Today, the increasing value of digitalisation and data to global development has received widespread attention. A great number of structural transformations have been driven by means of digital technologies. Digital technology has provided a marked boost to world economic output and created innumerable jobs. Following the recent COVID-19 disruption on the global scene, many other developmental impacts that digitalisation can perform have actually come to the fore. Data, the resource that drives digitalisation, has been figuratively described as ‘the new oil’, and its commoditisation necessitates a reliable data governance framework to make it retain its value. Data governance has the potential to enhance data value, as well as safeguard data-related harms/threats.

The big platform-based firms, regarded as ‘Big Tech’ monopolies that are established in Europe, the United States and China have dominated the global digital market space and their data governance models are defining modalities for interaction and trade in the digital space. For example, most African countries have modelled their respective national standards of data protection after the EU’s General Data Protection Regulation (GDPR). Consequently, the presence of these dominant players has made the global digital economy imperfect, as they tend to reap the most benefits from the digital economy, leaving less for developing economies like Africa. This imperfection has the potential to limit the gains to Africa from digitalization. Its digital economy is imperilled by highly worrisome threats which are causing a  crisis of trust in the digital space.

• Africa’s efforts in the fast-rising global digitalisation era

There is obviously no gainsaying that Europe, the US and China, as formidable digital governance models, have each made their mark in the global digital economy. Data, in the hands of these digital economy tsars, has been utilised for multidimensional purposes, such that it is now crystal clear that the use of data does not have implications, only for trade and economic development but also for human rights, peace and security. These nations’ approaches to governing the digital economy, and the regulatory frameworks developed by them to manage cross-border data flows truly distinguish them as the digital economies to beat. On its own, the United States, has an innovative entrepreneurship approach which promotes the private market-driven initiative in the global digital market. Through its liberal regulatory framework for cross-border data flows, the United States has succeeded, quite remarkably, in bringing about far-reaching innovations which have enabled it to maintain its leadership position in the global digital market. While China has a sophisticated blend of both security-oriented and digital development-oriented approaches, the European Union has human rights-oriented approach. While still building a multilateral support for its data governance model, the EU has demonstrated commitment towards championing the cause of digital justice for the victims of digital harm. One amazing outcome of this initiative is the mitigation, to some extent, of the risk of abuse and misuse of data in the digital space.

Notwithstanding the giant strides which these digital governance models have taken in their respective approaches to digital economy, each of them (the models) is not without its shortcomings, which is why Africa needs to look beyond patterning its own digital economy approach after any of them. Basically, each of these models, in its manner of approach, reflects the contextual peculiarities of its economy. If not properly controlled, the United States’ free-market approach that Africa has been trying to replicate, will remain a wind that blows no economic good. For example, Africa has yet to develop a strong data governance framework capable of ending the current digital market inequality, whereby private companies and platforms enter the digital market and reap all the economic gains of the data economy, with little or no constraints. This type of development has made the African digital market susceptible to a wide range of threats and poor competition which are the bane of the continent’s long overdue structural transformation. So, for Africa to emerge as a digital market leader, it must do its  best to look inwards. For instance, there is a domestically unique way in which Africa can coordinate the private sector for strategic expansion in the digital space.  It is crucial for the continent to channel its data governance pillars towards supporting local or domestic experimentation of ideas that will  essentially drive its digital transformation. The truth is, Africa can leverage its enviable status as a champion of mobile technology to harness the potential of digitalisation for its economic transformation.  

