Partnerships with technology companies must be based on developing local skills, says MTN’s Ralph Mupita
Having participated in some of the sideline events at the recent UN general assembly, it is clear that Africa stands at a crossroads. Geopolitical and macroeconomic conditions are such that the need for higher intra-Africa trade has never been more important.
From a technology point of view, we are experiencing the dawn of artificial intelligence (AI) as a new foundational technology that has the potential to deliver significant productivity improvements and use cases that we have not fully imagined.
Demographically, the Global North dominates in wealth accumulated but is ageing, while the youthful Global South is positioned to provide the workforce of the future. Africa is home to the world’s youngest population and a potential burgeoning demographic dividend. By 2050 our youth population is projected to reach nearly 830-million. This vibrant, energetic generation is not just a future workforce, it’s a powerful engine for social and economic transformation.
However, to unlock this potential, we must act now. We need a decisive, collective call to action from governments, the private sector and civil society to accelerate the development of Africa’s digital economy. Without it, this demographic advantage could become a socioeconomic headwind and missed opportunity to deliver on the youth dividend.
While we’ve made progress towards a digital Africa, the internet usage gap remains wide. According to the International Telecommunication Union (ITU), in 2024 only 38% of Africa’s population was online; the global average was 68%. The Global System for Mobile Communications Association (GSMA) says a billion Africans remain stuck in the voice era. This usage gap holds back development and is an obstacle to economic participation and human-centred development.
For guidance on ways to overcome this it is instructive to look at India’s example. With a population of a similar size to the whole of Africa, India built its digital economy through a well co-ordinated partnership between government and the private sector to drive digital and financial inclusion.
Among the key features of “Digital India” are providing robust digital infrastructure as a fundamental utility for all; making all government services available electronically on demand; and empowering citizens with a unique digital identity and access to digital financial services through a unified payments interface.
To bridge Africa’s digital divide, several key actions are required. Modernisation of regulatory and fiscal frameworks; significant investments in power and digital infrastructure; and digital and AI skilling, of the youth, in particular, need to be prioritised with the utmost urgency.
For universal, meaningful connectivity the ITU says in its “Connecting Humanity Action Blueprint” the following key gap costs have to be met:
• digital infrastructure;
• affordability;
• digital skills; and
• policy and regulatory.
It estimates the total costs to 2030 at $2.7-trillion.
Of this, the ITU estimates that the global digital infrastructure financing gap is $1.6-trillion, with about $660bn of this constituting capital expenditure. The biggest single capex category is last-mile infrastructure, and it estimates that Africa needs $96bn until 2030 to plug this gap.
This is not a task for governments or mobile operators alone. To build a more inclusive digital Africa the GSMA highlights the need for lower excise duties and operator taxes, and the simplification of the tax collection system. It also lists stable and reliable electricity access and clear policy strategy and transparent regulation as being essential, and has specifically called for the removal of taxes on entry-level smart devices — tools for education and portals to financial and other digital services.
Of MTN’s 298-million customers, by the first half of this year, only 55% were accessing the internet. The cost of devices remains a significant barrier. For many people the price of a smartphone can be the equivalent of 95% of monthly income, according to the GSMA. The ITU estimates that in the next five years Africa needs $8.4bn to ensure universal access to a low-cost smartphone.
We must work together to accelerate smartphone diffusion, by lowering import taxes on devices and fostering their local manufacture and assembly.
We believe ubiquitous access and use of the internet will happen across Africa when customers have smartphones starting at $20-$25. The development of cloud-based phones and the reduction and removal of duties and taxes on low-cost 4G smartphones will be a major enabler in internet adoption and the development of a vibrant digital economy for Africa.
We also need to see further modernisation of regulatory frameworks, ensuring sufficient access to spectrum at reasonable cost to operators, while holding the same operators to high quality-of-service and coverage obligations. And we need competition frameworks that balance customer choice and investments in digital infrastructure.
Globally, there is a clear shift towards more in-market consolidation. Counterintuitively, this in-market consolidation is attracting more investment and driving higher digital inclusion, particularly of customers in peri-urban and rural areas. Embracing technologies such as fixed wireless access and low-earth orbit satellites will be important to ensure African citizens have high-quality connectivity.
Digital skilling and job creation for our youth
Another key component of digital transformation is digital skilling and job creation for our youth. The World Bank’s “Africa’s Pulse” report highlights that while digitalisation presents immense opportunities for job creation and poverty reduction, learning alone isn’t enough if there’s weak demand for skilled workers.
The GSMA’s “Sub-Saharan Africa 2024 Year in Review” says that closing the usage gap could add about $700bn in additional GDP in 2024-30. This is the prize. But to claim it, we must equip our youth with the right skills.
A recent report from the International Certificate of Digital Literacy finds that only 50% of African countries include “computer skills” in their school curriculum, and an alarming 90% of children leave school without basic digital skills. We need to treat digital literacy — including coding, data analytics and cybersecurity — as a fundamental requirement for survival in the 21st century.
Finally, we must prepare for AI. It is one of the most transformative technologies of our time, with the potential to add billions to our continent’s economy. McKinsey estimates that at-scale deployment of generative AI could unlock $61bn-$103bn of additional economic value across Africa. However, our continent accounts for less than 1% of global AI research & development.
Challenges that are holding us back include limited digital infrastructure, skills shortages and a scarcity of data in African languages. We must not be passive consumers of AI developed elsewhere. We need to invest in our own AI ecosystems, support local start-ups, and develop policies that foster responsible AI development. The World Bank’s data shows that we are lagging behind other regions, and unless we act quickly, we risk being left behind in this new technological revolution.
There is much work to do, and it is a shared responsibility. The private sector must continue to invest, innovate and create jobs. Governments must create a stable, predictable and enabling regulatory environment that encourages investment and innovation.
We in Africa need to partner with global technology companies, but do so mindful that our challenges and opportunities are unique. Our partnership models must be on the basis that we develop local skills and capability, and that Africans are not just consumers but creators too. Our young people must embrace this digital future with an insatiable appetite for learning and self-improvement.
The opportunity is ours to seize. Let’s work together to ensure that Africa’s digital destiny is one of prosperity, inclusivity and socioeconomic progress.
• Mupita is president and CEO of MTN Group.
