrastructure,backbonenetworksandthemanagementofinternationaltraffic.

AccordingtotheGSMA,countrieswithahigherleveloftaxationaregenerallythosewithrelativelylowlevelsofmobileInternetconnectivityasaresultoftheimpactonprices—andthereforeonthepopulation'sopportunitiesto access mobile services.35 For example, surtaxes onincomingmobiletraffic—awidespreadpracticeinmanyAfrican countries—penalise users, operators, and localeconomiesalike.TheWorldBanknotedthatincountriesthathave loosened their regulatory frameworks, pricesforinternationalcallshavedecreasedbetween31%and90%,andconsequently, internationalcallvolumeshaveincreasedbetween32%and104%.36

In2015,mobileoperatorsreturnedanaverageof35%oftheirrevenueintheformoftaxesandregulatoryfeesinthe12countriesinSubSaharanAfricaforwhichdatawasavailable.37 In 2010, taxes and fees paid by mobileoperators represented 4.1% of total revenues forgovernmentsofallAfricancountries,38anda7%of thetotalrevenuesinSub-SaharanAfricabetween2000and2015.39

35 GSMAIntelligence(2017)TaxingmobileconnectivityinSub-

SaharanAfrica.Website.36 WorldBank(2016)Breakingdownbarriers.WashingtonDC:The

World Bank Group, and: GSMA (2012) Gateway Liberalisation:StimulatingEconomicGrowth.Website.

37 Rogers,M.andPedrosX.(2017)TaxingmobileconnectivityinSub-SaharanAfrica.London:GSMA,

38 GSMA(2011)AfricanMobileObservatory.Website.39 According to Bearing Point, in sub-Saharan Africa, the mobile

phone sectorhad$71billion in tax revenuebetween2000and2012,or7%ofsub-SaharanAfrica’stotaltaxrevenue.

40 Smart Sustainable Development Model Advisory Board (2018)Tools for rapid ICT Emergency Responses and SustainableDevelopment.Geneva:InternationalTelecommunicationUnion.

In the meantime, satellite-receiving antennas are stillsubject to licensing and customs fees that double thecostsoftheequipmentinAfricancountriesandpreventsin many cases the deployment of large quantities ofthem.Thisishamperingthedeploymentofcost-efficientsolutions,includingindisasterreliefsituations.40

At the regional level, the integration of markets couldcreate economies of scale, increase competition, andhighly reduce the overall price of a broadbandsubscription;servingasthefirststepinthecreationofaSingleDigitalMarketontheAfricancontinent.Networkoperators and investors, doing business under aharmonizedsetofrules,coulddecreasetheiroperationcost and invest more in infrastructure deployment.Functional and sustainable Free Roaming Areas canbecome a reality in the RECs, a first building block fortowards pan-African digital integration. Furthergovernment intervention, for instance, in the form ofpublic-private partnerships (PPPs), where appropriateand necessary, may be used to attract private sectorparticipation, and expedite development of Internetinfrastructure.

To unleash the digital potential of the continent, thegovernment's primary role is to create the enablingenvironment forboosting thedigital economy,and theconditionsthatallowtheprivatesectortotaketheleadin developing infrastructure and offering high-qualityInternetserviceswhenthereisamarketcase.41

41 ThisisthemainobjectiveofthePolicyandRegulationInitiativeforDigitalAfrica (PRIDA), launchedby theEuropeanCommission inpartnership with the International Telecommunications Union(ITU)andtheAfricanUnionCommission(AUC).Theinitiativeaimsat fostering universally accessible and affordable broadbandacrossthecontinenttounlockfuturebenefitsofInternet-basedservices.Itsspecificobjectiveistocreateamoreharmonisedandenabling legal and regulatory framework for the use ofInformationandCommunicationTechnology(ICT) forsocialandeconomic development, with an emphasis on boosting thespectrummarketacrossAfrica.

1.2 Policy recommendations and proposed actions

Boostinvestmentintelecominfrastructurefromthelocalaccesstonetworkstoaninterconnectedcontinent,anddevelopfinancialinstrumentsthataretailoredfortheinvestmentspecificityofeachinfrastructureprojectthroughpartnershipsbetweeninvestors,government,financialinstitutionsandinternationaldonors.

Ø Support the creation of structured policy dialogue,based on reliable data and country-ownedassessmentsondigital connectivity at thenational,regional and continental level involving all relevantstakeholdersandpromotingawhole-of-governmentapproachtoinvestmentsinordertofacilitatedigitaleconomyacrosssectors.

Ø Leverage local skills and expertise and assure thenecessarytechnicalassistanceforfeasibilitystudies,development and implementation of bankableprojects.

Ø Buildonandscaleupexistinginitiativestomaptheinfrastructure needs of the African continent,includingthepopulationdensitybybringingtogetherandscalingupalreadyexisting initiatives.Providea

priority list for investments in building themissinglinks, taking into account all connectivitytechnologiesandservices.

Ø Create innovative financial instruments forinfrastructuredeployment inAfricawitha focusonunderserved areas, such as a dedicated telecominfrastructure fund, the use of blended grants andguaranteeschemestoprovidetailor-madesolutionsonacase-by-casebasis.Thenewinstrumentsshouldbe sufficient to assure that countries have aminimumoftwointernationalconnections inorderto ensure redundancy and competition on themarket,andsupportnewbusinessmodelsforareasthat are not commercially viable using publicsupport.

Promoteafavourableregulatoryenvironmentforcompetitiveandharmonisedregionalmarketsinthefieldofconnectivity

Ø Strengthenthecapacityofpolicymakersandregulatorstoimplementharmonisedtelecomrulesattheregionalandcontinentallevel.

Ø Fostertransparent,predictable,pro-investmentandpro-innovationregulatoryframeworksthat:

a) Ensure that spectrum allocations prioritiseconnectivity objectives and overarching developmentgoals rather than maximising short-term governmentrevenues, andenable thedevelopmentof communitynetworkstoprovideserviceforregionsandpeoplewhowouldotherwisebeatriskofexclusionorunder-service.b)Acceleratethereleaseofspectrumtodrivecoverageand guarantee affordability, and develop nationalspectrum roadmaps to provide certainty andpredictabilitytoinvestors.

c) Promote spectrum licences that are of sufficientduration and provide operators with commercial,operational and technological flexibility to make themostefficientuseofthespectrumavailable.

c) Encourage Governments and regulators to furthersupporteffortstoexpandnetworkcoverage,byofferingopen and non-discriminatory access to criticalinfrastructures such as state-owned public

42 Studiesconductedby ITU and theGSMA showthat,across theworld, more than half of the sums collected for USFs were neverutilized,whileoverathirdofthefundswerenotabletodistributeanyof the levies collected. The reports also highlighted that, when

infrastructuressuchaspublicbuildings,roads,railwaysand utility service ducts. Active and passiveinfrastructuresharingshouldbeallowedunderprimarylegislationandencouragedbyregulators.d) Funds collected under the universal service funds(USFs)shouldbeprimarilydedicatedtoruralcoveragepurposes, and the stimulation of further demand insuchareas42.d)Reduceoveralluncertaintyandunpredictabilityinthetaxsystemandfocusgeneraltaxationonprofitsratherthanrevenuesandintroducedirectincentivesforruralarea investment such as import duty exemptions onmobileequipment.e)e)Reduceregulatorybarriersforthedeploymentofdigital infrastructure (such as satellite services highlicence fees for each installation and encouragefollowingbestpracticessuchasinNigeria,SouthAfricaandKenya).

administered ineffectively, USFs can be counterproductive byeffectively taxing communications customers, and therefore raisingtheaffordabilitybarrier.

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f) Are people-centred and enshrine and assure theprotection of end user’s rights, including dataprotectionandprivacy.

Connectunservedandunderservedareasthroughnewbusinessmodelsandpartnerships

Ø Createfinancialinstrumentswiththeinvolvementofnational governments designed to support newbusiness models such as community-basednetworks, the use of a mix of technologies, thereduction of deployment and operation costs,energy/mini-gridsolutionstopowerlocalnetworks,and light and less energy consuming networkinfrastructures.

Ø Usetheuniversalfinancingmechanismsdedicatedtothe development of the digital economy as aguaranteeschemeforinvestmentsinruralareasbytheprivatesector.

Ø Useinnovativespectrumlicensingandmanagementpoliciesthatcancreateincentivesforinvestmentinlowpopulatedareas.

Ø Developdetailedprinciplesandguidelinesonhowtobringconnectivitytoruralareas.

Promotemeasures that increaseaffordabilityofbroadbandand technology tocitizensandprotect themfromcyberthreats

Ø Implement initiatives to help reduce the price ofdevicesandservices forconsumers (i.e.Collaboratewithfinancialinstitutionsandlocalsavingsgroupstoprovideriskcapitalforhandsetloansforlow-incomepeopleatlowerinterestrates).

Ø Adoptappropriatepolicyandregulationinareassuchas taxation to promote the affordability of Internet(i.e.reviewsector-specifictaxesthatmayexacerbatethe cost barrier to mobile ownership and use andsatellitereceivers’deployment).

Ø Reviewthelicensesschemesforsatellitereceiverstoreflect administrative costs and issue blanketlicences.43

Ø Developappropriatelegalandpolicyframeworksthathelp to protect and safeguard digital infrastructure

anddatafromcyberthreats,andprovideasafeandsecureonlineexperiencetoallusers.

Ø Adopt a policy for the frequency spectrumharmonisationforanewgenerationofnetworkssuchas 5G to guarantee the economy of scale to bringservices and products price down affordable toeverybody.

Ø Prioritise connections to public buildings such aslibrariesandschoolsasnodes in localnetworksandas venues where individuals can experience theInternet in a welcoming and neutral environment,andmakeabetteruseoftheopportunitiesofferedbythe African National Research and EducationNetworks(NRENs).44

43 BlanketLicensing:Traditionally,mostgovernmentshaverequired

eachVSATterminaltobelicensed;thiswasinadditiontorequiringanetworkoperator'slicense.However,thereisincreasinginterestinso-called"blanketlicensing.”Withthisapproach,certainclassesof VSATs are configured based upon technical criteria thateliminate the risk of unreasonable interference. Thus, a singleblanket license can be issued covering an unlimited number ofVSAT terminals. See Directive 2002/20/EC of the European

Parliament and of the Council of 7 March 2002 on theauthorisation of electronic communications networks andservices(AuthorisationDirective).

44 Dedicated networks providing affordable high-speed networkconnectivity, applications, services to research, and educationinstitutions.

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2. Guaranteeingessentialskillsforall,ineducationandVocationalEducationandTraining(VET),toenablecitizenstothriveinthedigitalage

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The advent of digitalisation has transformed thedefinitionofliteracy.Alongwithskillsallowingindividualstobothusedigitaldevicesandcreatedigitalsolutionstolocaldevelopmentchallenges,awholesetoftransversalcompetencies proves necessary, especially for womenand young people entering the labour market. Theseentail digital literacy, e-business skills and 21st centuryskills, including critical thinking, problem-solving,creativity, innovation.Theskills that individualsneedtothrive inthedigitalagearehere identifiedacrossthreelayers,eachspanningaspectrumfrombasictoadvancedand including or combining different types ofcomplementaryskills.Acrossallareas,aparticularfocusonbridging thedigitaldivideaffectingwomen,personswith disabilities and marginalized groups will bespecificallytakenintoconsideration.

• Digitalskillsforall–Muchcanbedonethroughproviding foundational skills including literacy,second language learningandbasicdigital skillsto enable citizens to actively participate andsucceedinthedigitalsociety.Peoplearethusnotonly enabled to use their mobiles, tablets orcomputers, but also become critically aware ofwhat the Internetoffers in termsofknowledgeandservices,aswellasofdigitalhygiene,digitalrights and risks in terms of online safety andsecurity. Thanks to these skills, people are alsopositioned as producers of digital local contentandnotonlyasconsumersofdigitalgoods,whichis essential for catalysing entrepreneurshipacrossthecontinent.

• 21stCenturySkills ineducation–Studentsneedto be provided with the right competencies,mainly through formal education, throughintegrating digital and 21st-century skills ineducation curricula. This can be supportedthrough the use of digital technologies ineducation, such as virtual reality, digitalinnovationhubsandtechlabssetupinschools.By developing a thorough understanding ofdigital technologies from an early age, whileacquiringskillssuchascriticalthinking,problemsolvingandcreativity,youngpeoplebecomeableto grasp opportunities of the digital economy,

including those related to their futureemployment. Inthisregard,thedevelopmentofenablingpoliciesforICTineducation,aswellasthesystematicprovisionofrelevanttrainingforteachers,isessential.

• SkillsforICTprofessionals,digitalentrepreneursand public institutions – It proves necessary tobuildaskilledworkforcethroughtheprovisionofdigital and entrepreneurial skills to future orcurrentprofessionalsacrossall sectors thatusetechnology, including TVET programmes.Initiatives targeting workers should focus ondigitalskillsthatarerelevanttoandsoughtafterbythespecificsectorofcompetence(i.e.health,e-commerce, finance) and avoid skilling for thevoid.High-level technical skills, suchasprogramminglanguages and data analytics, as well asknowledge of network and infrastructurearchitecture, including installation andmaintenance, need to be available to studentsandprofessionalsacrossall sectors, in linewithrapidly changing market needs. Dedicatedinitiatives have already been implemented bypartners,withtheprivatesectorplayingaleadingrole in up-skilling professionals in the field.Higher-level educational institutions are alsocrucial in mainstreaming digital skills for ICTstudentsandprofessionals.Ratherthanafocusonconcretetechnicalskillstoimplement digitals tools and solutions, thespecificity of digital entrepreneurs lies inunderstanding and recognizing the benefit ofdigital technologies for innovation. Specific softand technical skills related to bookkeeping,inventories, invoicing, trade, platform-to-business (P2B) and business-to-business (B2B),need to be provided to business owners, toensuredigital enterprises canbe runefficientlythrough digital platforms. They need to beassistedinidentifyingmarketopportunities.

Alongwithprivatesectoremployees,professionalsinthepublic sectorneed tobeupskilled so theycan lead thedigitaltransformationofpublicinstitutionsandservices.

2.1 Definingtheproblem

Closingtheusagegap

Multiple demand side obstacles prevent citizens fromusingmobileinternetservices.Often,theseobstaclesarebigger and more prevalent in low and middle-income

markets,andpastresearchhasshownthatthekeyissuesarenotonlyaccessibilityandaffordability,butalsolackoffundamental digital skills, relevant local content, safetyandsecurity.

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In this regard, a large scale consumer surveycommissionedbytheGSMAin2018showedthatliteracyandskillswereidentifiedasthegreatestbarriertomobileinternetuseoverallformenandwomenalikeinAfrica.45

Impactofdigitaltechnologyonsocietyandchallengesforskillsdevelopment

Lackofcapacityandrelevantskillstoexploitthepotentialoftechnologicaldevicesandwebtoolshasbeenidentifiedas one of the main barriers to Internet uptake indevelopingcountries.Thedigitaldivideinaccessandskillsparticularlyaffectsvulnerableusers,includingthosefromrural and low-income communities, disabled andmarginalizedpeople,aswellaswomen.Whilethegendergap has narrowed in most regions since 2013, it haswidenedinAfrica.Here,womenare25%lesslikelythanmentousetheInternet.46Atthesametime,iftechnologyholds a promise to empower vulnerable communities,there is even more potential in the developing world,wherealowerstartingpointprovidesformoresignificantpotential achievements. To take full advantage ofopportunitiesofferedbythedigitaleconomyatalllevels,adoptingapeople-centricapproachandhelpingcitizensfamiliarizewithdigitaltools iscrucial.Atthesametime,thereisaneedtolowerusagebarriersrelatedtocostsandliteracy, as well as to address stereotypes and genderinequalitieshinderingindividualaccesstotechnology. Inparallel, policy-makers require continuous skillsdevelopment,trainingandawarenessraising,tokeepupwithchangesinthedigitaleconomyandsocietyandtakerelevantpolicydecisions.

Whileasignificantcoveragegapstillpreventsmanyfromaccessing the Internet andonline services inAfrica, thereachofmobilenetworks,togetherwithsatelliteandWi-Fi,hasdramaticallyexpandedinrecentyears,withmobileremaining the infrastructurewith themost coverage inAfrica.Thereisastrongneedforinterventionspromotingskillsdevelopment–bothfromatechnicalandcognitiveviewpoint–anddigitalinclusionforalltohelpcovertheusage gap. Awareness-raising activities in targetedmeasures plays a key role in favouring access totechnology. Promotingaconscioususeoftechnologicaltoolsamongcitizens,includingmobilephones,empowersthem to manage their resources better and to accessknowledge relevant to their everyday life.While this is 45 GSMA(2019)TheMobileGenderGapReport2019.Website. 46 ITU(2017)ICTFactsandFigures.Website.47 AfricanDevelopmentBankGroup(2018)AfricanEconomicOutlook

-Education&SkillsMismatch.Website.48 World Economic Forum (2017) Executive Briefing: The future of

jobsandSkillsinAfrica.Geneva:WorldEconomicForum.

fundamentalfortheirfullintegrationinmodernsociety,italsoallowscitizenstobeawareofdigitalhygiene,therisksanddangersentailedbynavigatingtheweb,includingthedangersofcybercrime.Theskillsneededtothriveinthedigital age are not merely related to the use oftechnological tools. Technical skills need to becomplemented by other competencies, including, forinstance,financialliteracyondigitalfinancialservices(i.e.payments, remittances, credit, savings and insurance),whichboostsfinancialinclusionwithindigitaleconomies.

