Promoting Effective and Inclusive ICT Policy in Africa

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  HomeCollaboration on International ICT Policy for East and Southern Africa (CIPESA)  /  digital transformation
04Feb

Why Data and AI Governance Are Central to Africa’s Digital Trade Ambitions

Author CIPESA Posted on

By CIPESA Writer |

Digital technologies are changing how African businesses trade and connect across borders. However, digital trade on the continent remains hugely constrained, including by regulatory fragmentation, infrastructure gaps, and bureaucratic hurdles. How then should African countries leverage the growing digitalisation and emerging technologies such as Artificial Intelligence (AI) to boost their digital economies?

According to the World Trade Organization (WTO), in 2024, Africa’s exports of digitally delivered services (DDS) were valued at USD 41.3 billion, representing just one percent of global exports. Nonetheless, the continent’s prospects are promising. The WTO and the World Bank project that greater use of digital technologies could boost Africa’s digital services exports by USD 74 billion between 2023 and 2040, doubling Africa’s share of global exports.

Evidently, if African countries do not address existing barriers and take decisive action, the continent risks becoming an even more marginal player in the global digital trade ecosystem. How to bridge the barriers and leverage data and AI to shape digital trade and Africa’s economic future was at the centre of discussions at the African Economic Research Consortium (AERC) Summit 2025, held in Nairobi, Kenya, last December.

A panel on digital trade and the governance of digital and AI economies, where the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) featured, stressed that, although frameworks such as the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol are a step in the right direction, they could fail to significantly grow digital trade if member states lack enabling data and AI governance systems and practices.

Today, DDS account for approximately 35% of Africa’s total services export value, and have been rising at a double-digit rate, outpacing growth in other regions globally. However, growth in digital services trade remains uneven, concentrated in a handful of countries, mostly South Africa, Morocco, Ghana, Egypt, and Mauritius. Kenya, Nigeria and Tunisia are also notable players but with lower export values than the leading African countries.

Regional initiatives such as the AfCFTA Digital Trade Protocol can help to expand digital trade beyond domestic markets, including in countries that currently lag. The protocol, which was adopted two years ago, aims to harmonise rules for cross-border digital trade across Africa, including on electronic transactions, data governance, and digital payments. Meanwhile, the African Guidelines on Integrating Data Provisions in Protocols on Digital Trade of 2024, emphasise harmonised data governance as an enabler of secure and inclusive digital trade across Africa.

The African Union Data Policy Framework (AUDPF) similarly provides for interoperable data ecosystems across the continent, that are enabled by harmonised laws that support both innovation and rights protection. The various regional efforts support the dream of a Digital Single Market by 2030, as envisaged by the Africa Digital Transformation Strategy of the African Union.

The Galore of Barriers

The region currently lacks an operational continent‑wide harmonised framework for data protection, e‑commerce regulation, digital taxation, or AI governance. This gap raises compliance costs and presents a barrier to businesses that aim to scale operations across borders. This undermines cross‑border digital trade and data flows. Moreover, lack of regulations for paperless trade, including on electronic invoicing, e-signatures and e-contracts, presents an additional hurdle.

On the other hand, high taxes on goods, services, data, and devices drive up costs for businesses, yet several entrepreneurs struggle to access affordable digital financial services, including for effecting cross-border payments. These challenges are made worse by low internet speeds, unreliable electricity supply, as well as weak understanding of export regulations, data protection, and cybersecurity.

Addressing these barriers would offer entrepreneurs a range of benefits. Businesses can reach new customers beyond national borders without investing much in physical export infrastructure, which can reduce costs and expand their market reach. Also, interoperable digital payments can help to minimise settlement delays and overcome currency conversion hurdles.

Priorities on AI and Data Governance

Projections by a WTO 2025 report show that AI could boost the value of cross-border flows of goods and services by around 40% by 2040, due to productivity gains and lower trade costs. However, Africa’s readiness for AI regulation and uptake, particularly by small and medium enterprises, remains low. The WTO report points to AI’s potential to reduce logistics costs, overcome language barriers, ease regulatory compliance, and boost productivity.

