Digital Public Infrastructure (DPI) is the backbone of a modern economy, enabling seamless connections between people, data, and money. Africa, with its vast potential, stands to gain significantly from DPI. As South Africa assumes the G20 presidency, the continent is poised for a digital revolution.
A Smarter Approach to Public Services
Traditional social programs often struggle with inefficiencies such as fraud, misallocation of resources, and bureaucratic bottlenecks. DPI offers a solution by integrating digital identity systems, payments, and data-sharing mechanisms. For instance, India’s Andhra Pradesh state linked biometric IDs to welfare payments, reducing fraud by 40% and saving the government nine times its investment. •
- India’s Andhra Pradesh state linked biometric IDs to welfare payments, reducing fraud by 40% and saving the government nine times its investment.
- During the COVID-19 pandemic, Brazil leveraged digital ID and payments to deliver emergency aid to 70 million people.
This approach can be adopted by African nations to build more resilient social protection systems.
The Traditional Model vs. DPI
The traditional model, where each ministry builds its own standalone digital system, is wasteful and inefficient. DPI offers a smarter alternative: national platforms that reduce duplication, lower costs, and improve service delivery. Open-source technology makes digital transformation even more affordable, ensuring that governments can scale up solutions without heavy licensing fees.
Key Benefits of DPI
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- Reduces duplication and lower costs
- Improves service delivery and efficiency
- Increases scalability and affordability
Open-source technology plays a crucial role in making DPI more accessible to governments.
Fuel for Trade and Private Sector Innovation
DPI is essential for African nations aiming to expand trade under the African Continental Free Trade Area (AfCFTA). Without trusted digital systems, cross-border commerce remains slow and cumbersome. DPI provides the foundation for secure payments, standardized credentialing, and seamless data sharing. A Malawian entrepreneur, for example, could verify their identity through DPI, demonstrate the quality of their products, and conduct a secure transaction with a South African buyer. •
| Country | Process | Benefits |
|---|---|---|
| Malawi | Verify identity through DPI, demonstrate product quality, and conduct secure transaction with South African buyer | Reduces barriers and increases trust in cross-border commerce |
| South Africa | Secure payments, standardized credentialing, and seamless data sharing | Enables cross-border commerce and stimulates economic growth |
DPI facilitates the growth of trade and innovation, turning trade agreements into real economic gains.
Inclusion and Safeguards
Women and marginalized communities often face significant barriers to financial and digital inclusion. Expanding access to DPI ensures that they can participate in the digital economy, access credit, and open bank accounts. India’s experience demonstrates the potential for DPI to bridge the gender gap in financial access. •
- India’s digital banking adoption more than doubled between 2011 and 2021, closing the gender gap in financial access.
- Digital DPI can enable women to access financial services, reducing poverty and promoting economic empowerment.
DPI can also ensure that digital services are accessible in rural areas, eliminating the need for costly new networks.
Ensuring Strong Governance
Strong governance is crucial for ensuring that DPI is implemented effectively. Data protection laws, secure authentication methods, and transparent oversight are essential for building trust. The UN’s Universal DPI Safeguards Framework provides a roadmap for responsible implementation. •
- Data protection laws and secure authentication methods are necessary for building trust in DPI
- Transparent oversight is crucial for ensuring accountability and resilience in digital systems
African nations have the opportunity to lead by example, embedding accountability and resilience into digital systems to protect citizens’ rights.
Seizing the Moment
South Africa’s G20 presidency offers a historic opportunity to position Africa at the forefront of global digital transformation. By prioritizing DPI, South Africa can shape global conversations, drive country-led use cases, and inform the continent. African leaders must seize this moment to build interoperable, inclusive systems that serve their people. To lead, Africa must showcase real-world DPI successes, foster collaboration, and create a digital future that delivers for all. •
“Africa has the potential to be a leader in the digital revolution, and South Africa’s G20 presidency offers a unique opportunity for the continent to shape the future of digital infrastructure.”
Dr. Paulin Basinga, Africa Director for the Gates Foundation
By prioritizing DPI, Africa can unlock its full potential and create a brighter future for its citizens.