GrowingYoungPopulationandUnemployment

Africa has one of the youngest and fastest-growingpopulationsintheworld.By2045,thepopulationaged15to24willdoubleto400million.47AccordingtotheUnitedNations,youngpeopleunder15yearsoldmadeup41%ofthetotalAfricanpopulationin2017.Anestimated15to20millionincreasinglywell-educatedyoungpeopleareexpectedtojointheAfricanworkforceeveryyearforthenextthreedecades.48Thiscausesconcernsrelatingtotheavailabilityof suitableemployment,whichaffectsAfricaasawhole.AcrossmostofSub-SaharanAfrica,thelackofproductive opportunities for youth and adults alikeresulted in 247 million people engaged in vulnerableemploymentin2016,reachingaround68%ofemployedpopulation.Whilegrowthintheworking-agepopulationwill likely lead to a marginal decrease in the rate ofvulnerable employment over the next two years, thenumberofpeopleinvulnerableformsofworkisexpectedtoriseby14.6million.49From2030,Sub-SaharanAfricaisexpected to annually introduce more new job seekersthantherestoftheworldcombined.50

Atthesametime,asoneofthefastest-growingindustriesin Africa, digital technology is challenging andrevolutionising the employment landscape. It has beengeneratingahighdemandforqualified, localworkforce,notonlyintheICTindustry,butalsoacrossallsectorsthatcould benefit from digital transformation including intermsofcost-effectiveness,inclusiveaccessandreach,aswellasgrowth.Continuous advancements in technology correspond toan ever-changing labour market. In line with currenttrends,new jobswillcontinuetobecreated,many jobswillbetransformed,andotherswillbelost.Digitalisationisleadingtoanincreasingdemandforprofessionalswho

49 International Labour Organization (2017) World EmploymentSocialOutlook.Geneva:ILO

50 World Economic Forum (2017) Executive Briefing: The future ofjobsandSkillsinAfrica.Geneva:WorldEconomicForum.

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can blend digital and Science, Technology, Engineering,Arts and Mathematics (STEAM) skills with traditionalsubject expertise, such as digital-mechanical engineersand business operations data analysts,who are able tocombinein-depthknowledgeoftheir industrywithskillsforthelatestanalyticaltools,toallowaquickadaptationtoinnovativebusinessstrategies.

Opportunitiesandchallengesposedbynewtechnologieswill further influence investment decisions andautomation may erode labour-cost advantages of low-income countries and lead to reshoring of production.There will also be qualitative effects. Significant first-moveradvantagesinArtificialIntelligence(AI)runtheriskof aggravating the income gap not onlywithin but alsobetween countries,51 while the emergence of digital-platform-based work will have an impact on workingconditionsandrights.

QualityEducationandEducationCurricula

Access to quality educational resources and systems inAfrica remainsachallenge. Studentsdonot seemtobeacquiring the marketable skills necessary to thrive in afast-changing labourmarketandcoursesmaybepoorlymatched with labour market opportunities. Whileenrolment in primary and secondary education hassubstantially been improving, there are still severechallenges thathinderaccess toqualityeducation,withhigh percentages of school leavers missing even basicliteracyandnumeracyskills.Theeducationalfoundationfor further learning is therefore weak. Evidence showsthat higher education levels imply more exposure totechnology,which in turn increases the ability to adaptmore quickly to new technologies. In many countries,educational institutions are the first point of affordableaccess for many users.52 Only a very small minority ofstudentsleavesschoolwithbasiccodingskills.Accesstohigher education for the relevant age group remains at5%,thelowestregionalaverageintheworld,justone-fifthof theglobalaverageofabout25%.53This leads tohighratesofmigrationoftalentforthoseinpursuitoftrainingandresearchopportunitiesoutofAfrica.

Evenwithmostlyimprovedcurricula,Africaneducationalsystemsfailtocovertheneedfordigitalandtransversalskillsandthereforeneedtocollaboratewithotheractors,mostlyfromtheprivatesector,tomeetmarketdemand.

51 Ernst, E. et al. (2018) The economics of AI: Implications for the

futureofwork.Geneva:ILO.52 Hargittai, E. (2002). Second-Level Digital Divide: Differences in

People'sOnlineSkills.Website.

SchoolsandothereducationalinstitutionsinAfricahavelimited network connection and access to technology.Often,evenwhereequipmentisinplace,teachersarenottrained on how to use and educate children ontechnology, which drastically limits their learningopportunities. A focus on digital-oriented teacherdevelopment programmes results in students using ICTdevices not only to develop elementary skills, such astypewritingandbasicwebresearch,butalsotogrowanabilitytousecomputersorsmartphonesasself-teachingtoolsandfurtherdevelopcognitiveskills.

IntheAfricancontext,eLearningisbecomingincreasinglypopularand improvingaccesstoeducationfortheruralpopulation. For instance,Massive Online Open Courses(MOOCs)areonlinecoursesatthehighereducationlevel,whichareoften freeandhavebeen successfully aimingforlarge-scaleandopenparticipation.Inordertoreapthebenefitsofonlinecourses,educationproviders,togetherwith authorities, should be encouraged to discuss howMOOCs could be incorporated into formal educationcurricula,withofficialcreditgiventopositivecompletionof aMOOC. Teachers can also benefit fromMOOCs orother online resources for their own professionaldevelopmentandtokeeptheirknowledgeuptodatewithcurrenttrends,inlinewithlifelonglearningprinciples.Ontheotherhand,focusshouldalsobegiventodevelopingoffline resources and platforms, to ensure that alsodisconnected communities in remote areas can benefitfrominnovativeapproaches.

BuildingaQualifiedWorkforce

ConsideringdemographicfactorsandthedigitaldivideinAfrica, dedicated programmes including educationcurricula and Vocational Education and Training (VET)enable learners to acquire specific skills to develop asprofessionals in the digital economy. Digital, e-businessand 21st Century skills are essential to digitalentrepreneurship, digital transformation, and evensuccessful conceptualisation and implementation ofdigitisationprojectsinboththeprivateandpublicsectors.

Whilelargecompaniesaremoreactiveinofferingtrainingtoup-skilltheirworkforce,MSMEstendtolagbehind.InAfrica,MSMEsprovide80%ofjobsandrepresent90%of

53 Chuks, J. (2017). Challenges and prospects of Africa’s highereducation.GlobalPartnershipforEducation.Website.

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all companies.54 Because of their weight in the Africaneconomy,thereisastrongneedtofostertheirinclusioninactivitiesandprogrammesthataimatimprovingskillsamongworkers.

EmployersacrossAfricaidentifyskillsgapsasasignificantconstraint to their ability to compete in the globaleconomy.Theseinclude41%offirmsinTanzaniaand30%inKenya,while companies inother countries appear tofeel lesspressure,namely9% inSouthAfricaand6% inNigeria.However,thispatternmayworseninthefuture.55

When it comes to up-skilling training activities, privatecompanies deliver intermediate and advanced skills tocovertheirownneedforICTprofessionals.Theyarealsoactive in delivering Corporate Social Responsibilityprojectsfocusingontraining,whichareoftenspecificallydedicatedtoyouth,refugees,peoplewithdisabilitiesandwomen.ThroughVET,governmentshelpaddressmarketfailures focusing on foundational knowledge and skills,with the private sector mostly covering training inproprietary technologies. Collaboration and dialoguebetweenprivatesectorrepresentativesandVETprovidersareneededforjointmarketanalysisandtoensureyoungpeoplecanobtainrelevantworkexperience.

TheRoleofPublic-PrivatePartnerships inAddressingtheDigitalDivide

With the rapid development of technologies, an agilerelationshipbetweenpublicandprivateactorsisessentialtoensure thatpublic trainingcorresponds to theactualneedsandopportunitiesinthelabourmarket.Bybuildingon the technical and financial capacity of the privatesector and the quality brokering capacities of publicactors, partnerships provide an added value forreplicatinggoodpractices,adaptingthemtospecificlocal

contexts.HenceastrongneedtoshareexperiencesthathavealreadybeensuccessfullyimplementedbypartnersinAfricaandEuropetoreplicatepositiveoutcomesonawiderscale.

Local authorities and civil society play a crucial role inensuring that learning opportunities do not remainlimited to private sector employees, but that they areaccessibletoabroadaudience,regardlessoftheirageorstatus. They also guarantee that educational content isrelevanttothelocalcontext,inthespiritofownershipandeffectiveness.Inthiscontext,itisfundamentaltoensurethat policies and programmes investing in digitalisationtargetthewholepopulation.Addressingthedigitaldivideinallitsformsmeanstakingintoaccountseveralcrosscuttingissues,includinggender,disability,diversityandinclusion.AdoptingstrategiesthatfocusonbridgingthegenderdigitaldivideisnecessaryforAfricancountriestohaveasuccessfuldigitalfuture.Whileensuring widespread Internet and technologypenetration,policiesfocusingonskillsshouldrespondtothedifferentbarriersfacedbyanyone,regardlessoftheirsocialandeconomicstatusandwhethertheyliveinurbanor rural areas. For quality content to reach asmany aspossible, curricula and materials need to be tailoredaccording to the local context and delivered in locallanguages,whererelevant.Beyondformaleducationandtrainingopportunities,itisimportanttotakeintoaccountsolutionswhichcanreachandprovidefreeresourcesforskills development to everyone, including adults andchildren in schools without access to broadband orequipment.Anotableexampleisconstitutedbylibraries,which hold the potential to benefit adults throughouttheirlives,aswellastocomplementschools.Librariescanalso be important venues for informal and non-formallearning, as well as undirected access to and use ofinformation.

2.2 PolicyrecommendationsandProposedActions

Work towardsdevelopingpartnerships throughamulti-stakeholderAfricanAlliance forDigitalSkillsand Jobs,whichinvolves African and European partners, to engage in policy dialogue and raise awareness among policymakers todevelopdigital-by-defaultpoliciesandtoharmoniseeffortsatthecontinental,regionalandnationallevel,basedonathoroughassessmentofmarketopportunities.

Ø Engage public stakeholders, private companies,international organisations and donors, universitiesand NGOs, set up clear Key Performance Indicators(KPIs) and a dedicated expert group to (i.) deliverexpertise on market needs and review, co-create

54 Sultan, T. (2019) Here's why smaller companiesmake themost

valuablepartners.WorldEconomicForum.Website.

educationcurriculaatalllevelsandestablishnewVETprogrammes focusing on digital skills; (ii.) promoteexposure of students and teachers to work-basedlearning; (iii.) engage with network operators and

55 Hall,M.(2017)CloseSkillsGapstoPrepareAfrica’sWorkforceforTomorrow’sJobs.WorldEconomicForum.Website.

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equipment producers, both on a pan-African andregionallevel.

Ø Support knowledge transfer, exchange programmesbetweena)innovationhubsandresearchcentres,andb) incentivizing mentorship or role modelprogrammes.

Ø Establish a capacity development programme tosupport African policymakers, regulators and otherpublic sector representatives in taking digital-by-default decisions on digital and transversal skillsdevelopment,includingonAIanditshumanrightsandethicalimplicationsandexchangingknowledgeofnewconnectingtechnologies(i.e.satellite,Wi-Fi,LTE5G).Thisshouldbedoneindialogueandcollaborationwiththeprivatesector,ultimatelycontributingtocreatingafavourablebusinessenvironment.

Ø Developforecastingtoolstoanalysetheexistingskillsbase and evolving needs in the labour market andcreate a nationally-coordinated multi-stakeholdermappingofrelevantinitiativesimplementedinAfricato facilitate identification and scaling-up of bestpractices.

Ø Developdedicatedfundingmechanismsfordigitalandtransversal skills development training, and adoptsupporting instruments tomake trainingatall levelsmore inclusive and affordable on the basis of goodpractices and an understanding of the local context(i.e.voucherschemesforICTtrainingforunemployed

andcitizensinneedofITtrainingofferingfullorpartialcoverageoftrainingfeesbygovernments).

Ø Setupincentivemechanismsanddeveloparegionalqualification framework for African institutions tobecome centres of excellence delivering training onICTinlinewithmarketneedsandbasedonknowledgesharingbetweenEuropeanandAfricanpartners.

Ø Designpolicies throughahuman-centricandholisticapproachthattakeintoaccountthelocalcontextandrelevant crosscutting issues at all stages of policydesign and implementation. A specific focus onwomen,peoplelivinginremoteareas,disadvantagedand marginalized communities, including refugees,disabled people and unemployed people, isencouraged through a dialogue that involves thesetargetedgroups.

Ø Providesupportforcapacitybuildingofpolicymakerstoallowthemtoidentifyopportunitiesforthedigitaleconomy at large, and e-services more specifically,and provide demand-driven technical assistance forthe implementation of nationally identified actionplansandprojectstoacceleratethedigitaleconomy.

Ø Providesupportforcapacitybuildingofpolicymakersandlawenforcementtostrengthencybersecurity.

Ø Provide support to civil society for digital rightsawarenessanddebatestostrengthentheirroleaskeyactorsinthedigitaleconomy.

Mainstreamdigitalskillsandresponsibleonlinebehaviouramongallcitizenstoenablethemtobeactiveandsuccessfulparticipantsinthedigitalsocietyandraiseawarenessofrisksintermsofdigitalrights,onlinesafetyandsecurity.

Ø Buildmulti-stakeholderpublic-privatepartnershipstoprovidetrainingonresponsibleonlinebehaviouranddigital hygiene, with a focus on the use of mobilephones, i.e. via local networks of agents of relevanttelecomcompanies.

Ø Ensure that online services that are relevant to theeverydaylifeofcitizens(i.e.eGovernment,eLearning,eAgriculture etc.) are tailored to different levels ofliteracy, including financial literacy and digital skills,ensuringrecognitioninnationalandsectorstrategies.

Ø Invest in education initiatives that increase mobiledigital literacy and confidence for men and women

acrossall levelsofeducation, incomeand familiaritywithmobileandthe internet;andworkwithtrustedlocal networks to deliver digital skills training, forexampleinpartnershipwithamobileoperator.

Ø Scale-up training programmes on digital financialliteracy, including those on remittances targetingmigrantsandrefugees.

Ø Integratelibrariesandotherlife-longlearningvenuesinto digital skills strategies, supporting theirengagement with adults and children outside ofschools, and draw on their existing expertise ininformationliteracyskills.

Promotedigitalandtransversalskillsinschoolsandothereducationalinstitutions,byreviewingeducationcurriculainaccordancewiththeevolvingneedsandtrendsinthedigitaleconomyandsociety.

Ø Revieweducationcurriculaaccordingtocurrentneedsand trends in thedigital society, economyand labourmarket,witha focusonSTEAMandacombinationofdigital,21stcenturyande-businessskills,acrossallareasoflearning.

Ø Promote gender-inclusive education frameworks andpoliciesandboostrelevanteducationopportunitiesanddigital skills development for women and girls inSTEAM-subjectstonarrowthegenderdigitaldivide.

Ø EncouragediversityandinclusioninSTEAMeducation.

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Ø Provideschoolsandothereducationalinstitutionswithtechnologyequipmentand,wherepossible,broadbandInternet connection. More advanced equipment willneed to be provided by companies in work-basedlearning systems. In parallel, ensure that teachersaccessdigitaltrainingandpromotethedevelopmentoftrain-the-teachers programmes, both for their ownprofessional development and for educating studentsontheuseoftechnologytohelpcreateascale-upandmultipliereffect.

Ø Promote technology-supported learning, includingcreating and scaling-up eLearning platforms, whichoffer instant access, and use open educationalresources. Ensure that innovative digital knowledgeproductsandlearningopportunitiesreachpeoplefromdiverse educational, social backgrounds and regions,

alsobyensuringallplatformshavemobileversions.Toenhance access, the creation of specific offlinefunctionalitiestargetedtothoselivingindisconnectedremoteareasisencouraged.

Ø Support the establishment and scale-up of onlinehigher-level education institutions,with curricula thatcombine STEAM with transversal skills. Support thedevelopment of learning communities active withinonlineplatforms,topromotepeer-to-peerlearningandexchangeofbestpractices,asamodelincludingamixofblendedlearningtoenhancecompletionrates.

Ø Scale-up projects and programmes that apply anintersectional approach to promote institutionalnetworking and support quality higher education inAfrica, tailoring policies and actions to the needs ofregionalandnationallabourmarket.

Facilitate digital skills development across all sectors of the economy that use technology with a specific focus ongovernments,administrations,serviceprovidersandcivilsocietythroughtheprovisionofdigitalandtransversalskillstothoseenteringoralreadyengagedinthelabourmarket,includingICTprofessionalsanddigitalentrepreneurs.

Ø Createaskills-relatedpolicyenvironmentthatkeepsup with digital entrepreneurship and ensures abusinessenvironmentwheretrainedprofessionalsarelinked with relevant business opportunities, whichservesasaplatformtopropagatelifelonglearningintherapidlychangingdigitallandscape.

