In the latest analytical chapter for the Regional Economic Outlook for sub-Saharan Africa,the IMF's African department* examines how digitalization can transform economies and people's lives.
An IMF survey of policy responses to the pandemic suggests that countries in the region that were able to switch to partial telework arrangements by mid-May 2020 had greater access to internet (28 percent of the population) compared to non‑telework countries (17 percent).
Digitalization is advancing fast in the financial sector, where some regional countries are global leaders in mobile money transactions-money transactions as a share of GDP average close to 25 percent, against just 5 percent in the rest of the world.
While the pandemic seems set to accelerate sub-Saharan Africa's digital transformation, digitalization does not happen by itself, nor is it a cure‑all.
As countries move in this direction, four broad pillars can help guide pro‑digital policies:
Investing in infrastructure -both traditional digital‑friendly infrastructure (including more reliable electricity) and digital‑ready IT infrastructure;
Investing in policy frameworks by fostering a digital-friendly business and regulatory environment, and championing the use of digital policies;
Investing in skills by improving core education as a basis for continued learning alongside focused investments in digital skills; and
Investing in a digital Africa today, paves the way for more resilient economies tomorrow.
