Ken Ofori Atta, the Finance Minister of Ghana has predicted that Africa’s Gross Domestic Product (GDP) will soar by 8.8% towards 2050 if its well performing digital economy is sustained.
According to Ofori-Atta, the International Finance Corporation (IFC) and Google estimate is that, by 2025, the digital economy could contribute a hundred and eighty billion a year to the African economy, increasing to seven hundred and twelve billion a year by 2050.
“Digital economy is here, and it is here to stay. Assuming GDP growth is sustained at 4.5% a year by 2025, the digital economy will effectively represent 5.9% of African GDP, growing to approximately 8.8% by 2050.
“Across the African continent, the relentless spread of network sensors at which intelligence and automation are already driving a revolution, the same revolution is happening here at home in Ghana.”
Ofori-Atta
The Finance Minister therefore encouraged all African Leaders to leverage on opportunities that technology presents in order to realize the African Continental Free Trade Area (AfCFTA) objectives.
Ofori-Atta believes technology is essential for developing African economies and urges African leaders not to disregard the importance of the digital economy.
“We must be careful not to make the fundamental mistake of assuming that the knowledge-based digital economy is a thing of the past.
“I’m confident that we can leverage opportunities that technology presents to finally realize the objectives of AfCFTA, the attainment of broader and deeper economic integration that will attract investments, reduce poverty and provide jobs.”
Ofori-Atta
These remarks by the Finance Minister were made at the “Kwahu Summit on Africa’s Prosperity”, a Business and Policy Dialogue, hosted by the African Prosperity Network (APN) in partnership with the Presidency and the AfCFTA Secretariat on January 28, 2023.
Furthermore, Ofori-Atta challenged both established businesses and young startups to penetrate the technology market.
“We are at important cross roads and remain doubtless that our adoption of new technologies will prove fundamental to our economic growth.
“As we work towards dealing with the head and tail wings that have rocked us over the last couple of years, it is not just the fiscal and monitoring interventions of governments in the micro-economy that will steer us out of the storm but the penetration of technology and entrepreneurial innovations by established businesses and young start-ups, and government’s commitments to digitization and technological innovation as a policy priority.”
Ofori-Atta
Going on, African leaders and businesses were charged by the Finance minister to use technology as a key driver to the success of AfCFTA, encouraging them further to capitalize on the varied opportunities digital technologies present them.
Ofori-Atta further urged African leaders to use modern technology to address the bureaucratic delays and hurdles in the collection and transfer of public funds.
“It is important for us to look at technology as a key driver to the success of AfCFTA. We must maintain the resolve to ensure that the immense opportunities that the digital technologies offer us are realized and made available to all.
“Additionally, we must ensure that we leverage modern technologies to tackle administrative delays and bottlenecks that often characterize the collection, lodging and transfer of public revenue. We know tax mobilization is relatively low across the continent.”
Ofori-Atta
The Advancement of Africa Rests On Building Its Human Capital
Ofori-Atta believes that enriching human capital through education, sharpening skills, entrepreneurship, and provision of a strong digital infrastructure are necessary to advance Africa.
“Knowledge, skills, creativity, innovation and entrepreneurship, underpinned by functioning and robust digital systems will be the launch pad for our continent’s advancement and success.
“The time has come for a continent, wise-strategic to ensure that Africa’s digital trade and innovation landscape is sufficiently supported to contribute to our growth and eventual structural transformation.”
Ofori-Atta
Failure of African leaders to rally for strong local development of digital technologies, the Finance Minister said, will siphon the expansion of their economies.
“Payment systems remain a crucial part of Africa coming together…The harsh reality is that, e-commerce and artificial intelligence continue to buzz around our boardrooms and policy discussions.
“A failure to rally strong support for the local development of these technologies will continue to keep Africa tied to the apron strings of developed economies. Infrastructural development is solely needed, including: digital transformation; through cloud adoption; expanding internet connectivity and developing efficient logistics networks.”
Ofori-Atta
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