Ø Ensure that training initiatives targetingexistingandfuture workers across all sectors, including ICTprofessionals, encourage computational thinking,21stcenturyskillsandprovideadvanceddigitalskills.

Ø Promote learning opportunities delivered by publicand private partners for workers across all sectors,including VET, on-the-job training and rapid-skill-trainingaswellasknowledgesharingandmentoringwithinnationalandregionalinnovationhubs.

Ø DesigntrainingprogrammesondigitalandtransversalskillsspecificallytargetingMSMEsandstart-upswithininnovationhubs,atthenationalandregionallevel.

Ø Create a system of fiscal incentives for companiesoffering basic, functional or advanced digital skillstraining.

Ø Develop targeted learning opportunities to enhanceskillsamongAfricanwebcontentdevelopers.

Ø Promote the enhancement of digital skills throughadvanced in-company training and on-the-jobtraining,aftereducationandcapacitybuilding.

Ø Incentivize localand internationalcompanies tohireand train young African inexperienced humanresources for local jobs or in the context of circularmigration.

Ø StimulategovernmentstousemorelocalIT-resourcesand train them on the job, using internationalexpertisetodeliveron-the-jobtraining;

Ø Adjust the international tenderprocesses to includethe possibility to make more use of locallytrained/educatedpeople.

Ø Stimulatenationaldiasporareintegrationandprovidetargetedon-the-jobtraining.

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3. Improvingthebusinessenvironmentandfacilitationaccesstofinanceandbusinesssupportservicestoboostdigitallyenabledentrepreneurship

31

Digital entrepreneurship can be an engine for thedevelopment of Africa in the 21st century, and thedevelopment of successful enterprises is inevitablyintertwined with digital skills. Digitalisation has thepotential to bolster the local economy in an inclusivemanner,allowingindividualstoworkfromremoteareasandgivingemploymenttothosewholacktraditionaljobopportunities, including persons with disabilities,marginalized groups and rural communities. Digitalentrepreneurship also plays a vital role in promotinggenderequality,bridgingthedigitaldivideandimprovingtheinclusionofwomenforeconomicandsocialgrowth.

Digitalentrepreneurshipcanbedescribedasthecreationof market and opportunity-driven initiatives that areenabledordeeply impactedbydigital technologiesandtools, including the Internet,mobileapplications, socialmedia,cloudcomputing,andAI.56

Key challenges faced by digital entrepreneurs in Africamainly revolve around three issues, which can beaddressed through joint efforts of stakeholders withintheTaskForceandbeyond.

• Regulatoryandadministrativebarriersandgaps– Ensuring flexibility and adaptability ofregulators is one of the most critical successfactorsforathrivingdigitaleconomy.Giventhespeed atwhich technology is being developed,scaled and adopted, the needs for acomplementinglegalandregulatoryframework,alongwithinformationavailability,havebecomecrucial in enabling the success at the country-level and the internationalisation of digitalentrepreneurs. The critical need lies insimplifyingbureaucracy,enhancingstabilityandtransparency.Workingatthecontinentallevelisfundamental to reduce foreign exchange andother transaction fees to spur digital andfinancialinclusion,withstreamlinedandrelevantanti-moneylaunderingmeasures.

• Capacitybuildingsupportforthedigitalstart-up

eco-systematthepolicy,fundingandskillslevel– These gaps can be addressed thoughidentifying and responding to capacity buildingneedsofdigitalentrepreneursinareasincludingaccess to markets, regulations, legalrequirements,IPRs,accesstofinance,aswellas

56 Nambisan,S.(2016)DigitalEntrepreneurship:TowardaDigital

TechnologyPerspectiveofEntrepreneurship.EntrepreneurshipTheoryandPractice41,no.6.

from a technical skills perspective. Digitalentrepreneurs who provide services needsupportandtechnicalassistancetodeveloptheircapacitiestocreate,designanddelivertheirownproductsandservices.Furthermore, start-ups need coaching,mentoring and technical support to turn theirinnovativeideasintoaprofitablebusinessguidedby a sound business model. Entrepreneurship-supporting structures, including incubators,accelerators and technology hubs, and theservicestheyprovideforstart-upsarecrucialtoensure that these start-ups harness their fullpotentialtofindmarkets,accelerateandgrow.This includes addressing gaps in creative andtechnicalskills(user-centreddesignthinking,UXdesign,dataanalytics,etc.),andatthebusinesslevel (marketing, business mentoring, riskmanagement,accounting,etc.)ThereisaneedtoattractAfricanbusinessownerstoinvestheavilyin the sectors by raising awareness, includingthrough the creation of local, African-ownedbusiness angel networks and by increasing theintegration of digital African ecosystems atregionalandinternationallevel.57deplouTherefore,universalmethodsandstandardsareneededtoenablethegrowthofthestart-upeco-system, linkingtechnicalsupportwithaccesstofinance.

• Incentives and an enabling environment fordigitalandfinancial inclusion–Thesolutionliesinaddressinginsufficientaccesstofinancetothedigitallyconnectedyetuntappedandunbankedpopulations, as well as the large informalentrepreneurialsectors.Thisincludesenhancingaccesstoinformation,creatingplatformswhereentrepreneurs can seek funding resources fortheir growth, as well as improving financialproducts and services tailored to the specificneedsofstart-upsinthedigitaleconomy.Mobileconnectivity has become an enabler for banksandtelecomproviderstoreachouttopreviouslyunbanked customers with low-cost, accessibleservices.The initial steps towards incorporatingthe untapped segment are primarily policy-

57 i.e.bypromotingparnershipsbetweenincubators,technologyhubsandstart-ups.

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driven,wheretheeaseofaccountopeningandoverall mobile and e-service adoption isconsistentlypromoted.Thereisaneedtodesignappropriate incentives that align with national,regional and African mandates for serviceproviders (digital entrepreneurs), regulators(central banks) and consumers. Regulatory

frameworks should facilitate market entry ofinnovative, technology-driven financial serviceproviders, which include, inter alia, mobilenetwork operators, peer-to-peer lenders,paymentbanks.Atthesametime,theyneedtoaddress the risks of digital financial services,includingover-indebtednessanddataprivacy.

3.1 Defining the problem

Economiccontextandopportunities

Throughout the last fewyears,Africaneconomieshavebeen resilient and gaining momentum. Real outputgrowthwasestimatedtohaveincreasedby3.6%in2017andexpectedtoaccelerateto4.1%in2018and2019.58To create more jobs, there is a need for structuraltransformation.Economicdiversificationiskeytosolvingproblems in the challenging demographic structure ofAfrica. Entrepreneurship plays a crucial role in net jobcreation, inclusive economic growth and povertyreduction. A growing number of entrepreneurship andtechnologyhubsbooststheentrepreneurialenergiesofthecontinent.Digitalentrepreneurshiphasbeengrowingsteadily in African urban centres, with services andproductsthatare“mobilebydefault”,andoftenaimtostreamline value chains, in particular through digitalcommerce. In a context of low offer of formalemployment, digital entrepreneurship provides newlivelihoodopportunitieswithlowinitialinvestmentcosts,in countries where few employment opportunities areavailable. They can thus have an indirect effect as rolemodels on the wider economy and support the digitaltransformation of traditional sectors through theinnovationtheymarket.

Mobiletechnologyprovidesaversatile,low-costplatformof opportunities for entrepreneurs. The mobile techsectorhasbecomeanessential contributor to theSub-Saharan African economies. The mobile ecosystemdirectlyor indirectly supportedalmost3million jobs in2017. In addition to the impact on the economy andlabourmarket,themobilesectoralsomakesasubstantialcontribution to the funding of the public sector, withalmostUSD14billionraisedin2017,takingintoaccount

58 AfricanDevelopmentBank(2018)AfricanEconomicOutlook

2018.Website.59 GSMAIntelligence(2018)TheMobileEconomy:Sub-Saharan

Africa2018.Website.

general taxation aswell as sector-specific levieson theconsumptionofmobileservices.59

AccordingtotheMcKinseyGlobalInstitute,inthelastfiveyears, private consumption in Africa was the fastestgrowingofanyregionexceptforemergingAsia,despitethenotableeconomicslowdownof2014-2015.Overthesameperiod,thecontinentoutperformedGDPgrowthofbothCentralandEasternEuropeandLatinAmerica,by2.3%and2.5%respectively.60Theprivatesectorhasthepotential tobecomeadriverofeconomicdevelopmentand job creation but faces significant constraints onaccess to finance, with financial ecosystems remainingdominatedbybanks.

RegulatoryFrameworksandPolicies

Developinganurturingecosystematall levels increasesthesuccessofdigitalenterprises.Frompoliciestospecificsupportprogrammes, therearemanycomponents thatinfluencethesuccessorfailureofdigitalentrepreneurs.Failure at any point may result in a less successfulecosystem that is not able to support the creation ofinnovationsandtheirmarketentry.61Inordertofulfilltheneed for amore coherent and less complex regulatoryframework, several challenges need to be addressed.Barriersincludecomplicatedadministrativeprocesses,aswell as high taxes and transaction costs. In addition, acomprehensive approach to IPR protection is missing.This prevents small firms from formalising theirbusinesses,accessingpublictendersandachievingscalethroughregionalexpansion.

Besideshumanresources,theassetsonwhichmoststart-ups rely are immaterial, ranging from innovative ideas

60 Bughin,J.etal.(2016)LionsontheMoveII:RealizingthePotentialofAfrica`sEconomies.McKinseyGlobalInstitute.Website.

61 ITU(2017)BridgingtheDigitalDivide:AToolkitforStrengtheningICTCentricEcosystems.Website.

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and concepts to methods and approaches thatinnovation managers develop, scale and bring to themarket. These intangible assets must be protected byadequate frameworks. Therefore, public support toencourageand facilitatepatentingandotherprocessesrelated to intellectual property constitute a nationalinterest.

MSMEs are fundamental drivers of the economy, yetmanylackaccesstofinancetotradeandgrow.Thereisaneed to identify what advancements technologicalinnovationsoffertohelpMSMEsgainaccessto lendingfacilities and how these can be supported withappropriate regulation and government backing.Regulatoryenvironmentsneedtoallowformarketentryand growth of a diversity of providers, including thosewithbusinessmodels that targetMSMEs. Finally, dataprotectionandcybersecurityare key inensuringdigitalservicesarereliableandtrusted.Thisstressestheneedtosetupastrategytospeeduptheratificationandtheentry into force of the Malabo Convention across theContinent.62

Ontheotherhand,progresshasbeenmadeinincreasingtheeaseofdoingbusinessinseveralcountries.Withfoureconomies—Côted’Ivoire,Kenya,RwandaandTogo—,Sub-SaharanAfricaisthemostrepresentedregionintheWorldBankDoingBusiness2019listof10topimprovers.MauritiusandRwandaareamongthetopthirtycountriesat the global level. Four countries – Kenya, Malawi,RwandaandZambia–arerankedamongtheglobaltoptencountriesintheGettingCreditranking,whileRwandascores second best when it comes to RegisteringProperty.63Thisevidenceensuresthatthereisgroundforsharingknowledge,experiencesandlessonslearnedandthat best practices can be replicated within theContinent.

FundingandAccesstoFinance

Digital entrepreneurs in Africa often lack access tofunding to setupandgrow their activities.On theonehand, this is because of the perceived and real risksrelated to investing in digital entrepreneurs, while thereluctancy of many local financial institutions is oftenexplained by their limited experience with innovative

62 SeefulltextoftheAfricanUnionConventiononCyberSecurityand

PersonalDataProtection.63 World Bank (2019) Doing Business 2019: Training for Reform.

WashingtonDC:WorldBankGroup.64 PartechPartners(2019)2018wasaMonumentalYearforAfrican

TechStart-ups,withUS$1.163Billionraisedinequityfunding,a108percentYoYGrowth.Website.

technologyandbusinessmodels.Theseobstaclescanbetackledbyprovidingaccuratedataandguarantees.Lackofupdatedinformationandmarketingskillsalsoconcurin preventing entrepreneurs from accessing publicfunding opportunities available and to network withearly-stage venture capital firms. On the investor side,limited awareness or unconscious bias towards digitalmarketpotentialinAfricaoftenhinderstheirwillingnessto respond toneeds for capital, frompre-seed to seedstages.Evenwhendigitalenterpriseshavebeencreatedand successfully established in the market, lack oftailoredregulationandpoliciesresultsinhightransactioncostsandtaxes.

Given the desire and potential of African techentrepreneurs to thrive in the global economy, theavailability of adequate financing vehicles, both in thepublic and private sector, will prove essential tomakethemthrivenotonlyinthelocalmarketbutalsotogivethemthemeanstoexpandandfindnewmarkets.Toolslikecrowdfunding,angelinvestments,privateequityandventure capital are still at an embryonic stage inmanyparts of the world including Africa, both in terms ofavailability and regulation. The amount of fundingspecificallyavailabletostart-upsisincreasingbutremainsinsufficient.Accordingtoanalysisfrom2019,theamountof funding allocated toAfrican start-ups located acrossthe54countriesofthecontinent in2018wasbetweenUSD0.5billionandUSD1.1billion,around5-6timeslessthan the funding received by start-ups in India for thesame year, with the size of Indian population beingcomparabletoAfrica.64

Theneedforsourcesoffundingotherthanbankloansisstrong.AccordingtotheD4DCoalition,65thereisalackofopportunities to connect between African high-growthcompaniesandventurecapital funds,angel investmentand crowdfunding. There is a strong need to invest insmall investment tickets, togetherwith trainingon softand business skills, for thosewho cannot benefit fromfunding instruments targeting large-sized enterprises.Choicesof investorsarebasedontheir riskperception,which influences the adaptation of their pricing,especiallywhenitcomestolong-termfunding.Basedonsuccessful exponential growth of the impact investingsector beyond the micro-finance industry, i.e. mobile

65 The D4D Coalition consists of six European digital companies(Ericsson,Nokia,Orange,Philips,SAP,SES)andtwodevelopmentagencies (GIZ and Enabel, supported by the governments ofGermanyandBelgium).

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telephony, eMoney, distributed energy and remoteInternetaccess,whichcametoembracetheleapfroggingeffects of technology across services like fintech,cleantech,healthtech,agtechandedtech,newmodelsofblended finance impact fundsweremadeaccessible torural population. These catalyse capital to addressfinancinggapsandinvestinstart-upsinAfrica,reachingthemostremote locations.There isoverallnotenoughdepth in the market to ensure exits for funds with alimitedtimehorizon,andfundsthatlackaqualitystart-upspipeline.

KnowledgeSharingforMarketVisibility

Financeandmarketingarethetwointerconnectedpillarsonwhichentrepreneurs rely forgrowth.TechhubsarecurrentlythemainactorsprovidingspecializedbusinesssupportinAfrica.AccordingtoGSMA,from2016to2018,thenumberofactivetechhubsacrossAfricahasgrownover 50%— from 312 in 2016 to 442 in early 2018.66Despitetheencouragingnumbers,onlyasmallnumberof thesehubsareeffectivelysupportingthebuild-upofsoundpotential investmentopportunities.This ispartlydue to theabovementioned lackofadequatesupplyofventure capital, but also to difficulties faced by activetech hubs in building sustainablemonetisationmodels.Thisoftenresults in innovationhubmanagersfinancingtheirstart-upsupportactivitiesthroughamixofrevenuemodels, including consulting to corporates and officespacerentalforco-working.Suchconstraintsposeseverelimitstotheirabilitytoexpandandgetthemostoutoftheir activities, while they are able to manage theirlimited resources efficiently, thanks to their excellentknowledgeofthelocalmarket.

Following theWorld Bank study on African technologyhubs,67mappingthetechecosysteminthecontinenthasbecomepivotaltokeeptrackoftheever-increasingroleinnovation and entrepreneurship play in Africaneconomies. Tech hubs today are efficient vehicles notonlytoattractcapitalandexpertisebutalsotoleadthedebate around technology and progress. Therefore,incubators,accelerators,andinnovationcentresneedtobestrengthenedandconnectedwithothernetworksofexcellence.Knowledge-sharinginitiativeswithEuropeanhubs,aswellasconnectionswithinAfricaandwithotheremergingmarketsarekeyinfacilitatingnetworkingandcompensate for the lack of management expertise.Regional collaboration and linkages can be taken

66 Bayen,M.(2018)Africa:ALookatthe442ActiveTechHubsofthe

Continent.GSMA.Website.67 WorldBank(2016)MapofTechHubsinAfrica.Website.

advantageoftocreateavaluechainofinnovation,wherespecificcountriesplayahotbedrole for ideation,whileotherswouldbenefitfromscaling-upprocesses.

Market Accessibility and Information Availability andQuality

Within the context of digital entrepreneurship andfinancialinclusion,thereisalackoftheinfrastructuretoconsistently and accurately inform people on theavailability of products and services, as well as to giveserviceproviders insights intoconsumerneeds.Besidesdata, a focus on user-centred design thinking andinnovative business models are key in understandingneedson theconsumer side. It isessential that serviceproviders,includingbanks,havethemeanstocollectandaccess nuanced information that would help themquantify the risks and costs involved in serving theirpotential clients, especially for those in the untappedsegment. Anonymised and aggregated creditinformation, whether behavioural-based or gatheredthroughothermethods,arevital tobeingabletoservethe unbanked most beneficially. Effective policy andrulemaking by regulators require reliable sources toinform them regarding all aspects ofmarket dynamics.There is a lack of promotion of open banking services,whichactasenablersfordigitalentrepreneurs,bygivingthemthebestaccesstorelevanttoolsandinformation.

