Sync Policies To Unlock Digital Growth

African ICT Ministers, policymakers and stakeholders have been urged to institute policy reforms within Africa’s ICT sector to harmonise better ICT policies for the continent’s digital economy.

According to Kenya’s Cabinet Secretary for Information, Communication and Digital Economy, Eliud Owalo, outdated policies limit investment in the continent’s ICT sector. The CS singled out former policies such as the 30 per cent local shareholding rule for foreign companies to invest in Kenya’s ICT sector as a hindrance to foreign direct investment, celebrating its axing.

“In Kenya, for example, we have managed to waive the 30 per cent local content requirements that necessitated that ICT companies must have 30 per cent local ownership. What is the purpose of having a law that impedes foreign direct capital investment? That is the direction that we need to go as Africa, making sure that there is foreign direct capital investment while at the same time also protecting our local interests as Africa,” said the CS.

Eng. John Tanui, Kenya’s Principal Secretary, State Department of ICT and Digital Economy added, “We are also encouraging more players to create digital platforms. These are new spaces, that we must ensure that Kenya and Africa as a continent also have digital platforms, which are local and indigenous, and be able to contribute to the Kenyan and the African economy.”

According to Kenya’s ICT Authority, while African innovators continue to roll out new products and services, they can’t scale and secure capital to grow beyond set niche markets a factor that has seen many innovators sell off their innovations.

“The most important thing that we need to do is to set up policies that support and ring-fence our innovators, because what has been happening is that most of our innovators start good solutions, and then they sell them for a dime to foreign investors. Why? Because that person does not have the required resources to move from startup to growth. So they find it easier to negotiate with a foreign investor and sell their innovation,” stated Stanley Kamanguya, CEO, ICT Authority.

Africa’s digital marketplace requires good enabling policies, laws, and regulations, cutting across borders and aligned with AU’s Agenda 2063, which will attract more foreign investment while empowering the continent’s innovators. To enable the harmonisation of these policies Kenya is hosting the Connected Africa Summit from 21 – 24 April 2024.

“Anything and everything we do as African countries must be aligned to Africa Union’s (AU) Agenda 2063. We need to think together as Africa while aligning with the overall policy framework, which is the AU Agenda 2063. Africa can be transformed when leveraging technology into a continental digital marketplace, which is boundless once we have good enabling policies, laws and regulations that facility database,” said Owalo.

The Agenda 2063 aims to establish policies and strategies that will lead to transformative e-applications and services in Africa; especially the intra-African broadband terrestrial infrastructure.

“Most of the global economy is now on entire digital platforms. Digital platforms control or enable 30 per cent of the global economy. So, young people need to be exposed to this new space to familiarise themselves with it, learn, participate and become players in it,” Tanui concluded.

So far, Africa Union Chairperson (AUC), His Excellency Moussa Faki Mahamat, World Bank (WB) President, Ajay Banga and Africa Development Bank (AfDB) President, Dr. Akinwumi A. Adesina, six African nation ministers and 15 Ambassadors have confirmed attendance for the Connected Africa Summit 2024. The Summit will act as a platform for African leaders to position the African tech agenda in readiness for the UN Summit of the Future to be held in September 2024. They will also determine their role in green technology and the governance of generative AI for African realities.