Digital Transformation as a Catalyst for Economic Growth in Africa
Digital technologies are emerging as a powerful tool to enhance domestic revenue mobilization and drive inclusive economic development across Africa. This was a central theme during the African Development Bank Group's 2025 Annual Meetings, which concluded in Abidjan, Côte d'Ivoire. Experts from various sectors, including African governments, international organizations, and the private sector, emphasized the transformative potential of digital systems in reshaping the continent’s economic landscape.
The Financial Impact of Digitalization
Prof. Kevin Chika Urama, the Bank Group's Chief Economist and Vice President for Economic Governance and Knowledge, highlighted that digitizing tax systems alone could generate up to $125 billion annually without increasing tax rates. More broadly, the digitalization of public sector systems across Africa could unlock as much as $687 billion in additional revenue, significantly strengthening fiscal capacity on a continental scale.
This potential has sparked discussions around the broader implications of digital transformation. A high-level side event at the meetings featured dynamic conversations on how digitalization can improve compliance, expand the tax base, and foster accountability. Mary Baine, Deputy Executive Secretary of the Africa Tax Administration Forum (ATAF), stated, "Digitalization is no longer optional—it is essential."
Key Factors for Success
Moderated by Carina Sugden, Lead Governance Officer at the Bank's Governance and Economic Reforms Department, the session underscored the importance of several critical factors: strong political will, robust digital infrastructure, inclusive policy frameworks, and regional cooperation.
Anu Saxén, Finland's Ambassador to Senegal, Côte d'Ivoire, and The Gambia, reiterated her country's partnership with the African Development Bank and ATAF to strengthen digital tax systems. She pointed to innovations such as AI-powered audits and integration with mobile payment platforms as key drivers of modernized tax administration.
Patrick Olomo, Head of Economic Policy and Sustainable Development at the African Union Commission, stressed the urgency of improving domestic resource mobilization, which currently stands at 15.8%. He called for efforts to bring this figure closer to levels seen in other regions.
Equity and Institutional Capacity
Ouattara Sie Abou, Director General of Taxation in Côte d'Ivoire, emphasized the need for equity in tax reforms: "Digital tax systems must be fair. They should broaden the tax base without overburdening entities that are already compliant in the formal sector."
Yankuba Darboe, Commissioner General of the Gambia Revenue Authority, highlighted the role of institutional capacity: "Political will and strong partnerships are key. But just as important is training our people to sustain these reforms. Digital tools are only as good as the people who manage them."
John Bosco Sebabi, Deputy CEO of the Pan-African Payment and Settlement System (PAPSS), pointed out that intra-African trade remains low at just 14%, citing fragmented systems as a major barrier. He argued that integrating payment infrastructure is essential to boosting regional commerce and tax efficiency.
Real-World Examples and Global Insights
Several speakers shared successful digital transformation initiatives that have already shown measurable results. Allen Asiime, Deputy CEO of TradeMark Africa, cited Uganda's experience, where customs revenues increased by 47% due to digital platforms. "These tools empower small businesses and enhance transparency," she noted.
Kentaro Nagai, CEO of Japan's SENRI, developers of mobile and web applications for sales automation, drew parallels between global challenges and Africa's context: "Connectivity and infrastructure limitations aren't unique to Africa. But the solution is the same: governments and businesses must co-design practical digital systems."
Trust and Transparency
Closing the panel, Ms. Bridget Kelly, Vice President of Alliances and Chief Compliance Officer at FreeBalance, emphasized the link between trust and technology: "Digital financial systems are not just about revenue—they're about trust. Citizens are more likely to comply when systems are clear, transparent, and accessible."
As Africa continues to explore the potential of digital technologies, the focus remains on creating equitable, efficient, and sustainable systems that support long-term economic growth and development. The discussions at the African Development Bank Group's 2025 Annual Meetings highlight a growing consensus that digital transformation is not just an option but a necessity for the continent's future.