Development of Digital Economy in Africa and the Prospects of China-Africa Cooperation in Digital Ec

Entering the 21st century， with the rapid development and popular use of mobile Internet and the accelerated innovation in such technologies as big data， artificial intelligence （AI）， the Internet of Things， cloud computing and blockchain， digitalization has been increasingly integrated into the whole process of economic and social development on all fronts and the digital economy has ushered in a stage of rapid growth. Despite of a slow start， Africa’s digital economy， driven by the wave of digital globalization， has entered the fast lane in recent years and successfully transcended the personal computer Internet era to directly enter the mobile Internet era. During the COVID pandemic， digital economy served as a new engine in pandemic response and recovery. Empowered by its internal demand and international driving forces， digital economy in Africa presents a new development pattern with telecommunication operators at the core， international digital enterprises and Internet platforms as the main players and the construction of data centers and smart cities as focused areas.

New Dynamics of Digital Economy in Africa

With the popular use of smartphones among young Africans and the upgrading of information and communication technologies （ICT）， more and more African users can access the mobile networks. Against this backdrop， the digital economy influences every aspect of people’s lives across the African continent and plays an increasingly important role in the economic development of African countries.

First， building a digital Africa has become a consensus of the African Union （AU） and many African countries. The AU formulates plans from the continental level to chart Africa’s digital future， aiming at building Africa into a globally competitive digital society. The Agenda 2063 adopted by the AU in 2013 presents the vision for ICT and digital economy， which is to transform African countries into digital compacts. In 2020， the AU issued the Digital Transformation Strategy for Africa （2020-2030）. The main objectives are to harness digital technologies and innovation to transform African societies and economies to promote Africa’s integration， generate inclusive economic growth， stimulate job creation， break digital divides， and eradicate poverty. As such， the strategy aims to support the continent’s sustainable socio-economic development， ensure Africa’s ownership of modern tools of digital management and provide access to digital devices and networks at an affordable price for all Africans.

“Digital Africa” has also become African countries’ consensus on development. Many African countries have put in place strategies and policies to capitalize on the opportunity to advance their digital economies. Kenya， C?te d’Ivoire， Nigeria， Ghana and South Africa， five countries that have reaped outstanding achievements in digital development， are now known as the “KINGS”. In June 2021， Nigeria announced the establishment of the National Center for Emerging Technologies， the National Center for Digital Innovation and Entrepreneurship as well as the Artificial Intelligence and Robotics Center. Nigeria has also developed a National Plan for 5G Digital Economy. Its National Development Plan 2021-2025 states that the contribution of digital economy to GDP should be increased from 10.68% to 12.54% by 2025. South Africa released the Draft National Policy on Data and Cloud in 2021， which prioritizes the digital economy and aims to create a “data-intensive and data-driven South Africa”. Besides Nigeria and South Africa， Kenya， C?te d’Ivoire， Ghana， Egypt， Rwanda， Ethiopia and other countries also put high value on the development of the digital economy and have achieved remarkable results.

Second， African countries boast strong momentum in digital infrastructure construction. According to the Africa Broadband Map， the total length of fiber optic networks operating on the African continent was 525，000 kilometers in 2013 and increased to 936，000 kilometers in 2018， up by 78% within five years. As of June 2023， this number had grown to 1.279 million kilometers. A further 117，000 km of fiber optic networks are currently under construction in Africa. The mobile Internet in Africa continues to cover more uses and the development of 5G has taken off. The mobile Internet coverage in sub-Saharan Africa grew from 48% in 2017 to 59% in 2022， when the 5G coverage in African countries reached 3%. The process of data localization in Africa is driving the rapid growth of data centers， which are mainly located in countries such as South Africa， Nigeria， Kenya and Morocco. With facilities ranging from Tier 1 to Tier 3， these data centers could meet various demands ranging from basic data storage to complex cloud computing solutions. According to a report released by Xalam Analytics in 2023， the market of African data centers is expected to grow at an average annual rate of 12% over the next five years to reach a valuation of US$3 billion by 2028.

Third， African countries have seen a rapid rise in e-commerce and mobile payments. Jumia， the largest e-commerce platform in Africa， Takealot， an online retailer in South Africa and Noon in Egypt， among others， all realized rapid growth during the COVID-19 pandemic. Such e-commerce platforms played an active role in promoting contactless shopping， cashless payment， distribution of medical supplies and communication of information on pandemic response. According to a report by IMARC Group， Africa's e-commerce market reached US$277.1 billion in 2023. By 2032， the e-commerce market of Africa is expected to reach US$939.8 billion， with an annual growth rate of 14.4%. According to the Nigerian Export Promotion Council （NEPC）， the value of e-commerce in Nigeria rose from US$680 million in 2022 to US$9.02 billion in 2023. The rapid growth of e-commerce has injected a strong impetus to the growth of mobile payment transactions， while mobile payments have further boosted the solid growth of e-commerce. In 2020， the value of mobile payment transactions in Sub-Saharan Africa reached US$490 billion， up by 23% compared with that of 2019. As the Internet industry enjoys fast growth in Africa and mobile devices are extensively used by more users， e-commerce and mobile payment will bring about a huge market.

