Technology, Society and the Economy: Lessons from the Africa Digital Rights Fund

By Ashnah Kalemera |

The role of technology in driving social, economic and political transformation in Africa is widely recognised. Continent-wide efforts including the Digital Transformation Strategy for Africa (2020-2030) and the Africa Continental Free Trade Agreement (AfCFTA) present opportunities to re-shape countries’ interventions in harnessing technology for transparency and accountability, citizens’ participation, service delivery, innovation and respect for human rights. 

However, there remain various challenges to digitalisation in the social, public and private sectors across the continent. According to stakeholder engagements and documentation on digital transformation which were conducted by grantees of the Africa Digital Rights Fund (ADRF) during 2021 and 2022, key challenges include conflict and instability, illiteracy, poor infrastructure, and inadequate policy and legislative frameworks.  

Using its second grant from the ADRF, Digitally Yours analysed government and civil society technology initiatives in Algeria, Egypt, Libya, Morocco, Tunisia, and Sudan to establish the reality beyond the hype. The findings are captured in Arabic, English and French language podcasts that feature speakers from the United Nations Economic and Social Commission for Western Asia (UNESCWA), the Open Government Unit at the Organisation for Economic Co-operation and Development (OECD) and the Arab Centre for Cyberspace Research, among others.

The podcasts indicate that in Libya, political instability coupled with limited infrastructure roll-out and a weak legal and regulatory environment have limited public and private sector adoption of technology. Despite the prevailing challenges, notable initiatives include Hexa Connection which is at the forefront of promoting technology for entrepreneurship, governance, civic engagement and innovation; and Lawyers for Justice Libya, whose Adala Academy serves as an online education platform for human rights. Technology is also playing a crucial role in pushing back against racial discrimination in Libya

The podcast series also documents technology-enabled citizen journalism and cultural and creative expression in Tunisia, online citizen-parliamentary engagement in Morocco, and how internet shutdowns have undermined media and researchers’ roles in the context of Sudan’s political contestations. The podcasts underscore the importance of open government, data protection and privacy for refugees, national cyber security strategies that are protective rather than oppressive, and fact-checking in pursuit of effective digitalisation in the region. 

Listen to season one and two of the Digitally Yours Podcast

Away from North Africa, Somalia boasts a fast-evolving technology sector, with affordable internet and active efforts to mainstream digital rights. The 2020 eGovernment Survey, which measures eGovernment developments and performance, ranked Somalia 191st globally out of 193 countries. In line with the objectives of Somalia’s ICT Policy and Strategy 2019-2024, ADRF grantee  Bareedo Platform engaged the public, local government authorities, the media, academia and civil society organisations on digital transformation.

Bareedo initiated awareness campaigns on eGovernment and how its adoption at local government levels can transform and facilitate more accessible public services, allow greater public access to information, and promote duty bearer-citizen interactions. The campaigns were coupled with roundtables in Garowe and Mogadishu on digitalisation for service delivery. In Garowe, the capital of semi-autonomous Puntland, it emerged that local authorities had spearheaded digitalisation programmes in taxation, land and property registration, as well as public consultations and public expenditure

In Somalia’s capital Mogadishu, the move to online services was seen as an opportunity to overcome some of the challenges linked to terrorism in the city. For instance, a 2019 terrorist attack at the Mogadishu local government building disrupted service delivery to residents. The two local government authorities committed to advancing digitalisation and enabling ICT policies, and identified registration of births, applications for business permits and revenue collection as the priority services for digitalisation. Digital illiteracy and the lack of harmonisation in platform roll-out were highlighted as the key barriers to increased adoption of the various online service offerings.  

In neighbouring Kenya, despite the existence of a Digital Economy Blueprint whose vision is a “digitally empowered citizenry living in a digitally enabled society”, the country introduced an inhibitive digital taxation regime in 2020. With support from the ADRF, Mzalendo Trust worked to highlight the opportunities and challenges faced in Kenya’s digital economy. In a policy brief on the Digital and Data Policies for Promoting a Secure and Inclusive Digital Economy in Kenya, Mzalendo Trust documented the exclusion of women and youth from Kenya’s digital economy due to cultural biases, mobility restrictions, security risks and time limitations, among other factors. On the other hand, the digital economy was found to present new opportunities for women and youth, opening up external and internal digital markets to serve small and medium enterprises.

