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Samir Bhattacharya, “Towards ‘Agenda 2063’: Africa’s Digitalisation Imperatives,” ORF Special Report No. 239, December 2024, Observer Research Foundation.
The Fourth Industrial Revolution (4IR) is reshaping economies globally, including in Africa, where the potential for digital transformation is poised to drive economic growth, industrialisation, and development. The African Union's ‘Agenda 2063’ sets a bold vision for Africa's transformation into a global powerhouse by embracing innovation, digital technologies, and sustainable industrialisation. This vision recognises the importance of digital systems in addressing both the challenges and opportunities posed by the 4IR, and highlights the need for Africa to harness these technologies for its economic and social upliftment.
Africa is uniquely positioned to benefit from the digital revolution, owing to its young, dynamic population, rapid urbanisation, and rising middle class. However, the continent still faces significant hurdles, including insufficient infrastructure, limited access to broadband, and challenges in building local digital economies. According to the World Bank, as of 2023, only 36 percent of Africa's population has access to broadband internet. While some countries, such as South Africa, Kenya, and Morocco, have made strides in digital technologies, much of the continent lags behind in building the necessary infrastructure for a robust digital economy.
One of the critical barriers to Africa's digital transformation is the insufficient investment in infrastructure—particularly in telecommunications, energy, and research and development (R&D). To fully capitalise on the potential of the digital economy, significant investments are needed in sectors such as cloud computing, data centres, 5G networks, and green technologies, such as the green hydrogen economy, which has already garnered attention in countries like South Africa and Namibia. Digital infrastructure is also key to facilitating e-government services, digital education, e-commerce, and industry-specific applications, which can help accelerate Africa’s industrialisation.
Angola's experience in this regard illustrates the complexities faced by African nations in their digital transformation efforts. Since the end of its civil war in 2002, Angola has sought to modernise its infrastructure and diversify its economy, but progress has been slow. According to the 2024 E-Government Development Index (EGDI), Angola has made little advancement in developing e-government services, with its ranking declining from 148th in 2003 to 156th in 2024. Challenges such as inadequate telecommunication infrastructure, limited human capital, and the lack of continuous, reliable public service delivery have hindered the country's ability to realise the full benefits of digital transformation.
Despite these setbacks, Angola's investments in satellite technology, such as the AngoSat-2 satellite, offer an opportunity to enhance connectivity and improve e-government services. Moreover, the country’s digital platforms, such as the "Portal dos Serviços Públicos Electrónicos" and the "Guiché Único da Empresa," demonstrate the potential for improving public service delivery through digital channels. These platforms, however, still face challenges related to service reliability, infrastructure quality, and the need for skilled personnel to manage and maintain the systems.
Two articles collated in this report—one focusing on Africa's broader industrial transformation through digital means, and the other on Angola's specific challenges and opportunities in embracing digital transformation—shed light on the continent's multifaceted journey. Both perspectives underscore the crucial role of digital technologies in enhancing productivity, governance, and infrastructure, and highlight the challenges that remain in harnessing this potential.
The first article examines Africa's industrial transformation, particularly through the lens of digital technology. The African Union’s 'Agenda 2063' envisions the continent as a global powerhouse, leveraging digital economies and innovations to address both regional and global challenges. However, the digital divide remains a major obstacle, with only 36 percent of Africa’s population having access to broadband internet, hindering full participation in the Fourth Industrial Revolution (4IR). The study highlights that, while leading African nations like South Africa, Nigeria, and Kenya have made significant strides in technology adoption, the continent overall faces substantial gaps in infrastructure and investment. Despite these challenges, Africa’s youthful population, projected to reach 2.5 billion by 2050, offers tremendous potential for growth. Investing in digital infrastructure, local technology production, and human capital is vital to achieving industrial and economic transformation.
Furthermore, the article explores the need for a robust tech ecosystem that includes smart cities, efficient logistics, and energy infrastructure, alongside emerging sectors such as green hydrogen, which offer transformative opportunities for the continent. The need for technology transfers, research and development, and investments in key industries such as agriculture and manufacturing are emphasised as critical components for sustainable growth. Ultimately, the digital economy is seen as both a pathway to industrialisation and a tool to unlock Africa’s full potential on the global stage.