Several examples of collaboration between largecorporations and start-ups can be found on thecontinent. Often these involve mobile operators andbanks,whichareamongthelargestcorporationsacrossmost African markets. These collaborations can drivesignificant synergies and really allow start-ups to scale.However,theyarestillnotasfrequentandorganicastheecosystemneeds.68

AdditionalChallengesAffectingDigitalEntrepreneurship

Additional challenges that limit the success of digitalentrepreneurship inAfrica are related to the impactofonlineservices,includinge-commerceamongthepublic.Theseincludelimitedconnectivity,lackofawarenessandskills,unreliableelectricsupply,aswellaslackofsecurityand mistrust towards online services, which are easilymistaken for scams. Online shopping in Africa is alsoaffected by limited access to banking systems andunreliablepostalservices,whichmakeit lessaffordable

68 Ajadi,S.etal. (2017)BuildingSynergies:HowMobileOperatorsandStart-upsCanPartnerforImpactinEmergingMarkets.GSMA.Website.

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and popular among potential customers, especially inruralareas.

In linewith all other priorities discussed in this report,fostering entrepreneurship requires addressing thedigital divide, especially concerning gender anddifferences between rural and urban areas. Digitalentrepreneurshipisalsoaprovenkeyenablerforpeoplewithdisabilities.Allvulnerablegroupsofsocietyneedtobe specifically targeted in policies and programmestargetingdigitallyenabledentrepreneurship,keeping inmindthattheirtwofoldroleofclientsandentrepreneursneeds to be empowered. Creating a programmaticapproach that allows individuals to self-select and take

advantageofacareeroptionthatdidnotexistbeforecanbe supremely valuable, not only for individualprofessional development but also to develop aninclusivesociety.Whilethereisstillenormousroomforimprovementtoachieveinclusioninbusiness-alsobasedonthewiderangeofdifferentnationalneeds-thereareinitiatives that can be scaled up across Africa with therightpartnershipsbetweenpublicandprivatepartners,along with civil society. These range from targetedtraining to specific support programmes, which shouldinterlink technical support and access to finance viaAfrican-ownedmethodsandapproaches.

3.2 Policy Recommendations and Proposed Actions

EstablishandstrengthenpartnershipsbetweenAfricanandEuropeanpartners,aswellasamongAfricanregionalactors,toharmoniseeffortsrelatedtodigitalentrepreneurshipatthecontinental,regionalandnationallevel.

Ø Embeddigitalentrepreneurshipinregionalandnationalpoliciesandenablestructuredpolicydialoguebetweenpublic and private partners to inform policymakersaboutthemostpressingactionstobemadeincreatingafavourableenvironmentfordigitalentrepreneurship,with a focus on building on regional and nationalpartnerships. This includes envisioning acomprehensive approach for the ecosystem, whichtakesintoaccountcreativeandbusinessskills,accesstofinance, mentoring, entrepreneurship support andskills,simplifiedandstableregulatoryenvironment.

Ø Providecapacity-buildingsupporttotheAfricanUnionCommission and theRegional EconomicCommunitiesin integrating markets and promote legislation onregistration, ease of doing business and mobilepayments integration across borders for digitalentrepreneurs. Additionally, exchange on successfulmethods and approaches should be furthered todevelopAfrican-ownedpractices interlinking technicalsupport to access to finance throughout the wholestart-updevelopment-cycle.

Ø Provide capacity-building support for nationalgovernments insettingupnational start-upstrategiesandstart-up laws intermsofboth legislationframing,

benchmarkingandenforcement.Investinresearchforstart-up acts. This should be based on a multi-stakeholder, bottom-up approach and takingentrepreneurs' point of view into the legislationprocess.

Ø Apply open source consultation tools andmethodologiesforpolicyco-creation.

Ø Fund regional and sub-regional knowledge-sharing,trainingandtechnicalmeetings,addressingtheneedsofthedigitalecosystemsandcreateopeneducationalresources.

Ø Validate and certify innovation hubs andentrepreneurshipincubatorswithafocusonexpertiseinthedigitaleconomy,ensuringtargetedsupport, i.e.in terms of specific design-thinking and digitalinfrastructureinthehubs.

Ø Create an EU-Africa Start-up Initiative aiming atsupporting knowledge sharing between African start-upsandtheEUmarkettoincreasemarket-access.

Ø EstablishanetworkofEuropeanandAfricaninnovationhubsforknowledgesharingwherebyAfricanhubscanshareexperienceswithEuropeanhubsinpolicyreformprocesses, and support relevant co-created policyprocessesinEurope.

AdaptthelocalregulatoryframeworktotheDigitalEconomyatalllevelsthroughoutthevaluechain,toensureflexibilityandeaseofdoingbusinesstodigitalenterprisesofallsizes,MSMEs,start-upsandsocialenterprises.

Ø Support the development of national and sectoraldigital transformation strategies, which will createdemandandallowscalingupofdigitalinitiatives.

Ø Co-designregulationswiththeprivatesectortocovernew business areas, including Fintech, and set up a

coherentopen-sourcesoftwarepolicytohelpopenupthemarkets. Toensure inclusionandahuman-rights-based approach, close collaboration with civil societyand multi-stakeholder dialogue involving thegovernment,administrationsandserviceproviders,as

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well as citizens, are required. Strengthen, raiseawarenessandfacilitatetheprotectionofIPRs.

Ø Drive governments to take an active approach andinvest in Research & Development, with a focus oninnovation and start-ups andencourage governmentsto co-invest into start-ups to de-risk and leverageprivateinvestment.

Ø Digitalise services that relate to running a business –including for taxes,permitsand licences–andreviewprotectivemeasurespreventingnewmarketentrants,as well as non-tariff barriers on the cross-border

exchange,ultimatelyenhancingaccessandsimplifyingprocedures.

Ø Reform public procurement regulations to promoteopen public procurement policies, increasingtransparency and accountability while applying start-up-friendlypolicies, allowing companieswithno trackrecord and insufficient turnover and references toaccess a number of deals through innovativeprocurement for innovation (hackathon, reversebusinesspitches,andidealcompetition,BPIetc.)

Contribute to the creationofanenablingecosystem thataddressesall interrelatedbarriersandneedsand improveadvisory services to stimulate digital entrepreneurship for digital enterprises, includingMSMEs, start-ups and socialenterprises.

Ø Customize support to digital entrepreneurs, supportnetworking for more peer mentorship services.Regionally,seekforsuccessfulserialentrepreneursand“stargeeks”.

Ø Developaholisticcontinentalmappingofecosystems,buildingonexisting initiatives, to identifyandsupportthe scaling-up of innovative models and financingplatforms,accompaniedbyrelevantsoftandbusinessskills training for digital entrepreneurs and to informinvestors on existing relevant opportunities. Thisincludescrowdfunding,innovativefintechtools,mobilebanking.HolisticmappingoftheecosystemstoidentifypromisingmodelsthatcanbescaledupinAfrica.

Ø Promotetheavailabilityofqualityinformation,accuracyand accessibility to market actors, to increaseawareness of existing solutions and opportunitiesamongdigitalentrepreneursandthepublic.

Ø Promote open data policies that can ensure themandateandsustainabilityofdataexchangeplatformsorinitiativestoenablenewlocalbusinessmodels,whileensuringdataprotectionandcyberresiliencetoprotectcitizens from misuse of data and businesses fromcybercrime.

Ø Encourage governments to entrust national start-upsandsocialenterpriseswithpublicprojectsbyadoptingtheir cost-efficient solutions to address local issues(agriculture,health,administration).

Ø Segmentandgroupcountriesby thematurity leveloftheir innovation ecosystem and define four or fivethematicbusinessclustersascentresofexcellence, inthe context of the EU-Africa Start-up Initiative to becreated (proposed action under recommendation onpartnerships).

Ø Support African digital entrepreneurs to network andshowcase their products outside Africa – i.e. in tradefairs.

Ø Encourage cooperation with start-up advocacies tofurtherimprovemarketandregulatoryreformsthroughmulti-stakeholderdialogue.

Ø Train, advise, coach and mentor the entrepreneursthroughblendedlearning.

Facilitateaccess to financeand fundingmechanisms fordigital enterprisesof all sizes,MSMEs, start-upsand socialenterprises,atalllevels.

Ø Ensureadequatemarketinformationsharingforpotentialinvestors,toallowanadequateoverviewofopportunitiesandchallengesinAfricanmarkets.

Ø Facilitate access to funding for start-ups by localecosystems (hubs) and development partners, buildingand supportingcountry-level angel investornetworks inpartnershipwithcontinentalnetworksandeducatingandattractinginternationalventurecapitalfirmstoinvestintoAfricantech.

Ø Develop incentives and an enabling environment fordigitalandfinancialinclusion.

Ø Enable small-scale funding mechanisms for MSMEs,through local funding capacities and MultilateralDevelopmentBanks.

Ø Promote funds to de-risk early stage investmentthroughamixofpublicandprivatefunds.

Ø Providebudgetsupporttooffset immediatefiscallossesofreductionsinpayrolltaxesforemployingyouthandtaxholidaysfornewfirmstoboostyouthemploymentandnewfirmsustainability.

Ø Support microfinance organizations and otherfinancial service providers, including fintech andfinancial cooperatives, and provide assistance toimproveCreditBureauprogrammesinAfrica,tyingthemtolendingplatforms.

4. AcceleratingtheadoptionofeServicesandthefurtherdevelopmentofthedigitaleconomyforachievingtheSustainabelDevelopmentGoals

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Digitalisation and ICT have brought the world closertogetherthroughawiderangeofchangesinhowpeople,government and businesses interact. Both public andprivate services are rapidly migrating from traditionaloperation models to digitally enabled services, tagged‘eServices’.Suchservicesarecommonlyreferredtoastheprovision of diverse services via the Internet, but otherconnectivityoptionscanbeused.

Depending on the specificity of the service, appropriateapplications,tools,orinstrumentsaredesignedtoensurethatthe relationship between the provider and the beneficiary istransparentandtrustworthy.

A digital services infrastructure should entail thoseservicesthatareaprerequisiteforadigitaleconomy(i.e.fintech and digital financial services, and enablingeGovernance services such as identity services,marketplaces, open data platforms, business relevantgovernment services) and those that permit a bettergovernmentalservicedelivery(i.e.healthcare,education).Such infrastructure canenable theuptakeof thedigitaleconomybybothdigitalentrepreneurs,aswellasdigitallyenabledentrepreneursanddigitallyenabledemployees.

Currently,eServices’ takeup isaffecting themajorityofeconomicandsocialareas,whilethemainusecasesareapparent in financial services, government, agriculture,education, health, smart cities, smart villages, energy

solutionsandcommerce. Inrecentyears, theseserviceshave grown and are still evolving at the same pace asdigitalisation.Theyhavechangedthewaytheworlddoesbusiness or provides services and are visible in everysegmentofsociety.However,thelackofrelevantcontentin local languages constitutes one of the main reasonswhypeopledonotconnect,althoughtheymayverywellhaveaccesstotheInternet.

IntheeServicesdomain,theDETFaddressesthreeareaswherethefoundationalbasisofthedigitaleconomyandsocietyislaidout.Theyhaveprovedtobecrucialglobally,butalsorelatetodistinctopportunitiesandchallengesintheAfricancontextinparticular:

• eGovernanceservices—thegovernment'sroleinproviding and enabling eServices of any kind,leading by example and providing the legal andregulatoryframeworkswithaparticularfocusonthedataeconomy.

• eCommerceasthebloodstreamofdigitaleconomyatthenational,cross-borderandcontinentallevels.

• DigitalFinancialServicesasthemeanstoachievegreaterfinancialinclusion.

4.1. Defining the problem

4.1.1eGovernanceIn Africa, the main issues that hamper the furtherdevelopment of the digital economy in general andeServices in particular are the lack of an enablingenvironmententailingharmonisednational,regionalandcontinental digitalisation policies, various enablingeGovernance Services (building blocks), and legal andregulatory frameworks for the support of data policiesand regulations, as well as a consistent cybersecurityframework.

DigitalisationPolicies

eGovernanceoffersopportunitiestotakefulladvantageofthedigitaleconomyandenhancethecontributionofconnectivitytodevelopment.TheimplementationofaneGovernanceplanleadstoanoverallimprovementinthequality of services provided to citizens and businesses,increasesandfacilitatesaccess,enhancestransparency,ensures better access to information andwidenswork

opportunities.Overall,itraisesthecitizen'strusttowardsthegovernmentandcreatesaninclusive,entrepreneurialenvironment.

ForthepracticaldeploymentofanenablingeGovernanceservicesinfrastructureinacountry,regionorcontinent;the political commitment, local ICT ecosystem andfunding available will determine the most suitableapproach.

Coordination across institutions is essential andeGovernance should be guided by a coordinatedapproachandstrategythatidentifiestheresponsibilitiesof the variousministries, accompanied bymeasures toincreaseinstitutionalcapacity.

RegulatoryFrameworks

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Any legislationandregulationshouldenable innovationandremaintechnologyneutral,insteadofaddressingthenatureoftransactionsandthesensitivityofdata.Policiesmust guarantee that any collected information wouldserve only legitimate purposes and ensure the right toprivacyinlinewithwell-recognisedpracticesinthefield,citizen's expectations and human rights. Individualsshouldbeheldastheownersoftheirpersonaldataandshouldhaveanopportunitytocontrolhowtheirpersonaldataareusedandbywhom.

PersonaldataprotectiongoeshandinhandwithallEGS(especially with digital IDs, registries and Open DataPositioning). Data protection legislation needs to beaccompaniedbyastrongsystemofimplementationandenforcement.

Electronicsystemsneedtobesecurebydesign,andeachcountry should have appropriate legislation andorganisationalcapacityforbaselinesecurity,incidentandcrisismanagement,andcapacityforfightingcybercrimes.AstrongeGovernmentsystemhastoincludeanequallystrongnetworkandinformationsystemsecuritysolutionsand practices. It is essential to raise awareness oncybersecurity, invest incybersecurity infrastructureandprotection, and to adopt measures necessary for theprevention,detectionandinvestigationofcybercrimes.

EnablingeGovernanceservices(buildingblocks)

To harvest the full potential of the digital economy,severalbasicEnablingeGovernmentServices(EGS)mustbeinplace,including:

• LegallybindingdigitalIDandeSignature• Differentregistries(i.e.landuseregistry,citizen/

civilregistry,businessregistry69• ProvisioningofOpenData

The above EGS constitute building blocks for eServicesthat, once implemented, can have a catalysing rippleeffect across the governance and the economy of acountry and a region. A number of countries includingNigeria,CapeVerde,andMauritiusareimplementingorhavestartedprocessestodeployservices.

Due to its small legacy footprint, the African continenthas the opportunity to create interoperable building

69 Inaddition,integratedcross-bordercustomsclearingiscovered

undertheeCommercesection.

blocks based on common standards from the start,avoidingafragmentedeServicesenvironment.

LegallybindingdigitalIDandeSignature

A legally binding digital ID and eSignature is a keyprerequisite for most legally binding interactionsbetweenindividualsontheweb.Itshouldbeavailablefortheuseofservicesbothinthepublicandprivatesector.The connection between digital identity with physicalidentityshouldberegulatedandprotectedbythelaw.

Inthissense,everycitizenshouldhaveauniquenumberthatisusedthroughallpublicadministrationservcesasauniqueidentifier,whiletherelatedeSignatureshouldbenot only equal to handwritten signature in value, butcompulsorytoacceptbytherecipientofthedocumenttand interoperable with other signature schemes inplace.

Theopportunity for value creation throughdigital ID isgrowing as technology improves, implementation costsdecline, and access to smartphones and the Internetincreases. The foundational digital infrastructure thatsupportsdigitalIDgrowsinreachanddropsincosteveryday.Nearlyaquarter-billionnewuserscameonline forthe first time in2017.Africa isexperiencing the fastestgrowthinInternetusage,witha20%increaseeachyear.From2008to2016,thepriceofasmartphonefellby30%inAsia,about25% inLatinAmericaand theCaribbean,and about 20% in Africa. Improved technology canfacilitateincreasedandmoresecurestorageandsharingofdata.Forexample,near-fieldcommunication,asetofprotocolsthatpermitstwoelectronicdevicestotransferinformation when close together, allows contactlesssharingandcouldbeintegratedwithadigitalID.

An eID scheme should be based on internationallyrecognised standards and solutions, which becomeessentialfortheinteroperabilityofnationaleIDschemes(i.e.toensurethatpeopleandbusinessescanusetheirown national eID to access digital services in othercountries). The eID should allow citizens to identifythemselves safely in an online environment, to givelegallybindingdigital signaturesanduseeServices.Anylegislationandregulationshouldenable innovationand

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remain technology neutral, instead of addressing thenatureoftransactionsandthesensitivityofdata.

Such digital identity is best designed as a government-backed eID based on a unique personal identifier,biometrics, or somehow linked to a person’s physicaldocumentinordertoavoididentitytheft,fraud,mistakenidentity.Suchasolutiondoesnotnecessarilyhavetobea smart card, but can also be delivered throughalternativesolutionssuchasmobileapplications.

