Digital Identity: The Foundation for Inclusion
Digital identity systems are central to inclusion in Africa. These systems enable individuals to verify their identity online, granting access to various public and private services. In many African countries, significant portions of the population lack formal identification, which restricts their ability to open bank accounts, receive social benefits, or participate in the formal economy. By providing digital identities, DPI ensures that these individuals can be recognized and included in social, political, and economic life (World Bank, 2023).
For instance, Kenya’s Huduma Namba digital identification program aims to consolidate citizens’ data across multiple government databases, simplifying access to services. In countries like Nigeria, the National Identification Number (NIN) initiative is also expanding the scope of digital identity, particularly by linking this system to mobile phone registration (Nigerian Communications Commission, 2024). This enables millions of Nigerians, including those in rural areas, to access critical services that were previously out of reach.
Digital Payments: Bridging the Financial Divide
In Africa, DPI is also facilitating financial inclusion through the promotion of digital payment systems. The rise of mobile money services such as Kenya’s M-Pesa and South Africa’s SnapScan demonstrates how digital financial platforms can drive economic participation, particularly for those without access to traditional banking services. Mobile money has revolutionized how people send, receive, and store money, making financial services more accessible to low-income households and small businesses (GSMA, 2020).
Governments and private enterprises are investing heavily in building digital payment infrastructures that extend beyond urban centers. Rwanda’s Rwanda Fintech Strategy aims to leverage DPI to enhance financial inclusion by expanding access to low-cost digital financial products (Rwanda Fintech Strategy, 2023). Likewise, the Ghana Interbank Payment and Settlement Systems (GhIPSS) is an effort by the Bank of Ghana to create a digital payments ecosystem that is accessible, interoperable, and inclusive.
According to a 2020 study by the GSMA, mobile money accounts in Sub-Saharan Africa grew by over 12%, with nearly 548 million registered users (GSMA, 2020). As digital payments become more widespread, more people are able to engage in commerce, save money, and access credit, helping to reduce poverty and improve living standards.
Data Exchange and Governance: Unlocking Access to Services
The power of DPI extends beyond digital identity and payments; it also lies in the creation of secure, interoperable platforms for data exchange. DPI helps governments and institutions to securely share and process data, enabling better decision-making, service delivery, and accountability. This is critical for sectors such as healthcare and education, where access to accurate data can improve service delivery (World Bank, 2023).
In Nigeria, the country’s digital public infrastructure is playing a pivotal role in health services. The Nigeria Health Information System, an interoperable platform, connects healthcare providers across the country and provides them with the data they need to deliver quality care to citizens (Nigeria Health Information System, 2024). This system helps track immunization records, manage health supply chains, and coordinate pandemic responses.
Similarly, DPI is unlocking the potential for inclusive education in Africa. The Rwanda Education Board has launched a digital platform called Smart Classroom to enable distance learning and ensure students in remote areas have access to quality education (Rwanda Education Board, 2023). With DPI in place, educational content can be distributed efficiently, and teachers can assess student performance more effectively.
Challenges to Achieving Full Inclusion
While DPI offers immense potential for inclusion, there are significant barriers to overcome. Limited internet connectivity in rural areas, lack of digital literacy, and concerns about data privacy remain major hurdles. Additionally, the implementation of DPI often requires significant investment, strong governance, and international collaboration to ensure that it is accessible, secure, and inclusive (World Bank, 2023).
Moreover, inclusivity demands not just the availability of infrastructure but also the elimination of systemic inequalities. In many cases, women, people with disabilities, and marginalized communities remain at a disadvantage even when DPI systems are in place. According to a 2021 report by the International Telecommunication Union (ITU), African women are 37% less likely to use the internet compared to men (ITU, 2021). Closing this gender gap and ensuring that all citizens can benefit from DPI is critical to building a truly inclusive digital economy.
The Way Forward: Collaboration and Policy
To ensure that DPI drives inclusion, African governments and stakeholders must focus on policies that prioritize equity. A robust policy framework should support the creation of inclusive digital identities, ensure equitable access to digital payments, and promote the secure and ethical use of data. Collaboration between governments, development agencies, and the private sector is essential to drive investment in DPI while also ensuring it is used for the benefit of all citizens (Smart Africa, 2024).
One promising initiative is the Smart Africa project, which aims to accelerate socioeconomic development through digital transformation (Smart Africa, 2024). Countries that are part of the Smart Africa alliance have committed to building DPI that is scalable, interoperable, and inclusive. Another key player is the Bill & Melinda Gates Foundation, which is actively supporting initiatives to promote inclusive digital financial systems in Africa (Bill & Melinda Gates Foundation, 2024).
Conclusion
Digital public infrastructure has the power to bridge gaps in access to essential services, continue to develop financial inclusion, and provide opportunities for underserved communities across Africa. However, realizing the full potential of DPI requires intentional and inclusive policy design, investment in infrastructure, and a commitment to closing the digital divide. By focusing on the needs of marginalized populations and creating systems that are accessible to all, Africa can leverage DPI to build a more inclusive, connected, and prosperous future.