In contrast, the second article narrows the focus to Angola, examining the specific challenges it faces in digital transformation. Despite strides since the end of its civil war in 2002, Angola has struggled to develop the necessary digital infrastructure and human capital to foster a thriving e-government ecosystem. While the country has made significant efforts, such as launching the AngoSat-2 satellite to improve connectivity, it still ranks low in the E-Government Development Index (EGDI) and E-Participation Index, signaling ongoing struggles with service delivery and accessibility. Angola's challenges—particularly in building telecommunication infrastructure, human capital, and legislative frameworks—serve as a case study of the broader difficulties many African countries face in achieving digital transformation.
However, these challenges also present opportunities for Angola. By revisiting its national policies, investing in the key pillars of digital transformation—online services, human capital, and telecommunications—and addressing infrastructure deficiencies, Angola can potentially leverage digital technologies to diversify its economy and attract foreign investment. The article suggests that by improving e-government services, fostering a digital economy, and enhancing public-private partnerships, Angola could transform into a key player in Africa’s digital future.
Together, both studies underscore the critical importance of digital technologies in Africa’s future. While there are significant hurdles—ranging from infrastructure and investment gaps to human capital limitations—there are also immense opportunities. The continent's demographic advantage, alongside strategic investments in technology, education, and infrastructure, can catalyse its digital transformation. The integration of technology into governance, industry, and society offers a clear path for Africa to position itself at the forefront of the global economy, with countries like Angola providing both lessons and insights into the practical steps needed for success.
Finally, the two analyses highlight the dual narrative of opportunity and challenge that defines Africa's digital future. While progress is needed, the collective efforts of governments, businesses, and international partners can unlock Africa's potential, paving the way for a digital-driven industrial revolution that benefits both the continent and the global economy.
The objective of the African Union’s ‘Agenda 2063’, a “blueprint and master plan for transforming Africa into the global powerhouse of the future”,[1] is to detail Africa’s contribution to the global human experience through innovation and production, new ways of producing, and solutions to global[2] challenges in the ongoing industrial revolution. This is one way of understanding the African Renaissance, which Cheikh Anta Diop[3] and Thabo Mbeki,[4] among other African thinkers, have measured to be achievable. Africa, too, shares in a period during the Fourth Industrial Revolution, which involves artificial intelligence and the digital economy.
The digital economy presents an opportunity to accelerate development and improve the human experience in Africa. Yet, according to a 2023 World Bank statistic, only 36 percent of Africa’s population has access to broadband internet.[5] In a global economy driven by digital technologies and innovation, infrastructure for cloud computing, among other technologies, is vital, but Africa continues to trail other regions. Technologies such as 5G are shaping the world economy, from the agricultural value chain (in India, China, Russia, Brazil, and the US) to automotive manufacturing (in Germany, the US, South Korea, China, and Sweden) and general e-commerce.
Of course, not all African economies are identical in their tech capabilities. Small Island Developing States such as the Seychelles, Mauritius, and Cape Verde are among the leading technologically advanced African states that include South Africa, Egypt, Morocco, Nigeria, Botswana, Kenya, and Namibia. In South Africa, for instance, apart from the push for smart cities at a macro level, innovators such as app developers have begun offering solutions ranging from emergency assistance (for instance, Namola) to housekeeping services (such as Sweep South) at the touch of a smartphone screen.
Africa contends with the lowest foreign direct investment despite the proven reliability of return on investment. This is reflected in the 2023 Disrupt Africa report that traces the decline to 2016, which continues to 2023 with a 35.9 drop from 2022.[6] This is despite the significant growth potential backed by a rising young middle-class population, skilled, able, and ready to work and innovate, according to the 2023 United Nations Africa Dialogue Series policy brief.[7]
The African population is the youngest in the world, accounting for 70 percent of the continent's total population.[8] It is also expected to grow to 2.5 billion by 2050.[9] This is a large current and potential future workforce. It is also a significant current and future market for all goods and services. The Africa Continental Free Trade Area requires a highly developed logistics capability, and this requires the most advanced tech for port and rail operations, air travel, road networks, pipelines for liquids (water, oil, and gas), and other needs that could be met by domestic production.
This demographic is ideal for investment in infrastructure for the digital economy. It is also ideal for industrialisation and national economic pursuits, as well as social pursuits. Pedagogy, with the use of teaching tools such as tablets and software, the use of drones for policing, and the delivery of medicines and entertainment, have all been revolutionised by digital technologies. However, access to technology for consumption is not the only ideal in Africa. Producing technology locally for local markets and greater participation in global value chains is a greater ideal.
