AfDB’s PierreGuislain speaks about the cost of realising a digital economy

With the recent conclusion of the Transform Africa Summit, the focus on boosting Africa's digital economy has become more prominent than ever. CNBC Africa had the opportunity to speak with Pierre Guislain, the Vice President of Infrastructure at the African Development Bank, to gain insights into the feasibility and costs involved in realizing this vision. During the interview, Guislain highlighted Africa's significant achievements in the digital space, particularly in the mobile revolution and the subsequent development of mobile money services. He emphasized the transformative impact these technologies have had on the continent's economies, leading to increased inclusivity and access to financial services for a broader segment of the population. Guislain commended Africa's ability to adapt to new technologies and innovate services that cater to people's needs, including those of the underserved communities. He acknowledged that while there have been remarkable advancements, there are still crucial steps to be taken to fully realize the potential of the digital economy. The comparison was drawn to the mobile revolution, where a new technology (GSM) disrupted the traditional telecom sector, paving the way for competition and the expansion of services beyond voice telephony. Guislain stressed that the challenges facing Africa's digital economy today are more complex as they cut across various sectors, requiring an enabling environment for innovation and regulatory adaptability. He underscored the readiness of the African private sector to embrace digital transformation but highlighted the importance of governments opening up markets and fostering regional cooperation to enable scale and investment across the continent. Guislain discussed the need for well-developed soft infrastructure to support digital connectivity and emphasized the necessity of new regulations that transcend sectoral boundaries to facilitate the growth of the digital economy. He highlighted the importance of addressing issues such as fiber optic networks and storage capacity to ensure seamless digital operations across Africa. Guislain reiterated the critical role of soft infrastructure in driving digital transformation and urged stakeholders to prioritize regulatory frameworks that promote innovation and cross-sectoral collaboration. As Africa continues its journey towards a thriving digital economy, Guislain's insights serve as a roadmap for unlocking the continent's vast potential and fostering sustainable growth in the digital era.