Global Digital Economy To Hit $23trn By 2025

March 24, 2019//-The Executive Secretary, Economic Commission for Africa(ECA), Vera Songwe has said that the global digital economy estimated at over $11.5 trillion is set to rise to over $23 trillion by 2025.

Songwe made the remark at the ongoing annual Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (COM2019) which kicked off in Marrakesh on Wednesday.

“With the value of the global digital economy estimated at over $11.5 trillion and set to rise to over $23 trillion by 2025, the effects of digital trade and economy in Africa are points of key debate.

“The potential of Africa is, and has always been, promising… the continent has all the pre-requisites for rapid economic transformation in the next decade…[but] the importance of digitalization and the digital economy in driving growth and structural transformation, as well as optimizing fiscal performance in Africa cannot be overstated,” she said adding.

“It is currently estimated to represent 15.5 per cent of global GDP and is expected to reach 25 per cent of global GDP in less than a decade [and] there has been a rise in the digital innovation hubs on the continent, such as the Silicon Savannah in Nairobi and the Kumasi Hive in Ghana, not to mention more solution-oriented technologies such as Flutterwave which has enabled global payment processing in Nigeria through a single, seamless platform. In 2018, this application was reported to have processed $1 billion worth of transactions.”

“Such digital developments can have a transformative effect across the economy by reducing barriers to entry and expanding market reach for businesses, creating jobs, and boosting both domestic and foreign trade in goods and services,” she emphasised.

Zouhair Chorfi, secretary general at Morocco’s Ministry of Finance and incoming chair of the Committee of Experts of the CoM, adds further “Digitalisation is a great opportunity for Africa. It can transform Africa by increasing competitiveness, promoting strong integration, reducing the cost of doing business.

Morocco is ready to play its part.” His predecessor, lsadig Bakheit llfaki Abdalla also proffered on the issue: “With the advent of digital age, Africa can leapfrog and use new technologies to push the continent’s drive for sustainable development.

By Chris Ebong, independent.ng

 

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