The digital economy requires investment in research and development (R&D) and digital infrastructure. This is crucial for applications across all sectors, such as energy. Investment is also required for generation, grid development, and expansion, as well as R&D. A stable, consistent, and reliable energy supply is crucial for industry, production, and social needs such as health. The agenda to localise production is also reliant on it. A strong argument has been repeatedly made for technology transfers.[10] This is one way to expedite the development of capabilities, to fabricate goods by exploiting the abundant mineral endowments, and to produce at scale and competitive cost.
Some of the new areas of research and exploration include the green hydrogen economy. Some countries, such as South Africa and Namibia, have made significant policy and implementation efforts. Green hydrogen carries a lot of potential for cleaner energy and new industries throughout its potential value chains. The tech sector is important for the development of these new industries. There are a lot of potential downstream benefits from the development process of the green hydrogen economy and its eventual operations. These include advancing the transition to cleaner energy and developing local manufacturing value chains that can create jobs and improve living standards.
Other important areas include digital systems for rail infrastructure, transport navigation systems, and logistics. There is also a contradiction that needs to be resolved. Africa has significant untapped gas deposits from the west to the south of the continent. New industries in Africa also include the oil and gas sector under development in coastal South Africa and coastal Namibia. This is a new fossil fuel-based industry in the Southern African Development Community region, notwithstanding the contradiction against climate action commitments and goals, which can potentially generate significant income for the region and aid its development.
Climate action itself holds significant potential for industrialisation and growth. Mining firm Anglo-American is investing in producing electric vehicles for its mining activities.[11] In 2022, it announced the development of a prototype for the world’s largest hydrogen-powered mine-haul truck. For this, the production value chain of solar panels and other more earth-friendly technologies require the application of digital technologies and must be supported by financing for enabling infrastructure and production.
The digital economy is a product of evolving industrial revolutions that require Africa to keep pace with and, where possible, aim to get ahead of it. The tech value chains it generates provide crucial pathways for Africa’s industrialisation efforts, development, and the renaissance it seeks to reignite. Africa holds several advantages it can leverage to achieve these ends. It has one of the youngest populations globally and is projected to grow to 2.5 billion over the next two decades. It has a strong, growing, educated, and tech-savvy middle class, workforce, and consumer market. It carries significance for both production and consumption. However, significant investment is required to use the digital economy to achieve development goals. This is an agenda that the entire Global South has been mobilising for decades. Investing in the tech sector and tech transfers in Africa means investing in Africa’s young people and, by implication, investing in Africa’s future.
The fourth industrial revolution has compelled economies worldwide, both developed and developing, to revisit the value chain of products and services, from production to delivery to final consumers, across all sectors.[12]
In the public sector, Africa, a bastion of most developing countries, has been making efforts to improve its infrastructure to accommodate the technological advancements and demands brought forth by the fourth industrial revolution. Many countries in Africa’s regional economic communities[13]—the Arab Maghreb Union (AMU), Community of Sahel-Saharan States (CEN-SAD), East African Community (EAC), Economic Community of Central African States (ECCAS), Economic Community of West African States (ECOWAS), and the Southern African Development Community (SADC)—have been striving to leverage digital transformation.
Digital transformation encompasses using technology to improve the efficiency and effectiveness of public service delivery. E-government and e-participation are the outcomes of the process. Services such as e-passports, e-visas, e-bookings and check-in, e-registration and licensing of businesses, online payments of services and products, and distant education are among the most notable outcomes of digital transformation in Africa.
Fulfilling three fundamental pillars is necessary to have efficiently functioning e-government services. These are online services, human capital, and telecommunication infrastructure.[14] On these factors, South Africa ranks at the top of the African continent and the SADC region, Tunisia takes the top spot in the AMU and the CEN-SAD regions, Ghana in the ECOWAS region, Kenya in EAC region, and Gabon in the ECCAS region.[15] While these countries have been leading their respective regions in terms of e-government efficiency and effectiveness, changes in the overall rankings between the 2022 and 2024 versions of the E-Government Development Index (EGDI) suggest that individual countries are making efforts to leverage technology to help position themselves to attract potential investors.[16] This shows that Africa is on track to achieving digital transformation despite the various challenges facing the continent. Still, some emerging countries, after long periods of unrest, have been striving to catch up with the rest of the world, allowing digital transformation to lead the way in their economic recovery. Angola is a case in point.