Withitsregulationonelectronicidentificationandtrustservicesforelectronictransactionsintheinternalmarket(eIDAS),70 the EU can provide an example of howeServices such as eID can be interconnected acrossborderinasecureandtrustedmanner.

TheEUeIDASRegulation:

• Ensuresthatpeopleandbusinessescanusetheirown national electronic identification schemes(eIDs) to access public services in other EUMemberStateswhereeIDareavailable.

• Creates a European internal market for TrustServices and Electronic identification (eTS)—namely electronic signatures, electronic seals,time stamp, electronic delivery service andwebsite authentication—by ensuring that theywillworkacrossbordersandhavethesamelegalstatusastraditionalpaperbasedprocesses.Onlybyprovidingcertaintyonthelegalvalidityofallthese services, businesses and citizens will usethe digital interactions as their natural way ofinteraction.

LinkingUpDifferentRegistries

Digitalisation should take place as a part of structuralmeasurestosupportthemodernizationofregistriesandidentification systems. In order to improve the theirintegrity, effectiveness, and completeness, bothtechnical functioning of the system and its lawfulimplementation needs to be guaranteed. Specificregisters or databases and core government processessuchascustomsclearingcandeliverastrongimpetustorealisingthefullpotentialofthedigitaleconomy,astheyprovide a trusted single source of data. Theirinteroperabilityisalsovitalinordertoreduceredtapefor

70 Regulation(EU)No910/2014oftheEuropeanParliamentandof

theCouncilof23July2014onelectronicidentificationandtrustservices for electronic transactions in the internal market andrepealingDirective1999/93/EC

citizens and businesses. In particular, the "once-only"principleshouldapplyinallcases,makingitcompulsoryforthecustodiantosharedatawithothers.

Suchregistersanddatabasescanbedeployedcentrallyorinadecentralisedmanner,accordingtotherespectiveadministration structure in the country. Only thedeployment solution should satisfy two criteria: a) itshould be interoperable, and b) it should have dataprotectionmeasuresinplace.

Asitstandstoday,interoperabilityandstabilityofthesesystems remain a challenge. Thus, the next stage willrequiredataexchangebetweenregistriesanddatabases(i.e. data exchangeplatform). Respective standards arealreadyinuseinsomecountriesintheEU,andareeasilytransferabletoAfricancountrieswhenapplicable.

ProvisioningofOpenData

A digital economy is, by definition, a data-driveneconomy. In this context, Open Data becomes animportantelement,reinforcingtheideathatsomedata,especially data generated by government, should befreelyavailabletoeveryonetouseandrepublishastheywishwithoutrestrictionsfromcopyright,patentsorothermechanismsofcontrol.Suchdatashouldbecollectedin“data lakes” and made available in an anonymizedmannerforpublicuse,complianttodataprotectionanddatasecurityregulation.71

DirectServiceDeliverytoConstituents Digital technologies have revolutionized the waygovernments provide public services and interact withcitizens and businesses. The use of ICT creates greatopportunities forgovernments inSub-SaharanAfrica toincreaseaccesstoservices(bothintermsofreachandinlowering the barriers), and provide greater quality ofservices in a more effective way. In addition, digitaltechnologies have the potential to achieve greatertransparency and accountability, aswell as to enhancedemocracy.

Overall,twotypesofpublicservicescanbestrengthenedbythedigitaleconomy:

Ø Administrativeservicesasservicesdeliveredbypublicadministrators and often related to vital events,

71 i.e.Data.gov,Data.gov.ukandData.gov.in.

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procedures or administrative decisions (i.e. grantingpermitsorconcessions);

Ø Socialservicesaspublicservicesthataimtoimprovethe welfare and well-being of the public throughpublic service provisioning or PPPs (i.e. basiceducation, VET, health services, public sanitation,water,energy,etc.).

Administrativeservicessuchastaxation,thegrantingofpermitsandtheprocessestoregisterandprovideaccesstoothercivicdata(i.e.universitydiplomas)areeServicesthat concern the use of ICTs for interaction betweengovernmentsandbusiness,citizensorothergovernmentinstances.Theimplementationofadministrativeservicesthroughdigitaltechnologieswillrequiregovernmentstoimplement reforms, put in place enabling regulatoryframeworks,andadopttheuseoflegallybindingdigitalidentities to ensure that administrative services can befully provided online or through other connectivitymeans.

eServicesasdigitallyenabledservicescanalsoenhancepublic andbasic social services suchashealth services,education,sanitation,waterorenergythroughtheuseofdigitaltechnologies.Thisoftenrelatestomorecomplexrelationshipsandinteractionwheredataiscollectedfromthe"client"(i.e.patient)bythefrontlineserviceprovider(i.e. doctor), and shared with the governmentorganization in charge (i.e. ministry of health). Other

examples of digitally enabled services are pay-as-you-drinkwaterservices,medicalrecordssystemstoenhancehospital and patient management, mobile health caredeliverymonitoring,assistedclinicaldecisionsupporttohealthprofessionals,eMoneytransfersforsubscriptionstohealth,eLearningplatforms,useofvirtual reality forVET, low-cost generic monitoring systems for off-gridsolarsystems,etc.

Usingdigital technologies on the supply sideof servicedelivery can be a powerful enabler to enhance qualitythrough digital management systems; including moretransparent resource mobilization, financial and assetmanagement,remoteaccesstohigh-levelexpertiseandresources.

Onthedemandside,empoweringusersofsocialservicesthrough digital technologies and connectivity can alsolead to increased citizen engagement, collectiveintelligence (i.e. producing quality-training materialscollectively), and stronger accountability. Complexunderstanding and support to eServices has enormouspotential for improved efficiency and reactivity, thereduction of corruption, the strengthening of inclusionand access, and the assurance quality service delivery.However, digital tools cannot replace the necessaryinstitutionalreformsandserveasthemeanstoimprovegoodgovernance.

4.1.2.eCommerce

eCommerce will unfold its full potential once marketsachieve a significant size. In many parts of Africa, thisentailsregionalmarketintegration,asdomesticmarketswill not be of sufficient size for all goods. At the sametime,eCommercewill also tradephysicalgoodsmainly,andthesegoodswillneedtobeshippedacrossborders.

eCommerceanddigitaltradearegainingtractionontheAfricancontinentasasolutiontoincreaseaccesstogoodsthat are not usually available locally, and to improvecompetition on markets. Furthermore, eCommerce iscreating newmarketplaces, giving a number ofMSMEsaccess to larger and more competitive markets, andthereby attracting new investments, creating jobs andacceleratinggrowth.However, digital trade on the African continent is alsofacing many challenges, including the need for furtherdevelopment of the postal address systems incombination with a lack of identity proof systems and

accesstointernationallyoperablepaymentmethods(i.e.creditcard)—whichcomplicatessecuredelivery.Despite the increasing demand, the underdevelopedinfrastructuremakesitdifficultandexpensivetodeliverparcels. Another significant barrier is the lack ofalignment in African e-commerce regulation, whichincreasesthepriceofoperationsandmakesitdifficulttostimulate regional or continental cross-border digitaltrade.Furthermore,lackofconfidenceinonlinechannelshas led to a tendency to pay cash on delivery, furtheraddingcostsandslowingthetakeupofe-commercebyconsumers.TheWorld Bank’s “Doing Business” report records thetime and cost associated with the logistical process ofexporting and importing good,measuring the time andcost (excluding tariffs) associated with three sets ofprocedures—documentary compliance, bordercompliance and domestic transport—within the overallprocessofexportingorimportingashipmentofgoods.In

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Sub-SaharaAfrica,boththetimeandcostoftradeacrossborderswerethehighestintheworldinthelatesteditionof the report. To foster eCommerce and to harvestregional markets, trade across borders in general andcustomsclearing inparticularneedtobe improvedandintegrated.From a wider perspective, digital trade is also rapidlytransforming the world’s economy, disrupting oldbusiness models and replacing them with new ones,shaping the future of labour and transformingindustrialisation.However,thisraisesnewconcernsandchallenges,makingitdifficultforgovernmentstokeepupwithappropriateregulatoryandpolicyframeworksbothatthenationalandregionallevels.Consequently,Africa’sshare of total merchandise exports in the world hasdecreasedfrom3.0%in2014to2.4%in2015,whileAsiandevelopinganddevelopedcountrieswereeitherstableat28.8%orincreasedfrom52.4%to53.5%,respectively.In 2017, there were an estimated 21 million onlineshoppers in Africa, with an annual surge of 18% since2014 as compared with the world average of 12%.EMoneycontinues to rise,andAfricaboasts the largestshare of adults with eMoney accounts in the world.However,thereisstillroomforimprovement,andcloseto half (45.6%) of all registered eMoney accounts arefocusedonSubSaharanAfrica.Innovationsareemergingin different stages of the eCommerce lifecycle, frompayment aggregators and cross-border platforms todronedelivery.The extent to which people and businesses in AfricaparticipateineCommercevariesconsiderablywithinandbetweencountries.Threecountries(Nigeria,SouthAfricaand Kenya) account for almost half of them. UNCTADestimatesthattheB2Ce-commercemarketinAfricawasworthaboutUS$5.7billion in2017,whichcorrespondstolessthan0.5%ofGDP,farbelowtheworldaverageofover4%.According to the 2018 version of UNCTAD’s B2C E-commerce Index, theAfricanregion lagstherestof theworld in terms of e-commerce readiness. Mauritius,ranking 55th globally, is the highest ranked Africancountry,while nineof the ten least prepared countriesareinAfrica.

72 Which can also come as part of the Enabling eGovernance

Infrastructure, especially complementary to the Land (Use)Registries

Although African countries have made significantprogress over the past few years to enhance theireCommerce readiness, persistent gaps remain, andcountries are at different stages of eCommercedevelopment. Broadband infrastructure, Internetpenetration and affordability, trust, trade logistics,fragmentationofmarketsandpaymentsystems, lackofbasicliteracyandeSkills,andlowerdemandfornon-foodandluxuryproductsremainthemajorchallenges.Internet penetration,currently at 24,4%, remains lowcomparedtotherestoftheworld’saverageof60%.Insomecountries,lessthan10%ofthepopulationusetheInternet, and large segments of the population remainunbanked or lack a postal address. Internet data costremainsveryhighandoutofreachformostpeople,andwhen available, the poor quality of connectivitymakestoo difficult and time consuming for people to adoptonlineshopping.The development of African eCommerce is alsohamperedbyalackoftradelogistics.Digitalisingthebasicinformation infrastructure for postal and logisticalservicesincountrieswillbeagoodbasisforacceleratingeCommerce on the continent72. With relatively poorgeographical home address structure in place, it isdifficult forparcels tobedeliveredat the rightplaceattherighttime.Thisisamajorissueasmostcountriesworkwith post office boxes and not with a postal addresssystem, and while solutions could be envisioned, thiswould require establishing a harmonised systemunderpinned by national spatial data infrastructurepoliciesandstrategies.Inthiscontext,theintroductionofnewlogisticswillalsoplay a vital role. Not only drone delivery but also thedigitallyenabledcombinationofridesharing,ride-hailingandcarrentalwithgoodsdeliverywillimprovein-countrylogistics, and especially short to medium distancelogistics.There are also significant variations in the readiness ofgovernments in terms of skills and data to adopt andenforcerelevantpolicies,lawsandregulationstoharnesseCommerceanddigitaleconomyfordevelopment.Otherchallenges include taxation, cross-border tradechallenges,digitalandphysicalinfrastructure,anddigitalskills.

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Inadditiontotheabovechallenges,therearealsoseveralrisksassociatedwitheCommerce,includingthepossibilityofjoblossesthroughautomation,marketconcentrationleadingtoreducedcompetitionandmonopolyreductionof retail activities, government revenue loss due to thecompanies’ ability to circumvent financial regulations,and the potential inability of African companies tocompetewithincreasedavailabilityofforeigngoods.However,theWorldDevelopmentReport2019suggeststhat fears that automationwill take away jobsmay beunfounded, and instead, technology is bringing newopportunities:firmscangrowmorerapidlythankstothedigital economy, which blurs their boundaries andchallengestraditionalproductionpatterns;andtheriseoftheplatformeconomymeans that technologicaleffectswillreachpeoplefasterthaneverbefore.In addition to the challenges and risks that exist at thenationallevel,regionalandcontinentalissuesarelikelytohinder the development of cross-border eCommerceacrossAfrica.Whilstanumberofregionalandcontinentallegalframeworkshavebeenestablishedtoaddresssomeof theeCommercerelated issuessuchascybersecurity,personaldataprotectionandtheharmonisationofcyberlegislation in Africa; and a number of countries havestarted regional collaboration in some areas ofeCommerce,thereispresentlynocomprehensiveAfricaneCommerce policy, strategy or governance regime.Certainissuesdeservecarefulconsideration,inparticularinthecontextofboostingintra-AfricantradethroughtherecentlylaunchedAfCFTA.Facilitatingcrossborderpaymentsisacentralelementinassuring harmonisation of eCommercemarkets. In thisregard,theEastAfricanPaymentSystems(EAPS)andtheregional payment and settlement systems that governcross border payments in the COMESA region setexamplesofregionalframeworks.Boosting the development of its own data economy,Africawilldevelopitsowndatamarketinordertoextractvalue from the data value chain for African economicgrowth.Suchamarketwillinterconnectonregionalandpan-African levels, and collaborate with the Europeandigitalmarketto leveragedata foreconomicgrowthonboth continents. Therefore, joint approaches andstandardsareneededtofosterthedata-driveneconomy,

butalsotoensuredataprivacyandcybersecurity.Inthissense, the EU offers to share its experiences with theGDPR,frameworksonAI,aswellastheExpertGrouponBusiness-to-GovernmentDataSharing.AfricaneedsunityinsettingeCommercerulesthroughamore global perspective. In January 2019, 76 WTOMembers (including the EU, US, China and Russia andseveralAfricancountries)beganre-negotiatingtheWTO'strade-related eCommerce rulebook to update it to thetechnologicalrealityoftodayandmakeitfitforcurrentrequirements indigitaltrade,sofarwith limitedAfricaninvolvement.However,amorecoherentengagementinthese negotiations is necessary for Africa's voice to beheardwhennew international rulesoneCommerceareestablished.SuccessineCommercedemandsrigourinbasicbusinessprocesses that are mastered by very few small andmediumAfricancompanies.Forinstance,formalisationofproduct specifications and techniques of productinventorymanagementarewidelymissing.SmallfirmsinAfricafunctionlargelyonaninformalbasis:theyproduceproductsinanartisanalfashionandchangespecificationsoften,andmanageinventoryloosely.eCommercecreatesgreat demands of such MSMEs, but they need toformalise their operations and also master aspects ofmarketingandcustomerservice,whichareneworverydifferentfromtheircommonpractice.Oneofthemostsignificantobstaclesthatwillneedtobetackled is the lack of access to financing, given that itstandsasapoignantissueforthemajorityofMSMEsinAfrica that has affected the sustainability of manyenterprisesbeyondissuesofformalizationandentryforMSMEs.ButMSMEsarenottheonlygroupinneedofhavingtheircapacities upgraded for eCommerce. Public sectorinstitutionsalsoneedtobesupportedinaddressingthemanyimplicationsofashifttodigitaltransactions,wherea keyelementwouldbe thedigitizationof governmentpayments in a bid to enhance efficiency and to curbleakagesinthesystem.

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4.1.3. DigitalFinancialServicesasthemeanstoachievegreaterfinancialinclusion

Intherecentyears,Africahaswitnessedimpressivegainsinthedevelopmentofdigitalfinancialservices(DFS)forfinancial inclusion. This reflects the work done withinindividualcountriesbydigitalfinancialservicesprovidersand their platforms, start-ups (in various sectors likeenergy, agriculture, education, health, etc.) serviceproviders,regulators,NGOsandotherenablers.However,largepocketsoffinancialexclusionpersist:twobillionpeopleworldwidelackaccesstobasictransactionaccounts to safely send, receive, and store funds. Thisexclusion limits personal economic potential, andparticipationinthedigitaleconomy.DigitalfinancialservicesareoneofthemainenablersofthedigitaleconomyinAfrica,providingasolutiontothelow bank services penetration. Such services can beleveraged to provide insurance, savings, remittances,payments and credit solutions for greater financialinclusion, and Africa is a global leader in mobilepayments.Inthisscheme,fintechcanbeleveragedonabusiness-to-business basis to improve innovation,efficiencyandgrowthofincumbentfinancialinstitutions(for example, through the development of newmobilebankingappsorcreditscoringmethodologies).However,Sub-SaharanAfricaistheonlyregionwheretheshare of adults with a eMoney account exceeds 10%,though the majority of adults still lack a transactionaccount73.70%ofjurisdictionsinSub-SaharanAfricareporthavingaregulatory framework for non-bank eMoney issuers(including mobile network operators), and financialconsumerprotectionframeworksareoftenlacking—forexample,mostjurisdictionsinSub-SaharanAfricadonotrestrict or prohibit unfair business practices such asdiscrimination, or limiting the liability of a financialserviceproviderinacustomeragreement.74Butthemarketisfragmentedandservicesareoftennotinteroperable, neither inside the countries nor cross-border. Furthermore, related to the development and 73 WorldBank(2018)TheGlobalFindexDatabase2017.Website.74 World Bank (2017) Global Financial Inclusion and Consumer

Protection (FICP) Survey, 2017 report. Washington DC: WorldBankGroup.

