As leading economies vie for digital supremacy and declare both software and hardware as national interests, it is of great importance for African countries and the continent as a whole to raise their voices on the international stage.
The African Union has developed a Digital Transformation Strategy for Africa for the period 2020-2030. The strategy outlines the vision, goals and priority areas for the continent’s digital policy. Goal: To use digitalisation as a tool to implement the African Union’s Agenda 2063, which – as a longterm development strategy – aims to create an integrated, prosperous and peaceful African community based on inclusivity and sustainable growth by 2063.
Hope for successful transformation
The African Union with its 55 member states emphasises the close link between digital technologies, science, innovation and their role in promoting industrialisation and implementing the African Continental Free Trade Area. The strategy also sees digitalisation as having the potential to efficiently address pressing development issues such as poverty, unemployment and inequality. In particular, it is expected to contribute to sustainable economic growth by opening up new value chains, promoting inclusion and increasing efficiency. The combination of a young population and the increasing prevalence of mobile phones and the internet gives reason to hope that the digital transformation will bear fruit.
Challenges
Africa has enormous potential for innovation and growth. Business networks such as Endeavor, as well as Google, estimate Africa’s digital economy at $115 billion and expect this to rise to $712 billion by 2050. This is also noticeable in terms of access. For example, 88% of the continent has cellular coverage. At the same time, the region faces major infrastructural and regulatory challenges that need to be overcome in order for the continent to benefit from the so-called digital dividend. Glaring differences regarding the positive impact of the digital transformation continue to exist between rural and urban regions, but also between genders.
USA, China, EU
Meanwhile, Africa can take advantage of geopolitical digital competition in its search for suitable partners and benefit from a variety of offerings, but at the same time must find its own path to the digital future that meets the continen’s challenges and needs, preserves its data sovereignty and at the same time contributes to global integration, on which the success of the digital economy ultimately rests. Among the leading economies, the US, China and the EU have contrasting approaches to digital governance. The US represents a liberal, corporate mindset that critics associate with the practices of surveillance capitalism. Silicon Valley companies have used this innovation-friendly environment to gain global supremacy in many areas. China is pursuing a model based on state-led technology and surveillance combined with massive investment in infrastructure.
Europe as a third way
While the EU and its member states have laid many of the foundations for the digital revolution, they are struggling to build a comparable digital ecosystem. In response to this perceived competitive disadvantage, Europe is emphasising its strengths in the areas of regulation and data protection. With the promise of a digital transformation that puts people at the centre, Europe offers itself as a partner for all those states that want to take a so-called third path into the advancing digital age. This includes a solid and effective legal framework that puts the protection of individual privacy at the forefront. Through a balanced combination of regulation, harmonisation and targeted investment offensives, both in the area of infrastructure and private sector promotion, the EU can become a reliable partner for Africa’s digital transformation. It is crucial that the Union avoids paternalistic patterns of behaviour and flanks its financial commitments with swift and targeted implementation. This also includes transparent communication of the self-interests of all partners.
Influenced by Europe
Africa is already under the strong influence of European standard- setting in the digital sphere. Both the Council of Europe Convention 108 – an international privacy treaty adopted in 1981 – and the EU Data Protection Directive of 1995, which was a major data protection law harmonising European Union data protection standards and establishing basic data protection principles, and even more so the 2016 General Data Protection Regulation, have strongly influenced regulatory agreements in Africa.
Global standards
This externalisation of European law reflects the European Commission’s stated aim to make the European model an inspiration for many partners around the world. In the Communication on Shaping Europe’s Digital Future, the Commission states that “the EU (wants) to use its regulatory powers, its developed industrial and technological capacities, its diplomatic strengths and its external financing instruments to advance the European approach and help shape global interaction”. This means nothing less than aspiring to play the role of a global standard setter.
Market advantages
Harmonising international data governance according to the European model brings significant market and access benefits. According to the GDPR, personal data may only be transferred to countries that have been classified by the European Commission as “adequate” in terms of the level of data protection. A country that is deemed “adequate” has comparable data protection standards and practices to the EU. It therefore offers sufficient protection for personal data. Such a seal would, for example, allow European customer data to be processed in an African partner country.
African Digital Single Market
More broadly, it is about influencing behaviours and economies. Not surprisingly, the EU is one of the strongest proponents of an African digital single market. Africa can benefit from what the EU has to offer. Regulatory harmonisation facilitates the free flow of data, reduces transaction costs and thus contributes to growth and prosperity. At the same time, a direct translation of European standards is not always the optimal response to the challenges posed by the specific African context. Despite the anticipated benefits, “overregulation” can also have negative consequences. For example, some African entrepreneurs are already complaining that overly strict regulation inhibits rather than promotes innovation.
Infrastructure measures
Moreover, the adoption of standards alone is not enough to bring about a fair and business-friendly digital transformation, especially now that most African countries have enacted data protection laws. An even greater focus needs to be placed on the implementation and enforcement of existing laws. Ultimately, however, the European offer will only work if it is accompanied by the necessary investments and infrastructure measures. Trilateral cooperation between the USA, Africa and Europe can be a way forward here.
Win-win partnership
If both partners have a genuine interest in deepening their relations, it is of great importance for Europe and Africa to identify clear priorities for their cooperation in order to achieve real added value. In doing so, the EU should also make offers that see Africa as an equal partner and not solely in the context of industrial and geopolitical competition with China and the US. It is crucial to promote a partnership approach based on mutual benefit and common goals. This is the only way a sustainable and forward-looking cooperation between Europe and Africa can emerge.
Text Dr Benedikt Erforth