Angola has been leveraging digital transformation benefits to position itself as a preferred destination for business in Africa. Since the end of its civil war in 2002, which lasted over three decades, Angola has been aiming to catch up with the rest of the world. However, challenges at all levels have slowed its progress in taking advantage of the opportunities to diversify its economy through technology (e-government services).
The 2024 EGDI suggests that Angola has not made any significant progress between 2003 and 2024 in terms of developing e-government services; the country was ranked 148 in 2003, and lower still at 156 in 2024.[17] Human capital and telecommunication infrastructures are proving to be challenging for the country. In fact, between 2003 and 2024, Angola experienced a rollercoaster of economic growth and development, which might have contributed to a lack of investments.[18] This was despite efforts in recent years to place the country’s satellite (AngoSat-2) in orbit to embrace and promote digital transformation to prompt and improve e-participation. Likewise, Angola’s position on the E-Participation Index has worsened, from 84 in 2003 to 152 in 2024.[19]
The slow progress in promoting and leveraging digital transformation during the 2003-2022 period underlines challenges that can be turned into opportunities for the country.
The provision of public services is increasingly simplified through digital platforms such as Portal dos Serviços Públicos Electrónicos do Governo de Angola (Government of Angola's Electronic Public Services Portal),[20] Guiché Único da Empresa (Company Single Window),[21] and Sistema Integrado de Licenciamento da Actividade Comercial (Integrated Commercial Activity Licensing System).[22] However, there is a limited capacity to secure the delivery of continuous and uninterrupted services, provision of content and technology.
Such challenges raise questions about the country’s telecommunication infrastructure, including the availability of reliable systems and facilities that support the functioning of the transmissions that provide the foundation for communication services. Even though Angola has placed its AngoSat-2 satellite in orbit,[23] hoping to achieve greater performance in terms of the quality of technological products and services, the result is yet to be seen in terms of the support it can provide (in enabling online services) to the various business activities across sectors.
Challenges regarding human capital are evident when online services and telecommunication infrastructure do not perform as they should, despite the National Science, Technology, and Innovation Policy aiming to build a knowledge society by incorporating science, technology, and innovation into the country's development strategy to combat poverty and improve people's lives.
These challenges provide an opportunity for the country to revisit and examine its legislations and practices to effectively address its shortcomings to take advantage of the global economic situation that favours it by diversifying its economy through digital transformation.
Angola has all the potential to establish itself as the best and preferred destination for business in Africa. However, unless it effectively implements the three pillars of digital transformation—online services, human capital, and telecommunication infrastructure—it would prove difficult to experience digital transformation and leverage any benefits.
For Africa to achieve its industrialisation and economic diversification goals, digital transformation must be prioritised across all sectors. Investment in infrastructure—especially digital and energy infrastructure—is critical to enabling industries to thrive and to ensure that Africa's young workforce can participate in the digital economy. This includes expanding internet access, improving telecommunication networks, and ensuring reliable energy supply for industrial and social needs.
Digital transformation is crucial for Africa’s industrialisation and economic development. While the continent faces challenges in building digital infrastructure and developing its human capital, the opportunities are immense. By prioritising investments in technology, infrastructure, and skills, and fostering innovation, Africa can accelerate its industrialisation and harness the potential of the digital economy. Angola, as an emerging case, shows that while the path may be difficult, the potential rewards of successfully navigating the digital transformation process are significant. Through sustained efforts and strategic investments, Africa can achieve the goals set out in Agenda 2063, transforming itself into a global digital powerhouse.
Countries like South Africa, Kenya, and Nigeria have made notable progress, but there is still a need for concerted efforts to build capacity, especially in regions with weaker digital economies. Governments must invest in training and upskilling human capital, facilitating knowledge transfer, and fostering innovation ecosystems that can accelerate local tech development. Additionally, creating conducive policy environments for private sector investment in digital industries is essential for driving economic growth and increasing Africa's participation in global value chains.
Moreover, Africa must embrace the opportunity to become a leader in green and sustainable technologies. The green hydrogen economy, for example, presents new industrial opportunities that can generate jobs and improve local economies while supporting global climate goals. By harnessing the power of digital technologies, Africa can not only address its internal challenges but also contribute to global solutions, positioning itself as a key player in the global digital economy.
