{
  "title": "The Foundations of Technological Transformation in Africa",
  "publication": "IMF News, December 15, 2017",
  "sourceUrl": "https://www.imf.org/en/news/articles/2017/12/15/sp121517-the-foundations-of-technological-transformation-in-africa",
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  "summary": "By Christine Lagarde, Managing Director&nbsp;<br> United Nations Economic Commission for Africa<br> Addis Ababa, Ethiopia&nbsp;",
  "authors": [
    "Christine Lagarde"
  ],
  "publishDate": "2017-12-15",
  "sections": [
    {
      "heading": "1. Introduction — framing and demographic context",
      "content": "- Speech delivered December 15, 2017, Addis Ababa, Ethiopia by Christine Lagarde, Managing Director, International Monetary Fund.\n- Central premise: technological innovation requires a strong foundation — roads, education and health systems, public involvement, and public-private partnerships — to flourish.\n- Demographics and opportunity:\n  - Youth in Africa already comprise 75 percent of the working age population.[1]\n  - By 2030, over half of new workers entering the global labor force will come from Africa.[2]\n- Risks and macro context:\n  - Global IMF projections: 3.6 percent growth for 2017 and 3.7 percent for 2018.\n  - Africa-wide projections: growth expected to reach 2.9 percent in 2017 and 3.5 percent in 2018 and 2019.\n  - Variation across countries: nearly one-third of nations growing at around 5 percent; many commodity exporters experiencing a slowdown.\n  - On a GDP per capita basis, 15 countries are expected to see a decline this year (encompassing about 40 percent of the population).\n  - Public debt concern: public debt has reached 50 percent of GDP in nearly half of sub-Saharan Africa’s countries."
    },
    {
      "heading": "2. Preconditions and enablers for innovation",
      "content": "- Foundational public goods and institutions highlighted as prerequisites for technology to deliver inclusive benefits:\n  - Roads, education, health systems.\n  - Access to electricity and reliable infrastructure.\n  - Access to credit and financial integration.\n  - Streamlined regulation and access to markets to encourage competition and innovation.\n  - Public support for basic research.\n- Financial inclusion and mobile money:\n  - In 2015, nearly 35 percent of the adult population in sub-Sahara Africa had a mobile money account, the highest percentage in the world.[3]\n  - In countries such as Côte d’Ivoire, Somalia, Tanzania, Uganda, and Zimbabwe, people were more likely to have a mobile account than a traditional bank account.[4]\n- Energy and infrastructure:\n  - Hundreds of millions of people live without access to power on any given day.[5]\n  - Solar solutions (examples):\n    - M-kopa sells solar panels with small deposits and pay-off over a year through mobile banking; the system has brought electricity to over half a million homes.\n    - New solar stations in Burkina Faso, Zambia, Benin.\n    - Morocco constructing a facility that will become one of the largest solar power plants in the world.\n  - Infrastructure gap: estimated to be over $90 billion annually.[6]\n- Local innovation examples:\n  - Andela training and matching African workers for tech jobs.\n  - A community innovation lab in Togo developed the first 3-D printer made entirely of electronic waste and plans to place 3-D printers in every school within a kilometer of the lab.[7]"
    },
    {
      "heading": "3. Government use of digital tools — fiscal and service delivery gains",
      "content": "- Fiscal savings and efficiency from digitizing government payments:\n  - IMF analysis in Digital Revolutions in Public Finance: countries across the developing world could save around one percent of GDP by updating government payment systems from cash to digital; in some places in Africa the potential is even higher.[8]\n  - Nigeria example: digital payments could save between 5 to 9 billion U.S. dollars, or about 1.7 percent of GDP.[9]\n- Service delivery and crisis response:\n  - Sierra Leone: mobile wallet system during the Ebola outbreak saved lives and improved resource allocation.\n  - Cote D’Ivoire: Ministry of Education (2011–2014) shifted all tuition payments from cash to digital — result: fewer lost fees, less fraud, and new investments in the school system.\n  - Ghana pilot: blockchain platform bitland used to record land sales; note that approximately 90 percent of agricultural property is unregistered in Ghana.[10]\n- Broader benefits of digitalization:\n  - Potential to reduce corruption, increase revenues, generate investments in health and education, and contribute to meeting the 2030 Sustainable Development Goals.\n  - Digital tools can enhance transparency, accountability, and citizen access to information."
