Is data Africa's new gold?

If the future is digital, Africa needs to begin taking control of and harnessing its data. That is our new gold. 

According to the latest UN figures, by the year 2050, every one in four people will be African. This staggering statistic highlights the rapid population growth on the continent, with Africa’s population projected to reach 2.5 billion by mid-century. As the population increases, so too will the demand for data-driven solutions to address the challenges facing the continent.  

As the world becomes increasingly dependent on the internet, Africa, with a population of over 1.3 billion people, is struggling to keep pace with the global trend. While Europe boasts an impressive average internet penetration rate of over 91% across the EU bloc (highest being Luxembourg and the Netherlands with over 99%), Africa’s rate stands at a mere 36%, with only around 450 million people connected to the internet. Though that figure varies widely across the continent—from Seychelles, which has an upward of 82%, and Botswana at 74%, down as low as 17% in Ethiopia and Mozambique—according to 2021 statistics, there is a solid block of African states that score below 50%. 

The reasons for this disparity are complex and multifaceted. One major factor is infrastructure development. Many African countries still lack robust and reliable internet infrastructure, including broadband networks, data centres, and satellite connectivity. This makes it difficult for people to access and use the internet efficiently. Kenya is taking the lead in East Africa by partnering with Google to establish its first product development centre in Nairobi. In 2023, Kenya also overtook Nigeria as the country which attracted the greatest investment in its tech sector. Tech financing has traditionally been dominated by the “Big Four” (Kenya, Egypt, South Africa and Nigeria) and as the Google head for pan-African institutions, Pren-Tsilya Boa-Guehe, recently said: “it would be great to see more of that diversified throughout the continent.”  

How data benefits our continent 

One such initiative is underway in Rwanda, where researchers are harnessing the power of data and satellite imagery to combat climate change. In collaboration with the country’s agriculture ministry, they are working together to identify the most suitable areas and timing for planting crops. By leveraging data analytics and machine learning, farmers can make informed decisions about what crops to plant, where to plant them, and when to harvest. 

This approach has significant implications for sustainable agriculture and food security in Africa. With accurate data, farmers can optimise their yields, reduce waste, and adapt to changing environmental conditions. Moreover, this data-driven approach can help mitigate the effects of climate change, which is expected to have devastating consequences for African agriculture. 

Navigating the independence and relevance of national statistical offices in Somalia  

Somalia is making great strides in transforming its economy with the help of improved internet access. The nation is a leader in the region for internet connectivity according to the International Telecommunications Union, with internet penetration rates now at 54%. Earlier this year the country also saw the introduction of 5G with the express aim of facilitating the tech driven aspects of its economy. The telecommunications sector has been a major contributor to the country’s economic growth. Mobile phone operators are now providing more affordable services to Somalis, but this is not enough. 

From my experience working in the East African regions, a significant challenge I faced was not only the limited infrastructure and resources available to the Somali population but also the scepticism towards market research conducted by agencies. Additionally, the elephant in the room—corruption—presented another major hurdle. Furthermore, a challenge I encountered was determining the appropriate level of autonomy for the National Bureau. 

The Somali National Bureau of Statistics is a relatively recent institution that should maintain complete independence from the government to ensure its integrity. While a degree of independence may be uncontroversial, complete autonomy is crucial to prevent governments from misusing their power over the money supply, as confirmed by the 2021 World Development Report. This misuse can lead to negative impacts on long-term development outcomes. This principle applies not only at the national level but also to regional areas like Puntland and Somaliland. In practice, the lack of trust and paranoia among the public pose significant obstacles to conducting market research and collecting data, making it challenging to carry out surveys in these regions. 

A case study in Hargeisa 

When the local vendors operating near the burned ruins of Waaheen Market in Hargeisa on 2nd April 2022 were relocated to a new site, no prior study was conducted. Market research and data collection would have added value by generating revenue for both stakeholders. For example, the installation of solar panel lights would have allowed for longer operating hours, potentially increasing revenue through higher sales and taxes for the council. 

Another impactful indicator of how data can be beneficial in Somaliland is the housing sector. Although the capital city, Hargeisa, is diverse and cosmopolitan, property purchases are sometimes influenced by tribal or clan affiliations. By collecting and analysing data, we can shift the narrative to focus on factors such as access to quality schools, better roads, and higher safety indexes. This will require all stakeholders to work collaboratively to eliminate tribal decision-making in Somaliland and other regions of Somalia. 

Through the Khwarizimi Research Institute, we are excited to be in the process of establishing the first-ever Data Training Centre in Somaliland, dedicated to equipping young individuals with the skills and knowledge necessary to excel in the field of data centre management. Our courses are specifically designed to provide comprehensive training in the latest data centre technologies, ensuring that our students are well-prepared to meet the demands of this rapidly evolving industry.  

Conclusion 

The new gold in Africa is not just a cliché – it’s a reality. Data has become the lifeblood of the continent, and it’s no exaggeration to say it’s the oxygen that Africa needs to thrive. Africa needs to be part of the digital sprint. We can see the potential in some African leaders and business communities, and they must be intentional about harnessing this opportunity. However, we must also be mindful of the resource curse and take steps to protect ourselves from its negative consequences. To do this, we need to develop the capacity to own and control our data, using it for the benefit of the entire continent. For this, Africa needs to push for better digital and cyber security infrastructure. 

Fortunately, the money and support required to achieve this vision will come from African entrepreneurs and the private sector, as long as we remain committed to digital trade and innovation. However, there are still significant challenges ahead. One of the biggest questions is: who will collect and manage this data? Who controls the ethics of this data? Another crucial issue is how we can invest more funding in building the necessary infrastructure to support data-driven growth. Addressing these challenges will require collaboration, creativity, and a shared vision for Africa's digital future.