Digital Transformation Vital for Africa’s Economic Competitiveness
Claver Gatet, Executive Director of the Economic Commission for Africa (ECA), emphasized the necessity for African nations to embrace digital transformation to remain competitive in the 21st century. He proposed a vision where countries power, connect, and digitize their economies rapidly.
Gatet made these remarks during the African Conference of Ministers of Finance, Planning, and Economic Development (CoM2026), which convened policymakers and experts aimed at exploring how innovation, data, and new technologies can catalyze growth and generate employment.
Key topics of discussion included strategies to build a more competitive and productive economy, enhance skills suitable for shifting labor markets, improve access to financing for businesses, and leverage innovations such as artificial intelligence to transform productivity and labor dynamics.
With unemployment on the rise throughout Africa, the job market faces increasing challenges. The pace of employment generation is failing to keep up with the continent’s burgeoning population. Consequently, policymakers, economists, and innovators are actively seeking scalable solutions that can effectively address these issues.
This situation has brought renewed focus on the impact of innovation and technology as driving forces for economic growth and job creation. In an interview with ECA’s Sustainable Africa series, Ojoma Ochai, Managing Director of Co-Creation Hub, noted that the heightened emphasis on innovation and emerging technologies reflects long-term efforts within the technology ecosystem to expand job opportunities and economic potential.
However, Ochai also pointed out a persistent gap between ideas and their practical implementation. “While considerable research is being conducted, it seldom leads to industry application or new products,” she remarked.
In response, the Co-Creation Hub has been actively working within the innovation ecosystem to support startups, develop talent, and create pathways that connect research with commercial markets. An illustrative example is the Uni:nnovators program, which operates in Namibia, Nigeria, and Kenya. This initiative fosters student entrepreneurship through design sprints and hackathons across various sectors, including health and agriculture.
This program not only aids startups but also focuses on talent development and connecting individuals with opportunities. Ochai noted that aspiring founders often lack the complete set of skills necessary for success, and the ecosystem aims to bridge this gap through job matching, skill development, and capability enhancement.
For many innovators, developing a viable solution is just the initial step; scaling those solutions across different markets to achieve broad economic impact can be far more challenging. Ochai mentioned that her organization strives to foster a more integrated Africa by supporting entrepreneurs as they navigate market expansion and address the realities of growth.
Technologies such as artificial intelligence, digital platforms, and mobile payments are beginning to transform various sectors, from agriculture to finance, by broadening access and enhancing productivity. Digital payment systems and mobile money solutions lower transaction costs and widen access to financial services, while e-commerce and cross-border payment platforms facilitate streamlined transactions across African markets.
Despite this progress, the capacity to scale innovations remains inconsistent across countries. Gatet highlighted that despite the growing digital activity on the continent, a substantial share of value is still created elsewhere, underscoring the urgent need for robust governance frameworks, regulatory systems, and digital taxation to enable African nations to retain and capitalize on their own data.
As economic landscapes evolve, education and training systems must also adapt to equip young people with the skills needed in a changing job market. Sufficient funding is critical to scaling these initiatives and opportunities effectively.
At CoM2026, there was a unanimous acknowledgment that innovation driven by data and new technologies has become essential for Africa. Such innovation will crucially contribute to job creation, enhanced productivity, and the development of more competitive economies across the continent.
The United Nations Economic Commission for Africa (ECA), established in 1958, serves as one of the five regional commissions of the UN. Its mission focuses on promoting economic and social development among member states, fostering regional integration, and facilitating international cooperation aimed at Africa’s growth. The ECA represents 54 member states and plays a pivotal role in both regional and global developmental frameworks.