75 Cook,W.(2018)EastAfricanInteroperability:DispatchesfromtheHomeofM-Pesa.BlogSeries:InteroperabilityandDigitalFinancialServices.CGAP.Website.

uptake of digital financial services is the issue ofremittances, since Africa diaspora in the EU does notbenefit fromtheeMoney revolutionbackhomedue tothelackofinteroperability.Pioneering initiatives have been taken by mobileoperators to defragment the market. In Madagascar,mobilefinancialservicesareinteroperableonanationallevel.Domesticinteroperabilityforreal-timepaymentsissteadily gaining traction across East Africa. In 2014,eMoneyprovidersinTanzaniacametogethertodevelopaschemeformultilateralinteroperability.In2017,banksinKenya launchedthereal-timemoneytransferservicePesaLink, and mobile network operators (MNOs) inUgandalaunchedaschemeintheirownmarket.Kenya’snewMNO-ledschemeaddstoagrowinglist.75

In addition, according to Findex data published byGenesisAnalytics,76 financial inclusion forbothgendersincreasedbetween2011and2014.

However, thegapbetween them increased from6% in2011to9%in2014,suggestingthatmenbenefitedmorefrom financial service innovation thanwomendid.Asaresult, 70% of women were financially excludedcomparedto61%ofmen.

Fintechsolutionscanpotentiallycontributetoclosingthegendergapinfinancialinclusionbytacklingsomeofthebarriers thatwomen face.Forexample,digital financialservicesolutionsareoftenmoreflexiblethantraditionalbanking services (i.e. providing closer proximity, lowertransactionfees,andsimplerloanapplicationprocesses)and are thereforebetter able to account for andmeetwomen’sindividualneeds.

ThroughoutAfrica,manywomenorganizethemselvesinsavings groups in order to informally gain access tofinancialservicessuchasloans.

76I DRC and the Mastercard Lab for Financial Inclusion (2018)Exploring fintech solutions for women. Scoping paper. GenesisAnalytics.Website.

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Digitalfinancialservicespresentanopportunitytobuildon these existing practices and enhance them with

technologiesandservicesthatwillallowaccesstocredit,savingsaccounts,andotherfinancialproductstoall.77

4.2.PolicyRecommendationsandProposedActions

Makeapriority indeploying theessential enablingbuildingblocksof eGovernance services like eID,digitalisingandinterconnectingpublicregistries,cashlessgovernmentandopendataforinnovation;withthegoalofenablingtheDigitalEconomywhileassuringmore inclusive societies,whereaccess tobasic rightsand services is ensured. Integrate theprovisionofeServices,developedbyboththepublicandprivatesector,withadequatelegalactsandregulationatalllevels,ensuringthatdataneededtoprovideeServicesforthecommunityisopenlyavailablewhilefullyrespectingdataprotectionrights.

Ø ImplementEnablingeGovernanceServicesbasedoninternationallyrecognisedstandards.Allowregionaland continental integration of public eServicesthrough common standards and open standardsoftware tools. Develop Reference Solutions,corresponding framework IT-architectures andReference Models for related legal requirementsand implementation on a regional or continentalbasis to harvest synergies and ensureinteroperability. Those can be developed, forexample for eID, Customs Interoperability, orRegisters of different kinds. Use the EU eIDASregulationasareferencemodelincreatingcommonstandards.

Ø African countries should startwith the creation ofcoordinating bodies, such as an e-GovernmentNationalCoordinatorofficeonthepoliticallevelandrespectiveministerialstructuresonatechnicallevel.

Ø Allowrelevantorganisations inacountryorregionto reuse core registers and information systemsfromotherorganisationsinasecuredataexchangeenvironment, enabling the different informationsystems and registers to communicate, sharedataand work together, implementing the once-onlyprinciple.

Ø Seek regional or continental inter-governmentagreementstoexchangeandre-usetheIntellectualProperty regarding eGovernance solutions,respectingtheIPofthirdparties.

Ø Establish electronic government registers ordigitalise existing ones, starting with an electronicpopulationregistry,eBusinessregisterandLandUse

register.Referenceismadetotheproposedactionregardingreferenceframeworks.

Ø Introduce a digital-by-default approach forgovernmental Service Delivery while at the sametimefollowingamulti-channelapproach.

Ø Promote digital innovations designed locally byempoweringallrelevantlocalactors(governments,start-ups,research,privatesector)andsupporttheestablishment of local digital innovation centresserving as a co-creation and innovation hub fordigital solutions of tomorrow and as a first entrypoint for foreign investors. Close cooperation andinteroperabilitybetweenlocallydevelopedsolutionsand Commercial of the Shelf (COTS) software aredesired to avoid unnecessary cost and to providelocallydevelopedsolutionswithestablishedregionalandglobalsaleschannelsviacooperationwithCOTS.

Ø Createfundingmechanism(s)foreServicespilotandreferenceframeworkprojects.Suchprojectsshouldfocus on a certain policy area, such as education,healthcare,thecourtsystem,differentregistersandinformation systems, tax and customs etc. on aregional,nationalorcontinentallevel,etc.

Ø Ensure universal application of privacy, dataprotection anddata security bydesignprinciple inthedevelopmentofeServices,usingtheEUGDPRasamodel,whererelevant.

Ø ThecommercialrightsoftheuseofpersonaldataofAfricans should stay in Africa or provide a faircommercialsharetoAfrica.

Sharebestpracticesandadvisorysupport(i.e.throughtechnical assistance) for developing comprehensivenationaldigitalisationstrategieswithaspecificfocuson

77 Ibid.

addressing the digital divide, achieved throughmulti-stakeholderdialoguetoidentifypriorityneedsandagreeonstrategicobjectives,inlinewiththelocalcontexts.

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Ø National and regional multi-stakeholder dialoguesshould informsectoralstrategicpoliciesanddigitaleconomyactionplanstoidentifypriorityneedsandactions

Ø Establish and provide funding for regional trainingprogrammes and academies. Already existing EUprogrammes, such as TAIEX78 and Twinning79 canserveasexamples.Programmesshouldcoverbothe-governance and cybersecurity, involveparticipantsfromalllevels,fromleaderstoexperts,and include both technical assistance as well assupport for designing policy and regulatorymeasures.

Ø Establish an African Digital Economy Trust Fund(ADETF), which will focus on provided grantresources to countries and institutions to supportthe strengthening of the legal and regulatory

framework and reforms, and to assist thepreparationofsomeprojects.

Ø Set up scholarship schemes for e-governance, ICTand cyber security study programmes aimed atsupportingthedevelopmentofskillsandexpertise.

Ø Support projects related to civic tech and digitaldemocracyinordertoincreasetheaccountabilityofgovernments.

Ø Develop a Pan-Africa Charter on Ethical AI as abenchmarktoutilizetheopportunitiesofAI.

Ø Update the requirements of the African UnionConvention on Cyber Security and Personal DataProtection and extending the coverage of theBudapestConventiononCybercrime.

Ø Developregionalprogrammestotacklecybercrimeand strengthen the cyber resilience of both publicandprivateentities

Encourageintra-Africanintegrationindigitaltradetoachievewiderparticipationbyenterprisesinnational,regionalandinternationaleCommerce(especiallycross-border)asanenablerforunprecedentedmarketopportunitiesforall.

Ø Reduce barriers to cross-border digital trade andmarket access by supporting African efforts toestablishacontinentaldigitalsinglemarketundertheContinental Free Trade Agreement that aim atremoving legal and technical barriers to trade,drawing on EU’s experience with its Digital SingleMarket.

Ø Develop an enabling regulatory framework for e-commerceatthepan-Africanlevel,includingcommonrulesforconsumerprotection.

Ø Includeelementsone-commerce in thedigital skillstrainingprogrammestargetedatAfricanMSMEs.

Ø Provide technical assistance for developing andimproving the regulatory environment for financialandpaymentservices.

Ø Provideloanandequityfinancingtolocale-commercechampions.

Ø Analyseissuesrelatingtoparceldeliveryandproposesolutionsbasedonregionalcooperation.

Ø Develop training/outreachcampaignsareneeded toincrease awareness and trust. Educating Africanconsumersaboutthebenefitsofonlineshoppingandsome basic safety rules will be a key factor drivingconsumeradoption.

Ø Support programmes promoting eMoney adoption,especiallyinrural&peril-urbanareas.

Ø Support local logistical entrepreneurship and eco-system initiatives that tackle the issue of lack ofphysicaladdresses.

Ø Allowregionalandcontinental integrationofAfricandata markets through open standards, while takinginto account that security and regular upgrading ofthese tools must be guaranteed. Facilitating datacooperationbetweenbothcontinentsbuildingupontheEUExpertGrouponBusiness-to-GovernmentDataSharing. Facilitating growth of data economy bydeveloping joint standard between both continentsbuilding upon the EU Expert Group on Business-to-Government Data Sharing, experiences on dataprotection,aswellasAI,frombothcontinents.

78 SeeTechnicalAssistanceandInformationExchangeinstrument

oftheEuropeanCommission

79 EU instrument for institutional cooperation between PublicAdministrations of EU Member States and of beneficiary orpartnercountries

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Encourageactiontowardsachievinginteroperabilityandprovidefurtherbenefitstocitizensandbusinesses,buildingonsuccessstoriesintheAfricancontinentonthedevelopmentanduptakeofdigitalfinancialservices,.

Ø Thedevelopmentofnationalandregionalforumstofoster public and private dialogue around DF policyand regulation. The continuous evolution andinnovationinthesectorrequirecontinuousdialoguebetween the government and the private sector todevelop the right enabling environment for theprivatesectortodeveloptherightservicesthatwillbeusedbytheunbankedpopulation.

Ø Betteruseofdata forbeterdecision-makingaroundpolicy and regulation. Data driven decision-makingimplies systematic collection and assessment ofmarket data (both supply and demand) to informregulation and guide policy priorities. In addition tothesystemitself,policymakersandregulatorsrequireclear measurement frameworks and the technicalcapacitytomonitordata.

Ø EnsurenationalandregionalinteroperabilityprojectsforeMoneyandotherDFSsolutions.

Ø Create a supportive regulatory environment thatallowsthelinkingofdifferentfintechsolutions(andifpossible,conventionalbankingservices,totargetthemarketofremittancepaymentsandtofurtherincludethe unbanked and increase their access to financialservices).However,thisshouldbedoneinabalanced

way, seeking to avoid shocks in the market (i.e. inUganda, requiring a sim-card to be registered withidentityproofdisruptedcashtransferstorefugees).

Ø Enabling market entry of innovative, technology-drivenfinancialserviceprovidersandsolutions.

Ø Implementing risk-based approaches to AML/CFTthroughtieredcustomerduediligencerequirements,andestablishmentofeKYCregistries.

Ø Enabling the use of low-cost delivery channels,includingretailagents.

Ø Digitizinggovernment-to-personpaymentsØ Strengthening financial consumer protections,

including with respect to disclosure/transparency,responsible lending, data privacy, and disputeresolution.

Ø Strengthening collaborative regulatory whole ofgovernmentapproachestoenabletheprovisionanduse of digital financial services for digital financialinclusion.

Ø Establishing technology-forward national financialinclusionstrategies.

Ø EncouragethecreationofasingleAfricanpaymentsarea to bolster cross-border trade and transfers,leveragingontradeasacatalystfordigitalisation.

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ANNEXI.Repositoryofexistingpractices

GoalI.Acceleratingtheachievementofuniversalaccesstoaffordablebroadband.

PolicyharmonisationintheECOWASregion

Setting an example of policy harmonisation, all 15countriesintheEconomicCommunityofWestAfricanStates (ECOWAS) region have collaborated on jointlyagreedstrategiesandpoliciessincetheearly2000s.

Onconnectivity,ECOWAS’priority isthedevelopmentofareliableandmodernregionalTelecomsbroadbandinfrastructure, including the INTELCOMIIprogramme,alternativebroadband infrastructures and submarinecables,aswellastheestablishmentofsingleliberalisedtelecomsmarket.

Asaresult,elevencoastalMemberStateshavealreadybeenconnectedtosubmarinecableswithatleastonelandingstation,whilethethreelandlockedcountriesintheregion(BurkinaFaso,MaliandNiger)haveatleasttwoaccessroutestothesubmarinecables.

Affordabledevices:TheSanzaPhone

Seeking to democratise access to Internet in Africa,OrangelaunchedSanza:aphonewithvoicerecognitionatUS$20thathelpscustomersoptimisetheirbudget.

Launched inpartnershipwithKaiOSTechnologiesandUNISOC,thephonehasthesimplicityofafeaturephonewith a long-lasting battery life up to 5 days; but also3G+,Torch,Wi-FiandBluetooth.

Thanks to the Google Assistant, Sanza also helpsovercome language and literacy challenges, ascustomerscanaccess informationandapplicationsonthe device easily, just with their voice, and withouthavingtotype.

TheGoogleAssistantunderstandsmultipleFrenchandEnglishaccents,withmorelanguagestocomelater in2019. Furthermore, the phone menu is available inArabic,Swahili,Portuguese,EnglishandFrench.

Accesstobroadband:ProjectIsizwe

Project Isizwe is a non-profit organisation created tobring further connectivity to South Africans bysmoothingthedeploymentoffreeWi-Fiforcommunal

spacesinlowincomecommunities.Theorganisation’saimistoprovideabaseforimpoverishedcommunitiestohavefreeInternetaccesstouseonlineeducationalfacilities,facilitatingfreelearningforthosethatcannotaffordthecostofotherformsofeducation.

Independent, reliable and stable communication andnetworkinfrastructurepolicies:TheexampleofBurkinaFaso

InJune2017,SESNetworksannounceditsselectiontolead a project aimed at extending high-speedcommunications infrastructure throughout BurkinaFaso.

The company will be providing the full end-to-endsolution, including wireless terrestrial communicationand integration with the available optical fibrebackbone, to connect 881 sites for eGovernment,eEducationandeHealthacrossBurkinaFaso.Inordertoenhance connectivity in the landlocked country, SESNetworks will be using high throughput, low latencysatellitecapacityviaitsMediumEarthOrbit(MEO)fleet,and will provide managed service and maintenancesupport from Luxembourg, and through a localpresenceinBurkinaFaso.

ThesolutionisdesignedfortheSupportProgrammeofthe Reinforcement of Communication Infrastructures(PARICOM)andsupportstheBurkinaFasoeGovernancepolicythroughaLuxembourgdevelopmentcooperationproject. This project is part of the IndicativeCooperation Programme established for the period2017-2021between LuxembourgandBurkinaFaso. Itaimstoimprovethequality,reliabilityandaccessibilityofITandcommunicationinfrastructurethroughoutthecountry.

FollowingtheimplementationbySESNetworks,BurkinaFaso will own a high-speed, flexible and reliabletelecommunicationsnetworkforessentialgovernmentneeds, strengthened through satellite technology andadditionalwirelessterrestrialcoverage.TheterrestrialwirelesspartofthisnetworkwillbeoperatedbyBurkina

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Faso’s National Agency for Promotion of InformationandCommunicationTechnology(ANPTIC).

Enabling policy environments: Policy and RegulationInitiativeforDigitalAfrica(PRIDA)programme

The Policy and Regulation Initiative for Digital Africa(PRIDA)isajointinitiativeoftheAU,theEUandITUtoenable the African continent to reap the benefits ofdigitalization by addressing various dimensions ofbroadband demand and supply, and to build thecapacities of AU Member States in the InternetGovernance space. Its specificobjective is to createamore harmonised legal and regulatory framework forthe use of ICT for social and economic development,with an emphasis on boosting the spectrum marketacrossAfrica.

To complement the initiatives focusing on theinfrastructure component, PRIDA focuses on thecreationofanenablingenvironment toorientprivateoperators towards thebest solutions for the system’s

long-termcost-effectiveness,qualityandsustainability;andtoprepareanenvironmentsupportiveofInternet-basedservices.

Such development of broadband and its relatedservicesgoeshandinhandwithcybersecurity;whereasa protective framework is especially important forcritical infrastructuresuchastransport,electricityandwater networks; as installing confidence in end-userspositivelyimpactstheuptakeofICTservicesaswellasthebroaderdigitalisationofgovernmentfunctions.

Goal II.Guaranteeing essential skills for all, in education andVocational Education and Training (VET), toenablecitizenstothriveinthedigitalage.

The African Development Bank’s Coding forEmploymentProgramme

The African Development Bank’s Coding forEmployment aims to nurture the next generation ofdigitally enabled African youth. The Coding forEmploymentprogrammeultimately aims toprovideaprovenblueprinttorunningsuccessfuldigitaltrainingsto policymakers to guide national skills and youthemploymentagenda.ThedemandforICTskillsamongthe youth is extremely high as evidenced by theenrolmentnumbers for theprogramme.For instance,onecentresofexcellenceinNorthernNigeriareceivedover 15,000 applications for just 100 available spots.Thishighdemandnecessitatesawidescaleresponseatnational level and the Bank seeks to use results andlearningfromtheCodingforEmploymentprogrammeto engage in policy dialogues across the continenttowards increasing digital and ICT skills training andprovide a criticalmass of professionals for the fourthindustrialrevolution.

