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Digital economy is here to stay – Ken Ofori-Atta

The digital economy, which has been promoted by the Akufo-Addo administration, is here to stay, according to Finance Minister Ken Ofori-Atta.

Ken Ofori-Atta indicated that by 2050, the digital economy will effectively account for 5.9% of the GDP of Africa, rising to about 8.8%.

“The digital economy has arrived and will remain. According to IFC and Google estimates, the digital economy might bring in $108.3 billion annually to the African economy by 2025. By 2050, this number will have increased to $712 billion. Assuming that GDP growth will remain at 45% per year by 2025.

“By 2050, the digital economy will effectively account for 5.9% of Africa’s GDP, rising to almost 8.8%.”

During a business and policy dialogue dubbed “The Kwahu Summit on Africa’s Prosperity,” which was organized by The African Prosperity Network (APN) in collaboration with the Presidency and the AfCFTA Secretariat on January 28, 2023, Mr. Ofori-Atta said, “The same revolution is happening here at home in Ghana.

The relentless spread of network sensors across the African continent, where intelligence and automation are already driving a revolution,

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Vice President Dr. Mahamudu Bawumia made three main areas of concentration in his proposal at the same ceremony, which he believes would assist the AfCFTA in bringing about the change that Africa needs.

Even though the AfCFTA has set the continent up for change, Dr. Bawumia says that the continent won’t be able to reach its full potential until important African players take bold steps and focus on some of the big, broad areas he suggested.

According to Dr. Bawumia, “Like the vision of our forefathers, the African Continental Free Trade Area has set the stage for Africa’s industrialization drive.

However, it will take concrete, strategic actions by governments and businesses on the continent, the right mix of policies, and a greater sense of purpose for more robust intra-African trade to happen in support of economic diversification and the much-needed industrialization of the continent.

Ken Ofori-Atta said, “I offer three main areas that we need to prioritize in order to bring about the transformation we need.”

The first is that vital infrastructure requires wise investments. Without spending money on clever infrastructure everywhere throughout the continent, we will not be able to produce and trade our way out of underdevelopment and poverty as a continent.

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Despite some successful investments over the past few decades, more money is still required to finance the “arteries for trade,” which include physical infrastructure like rail, roads, and energy as well as digital infrastructure like data centers to support the digital transformation and financial infrastructure to enable the integration of financial markets.

Dr. Bawumia pointed out that these investments are essential to the AfCFTA’s success. The vice president’s second suggestion was to “unleash the production potential across the continent.”

“In order for the 445 million small companies on the continent to participate in the value chains of these mega sectors, we must develop platforms for knowledge exchange and access to data on crucial goods and services.

Africa must be transformed into a manufacturing hub to support the commerce of goods with added value. These, in my opinion, are essential to furthering Africa’s industrialization and its significant socioeconomic advantages.

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Dr. Bawumia noted that mobilizing investments and financing should be the third major area of concentration.

“Africa requires between US$ 130 billion and US$ 170 billion per year to close its infrastructure deficit and sustain growth at 5% or higher.””For private sector investment, this offers enormous prospects,” he said.

Therefore, enlisting the private sector through Public-Private partnerships (PPPs) is crucial for the completion of numerous infrastructure projects. Additionally, there is a need for creative strategies to better mobilize and distribute resources and for improved coordination between all African players and outside partners.

Credit: 3news.com

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