    },
    {
      "heading": "4. IMF engagement: capacity building, innovation, and knowledge sharing",
      "content": "- Practical IMF support and examples:\n  - 2016: sub-Saharan Africa was the largest recipient of IMF capacity development efforts.\n  - Six IMF capacity development centers across Africa enable rapid response to emerging needs.\n  - Free online courses have trained nearly 30,000 individuals worldwide, including many in Africa; courses cover public financial management, debt sustainability analysis, and other topics.\n  - Example of creative problem-solving: 2016 Dakar “hackathon” with the Senegalese Ministry of Finance — 100 young entrepreneurs proposed solutions to improve tax collection (apps for offline filing, document-simplifying software, websites for taxpayer access).\n- Role promoted for the IMF:\n  - Support members in harnessing technology to improve economic conditions and strengthen institutions.\n  - Promote best practices and knowledge-sharing across countries and continents."
    },
    {
      "heading": "5. Policy implications and recommendations",
      "content": "- Build and protect foundational public goods:\n  - Invest in roads, education, health systems, and reliable electricity to underpin technological adoption.\n- Promote financial inclusion and digital payments:\n  - Encourage transition from cash to digital government payments to realize fiscal savings and reduce leakage.\n- Support public-private partnerships and regulatory reform:\n  - Create environments where entrepreneurs are rewarded, markets are accessible, and competition spurs innovation.\n- Invest in human capital and skills:\n  - Train youth in digital skills and support community innovation labs and tech training programs like Andela.\n- Prioritize energy investment and closing infrastructure gaps:\n  - Expand scalable solutions such as solar to reach unelectrified populations and enable manufacturing and digital services.\n- Foster cooperation:\n  - Strengthen cooperation between public and private sectors, between people, and among multilateral institutions (IMF, UNECA) to scale successful models.\n- Continue capacity development and knowledge dissemination:\n  - Use IMF capacity development centers and free online courses to spread best practices and technical skills.\n\nSource: Speech \"The Foundations of Technological Transformation in Africa\" by Christine Lagarde, Managing Director, International Monetary Fund, delivered December 15, 2017, United Nations Economic Commission for Africa, Addis Ababa, Ethiopia.\n\n---\n\n Content in this bundle\n\n- Sreo0415 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- Christine Lagarde\n- Benin and the IMF\n- Burkina Faso and the IMF\n- Ghana and the IMF\n- Sierra Leone and the IMF\n- United Republic of Tanzania and the IMF\n- Uganda and the IMF\n- Speeches\n- PRESS CENTER\n- when the sun is shining that we have to fix the roof.\n- I outlined how economic diversification is part of the solution\n- Digital Revolutions in Public Finance, IMF: 2017.\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/12/15/sp121517-the-foundations-of-technological-transformation-in-africa"
    }
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    "Authors: Christine Lagarde",
    "Published: December 15, 2017",
    "Speech delivered December 15, 2017, Addis Ababa, Ethiopia by Christine Lagarde, Managing Director, International Monetary Fund.",
    "Central premise: technological innovation requires a strong foundation — roads, education and health systems, public involvement, and public-private partnerships — to flourish.",
    "Demographics and opportunity:",
    "Risks and macro context:",
    "Foundational public goods and institutions highlighted as prerequisites for technology to deliver inclusive benefits:",
    "Financial inclusion and mobile money:",
    "Energy and infrastructure:",
    "Local innovation examples:",
    "Fiscal savings and efficiency from digitizing government payments:",
    "Service delivery and crisis response:",
    "Broader benefits of digitalization:",
    "Practical IMF support and examples:",
    "Role promoted for the IMF:",
    "Build and protect foundational public goods:",
    "Promote financial inclusion and digital payments:",
    "Support public-private partnerships and regulatory reform:",
    "Invest in human capital and skills:",
    "Prioritize energy investment and closing infrastructure gaps:",
    "Foster cooperation:",
    "Continue capacity development and knowledge dissemination:",
    "[Sreo0415 (PDF)](/external/pubs/ft/reo/2015/afr/eng/pdf/sreo0415.pdf){rel=\"external\" type=\"application/pdf\"}",
    "[Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)",
    "[Benin and the IMF](http://www.imf.org/external/country/BEN/index.htm)",
    "[Burkina Faso and the IMF](http://www.imf.org/external/country/BFA/index.htm)",
    "[Ghana and the IMF](http://www.imf.org/external/country/GHA/index.htm)",
    "[Sierra Leone and the IMF](http://www.imf.org/external/country/SLE/index.htm)",
    "[United Republic of Tanzania and the IMF](http://www.imf.org/external/country/TZA/index.htm)",
    "[Uganda and the IMF](http://www.imf.org/external/country/UGA/index.htm)",
    "[Speeches](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[when the sun is shining that we have to fix the roof.](https://www.imf.org/en/News/Articles/2017/10/04/sp100517-a-time-to-repair-the-roof)",
    "[I outlined how economic diversification is part of the solution](http://www.imf.org/en/News/Articles/2017/12/11/sp121117-md-benin-speech)",
    "[Digital Revolutions in Public Finance, IMF: 2017.](https://www.bookstore.imf.org/books/title/digital-revolutions-in-public-finance)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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