In a March 2025 survey among firms from across the world, the most cited benefits of AI were improved trade efficiency (22%), optimised trade decision-making (14%), expanding the foreign customer base (10%), enhanced supply chain management (9%), and broader import and export product ranges (9% and 8% respectively).

How data and AI are governed is therefore key for the future of Africa’s digital economy. If African countries do not put in place robust and harmonised legislation, they will risk perpetuating patterns of the so-called “AI colonialism” in which African data and users fuel global AI markets yet their economies do not receive proportionate economic benefits. Many African countries are adopting AI in the public and private sectors but lack comprehensive AI-specific laws and governance frameworks and often rely instead on outdated laws that pre-date the current technologies.

The State of Internet Freedom in Africa 2025 report calls for human‑centred AI laws that ensure transparency in algorithms, clear accountability, and effective mechanisms for liability and redress. The report urges governments to strengthen independent AI and data oversight institutions, invest in digital infrastructure and inclusion, expand internet access, and ensure AI tools serve local languages. The report also highlights that Africa’s AI market is projected to grow from USD 4.51 billion in 2025 to USD 16.5 billion by 2030.

Africa thus urgently needs cross-border data governance frameworks that support trusted data flows, reduce fragmented national rules, and establish interoperable standards to boost regional digital trade under initiatives such as AfCFTA and the AUDPF. At the same time, investments in affordable connectivity, local cloud capacity, public digital platforms, and datasets in African languages are essential.

The Role of Civil Society and Think Tanks

The Summit discussion stressed the urgent need for research to inform policy, particularly on cross-border data flows, AI adoption, and ways for Africa to avoid new forms of dependency while getting greater value from its data and digital innovation.

Also essential is civil society engagement in monitoring the implementation of continental digital trade and data initiatives, supporting harmonisation of policies and standards, and building the capacity of policymakers, regulators, and businesses.

Actions to Grow Digital Trade in Africa

  • Embrace digital transformation and connectivity by investing in robust networks and backup systems.
  • Implement robust cyber security frameworks while ensuring effective cyber leadership and prioritising investments in cyber infrastructure, skilling, awareness.
  • Recognise data as a trade enabler by ensuring trade agreements have provisions that prevent unnecessary restrictions on data flows.
  • Harmonise data protection standards to reduce compliance costs for businesses and build trust among different stakeholders.
  • Adopt and implement Intellectual Property (IP) laws to ensure that local innovators and individuals in the region benefit.
  • Build robust digital infrastructure with a focus on Digital Public Infrastructure (DPI) and data privacy.
  • Assess and address the impact of emerging technologies like artificial intelligence, blockchain and IoT, ensuring they foster innovation and address ethical challenges.

Source: CIPESA – Policy Considerations for Enhancing Digital Trade in East Africa

Uganda Data Strategy
22Nov

Uganda Set to Harness Data as A Critical Resource for Socio-Economic Development

Author CIPESA Posted on

By Edrine Wanyama |

On November 19, 2024, Uganda’s Ministry of Information, Communication Technology, and National Guidance (MoICT&NG) validated a draft data strategy, marking a significant milestone in the country’s digital transformation journey. This process follows a 2022 review that identified critical weaknesses in Uganda’s data-sharing ecosystem, including limited data sharing, fragmentation, silos, lack of common standards, and low trust in the system.

The strategy is a cornerstone of the Uganda Digital Transformation Road Map, which drives the Digital Uganda Vision and the country’s broader Digital Revolution agenda. Its goal is to foster a data-driven environment that stimulates innovation, economic growth, and social development. The strategy focuses on three main pillars: data governance, data infrastructure, and strategic data utilisation for efficient and effective use of data.

A robust institutional framework is central to the strategy, comprising a National Data Steering Committee, a National Data Office, and links to data personnel within various Ministries, Departments, and Agencies (MDAs). Additionally, the strategy emphasises the importance of a comprehensive legal and policy framework aligned with national, regional, and international standards.

Uganda’s data protection framework is still in its early stages, with enabling legislation passed in 2019 and implementing regulations adopted in 2021. However, the framework has faced criticism for lacking clear oversight mechanisms and prioritising government access to individuals’ data—justified under national security and lawful purposes—over the protection of data and privacy rights.