Based on the findings of the policy brief, Mzalendo Trust convened two stakeholder forums bringing together innovators, private sector associations, civil society organisations, economic think-tanks, state agencies and policy makers to deliberate on inclusion in the digital economy and the need for  supportive policy frameworks

Mzalendo Trust’s digital economy work echoes that of CUTs International Kenya, which, with support from ADRF worked to  raise the visibility of consumer protection in the digital financial sector through op-eds and a policy brief, alongside stakeholder engagements with digital financial services stakeholders including the Capital Markets Authority (CMA), Retirement Benefits Authority (RBA), Financial Sector Deepening (FSD), Kenya Bankers Association (KBA), FinTech Association of Kenya (FAK) and Competition Authority of Kenya (CAK).

Meanwhile, building on the foundations of its civic engagement and data journalism efforts, ADISI-Camero promoted data journalism, social accountability and citizen-duty bearer engagement beyond Cameroon’s economic capital Douala. The initiative built the capacity of youth leaders in digital advocacy, public policy participation, and  access to information. A Memorandum of Understanding signed with Deseka Municipality supported the evaluation and redesign of http://www.communedeseka.org  to promote transparency and accountability. 

The success of the ADISI-Cameroon-Deseka Municipality model saw other municipalitiesDschang, d’Edéa 1er and Loum – express interest in forging partnerships to promote citizen-duty bearer engagement. According to ADISI-Cameroon’s Executive Secretary Paul-Joel Kamtchang, “the extension of this [Eseka] model to other municipalities in the country would allow us to constitute a “Hub of Open Councils”.

Recommendations emerging from the various ADRF grantee interventions include operationalisation of supporting frameworks such as for cyber security, data protection and privacy; increased participation of minority and marginalised groups in the design of initiatives; multi-stakeholder collaboration; harmonisation of national and local government plans; and digital literacy skills building. 

Launched in April 2019, the ADRF supports advocacy, skills development, and movement building to effectively influence policy and practice for digital rights protection in Africa by offering flexible and rapid response grants. As at August 2021, ADRF had supported 45 initiatives with a total sum of USD 564,000. 

Past grantee efforts have included studying the role of technology in human trafficking, promoting data protection in digital financial services, digital rights coalition building, confronting online abuse against women, capacity development in digital literacy and security for refugees and pushing back agaisnt barriers to digital accessibility for persons with disabilities.

Are Cryptocurrencies the Future of Freedom and Financial Inclusion in Africa?

By Daniel Mwesigwa and Thomas Robertson |

Advances in innovation have ushered in new approaches to digital transformation and financial service provision. With the growth in internet connectivity in sub-Saharan Africa, emerging technologies such as blockchain and cryptocurrencies have the potential to advance financial inclusion. 

Blockchain is the technology underpinning cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, among others. The emergence of cryptocurrencies in Africa is particularly exciting due to the opportunities they provide for Africans in cash-based and informal economies to participate in alternative financial infrastructures. Many traditional financial infrastructures across Africa are often subject to high levels of volatility and ineffective governance. Blockchain financial technology allows for alternative financial infrastructures that increase monetary stability and efficient governance through a decentralised digital financial system.

Exploring the Digital Currencies Landscape in Africa

According to the World Bank, sub-Saharan Africa has one of the highest remittance rates in the world. In 2019, 3.6% of sub-Saharan Africa’s Gross Domestic Product (GDP) was derived from personal remittances- a figure over three times the global average. However, the region also has the world’s largest unbanked population, with only 42.6% of those above the age of 15 having an account at a financial institution. 

With the bulk of remittances on the continent being peer to peer transfers, cryptocurrencies have the potential to revolutionise remittances between Africa and the rest of the world. Cryptocurrency-based remittances would result in faster transfers, less logistical constraints, and lower transaction costs due to advanced Blockchain technology. Whereas remittances cannot be considered a form of financial inclusion, their potential application to digital currency infrastructures could usher in more inclusive financial infrastructures. 

Indeed, in August 2020, sub-Saharan Africa traded USD 18.3 million of the USD 95 million total worth of Bitcoin traded globally in one week – the second highest peer-to-peer Bitcoin trading volume in the world after North America (at USD 28.7 million). While it is argued that Bitcoin trading significantly increased in sub-Saharan Africa due to the need to hedge against the volatility of local currencies amid the effects of Covid-19 lockdowns on local economies, Bitcoin.com’s analysis shows that 86.3% of the volume was contributed exclusively by the continent’s leading economies –  Nigeria, Kenya, and South Africa.