Fourth， Africa is experiencing a “multi-tiered” digital divide. Despite the strong momentum of Africa’s digital economy， a remarkable digital divide still exists. On the one hand， a huge gap in digital development between Africa and developed countries exists; on the other hand， imbalanced development among African countries leads to imbalanced digital development， thus resulting in a “multi-tiered” digital divide. Mobile networks are the main form of Internet access in Africa. But mobile broadband penetration is low in most sub-Saharan African countries （excluding South Africa）. According to the Global System for Mobile Communications （GSMA）， only 28% of the population in Sub-Saharan Africa could access mobile Internet in 2020 and more than two-thirds of the region’s population were still not connected to the Internet. For those mobile Internet users， mobile data is still expensive， considering their purchasing power. In Africa， 2G and 3G networks are still the main mobile networks， 4G network penetration is still low and 5G just starts its initial stage. In addition， regional differences in digital economy are distinct， with a wide digital divide among different countries. The data traffic tariffs remain expensive in some African countries due to their backward digital infrastructure. For example， the average price of 1GB of data in Sao Tome and Principe in 2022 was as high as US$29.49.

Features of China-Africa Cooperation in Digital Economy

Cooperation in digital economy is in line with the common interests of China and Africa. Both as members of the “Global South”， China and Africa are well positioned to seize the significant historical opportunity through cooperation in digital economy and achieve mutual benefits and win-win results. On the one hand， higher digitalization capacity will provide new opportunities for the African continent to integrate into the global supply chain， industrial chain and value chain on an equal footing， which will boost African countries’ digital competitiveness; on the other hand， sharing its successful experience in digital transformation with African countries demonstrates China’s initiative to assume the role of a responsible major country， which will be conducive to the building of a cyber community of a shared future.

China is well equipped to carry out cooperation in digital economy with African countries. China has achieved leapfrog development in ICT， manufacturing of information equipment and the Internet since its reform and opening up. The digital economy miracle China has created reflects the tremendous power of the Chinese modernization. China has become a major digital economy. According to statistics， in 2022， the value of China’s digital economy reached US$7.5 trillion dollars， remaining the second in the world. China’s comparative advantage and successful experience in digital economy provide an important guarantee for China-Africa digital economy cooperation. In fact， China and Africa have already carried out all-round cooperation in digital economy with the following features.

First， top-level design and institutional building provide strategic guidance and policy guarantee for China-Africa cooperation in digital economy. Firstly， the Forum on China-Africa Cooperation （FOCAC） is the core platform for friendly exchanges and pragmatic cooperation between China and African countries， on which many plans for China-Africa digital economy cooperation have been formulated. The 8th Ministerial Conference of FOCAC held in November 2021 proposed the “digital innovation program” which was jointly carried out by China and Africa. The FOCAC Beijing Summit held in September 2024 adopted the Forum on China-Africa Cooperation Beijing Action Plan （2025-2027）， which stated that China and Africa would jointly implement the China-Africa Digital Cooperation and Development Action Plan and that China would work together with Africa to establish digital technology cooperation center and facilitate Chinese businesses in undertaking 20 digital infrastructure and digital transformation demonstration projects in Africa. Secondly， China and African countries have achieved significant outcomes in building digital cooperation platforms and diversifying cooperation and have established mechanisms dedicated to cooperation in digital economy， such as the China-Africa Internet Development and Cooperation Forum and the China-Africa Digital Economy Cooperation Forum among others. The China-Africa Internet Development and Cooperation Forum held on August 24th， 2021， announced the “China-Africa Digital Innovation Partnership Program” and put forward six proposals in this regard， including strengthening the digital infrastructure， growing the digital economy， promoting digital education， boosting digital inclusiveness， jointly upholding digital security and building cooperation platforms. The China-Africa Internet Development and Cooperation Forum held in May 2024 issued the Chair’s Statement on China-Africa Cooperation on AI. During the FOCAC Beijing Summit held on July 29th， China and 26 African countries signed the China-Africa Action Plan for Digital Cooperation and Development， planning cooperation in six major areas， including digital policy， digital infrastructure， digital innovation， digital transformation， digital security and digital capacity. Thirdly， the Digital Silk Road provides a strong impetus for China-Africa digital economy cooperation. The Digital Silk Road is a critical part of advancing the Belt and Road Initiative. China has launched the building of a community with a shared future in cyberspace， put forward the Global Initiative on Data Security， the Initiative on the Belt and Road International Digital Economy Cooperation and the BRICS Digital Economy Partnership Framework， and spearheaded the formulation of the Framework of Standards on Cross-Border E-Commerce， as an institutional guarantee for the Digital Silk Road. During the third Belt and Road Forum for International Cooperation held in October 2023， China and 14 African countries and also “Global South” members， including Gambia， Ethiopia， Kenya and Sao Tome and Principe， jointly launched the Belt and Road Digital Economy International Cooperation Initiative and reached consensus on 20 items to further deepen international cooperation in digital economy， including infrastructure， industrial transformation， digital capacity and cooperation mechanisms.