The adoption of this data strategy has the potential to introduce stronger oversight and policy guidance, effective stakeholder engagement, and improved monitoring and evaluation in data management processes. This would pave the way for a robust, data-driven economy in Uganda.

Dr. Wairagala Wakabi, Executive Director of CIPESA stated, “Uganda’s Data Protection Strategy coincides with the recent African Commission on Human and Peoples’ Rights Resolution on Promoting and Harnessing Data Access as a Tool for Advancing Human Rights and Sustainable Development in the Digital Age (ACHPR/Res.620 (LXXXI) 2024). If rightly applied and implemented within the existing data governance frameworks at the African Union level, its aims, goals, and objectives cannot be defeated.”

As Africa slowly moves towards a harmonised data regime, Uganda’s strategy represents a key step toward achieving the African Union’s goals. It has the potential to enhance governance, public service delivery, and economic growth while contributing to the continent’s broader socio-economic transformation within the digital economy.

04Nov

Putting Digital Inclusion Data into Practice

Author CIPESA Posted on

By Prudence Nyamishana |

Trends in global digitalisation have seen strides in the use of technology as an enabler for economic growth, public discourse, service delivery, transparency and accountability, access to education and public health. However, alongside these advancements, there has remained a persistent digital access gap that predominantly affects Sub-Saharan Africa.

Further, it appears that even for those countries in the region with high levels of access to digital technologies, there remain inconsistencies at national level, including in policy formulation and practice, and the business ethics and human rights of mobile network operators, which potentially exacerbate digital exclusion.

According to the International Telecommunications Union (ITU), global 4G coverage stood at 84% in comparison to 44% in Africa  – the lowest across all regions. 

In 2020, four of Africa’s leading digital companies (Safaricom, Jumia, MTN, and Naspers) were ranked and scored on digital inclusion by the World Benchmarking Alliance (WBA)‘s Digital Inclusion Benchmark. These companies have business footprints in more than numerous countries in Africa.

The Digital Inclusion Benchmark results showed that commitment and contribution towards digital inclusion are highly uneven across industries in the digital sector. Clear and consistent support to improve digital skills is needed, especially for vulnerable and underrepresented groups.

These results echoed similar sentiment in the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) Access Denied report, which showed that several telecom companies in Sub-Saharan Africa have failed to meet their obligations to provide information and services to persons with disabilities.

Both the WBA Benchmark and the CIPESA report call for adjustments to how business should be conducted, with a higher priority placed on the often digitally excluded and underrepresented communities such as women and persons with disabilities.

As such, in June 2021, the WBA and CIPESA hosted a roundtable with stakeholders committed to advancing digital inclusion in the region. Additionally, the roundtable sought to help foster coordinated multi-stakeholder actions on digital inclusion that can help achieve the Sustainable Development Goals (SDGs).

Watch the Africa RoundTable on Digital Inclusion

Speaking at the roundtable, Andrew Rugege, the Africa regional director for the International Telecommunications Union (ITU), noted that Covid-19 had laid bare the realities that underpin global economics and made it evident that broadband and Information and Communications Technology (ICT) play a critical role in daily lives for the overall growth of national economies.

However, Michael Minges, a WBA Research Analyst, highlighted gaps in current internet access policy and structures that affect national economics and also impact digital inclusion and access. He pointed out the issue of scale, noting that many African countries have not yet built up their internet markets to make them attractive for international investors.

Onica Makwakwa, Head of Africa at the Alliance for Affordable Internet (A4AI), highlighted the role that state policies and regulations have to play in enabling digital access. She stated: “We need to have policies and regulations that make this [internet access] universal … It requires intentional actions.”

The shift from data to action was stressed by Lourdes Montenegro, the WBA Lead on Digital Sector Transformation, who noted that the data emerging from research initiatives such as by the WBA and CIPESA triggers thinking on what public policy actions are needed, including by think tanks and governments that need to work towards addressing digital inclusion gaps with evidence-backed data.