Theprogramme’sthreemainobjectivesoverthenextdecadeareto:1)equip130centresofexcellencewithICT infrastructure, 2) train young people in demanddriven ICT skills and entrepreneurship and 3) providegraduates with linkages to the ICT ecosystem forinternships and job opportunities. Five countries(Nigeria, Kenya, Rwanda, Senegal and Cote d’Ivoire)havebeenchosentopilottheprogrammefor2yearswith theaimof scaling theprovenprogrammeto therest of Africa. Through rigorous feasibility studies,partner universities and technical vocational trainingcentres(TVET)inthefivecountrieshavebeenselectedas centres of excellence for the programme.Specifically, each centre of excellence is expected totrainatleast1,800youngpeoplewhichwillcontributetothewiderprogrammeobjectiveoftraining234,000youthandcreating9millionjobsoverthenextdecade.To ensure that technical and soft skills trainings arerelevant and world class, the AFDB has collaboratedwithMicrosoft, Facebook, Safaricomandother globaltechgiantswhowilldelivervariouslevelsoftraining.

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Sincetheprogramme’sinceptioninSeptember2018,ithas trained 150 trainers and over 1360 youth. Theprogrammealsolaunchedallfemalecohortsof200girlsintwocentresofexcellence inNigeriaandconductedICT awareness campaign for over 200 women inRwanda as a strategy to address the gender digitaldivideandattractmorewomenandgirlstotheICTfield.

AfricanCentresforDigitalTransformation

TheAfricanCentresforDigitalTransformation,fundedbyGermanFederalMinistryforEconomicCooperationandDevelopment, are physical and virtual hubs,withthe goal of promoting digital transformation. Thecentres facilitate technical knowhow as well as(academic) IT- and entrepreneurial knowledge underone roof. At the same time, they support Africangovernments and their digital change-makers inestablishing structures and capacities for thedevelopment, implementation and dissemination ofdigital solutions following the digital principlesmentionedabove.

ThesecentresimplementingfiveprinciplesoftheSmartAfricaManifesto(namelyPrinciples#1,#3,#4,#5)andare developed in close cooperation with the SmartAfricaSecretariat.Thefirstcentrewasopenedin2018inRwanda,centres inTunisia,GhanaandSenegalwillfollowin2019–fiveothersareplanned.

TheYouthMobileinitiative

UNESCO’s YouthMobile initiative leverages computerscience education and the widespread availability ofmobile phones to empower students. Through theinitiative, youth are introduced to coding as both aresourcetosolvelocal issuesandasatooltodevelopcomplexlearningskills.

Students are encouraged to develop, promote andeventually sellmobile applications as a key to ensuresustainable development. YouthMobile is stronglycommittedtotheSDGs,andinparticularGoalNo.10onreducinginequalities.

Itpromotesthecreationofinclusivedigitalsocietiesandit strives tounlock thepotentialofwomen in ICTandfostering gender equality, supporting the creation of

positive socio-economic cycles and tacklingunemploymentchallengeswitha special focuson theAfricancontinent.

Digitalgenderequality:EQUALS

EQUALS was founded in 2016 by five partners: TheInternationalTelecommunicationsUnion,UNWomen,the InternationalTradeCentre,GSMAand theUnitedNationsUniversity.Today,EQUALS isagrowingglobalnetwork of more than 90 partners – includinggovernments,companiesandNGOs.

EQUALSworkstoreversetheincreasingdigitalgenderdivide,andtoclose thegapby2030–supportingUNSustainable Development Goal 5 by empoweringwomen through their use of information andcommunication technologies. An action plan of datagathering, knowledge sharing and advocacystrengtheningdrivestheEQUALSnetworkpartnership.

By promoting awareness, building politicalcommitment, leveraging resources and knowledge,harnessing the capacities of partners, and supportingreal action – EQUALS seeks to achieve digital genderequalityandthroughthis,toimprovethelivelihoodsofmillionsaroundtheworld.

Today, EQUALS is a growing global network of morethan90partners– includinggovernments,companiesandNGOs.

EQUALSworkstoreversetheincreasingdigitalgenderdivide,andtoclose thegapby2030–supportingUNSustainable Development Goal 5 by empoweringwomen through their use of information andcommunication technologies. An action plan of datagathering, knowledge sharing and advocacystrengtheningdrivestheEQUALSnetworkpartnership.

Virtualrealityforbetterskills:SkillingUganda

EnabeliscurrentlysupportingtheUgandangovernmentwith implementation of the 10-year BTVET strategicplan called “Skilling Uganda”. The strategy aims atequipping Ugandan youth with the skills andcompetencies needed in the labour market throughinnovative approaches such aswork-based learning –

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usingvirtualreality inregionswherethereare limitednumbersofprivatesectorcompanies.

The virtual reality initiative aims at providing viewerswithavirtualimmersionintorealworksettings.Enabelproducesshort“howto”clipswithmajorprivatesectorcompanies,whichareusedinclassasteachingaids.Thepilot is expected to develop into a (reliable and free)repositoryofVRclipsforwork-basedlearningcoveringvarious trades including green skills, agriculture,construction,handcraftamongothers.FortheUgandapilot,“howto”clipsareuploadedontheYouTube360°channel.Foroff-the-gridclassroomuseinremoteareassuchasrefugeesettlements,theclipsaredownloadedandsavedondevicessuchassmartphones.

eLearning:TheVirtualUniversityofSenegal

TheVirtualUniversityofSenegalisthefirstpublicdigitaluniversity in Africa, founded in 2013, combiningeLearning with presence-based tutorials andnetworkingopportunities.Thee-learningplatformandthelaptopswithmobileInternetconnexionprovidedbytheUniversitygrantstudentsamaximumofflexibility,which allows (self-) employed students, women withchildren,students living inruralareasand/orfar fromthe capital to access higher education. More than28,000studentscurrentlystudyattheVirtualUniversityinhumanitiesand(computer)sciences.

BasedinDakar,theVirtualUniversityrelieson13OpenDigitalSpacesorCommunityHubs(Espace Numérique Ouvert, ENO), opened inpartnershipwiththeAfricanDevelopmentBank–soon,bytheendof2022,OpenDigitalSpaceswillcoverall50regionsofSenegal.Studentsareencouragedtoengageinactivitiescreatingsocialvalueandbecomeagentsofchangeintheircommunities.

In its new portfolio—currently under preparation—Enabel will support the further establishment of theENOinKaolackandanextensionofitsactivitiesthroughthecreationofaninnovationhub.

Digitalskills:ITUACADEMY

ITUworkswithitsmembers,stakeholdersandpartnersto shape the human capacity building agenda and

determinepriorities,aswellasrespondtothedemandfordigitalskillsdevelopment.This isachievedthroughthe generation of training content and curricula inspecialized ICT topics, delivery of training andprofessionaldevelopmentcourses,aswellasmanagingknowledge transfer. Through the ITU Academyplatform, ITU provides integrated digital skillsdevelopmentactivitiesandtrainingsthatcoverawiderangeof ICT topics fromprogrammes forgovernmentpolicy makers and regulators, professional businessfocusedcurriculaforseniorICTexecutivestospecializedprogrammesfortechnicalandoperationalstaff.

UndertheframeworkoftheITUAcademy,awiderangeof capacity development activities are implemented,including online and face-to-face training course anddeliveringandpromoting"trainthetrainer"activitiestosupportICTinstructionalandinstitutionalsustainability.

ICT and digital development training: Centre ofExcellence(CoE)Network

OneoftheITUflagshipcapacitybuildinginitiativesistheCentreofExcellence(CoE)network.Currently,31CoEsoperate in a number of regions including Africa, theAmericas,ArabStates,Asia-Pacific,CommonwealthofIndependentStates(CIS)andEurope.Theydeliverhighquality training in the field of ICT and digitaldevelopment.

ITU’sDigitalInclusionProgramme

TheITUDigitalInclusionProgrammeprovidesresourceson legislation, policies, regulations and businesspracticestopromotedigital inclusionthroughreports,toolkits and guidelines. Examples include digitalopportunities (innovative ICT solutions for youthemployment),codingbootcamps(astrategyforyouthemployment),andtheDigitalSkillsToolkit.

Furthermore, ITU’s Girls in ICT Portal and the DigitalInclusionNewslogprovideup-to-date informationandbestpracticesondigitalinclusion.

AfricanGirlsCanCodeInitiative

IncollaborationwiththeAfricanUnionCommission,ITUandUNWomen launched the African Girls Can Code

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Initiative(AGCCI)2018-2022,whichconsistsofafour-yearprogrammetotrainandempowergirlsaged17to20yearsoldwithICTskills.

The initiative intends tomotivate girls to learn aboutdigitaltechnologies,establishbusinessnetworks,meetrole models and create a community to share theirexperiences.

African Girls Can Code Initiative organised the firstcodingcampforgirlsinAfrica,anditwillbefollowedby14 more to finish during the 2022 African UnionSummit.

Digitalliteracyinitiatives:AfricaCodeWeek

Spearheadedby SAPCSR EMEA in 2015 as part of itssocialinvestmentstodrivesustainablegrowthinAfrica,AfricaCodeWeekisadigitalliteracyinitiativethathasbenefitted over 4.1 million young Africans across 36countries.Strongpartnershipswiththepublic,privateandnon-profitsectorsarethedrivingforcebehindtheinitiative’sabilitytodrivesustainablelearningimpactinsupport of UN Sustainable Development Goals #4(Quality Education), #5 (Gender Equality) and #17(PartnershipsfortheGoals).

SAP and key partners (UNESCO YouthMobile, theCamden Education Trust, the Cape Town ScienceCentre, Google and the German Federal Ministry forEconomicCooperationandDevelopment -BMZ)havejoined forces with 28 African governments, over 130implementingpartnersand120ACWambassadorsto:

Ø Introduce coding and digital literacy to 8-16-year-olds with a sharp focus on girlempowerment;

Ø Build local trainer capacity through dedicatedTrain-the-Trainer sessions (50,000 trained sofar);

Ø Adopt digital / coding curricula for sustainedimpactonyouth.

ThefourtheditionofACWtookplaceinOctober2018with 63,759 free codingworkshops organised for 2.3million young Africans across 37 countries, 46 % ofwhich were girls. In October 2019, ACW aims atengaging1.5millionyouthacross36countries.

Fosteringentrepreneurship:SES’Elevate

Evolving from simple technical training to anadvancement and self-development programme, theElevateprojectofSESnowhelpsgraduatessetuptheirown businesses within the directto-home (DTH)satellite industry. Launched in 2012, the programmehas recently experienced a rebrand, including a newcurriculumandanimpressivesetofvitalbusinessandmarketing skills, health and safety precautions andcompetencies.

The two-day course requires trainees to performpractice scenarios on the second day. The practicalmodules are about setting up an installation orengaging in dialogue with a customer. The aim is toimpartasmuchknowledgeaspossibletoourtraineesto open up job opportunities and help them developsmall businesses throughout Africa. To date, theprogramme has trained installers across the Africancontinent,includingtheDemocraticRepublicofCongo,Cameroon, Ghana, Nigeria, Dote D’Ivoire, Uganda,Kenya, Mail, Senegal, Malawi, Tanzania and SouthAfrica.

WomeninICT:WeCode

TopromotewomenintheICTsector,theRwandanICTChamber founded WeCode, the first programmingschoolandIT-agencyforwomeninEastAfrica.ItoffershighclassIT-trainingstoworking-ageRwandanwomenwith and without prior ICT degrees. WeCode haspartnered with Moringa School and MurahoTechnologytodevelopasix-monthlongbusinessdriventraining programme. As a Rwandan/Canadian techcompany based in Kigali for more than ten years,MurahoTechnologyprovides insightsontechserviceshighlydemandedbylocalandinternationalbusinesses.Based on this information Moringa School, a Kenyanworld-class softwaredeveloper accelerator, tailored acurriculum for WeCode’s programming school. Aftertheprogramme,WeCode,whichisconstantlyacquiringinternational contracts, employs its graduates for aperiod of six months before releasing them on theRwandan market. Therefore, when entering the jobmarket,WeCodegraduateshavedevelopedahighlevelof independence and international work experience.Severalnationalcompanieshavealreadyofferedjobsto

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future graduates of WeCode. By the end of 2019,WeCodeplanstohavetrained900womentobecomeIT-specialists. In addition, their private sector partnerSamasourcehastrained100womeninfreelanceIT-jobsin2018.

WeCodeisaprojectofRwandan-GermanDevelopmentCooperation with support of the German FederalMinistry for Economic Cooperation and Development(BMZ).

JobreadinessinITskills:The1MillionJobsprogramme

The 1Million Jobs programme aims to set up a newinstitute of technology, with a strong practicaltraineeship element, supported by a state-of-the-artSAPplatform.Theaimoftheprojectisto:

Ø To train rigorously selectedunemployed/underemployed youth for jobreadinessinthemiddletierofITskills.

Ø Tocreatea traineeshipmodelwithcontinuedtechnicalandsoft-skills training,supportedbymentorshipfor3years.

Ø Tobuildastate-of-the-artplatformconnectingjob seekers with training providers and jobproviders,assessingjobseekerspotentialusingAI,connectingSME’stotheecosystem(Appforjobseekers,websiteforjobprovidersetc.).

Ø To expand this model and create the digitalworkforceofthefuture,acrossmany industrysectorsandthroughoutAfrica.

Ø To support MSMEs with business skills andprovidingexposuretothemarket.

Digitalforinnovationhubs:EnabelandMTNUganda

Enabel has partnered with Uganda’s leading mobiletelecommunicationsoperatorMTNtosetupdigitalforinnovationhubsin9vocationaltraininginstitutions.Thecollaboration, a real demonstration of public-privatepartnerships, will see MTN provide items such ascomputers, servers, Internet connection and beresponsible for the maintenance of these hubs. Theinitiativewill enableUgandan youth to gain access toopeneducationalresourcesforskillsdevelopment.ICTin education in Uganda is usually limited to learningbasic skills suchaswordprocessingandworkingwith

spreadsheets.Thehubs,whichareexpectedtobethegamechanger,willplayapivotalroleinthepromotionof ICT enhanced learning including the use of videotutorials, virtual reality, and online textbooks amongothers.

MTNenteredthecollaborationaspartofitscorporatesocial responsibility initiatives and provides thetechnical expertiseneeded to roll out such initiatives.Enabel,beingabrandtrustedbybothparties,actsasabroker between MTN and the vocational traininginstitutions. This public private partnership (PPP) inskills development ensures the project will ablyintegrate ICT in skills provision and ensuressustainability.

Training educators: French Development Agency,Agence Universitaire de la Francophonie and OrangeMadagascar

The French Development Agency AFD has partneredwiththeAgenceUniversitairedelaFrancophonie(AUF)and Orange Madagascar to train primary schoolteachersusingmobilephones.Themobilephonesallowtutors to connect with remotely located teachersthroughaplatformdevelopedbyOrange,andtosendregularquizzesandautomatedinformationtokeeptheteachers updated. Digital material to be used inclassrooms can also be transferred. The permanentcommunication between tutors and teachers reducesthe isolation of teachers and strengthens theirpedagogicalsupervision.

MAMA-LIGHT® Innovation Data and SustainabilityCentre:MALINODASUC®

In Burkina Faso, the H.R.H. Princess Abze DjigmaFoundation launched a block chain project bringingtogetheratotalof1.3millionwomeninthesheabuttervaluechain,connectingthemtothedigitalworldviathee-cooperativeYAM®Token.

InpartnershipwiththeWestAfricaSolarPackhostedbyECOWAS Centre for Renewable Energy and EnergyEfficiency,theinitiativeworkstocreateaminimumof1million jobs in each country of the ECOWAS region,matchinglocalbusinessandcitizendailyneedsthroughdigitalcooperation.

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Promotinginnovationinhighereducation:EDULINKII

FinancedbytheEuropeanUnionandimplementedbythe ACP Secretariat, the EDULINK II programme isdesignedtocontinuefosteringcooperationinthefieldofHigherEducationbetweenthecountriesoftheACPStatesandtheEuropeanUnion.Theprogrammeaimsat promoting innovation in Higher EducationInstitutionsintheAfricanCaribbeanandPacificStates,and hence at ensuring their competitiveness in theglobalenvironment.

The expected results of implementing theEDULINKIIProgrammeare:

Ø Enhancedcontributiontonationalandregionalpoliciesanddevelopmentplansforcooperationinhighereducation.

Ø Increased inter-institutional networkingbetween HEIs in the ACP and with EU HEIs,

includinginstitutionsofferingteachertraining,degreesanddiplomascontributingtoregionalsolutionstoteachershortages.

Ø Improved management and financialadministrationofACPHEIs.

Ø Upgraded qualifications of academic staff ofACPHEIs.

Ø Improved institutional frameworks to pursueacademic programmes and academicexcellenceinACPHEIs.

Ø Increased mobility of postgraduate studentsandteachingstaffthroughtheprovisionofjointprogrammes.

Ø Deliveredstudyprogrammesinhigh-levelskillsrequired by the national and regional labourmarkets.

Ø Relevantnationalorregionalqualityassurancestandardsofstudyprogrammesaremet.

