Development of Digital Economy in Africa and the Prospects of China-Africa Cooperation in Digital Ec

Entering the 21st century， with the rapid development and popular use of mobile Internet and the accelerated innovation in such technologies as big data， artificial intelligence （AI）， the Internet of Things， cloud computing and blockchain， digitalization has been increasingly integrated into the whole process of economic and social development on all fronts and the digital economy has ushered in a stage of rapid growth. Despite of a slow start， Africa’s digital economy， driven by the wave of digital globalization， has entered the fast lane in recent years and successfully transcended the personal computer Internet era to directly enter the mobile Internet era. During the COVID pandemic， digital economy served as a new engine in pandemic response and recovery. Empowered by its internal demand and international driving forces， digital economy in Africa presents a new development pattern with telecommunication operators at the core， international digital enterprises and Internet platforms as the main players and the construction of data centers and smart cities as focused areas.

New Dynamics of Digital Economy in Africa

With the popular use of smartphones among young Africans and the upgrading of information and communication technologies （ICT）， more and more African users can access the mobile networks. Against this backdrop， the digital economy influences every aspect of people’s lives across the African continent and plays an increasingly important role in the economic development of African countries.

First， building a digital Africa has become a consensus of the African Union （AU） and many African countries. The AU formulates plans from the continental level to chart Africa’s digital future， aiming at building Africa into a globally competitive digital society. The Agenda 2063 adopted by the AU in 2013 presents the vision for ICT and digital economy， which is to transform African countries into digital compacts. In 2020， the AU issued the Digital Transformation Strategy for Africa （2020-2030）. The main objectives are to harness digital technologies and innovation to transform African societies and economies to promote Africa’s integration， generate inclusive economic growth， stimulate job creation， break digital divides， and eradicate poverty. As such， the strategy aims to support the continent’s sustainable socio-economic development， ensure Africa’s ownership of modern tools of digital management and provide access to digital devices and networks at an affordable price for all Africans.

“Digital Africa” has also become African countries’ consensus on development. Many African countries have put in place strategies and policies to capitalize on the opportunity to advance their digital economies. Kenya， Côte d’Ivoire， Nigeria， Ghana and South Africa， five countries that have reaped outstanding achievements in digital development， are now known as the “KINGS”. In June 2021， Nigeria announced the establishment of the National Center for Emerging Technologies， the National Center for Digital Innovation and Entrepreneurship as well as the Artificial Intelligence and Robotics Center. Nigeria has also developed a National Plan for 5G Digital Economy. Its National Development Plan 2021-2025 states that the contribution of digital economy to GDP should be increased from 10.68% to 12.54% by 2025. South Africa released the Draft National Policy on Data and Cloud in 2021， which prioritizes the digital economy and aims to create a “data-intensive and data-driven South Africa”. Besides Nigeria and South Africa， Kenya， Côte d’Ivoire， Ghana， Egypt， Rwanda， Ethiopia and other countries also put high value on the development of the digital economy and have achieved remarkable results.

Second， African countries boast strong momentum in digital infrastructure construction. According to the Africa Broadband Map， the total length of fiber optic networks operating on the African continent was 525，000 kilometers in 2013 and increased to 936，000 kilometers in 2018， up by 78% within five years. As of June 2023， this number had grown to 1.279 million kilometers. A further 117，000 km of fiber optic networks are currently under construction in Africa. The mobile Internet in Africa continues to cover more uses and the development of 5G has taken off. The mobile Internet coverage in sub-Saharan Africa grew from 48% in 2017 to 59% in 2022， when the 5G coverage in African countries reached 3%. The process of data localization in Africa is driving the rapid growth of data centers， which are mainly located in countries such as South Africa， Nigeria， Kenya and Morocco. With facilities ranging from Tier 1 to Tier 3， these data centers could meet various demands ranging from basic data storage to complex cloud computing solutions. According to a report released by Xalam Analytics in 2023， the market of African data centers is expected to grow at an average annual rate of 12% over the next five years to reach a valuation of US$3 billion by 2028.

Third， African countries have seen a rapid rise in e-commerce and mobile payments. Jumia， the largest e-commerce platform in Africa， Takealot， an online retailer in South Africa and Noon in Egypt， among others， all realized rapid growth during the COVID-19 pandemic. Such e-commerce platforms played an active role in promoting contactless shopping， cashless payment， distribution of medical supplies and communication of information on pandemic response. According to a report by IMARC Group， Africa's e-commerce market reached US$277.1 billion in 2023. By 2032， the e-commerce market of Africa is expected to reach US$939.8 billion， with an annual growth rate of 14.4%. According to the Nigerian Export Promotion Council （NEPC）， the value of e-commerce in Nigeria rose from US$680 million in 2022 to US$9.02 billion in 2023. The rapid growth of e-commerce has injected a strong impetus to the growth of mobile payment transactions， while mobile payments have further boosted the solid growth of e-commerce. In 2020， the value of mobile payment transactions in Sub-Saharan Africa reached US$490 billion， up by 23% compared with that of 2019. As the Internet industry enjoys fast growth in Africa and mobile devices are extensively used by more users， e-commerce and mobile payment will bring about a huge market.