The first versions of the two essays in this report appeared in the GP-ORF volume, Powering Africa’s Digital Transformation: The Policy Landscape, which can be accessed here.
[1] African Union, Agenda 2063: The Africa We Want, https://au.int/en/ agenda2063/overview
[2] Tom Kariuki and Davies Mbela, “Unleashing Africa’s innovation potential as a blueprint for sustainable development,” Science for Africa Foundation, April 11, 2024, https://scienceforafrica.foundation/media-center/unleashing-africas-innovation-potential-blueprint-sustainable-development
[3] Cheikh Anta Diop and Egbuna P. Modum, Towards the African Renaissance: Essays in African Culture & Development, 1946-1960 (Karnak House, 1996)
[4] Thabo Mbeki, I am an African, (Speech delivered in Parliament on 8 May 1996 by the Deputy President of the Republic of South Africa), https://www.youtube.com/ watch?v=6lmKFTadTk8
[5] “Towards the African Renaissance: Essays in African Culture & Development, 1946-1960”; Thabo Mbeki, I am an African, (Speech delivered in Parliament on 8 May 1996 by the Deputy President of the Republic of South Africa), https://www.youtube.com/ watch?v=6lmKFTadTk8
[6] Disrupt Africa, The African Tech Startups Funding Report, 2023, https:// disruptafrica.com/wp-content/uploads/2024/01/The-African-Tech-Startups-Funding- Report-2023.pdf
[7] United Nations, Growing Middle Class and Import Substitution: Connecting the Dots to Unlock Made in, Policy Brief, 2023, https://www.un.org/osaa/sites/www.un.org.osaa/files/ads2023_policy_brief_2.pdf
[8] Jason J Mulikita, “Young People’s Potential, the Key to Africa’s Sustainable Development,” United Nations, 2021, https://www.un.org/ohrlls/news/young-people’s-potential-key-africa’s-sustainable-development
[9] African Development Bank, “Human Capital,” 2024, https://www.afdb.org/en/knowledge/publications/tracking-africa’s-progress-in-figures/human-development
[10] Bernard M. Hoekman et al., Transfer of Technology to Developing Countries: Unilateral and Multilateral Policy Options, The World Bank Group, 2004, https://documents1. worldbank.org/curated/ar/737591468762912473/pdf/wps3332.pdf
[11] “Anglo American,” https://www.angloamerican.com/media/press-releases/2022/06-05-2022
[12] Michela Pellicelli, The Digital Transformation of Supply Chain Management (Amsterdam: Elsevier, 2023)
[13] African Union, “Regional Economic Communities,” African Union Commission, https:// au.int/en/recs
[14] United Nations, “UN E-Government Knowledgebase,” https:// publicadministration.un.org/egovkb/en-us/Overview
[15] United Nations, “E-Government Development Index (EGDI),” United Nations, https:// publicadministration.un.org/egovkb/en-us/About/Overview/-E-Government- Development-Index
[16] United Nations, “UN E-Government Knowledgebase, Country data,” https:// publicadministration.un.org/egovkb/Data-Center
[17] United Nations, “UN E-Government Knowledgebase, Angola,” https:// publicadministration.un.org/egovkb/en-us/Data/Country-Information/id/5-Angola/ dataYear/2024
[18] International Monetary Fund, “IMF DataMapper, Angola,” https://www.imf.org/ en/Countries/AGO
[19] United Nations, “UN E-Government Knowledgebase, Angola”
[20] SEPE, “The Angolan Government's Electronic Public Services Portal,” Government of Angola, https://www.sepe.gov.ao/ao/
[21] GUE, “One-stop shop,” Government of Angola, https://gue.gov.ao/portal/
[22] SILAC, “Integrated Commercial Activity Licensing System,” Government of Angola, https://silac.gov.ao/entrar
[23] GGPEN, “National Space Program Management Office,” Government of Angola, https://ggpen.gov.ao/?page_id=7887
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Samir Bhattacharya is an Associate Fellow at Observer Research Foundation (ORF), where he works on geopolitics with particular reference to Africa in the changing global ...
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Mikatekiso Kubayi is a researcher at the Institute for Global Dialogue associated with the University of South Africa; and a fellow at the Institute for ...
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Nelma Irene Cardoso Manuel is an economist and graduate analyst at the Political Economy Southern Africa (PESA) in Pretoria, South Africa. ...
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