Goal III. Improving the business environment and facilitating access to finance and business supportservicestoboostdigitallyenabledentrepreneurship.

AfricanDevelopmentBankInnovationLab

The Innovation and Entrepreneurship Lab (IEL) is aninitiative under the Jobs for Youth in Africa (JfYA)programmeoftheAfDB.TheobjectiveoftheInnovationLabistosupportAfricaentrepreneurshipecosystembystrengthening the capacity of enterprise supportorganizations (ESOs) - i.e. business incubators,acceleratorsandfinancialintermediariesincludingfundmanagers operating at all stages of the start-upinvestment cycle to help entrepreneurs createcommercially viable and sustainable ventures thatemploy young people with a focus on young womenentrepreneurs.

TheLabwillincubateandpilotpromisingnewideasandassess best practices for existing interventions insupportofentrepreneurshipandyouthemployment.Inaddition, theLabwillprovideknowledge resources tohelp mitigate the constraints and challengesentrepreneurs face in Africa and allow them tosuccessfully launch and grow their businesses and

createemploymentforyoungpeople.Labactivitieswilladdress five pillars, namely: i) Market Analysis &Networking, ii) Capacity Building, iii) Knowledge &exchangeplatform,iv)FinancialSupportforStart-ups&v)Innovation&Incubation.TheLabhasrecentlybeenlaunchedandanextensiveESOandentrepreneurshipmarketstudyisnowunderway,theresultsofwhichwillbepublishedinJune2019.TheLabissupportedbytheAfDB working in collaboration with several initiativesandpartners.

Start-upactsinTunisiaandSenegal

Complex business registration processes and uniformtaxregimescurrentlyharmcreationandeaseofdoingbusiness for emerging entrepreneurs in Africa. GoodpracticesfromTunisiaandSenegalshowhowstart-upacts created through a participatory and inclusiveapproach to policy-making can provide acomprehensiveresponsetotheseobstacles.Aspartofthe broader Digital Tunisia 2020 strategy to boostsocioeconomicdevelopmentandexpandtechnological

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infrastructure,theStart-upActisexpectedtoincreasethe number of start-ups, especially in the high-techsector and with a focus on youth employment. TheTunisianactgoesonestepfurther,byofferingstipendsto support founders in their first year of operations,covering patenting fees and ensuring employees therighttoreturntotheiroldjobsafterafailedattempttosetuptheirbusiness.Theuniquebottom-up initiativethat gave rise to the Tunisian start-up act hascontributed greatly to the comprehensiveness anduser-centredorientationoftheactandlaidgroundforreplicating co-creation processes through initiativessuchastheI4Policystart-uphackathoninSenegal.TheongoingconsultationstodeveloptheSenegalStart-upAct aim at providing recommendations to promoteinnovation and entrepreneurship, covering areasincluding tax policies, start-up financing, start-uplabelling, as well as data collection and sharing fordeveloping better business plans. In April 2019, Malijoined Tunisia and Senegal, when the governmentreleased a policy document and invited all relevantstakeholderstoreviewframeworksandpoliciesthatwillmakeuptheStart-upAct.

World Bank and ITU’s Financial Inclusion GlobalInitiative(FIGI)

FIGIisathree-yearprogrammeofcollectiveactionledby ITU, theWorldBankGroupandtheCommitteeonPayments and Market Infrastructures, with supportfromtheBill&MelindaGatesFoundation.

The initiative acts as a collaborative body to provideresources to help transformplans into reality, and tomeasure the success of the implemented plans. FIGIaims to advance research in digital finance andaccelerate financial inclusion in developing countries,andtheprogrammefocusesontheenablinglegalandregulatory frameworks and the financial and ICTinfrastructure, as well as improvements in productdesign and access networks. There is also a specificfocuson improvingelectronicpaymentacceptancebymerchants, digital ID and eKYC, and the security offinancial and ICT infrastructure for digital financialservices. In addition, this initiative will provide thetangibleopportunitytoengageglobalfunderstobuildout their funding capacity to bring DFS across theircoveragegeographies.

China,EgyptandMexicohavebeenidentifiedasthreetargetcountriesforcollaborationandimplementation.

Closing theGenderDigitalDivide: Solutions for YouthEmployment(S4YE)

Solutions for Youth Employment (S4YE) is a multi-stakeholdercoalitionamongkeyplayersfromthepublicsector,privatesectorandcivilsocietyaimingatclosingtheGenderDigitalDivide.Ithastwostrategicpriorities:accelerate innovation (through cutting-edge andevidence-basedsolutions)andgenerateknowledgeandlearning to scale programme impact and influencepolicy dialogue. S4YE publishes an annual Report onDigital Jobs for Youth. It provides operationalrecommendationforthedesignandimplementationofintegrated and gender-inclusive digital jobsinterventionsforyouth.Digitaljobsallowcuttingsearchcosts, widening employment areas or changing agender-orientedorganisationofwork.Itisakeytoolforthe inclusion of young women by overcoming social,economic,politicalandphysicalconstraints.Allsectorsare drivers of demand for digital jobs and S4YEaddresses ad hoc recommendations to all kind ofplayers being youth employment programmes,governmentsorprivatesector.

Digital Transformationof the ICTecosystem inAfrica:ITUInnovationPlatform

TheUnitedNations’ International TelecommunicationUnion (ITU) is working towards the digitaltransformation of the ICT ecosystem in Africa. ItsDevelopment Sector (ITU-D) fosters internationalcooperation and solidarity in thedeliveryof technicalassistance.ITUbelievesinthepotentialforleapfroginAfrica through the opportunities brought by digitaltransformation and a thriving entrepreneurialeconomy. To develop its projects, ITUworks throughpublic-privatepartnershipsandcooperationinitiatives.

ITUhasdevelopedaninnovationplatformthatcanbeutilized to accelerate the digital economy. This globalplatform serves toprovide knowledge, build capacity,assess the ecosystem, and develop concrete projectsfor countries in order to enable digitalentrepreneurship. Countries canmake concreteplanswithITUanditspartnerstoscaleupthisactivity,which

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hasalreadybeendoneforover20countriesworldwide.This platform looks at the systemic issues of digitaleconomytonurturedigitalentrepreneurship.Withoutsystemic approach, sustainable development will bevery difficult, as initiatives cannot have synergies andinvestmentimpact.

Techentrepreneurship:Make-ITinAfrica

The“TechEntrepreneurshipInitiativeMake-ITinAfrica”promotes digital innovation for sustainable andinclusive development in Africa and is funded by theGermanFederalMinistryforEconomicCooperationandDevelopment (BMZ), as part of BMZ’s Digital AfricaInitiative.

Inclosecollaborationwithmorethan30corporateandfinancing partners, social enterprises, hubs, andnetworks,‘Make-ITinAfrica’supportsthegrowthofanenablingenvironment for youngentrepreneurs in thedigital sector – to facilitate better access to finance,marketsandskills.Thesetechentrepreneurshavethepotentialtomodernisetheeconomiesandsocietiesoftheir countries, discover innovative solutions fordevelopmentchallenges,andcreatenewopportunitiesforemployment.

Catalysing technology, innovation and impactinvestment:Agri-BusinessCapital(ABC)Fund

TheAgri-BusinessCapital(ABC)FundsponsoredbytheInternationalFundforAgriculturalDevelopment(IFAD)isanewmodelandanchoredbytheEuropeanUnion,the ACP Group, the Government of Luxembourg andAGRAprovidingcatalyticgrantsina“first-loss”trancheprotecting financial investors in the mezzanine andsenior tranchesat lower-risk-rewardexpectationsandthereforebeingabletoprovidecapitalforthe“missing-middle” (US$ 25.000 to 1.000.000) to small-holderfarmers and their agribusinesses. These new impactinvesting models of “blended-finance impact firstfunds”havethegreatadvantageofdifferentformsof(non-profit,impactandfinancial)capitalbeingunitedinthe same vehicle providing capital on innovation andstart-up stages of enterprises. Hence, these publicprivate partnerships are able to catalyse technology,innovation and impact investment by filling thefinancinggapandfuellingtechstart-ups.

Digitaleconomypolicyvision:i4Policy

Innovation for policy (i4Policy) is a policy initiativelaunched In October 2016 by a group of Africaninnovation hubs, policymakers, entrepreneurs andcommunitycatalyststoestablishagrassrootsvisionfordigitaleconomy.In2018,theycollaborativelydraftedapolicyvisionwithhubsacrossthecontinentintheformoftheAfricaInnovationPolicyManifestov1.2.Itwasabottom-up co-writing process led by 48 ecosystemleadersfrom25Africancountriesandrepresentingthemajor linguistic groups on the continent. Today, 126community innovation hubs across 39 countries withcommunities of more than 700,000 innovators andentrepreneurs have endorsed the Manifesto. It is aliving document with its online Consultation tool foramending, discussing and rating its different aspects.Thei4Policycommunityhasindicatedtheirwillingnessto further their agendaby strategically engagingwithpolicymakerstodevelopandreformpublicpolicies,andthey have developed participatory and deliberativepolicyreformmethodologiestodoso.Withthesetools,i4Policy has organized 10 Policy Hackathons in ninecountriestoidentifyrelevantandeffectivepublicpolicyinterventions andengenderbroad-based coalitions todesignandimplementpolicyreforms.Abroadrangeofinternationalpartnershavesupportedthecommunity’spolicy hackathons and participatory policy reformefforts. The community is currently supporting publicpolicy reforms across theWestAfricanEconomic andMonetaryUnionandworkingontheManifestotorefineconcrete recommendations for sub-regions and thecontinent.

Partnerships for growth: The GSMA EcosystemAcceleratorprogramme

TheGSMAEcosystemAcceleratorprogrammefocuseson bridging the gap between mobile operators andstart-ups,enablingstrongpartnerships that foster thegrowth of innovative mobile products and services.With21 investments throughgrant funding (between£100K-£250K per start-up) in Africa over the past 3years,andauniquepositioningaimedatfosteringmorecollaborationbetweenstart-upsandmobileoperatorsinthecontinent,theprogrammehasbeenamongthemostactiveinitiativessupportingAfricanstart-upsoverthepastfewyears.

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Africandigitalinnovation:LinkubAfrica

Linkub Africa is the first pan-African incubator, an"Innovation Factory", and a cluster of African digitalinnovation.

This space brings together various stakeholders ofdigital innovation in Tunisia, in Africa and at theinternational, Think Tank, investors, researchlaboratories, large companies and startups,Universities,withagoal:exchange,develop,accelerateandco-builddigital innovationprojectsandfostertheemergenceofdisruptive innovations throughamodelofcollaborationandoriginalconfrontation.

The Linkub Africa partners to date are : the TunisianGovernment, SmartAfricaAlliance, SECOSwitzerland,GIZ, Make IT Africa, Swiss Technopole Yverdon, ITU,African Union, Deloitte Africa, Nordic IT, TunisianUniversities, Virtual University of Tunisia (created in2002) Afric'Innov, MEST Incubator, Startupboostx,Do4Africa, LIST Luxembourg, Incubator of Shwanigan(Canada) and SSVAR (Swiss Society of Virtual,AugmentedandMixedReality),amongothers.

Employmentindigitalplatforms:FairWorkproject

Conducted by researchers from the Oxford InternetInstitute, Universities of Cape Town, Manchester,OxfordandtheWesternCape;theFairWorkprojectisinvestigating to what extent fair work principles arebeing adopted by the ‘gig economy’ labour-baseddigital platforms in Africa (and other developingcountries).

Platform work provides essential income andopportunities to many. However, some types ofplatform work have also become synonymous withextremelylowpay,precarity,andpooranddangerousworkingconditions.Thisisastateofaffairsthatisnotjust undesirable for workers, but also for client firmsandend-consumers.Clientfirmswillwanttoavoidthereputational risks of outsourcing to poorly-treatedworkers;andresearchhasshownthatconsumerswhoareabletodosoareoftenwillingtopayapremiumtoensure that products they buy were produced undergoodworkingconditions.

SupportedbyGIZ,theFairworkprojectiscommittedtohighlighting best andworst practices in the emergingplatformeconomy.Governments,platformoperators,unionsandworkershaveallbeenconsultedtoestablishaseriesofcoreprinciples,usedbytheprojecttorateandrankplatformcompanies.

TheprojectfeedsintotheFairworkFoundationagenda,which seeks to harness consumer power along withleverage from workers and platforms to significantlycontribute to the welfare and job quality of digitalworkers.

Africanincubators:Afric’innov

Afric’innov is a pan-African incubator network run bytheNGOBond’Innov,fundedbytheFrenchAgencyforDevelopment(AFD)andtheInternationalOrganisationoftheFrancophonie.Furthermore,thenetworkworkshand in hand with the research institution IRD, theWorldBankandtelecomoperatorOrangefortechnicalassistance.

Afric’Innovdigitaltoolsoffersupporttoentrepreneursvia follow-upmechanisms, standardised indicators foranalysing their impact, eLearning for managers andoperationalteams,andahandycollaborativeresourcestoolbox. It supports the professionalization of Africanincubatorswhilemainstreamingbestpracticesamongthem,seekingtoallowtheemergenceofahighnumberof quality start-ups and entrepreneurs. So far, thenetworkcountswith31incubatorsin15countries,andhassupportedover200start-ups.

Itofferstrainingandseedfundingprogrammes,digitaltoolsformanagingincubation,andaqualitylabeltoputeach qualified incubator in communication with itscommunity.Thelabelhasbeenco-developedwithfiveinternational institutions, 33 incubators and 18 start-ups; and it rates the quality of infrastructures,governancetransparency,clearnessofserviceofferandthe adaptability and usefulness of the resources andsupportingmodelsprovidedtostart-ups.

Supportingthetechecosystem:ITC’sNTFIVTechSectorDevelopment

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The UN International Trade Centre (ITC) has beenbuilding tech-sector competitiveness in developingcountries since 2010. Currently, the tech-sectordevelopment practice accelerates 120+ tech startupsandstrengthensthetechecosystemsinEastandWestAfricancountries.ITCsupportsdigitalentrepreneurshipon three interlinked levels, working with marketpartners to connect companies with businessopportunities.ITCstaffaswellaslocalandinternationalexperts–through“trainingoftrainers”withthelatter-deliver blended capacity building for startups. At themesolevel,ITCpartnerswithtechhubsas“multipliers”

on the ground, in close coordination with relevantgovernmentministriesandagencies.

ITC emphasizes international business development.Supported tech startups participate in regional andinternational tech events, where they connect withbusinesspartnersandinternationalinvestors.ThroughITC’s NTF IV Tech Sector Development, customizedtoolkitsareofferedandadaptedtothestartups’levelofmaturity (innovation (ideation), entrepreneurship(minimum viable product launched) and growth(market-product fit) and specialisation (fintech, e-commerce,agritech,ed-techetc.).

GoalIV.AcceleratingtheadoptionofeServicesandthefurtherdevelopmentofthedigitaleconomyforachievingtheSustainableDevelopmentGoals(SDGs).

ITU’sprogrammesforeServices

Ø ITU has developed an SDGDigital InvestmentFramework as an analytical guide to digitalinvestmentbyidentifyingreusableICTbuildingblocks to deliver priority SDG use cases. Theframework builds on a whole-of-governmentapproachtoICTinvestmentthatisrequiredinorder todeliver impact at scale, and the SDGprovideastrongstrategicfoundationfordigitaleconomythatisintegratedacrossgovernmentbothhorizontallyandvertically.

Ø The ITU Digital Innovation Framework assistscountries,citiesandecosystems inaddressingtoday's challenges by empowering them toacceleratetheirdigitaltransformation.

Ø TofullyutilisethepowerofICTsforsustainabledevelopment (ICT4SDG), the ICT Applicationsprogramme assists ITU members in bringingimpacttotheirnationaldevelopmentagendasby providing the tools to develop andimplementsustainablesolutionsatthenationallevel;andtoworkinanumberofcrosscuttinginitiatives to leverage multi-stakeholdercollaboration and the power of ICT4SDG. Theaim is to facilitate the development andadoptionofinnovativesolutionsthatwillbringimpact to people, and to accelerate theachievementoftheSDGs.

Ø ITUisworkingoncollaborativeregulationtoolsandresearch,aswellasonbuildingblocksforabroaderuniversalservice(Universalservicev.2)infutureregulatoryandlegislativepolicy.UAS2.0 will enable incorporation of the variousdynamics of the telecommunications and ICTservicessectorandismoreflexibleandbetteraligned with the current convergence ofservices, networks and content. A set ofrecommendations and guidelines will bepresented that will be used to improveprocedures and mechanisms of universalservice management and associated aspects,particularlyintermsoffinancing.

CIBEgyptDataLabandFintech

In2015,CIBpioneeredtobuildanadvancedanalyticsandbigdatalab.Thebank'svisionwastoevolvefromasuccessful, yet local, traditional bank into a leadingdata-driven, customer-centric organisation that fullyunderstandsitsexistingandpotentialcustomers'needsandtailorsfinancialproductsandservicesaccordingly.Now,CIBisEgypt'slargestsponsoroffintechstart-ups,the first North African bank to use smart lending toreachtheunbanked,andthefirsttojoinR3,theworld'slargest financial servicesconsortiumusingblockchaintechnology.