Today, the growing importance of digitalisation and data to global development has received widespread attention. A great many structural transformations have been driven by digital technologies. Digital technology has provided a significant boost to global economic output and created countless jobs. Following the recent disruption caused by COVID-19 on the global stage, many other developmental impacts that digitalisation can bring about have come to the fore. Data, the resource that drives digitalisation, has been figuratively described as ‘the new oil’, and its commoditisation requires a reliable data governance framework to ensure it retains its value. Data governance has the potential to enhance data value, as well as to safeguard against data-related harms and threats.
The major platform-based firms, regarded as ‘Big Tech’ monopolies based in Europe, the United States and China, have dominated the global digital market, and their data governance models are shaping the ways in which people interact and trade in the digital sphere. For example, most African countries have modelled their respective national data protection standards on the EU’s General Data Protection Regulation (GDPR). Consequently, the presence of these dominant players has created an imperfect global digital economy, as they tend to reap the greatest benefits from it, leaving less for developing economies such as those in Africa. This imbalance has the potential to limit the benefits Africa derives from digitalisation. Its digital economy is under threat from deeply concerning issues that are causing a crisis of trust in the digital sphere.
- Africa’s efforts in the rapidly advancing era of global digitalisation
There is obviously no denying that Europe, the US and China, as formidable models of digital governance, have each made their mark on the global digital economy. Data, in the hands of these digital economy leaders, has been utilised for a wide range of purposes, to the extent that it is now abundantly clear that the use of data has implications not only for trade and economic development but also for human rights, peace and security. These nations’ approaches to governing the digital economy, and the regulatory frameworks they have developed to manage cross-border data flows, truly set them apart as the digital economies to beat. The United States, for its part, has an innovative approach to entrepreneurship that promotes private, market-driven initiatives in the global digital market. Through its liberal regulatory framework for cross-border data flows, the United States has succeeded, quite remarkably, in bringing about far-reaching innovations which have enabled it to maintain its leadership position in the global digital market. Whilst China has a sophisticated blend of both security-oriented and digital development-oriented approaches, the European Union has a human rights-oriented approach. Whilst still building multilateral support for its data governance model, the EU has demonstrated a commitment to championing the cause of digital justice for victims of digital harm. One remarkable outcome of this initiative is the mitigation, to some extent, of the risk of data abuse and misuse in the digital space.
Notwithstanding the giant strides these digital governance models have made in their respective approaches to the digital economy, each of them is not without its shortcomings, which is why Africa needs to look beyond simply modelling its own digital economy approach on any of them. Essentially, each of these models, in its approach, reflects the specific characteristics of its economy. If not properly managed, the United States’ free-market approach – which Africa has been attempting to replicate – will remain a wind that brings no economic benefit. For example, Africa has yet to develop a robust data governance framework capable of ending the current inequality in the digital market, whereby private companies and platforms enter the digital market and reap all the economic benefits of the data economy, with little or no constraints. This type of development has made the African digital market vulnerable to a wide range of threats and unhealthy competition, which are the bane of the continent’s long-overdue structural transformation. So, for Africa to emerge as a digital market leader, it must do its best to look inwards. For instance, there is a uniquely domestic approach through which Africa can coordinate the private sector for strategic expansion in the digital space. It is crucial for the continent to direct its data governance frameworks towards supporting local or domestic experimentation with ideas that will essentially drive its digital transformation. The truth is, Africa can capitalise on its enviable status as a leader in mobile technology to harness the potential of digitalisation for its economic transformation.
- Africa’s progress towards digital governance
Africa needs to guide its states towards addressing, in a very considered manner, the issue of data protection legislation. Each of these states, within its own jurisdiction, must demonstrate an unwavering commitment to enacting data protection and privacy laws that would regulate its domestic digital market. Data, as the ‘new oil’, must be effectively commoditised through a well-thought-out and context-sensitive regulatory framework so that its value can be unlocked in each state and, by extension, across Africa. If the commoditisation of data is not effectively regulated by established laws, there are bound to be undesirable consequences. But how can effectively regulated data commoditisation be ensured when there are still many African states that have yet to enact their respective data protection laws and regulations? The truth is that, for the African continent to achieve robust data protection, all policymakers and the private sector in each African state must work together collectively. There must be collaborative efforts between them to create regulations and put in place measures to ensure compliance with such regulations. In this regard, regulatory agencies need to be established and empowered to carry out their statutory duties efficiently. In addition, data policies that guarantee best practice in the generation, storage and use of data should be formulated, along with well-monitored mechanisms for implementing these policies
Furthermore, African states must support the African Union (AU), the umbrella organisation for all African states, in its concerted efforts to foster trust in the digital space, promote regional digitalisation and accelerate the realisation of the African Continental Free Trade Area (AfCFTA). Another obstacle to the continent’s economic transformation is the crisis of trust in the African digital space. As the strategic institutionalisation of intra-regional trade in Africa, the AfCFTA requires the development of an effective regional data governance framework. In the few African states where efforts have been made to enact legislation or a legal framework for data protection and privacy, the implementation of such legislation appears to be inconsistent, lacking a unified approach. Suffice it to say that Africa as a region has yet to produce centralised data legislation that broadly supports the concept of data protection across all states. Whilst the AU Malabo Convention on Cyber Security and Personal Data Protection (a comprehensive document covering electronic transactions, privacy and cyber security) promises to bridge this gap, the required number of states have not yet ratified the Convention’s provisions.
- Conclusion
Digital transformation in Africa is a catalyst for sustainable regional growth and development. The time for the continent to rise above the tide of economic backwardness, technological obscurity and digital inequality is long overdue. Africa needs digital transformation that will boost economies, improve service delivery and create jobs and incomes essential for human survival. To advance the digital revolution and promote digital inclusion, the necessary environment must be established. This development would encourage organisations, businesses, institutions and governments to move their operations, processes and practices into the digital sphere. When digital technologies are used exclusively to ensure the provision of products and services, the expansion of existing services, the generation of revenue and the realisation of opportunities for all, achieving transformation becomes seamless. To make all this possible, all stakeholders and change-makers in the African digital economy must bring about the change required for digital transformation to take place.
This blog was written by Kunle Balogun
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