Second， digital infrastructure has become a key area of China-Africa digital economy cooperation. Starting at the end of the 20th century and the beginning of the 21st century， China-Africa cooperation in digital infrastructure has made fruitful achievements in the past two decades， building a solid foundation for the development of digital economy in Africa. In this process， Chinese enterprises have played an important role in improving Africa’s digital infrastructure. Firstly， in terms of network infrastructure， as disclosed by the white paper titled China and Africa in the New Era released in November 2021， Chinese companies have participated in a number of submarine cable projects connecting Africa and Europe， Asia， and the Americas， cooperated with major African operators in achieving full basic coverage of telecommunications services in Africa， built more than half of the continent’s wireless sites and high-speed mobile broadband networks and laid more than 200，000 km of optical fiber， giving broadband Internet access to 6 million households and serving more than 900 million local people. Secondly， in terms of the construction of large-scale data centers， Chinese companies have built the Botswana National Data Center， the Democratic Republic of Congo （DRC） Data Center， Cameroon Data Center and Djibouti Data Center among others. As of the end of 2021， 17 cities and more than 1，500 enterprises from over 15 African countries have chosen Chinese companies as partners for digital transformation and 29 countries have chosen Chinese companies as providers of smart government service solutions. Thirdly， China provides satellite services for African countries. Since 2007， China has launched satellites for African countries such as Nigeria， Algeria and Ethiopia. In 2021， China launched the Sustainable Development Science Satellite-1 （SDGSAT-1）， the data acquired by which would be open and available to the international community， including African countries， to provide Africa with a complete set of data products on satellite surveying and mapping as well as science-based decision-making support for the implementation of the UN 2030 Agenda. The “Access to Satellite TV for 10，000 African Villages Project” jointly carried out by China and Africa has been completed in 21 African countries， providing tens of millions of Africans with access to external information.

Third， China and Africa have made positive progress in digital applications and training of digital talents. In terms of digital application， China and Africa have witnessed rapid growth in their cooperation in digital finance， e-commerce and other digital services. In the field of digital finance， a number of Chinese fin-tech companies have entered the African market. Tencent has launched the WeChat Wallet in South Africa and Alipay joined hands with African mobile operators to launch the VodaPay， which is the African version of Alipay. China and Africa have also witnessed the rise of brilliant stars in their joint efforts to build e-commerce platforms. Kilimall， an e-commerce platform created in 2014， is now serving as a comprehensive two-way economic and trade channel. As of the end of 2023， over 8，000 Chinese and African enterprises and individuals had set up businesses on this e-commerce platform， opening more than 12，000 stores and selling over 1 million kinds of goods. Such Chinese cross-border e-commerce platforms as Alibaba， KiKUU and Shein are present in the African market. Another example is Alibaba， which builds African enterprises e-commerce channels to the global market through its international station， Tmall International and other platforms. In terms of training African digital talents， Luban Workshop as well as Chinese enterprises all play an active role. For example， Huawei has set up the “Huawei ICT Academy” and “Seeds for the Future” programs in Kenya and Egypt to cultivate local digital technology talents. China Merchants Group and the Djibouti government co-invested and developed the African Youth Innovation and Entrepreneur Center to train digital talents. The first training camp on “digital innovation and cross-border e-commerce” was officially opened in September 2022. The China-Africa Action Plan for Digital Cooperation and Development released on July 29th， 2024， proposes to “jointly nurture 1，000 digital talents in the next three years and improve digital capabilities and digital literacy.”

Approaches to Deepen China-Africa Digital Economy Cooperation

Under the new circumstances， it is of great significance to strengthen China-Africa cooperation in digital economy. Such cooperation represents parts of China’s efforts to promote international cooperation in digital economy and meets the need to build the China-Africa community with a shared future in the new era. When carrying out digital economy cooperation with African countries， China needs to pay close attention to the new landscape and features of the development of digital economy in Africa as well as the new layout of other international players in Africa’s digital economy， so as to conduct cooperation in a targeted manner.