Contrasted against the average weekly mobile money transaction volumes in sub-Saharan Africa of around USD 457 million, Bitcoin’s trading volumes seem dismal. However, it should be noted that since its 2007 debut in Kenya, the M-Pesa mobile money model has been replicated by over 140 mobile money services worldwide. Mobile money itself has positively contributed to financial inclusion on the continent by enabling person-to-person and person-to-business digital transactions, alongside access to savings, credit and investment services via mobile phones. However, it is not without challenges – including high transaction fees and costs associated with interoperability and regulatory gaps. Meanwhile research shows that women are less likely to use mobile apps to conduct financial transactions due to  gender bias in digital financial services (DFS).

Meanwhile, intercontinental financial flows are largely dominated by foreign currencies because Africa’s aspirations for a single currency are often undermined by national currency variations in stability, convertibility, and control. While it is possible to address these issues by pegging unstable national currencies to more stable international currencies, the solution is fraught with structural deficits, as evidenced by the West African CFA franc (Eco), which is pegged to the Euro.

Digital currencies are thus arguably positioned as more appealing and accessible alternatives to the status quo. They attract comparatively lower transaction fees and carry less of the bureaucratic burdens prevalent in existing financial systems, even those between neighboring countries. Further, unlike mobile money and traditional currency, which are prone to interference by authorities, most digital currencies such as Bitcoin are resistant to external suppression because they are not controlled by central banking authorities. For example, during the #EndSARS campaign against police brutality in Nigeria, authorities ordered banks and financial institutions to block donations to the Feminist Coalition, one of the organisations charged with coordinating the protests. The Coalition turned to Bitcoin and other cryptocurrencies to circumvent the blockade. Meanwhile in Kenya, despite calls against virtual currencies by the Central Bank of Kenya, there has been an emergence of community-based initiatives for local cryptocurrencies enthusiastically welcomed by domestic users

Tangible Obstacles to Digital Advancements

In Francophone West Africa, activists are calling for stable, regional currencies independent of European financial institutions that impose economic reliance on the West. Some have speculated that the creation of a regional cryptocurrency based on blockchain would finally emancipate their economic systems from unwanted foreign manipulation. Indeed, the establishment of a legally-recognised digital currency in Senegal – the eCFA – demonstrates that feasibility and a framework for digital currency exists. However, this potential is faced with constraints across the region such as internet disruptions as well as gaps in cybercrime and data protection and privacy legislation Nonetheless, the mobilisation of young enterprises around technological innovation in combination with civil society and government-led innovation in digital economic expansion hold some promise that blockchain utilisation can contribute to Africa’s social-economic development on a country or regional needs basis.

Central banks could either support or develop the blockchain and technology infrastructure upon which third parties could participate, or  sidestep the burden of  technology infrastructure development and maintenance through designing licensing regimes that allow appropriate third parties to issue digital currencies on behalf of their countries. However, to achieve this,  countries must have adequate financial and technology policy, including legislation that incentivises cryptocurrency development, ensures cybersecurity and protects user data and privacy. Furthermore, universal access to the internet and digital services, quality of service provision and infrastructure investments would go a long way in promoting adoption of digital financial technology.

Digital Security Clinics @ #FIFAfrica16

Internet freedom is threatened by surveillance, censorship, and hacking and by an underground economy of online fraudsters and phishers. To make it in the digital era, you need digital survival skills. Stop by the DefendDefenders Digital Security Clinic table during the Forum on Internet Freedom in Africa 2016 and bring your questions and concerns to our digital security practitioners.
  • Ask a question about a digital security concern
  • Pick up software that can help improve your digital security
  • Get help with an existing problem and let us triage your device
Trainers welcome! Calling all digital security trainers to visit the Clinic, network with each other, support human rights defenders, and trade techniques.
DefendDefenders (the East and Horn of Africa Human Rights Defenders Project) is a Uganda-based sub-regional organisation strengthening the work of human rights defenders (HRDs) throughout the region by reducing their vulnerability to the risk of persecution and by enhancing their capacity to effectively defend human rights. DefendDefenders focuses its work on Burundi, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Somalia (together with Somaliland), South Sudan, Sudan, Tanzania and Uganda.