Indeed, narratives from the roundtable discussion including the need for more stakeholder collaborations were carried through to the September 2021 CIPESA-hosted Forum on Internet Freedom in Africa 2021 (FIFAfrica). Digital inclusion was one of the themes at FIFAfrica21, and multiple sessions at the Forum entailed discussion on why digital inclusion should be attained including for the benefit of increased public participation, countering misinformation, fighting online violence against women, supporting progressive online movements, and encouraging online diversity especially from the Global South. Thus, as the data in support of digital inclusion grows, so does the need to put this data into practice in policy formation, business strategy and digital rights advocacy.

Watch the different sessions from the Forum.

15May

Uganda's Social Media Tax Undermining Covid-19 Fight

Author admin Posted on

By Juliet Nanfuka |

Globally, in the wake of the outbreak of coronavirus disease (COVID19), social media has played various roles, such as  filling information vacuums and providing channels for citizens to demand accountability and transparency. In Uganda, the government and other agencies have utilised social media as one of the avenues for disseminating information to citizens, including providing status updates on confirmed cases, as well as running public health and safety campaigns. 

However, the effectiveness of social media to reach a wider audience in Uganda has likely been undermined by the social media tax, which the finance ministry introduced in July 2018. The tax on so-called Over-the-Top (OTT) services requires  telecom subscribers to pay a daily subscription in order to access popular social media platforms, such as Facebook, Twitter, Instagram and WhatsApp. 

Despite several requests to suspend the tax during the pandemic, the government has upheld it, thereby  excluding segments of the population from easily accessing information and resources via the taxable platforms. Last month, the Speaker of Parliament joined the chorus of those urging the suspension of the tax so as to aid the fight against the pandemic. Her call rode on the revelation by the tax authority that the OTT tax had dismally failed to raise the revenue earlier anticipated, and admission from the minister for information and communications technology that the tax needed to be rethought.

Uganda’s internet penetration stands at 38%, but with research indicating that many subscribers have more than one internet subscription, the proportion of citizens that use the internet could be much lower than 38%. A key challenge is cost. An average Ugandan telecom subscriber spends UGX 10,500 (USD 2.8) per month on voice, SMS and data, yet  access to social media for a month costs an additional USD 1.6 as OTT tax.

Indeed, multiple and high taxation on digitisation remains a stumbling block to increased inclusion not only to basic social media access but also for mobile money usage, digital banking, and access to public e-services.

While all forms of communication including radio, television and in some cases, loudspeakers are playing vital roles in keeping citizens informed on Covid-19, social media is providing a valuable channel for reporting public health gaps, encouraging transparency, accountability, clarification and case monitoring – yet its reach is limited by the OTT tax.

In the early stages of Uganda’s lockdown, it was through social media posts of academic and satirist, Dr. Spire Ssentongo, that many citizens learnt of the cracks in the states’ quarantine processes, such as the forced excessive accommodation prices for quarantined individuals, and the continued public operations of hotels that had been designated as gazetted quarantine centres. Many others also took to social media to share their experiences and the Ministry of Health was forced to respond to these concerns.

Meanwhile, opposition Member of Parliament Robert Kyaluganyi used his social media platform to launch an educative music video on the pandemic in March, and within 10 hours of its release it had garnered more than 700,000 views. He later tweeted that he had  numerous requests for authorisation for the song to be played on television and radio stations.

At government level, some key ministries are struggling with the optimal utilisation of their social media platforms and basic information availability on their websites. For instance, the Ministry of Education and Sports website has no information related to how the education sector should cope with the pandemic. Instead, a series of tweets were made through the account of the ministry’s head, Janet Museveni, pointing to a PDF which details some measures the ministry is undertaking, none of which make any reference to the use of technology or have any indication of where the suggested educational content could be found online.

Yet some entities have showed how technology is aiding their efforts to combat Covid-19. Among them was a tweet by the  Uganda Revenue Authority (@URAuganda) highlighting how investment in the Regional Cargo Tracking System (RCTS) had helped to intercept a truck driver who tested positive for Covid-19. The system was launched in 2017 to track goods under customs control from point of loading to a final destination within Kenya, Rwanda and Uganda.

Back in 2017, the government launched the Uganda Digital Vision,  a national policy and strategic framework to guide the country’s digital transformation and provide a unified direction for ICT development. With the social media tax undermining access to digital information and services, and key ministries failing to leverage digital technologies in providing critical public services, the Digital Vision does not seem to be delivering well on its promises.