The first is to strengthen the alignment of development strategies and improve the overall layout of China-Africa digital economy cooperation. China should closely follow the latest trend of global digital economy development， pay close attention to the new dynamics and new features of Africa’s digital economy and seek synergy between Digital Silk Road and Africa’s development strategies for digital economy in consideration of the new demand of China’s own digital economy development. A vision of “digital ecosystem” should be formed to take into account the interests of both China and Africa as well as the development opportunities of various actors， with special emphasis on young and female entrepreneurs in Africa. China should take the initiative to address the Africa’s legitimate concerns over “data sovereignty” and “digital security”， strengthen cooperation with African countries in the field of cybersecurity， boost the construction of digital security software and hardware in Africa and enhance the cybersecurity capabilities of African countries. In the meantime， efforts should be made to further explore cooperation in such emerging sectors as digital currency and digital settlement platforms， as means to contribute to the construction of the African Continental Free Trade Area （AfCFTA） and the African economic integration.

The second is to prioritize cooperation in electric power to cement the material foundation for growing digital economy in African countries. Through setting up centers for China-Africa cooperation on satellite remote-sensing application and supporting the development of China-Africa joint laboratories and scientific and technological innovation cooperation bases， China helps put in place digital infrastructure in Africa， especially the development of 5G networks and the construction of data centers. On this basis， China can prioritize cooperation in electricity to help Africa improve its power supply capacity. 600 million people， 43% of African population， are still suffering from electricity shortages. Even South Africa， a BRICS member， is a victim of short supply of electricity. With remarkable advantages in such clean energy as hydropower， wind power and solar power， China is well positioned to strengthen cooperation with African countries in this field. By supporting Africa’s renewable energy power generation projects and promoting localized manufacturing of relevant environmental products， China could help address the power supply shortage and solidify the foundation for the development of digital economy in Africa.

The third is to beef up investment in Africa’s digital economy to help African countries seek profound integration of digital economy and real economy. As a continent just kicking off digital transformation， Africa is still experiencing a low level of the integration of digital economy and real economy. The digital economy covers both the industrialization of digital sector and digitalization of industries， the latter of which need a strong real economy as a foundation and vehicle. China should encourage more outstanding enterprises to increase investment in digital industries in African countries， especially in such sectors as e-commerce， financial technology， pan-entertainment industry， life services， logistics， smart transportation and smart cities. Efforts should also be made to explore the establishment of digital economy industrial parks to give full play to the effect of economies of scale and absorb more projects. In the meantime， China should strengthen cooperation with African countries to push forward the development of digital industry， digital agriculture， digital education and digital healthcare in Africa， with the aim of facilitating Africa’s digital transformation.

The fourth is to enhance “China-Africa Plus” multilateral digital economy cooperation， in view of the concerns and needs of African countries. In recent years， many international actors have intensified investment in Africa's digital economy. In 2018， the European Union released the report New Africa-Europe Digital Economy Partnership-Accelerating the Achievement of the Sustainable Development Goals， which designs EU-AU cooperation on the digital economy to bring affordable broadband connectivity to all citizens， equip citizens with the skills needed in a digital age， improve business environment for digital economy， accelerate the development of e-commerce services and digital economy so as to achieve the SDGs. In 2019， the World Bank Group launched the “Digital Economy for Africa （DE4A） Initiative” in support of the AU’s digital transformation strategy， aiming to ensure that every individual， business， and government in Africa is digitally enabled by 2030 to jointly promote the digital economy in Africa. The United States has vigorously laid out the Internet in Africa and encouraged backbone American companies to land in Africa. On the basis of respecting African countries’ will， China stands ready to deepen multi-party cooperation with other international actors in building digital infrastructure， improving cybersecurity and nurturing digital talents in Africa to achieve mutual benefits and win-win results.

The fifth is to promote exchanges among talents and capacity building to help Africa cultivate digital talents. Africa is now in short supply of digital talents needed for the development of its digital economy. A recent report launched by the International Finance Corporation （IFC） estimates that 230 million jobs in Sub-Saharan Africa will require digital skills by 2030， presenting enormous opportunities to train the future workforce in entry-level and medium-level digital skills. Through such means as joint research and exchange visits of scholars， China is ready to enhance exchanges and cooperation between Chinese and African digital talents. Providing more scholarships for digital professionals， China can help African countries train more general-purpose digital talents. In the meantime， China pledges to set up centers for China-Africa cooperation on satellite remote-sensing application， and support the development of China-Africa joint laboratories， partner institutes， and scientific and technological innovation cooperation bases. And also through China-Africa vocational education cooperation and overseas learning centers （Future Academy）， China will make its online courses and professional training more accessible to help African countries improve the professional skills and governance capabilities of their digital talents. China is also encouraging its enterprises to play an active role in training more local African digital talents through specialized training courses.

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Zhang Zhongxiang is Director and Professor at the Center for African Studies of Shanghai Normal University