• Africa’s steps towards being digitally governed

Africa needs to steer its states towards addressing, very thoughtfully, the issue of data protection legislation. Each of these states, in its own space, must demonstrate unflagging commitment towards enacting data protection and privacy laws which would regulate its domestic digital market. Data, as the ‘new oil’, must be effectively commoditised by the means of a well-thought-out and context-sensitive regulatory framework for its values to be unlocked in each state and, by extension, Africa. If the commoditisation of data is not effectively regulated by laid down laws, there are bound to be unhealthy outcomes. But how can effectively regulated commoditisation of data be ensured when there are still many African states that have yet to pass their respective data protection laws and regulations? The truth is that, for the African continent to have very strong data protection, all  policymakers and the private sector in each African state must, collectively work together. There must be collaborative efforts between them to create regulations and put in place  measures to ensure compliance with such regulations. In this regard, regulatory agencies need to be set up and  empowered to discharge their statutory duties very efficiently.  In addition, data policies which can guarantee best practices in the business of generating, storing and using data should be formulated, as well as well-monitored mechanisms for implementing these policies

Furthermore, African states must support the African Union (AU), the umbrella body for all African states, in its concerted efforts towards facilitating trust in the digital space, promoting regional digitalization and accelerating the achievement of the African Continent Free Trade Area (AfCFTA). Another impediment to the continent’s economic transformation , is the crisis of trust in the African digital space. As the strategic institutionalisation of intra-regional trade in Africa, AFCFTA necessitates  the development of an effective regional data governance framework. In the few African states where efforts have been made to enact a legislation/legal framework for data protection and privacy, the implementation of such legislations appears to be disparate, lacking a unified approach. Suffice it to say that Africa as a region has yet to produce a centralized data legislation which generally supports the concept of data protection in all states. While the AU Malabo Convention on Cyber Security and Personal Data Protection (the  comprehensive document which covers electronic transactions, privacy, and cyber security) promises to bridge this gap, the ratification of the outcomes of the Convention has not been fully achieved by the required number of states.

• Conclusion

African digital transformation is a catalyst for sustainable regional growth and development. The time for the continent to rise above the tide of economic backwardness, technological obscurity and digital inequality is overdue. Africa needs digital transformation which will grow economies, improve  service delivery and produce jobs and incomes for human survival. To improve digital revolution and inclusion, the necessary environment must be created. This development would stimulate organisations, businesses, institutions, and governments to move their operations, processes and practices to the digital space. When digital technologies are exclusively utilised to guarantee the provision of products and services, the expansion of existing services, generation of revenues and exploitation of opportunities for all, achieving transformation becomes seamless. To make all these possible, all  African digital economy stakeholders and change-makers must create the change needed for digital transformation to occur.

This blog was written by  Kunle Balogun

This policy insight synthesises the findings of six sub-Saharan African country case studies, analysing their government policy responses to the trade and employment shocks prompted by the COVID-19 pandemic. Vulnerability to the shock was most pronounced in the wealthier, more open, diversified and formalised economies (South Africa and Senegal); in Nigeria, where trade and government balances are very sensitive to oil price fluctuations; and in Uganda, which reacted with a strict domestic lockdown.

By contrast, growth decelerated only marginally in Benin and Tanzania, where government reactions were minimal or delayed. The capacity to offer a counter fiscal stimulus, liquidity support through loan guarantees and concessional debt, and an accommodative monetary policy depends on the income status of the economy, depth of financial markets, size of the government sector, and access to global development finance channels.

South Africa and Senegal were able to put into effect the most substantive stimulus packages, while Nigeria was constrained by having the smallest and most volatile tax base and a high bank liquidity profile. Save for Benin and Uganda, which devoted half their stimulus package to health spending, most countries concentrated on industry support and tax relief. Here South Africa was an outlier, instead using 60% of its package for unemployment and social security benefits owing to a sharp rise in unemployment and food stress.

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The COVID-19 pandemic has posed significant challenges for the African continent in achieving peace, justice and inclusive and effective institutions, including significant negative effects on economic, social and political conditions. This policy brief presents and discusses key trends on SDG 16 on the African continent, including: an increasing concentration and strengthening of executive power; shrinking civic space and enlarged restrictions on civil liberties and media independence; disproportionate effects for women and other vulnerable groups; the worsening of conflict triggers; and declining trust in institutions and rising corruption. To reverse these trends and strengthen progress towards the goal, this policy brief recommends that the digitalization process must be accelerated; social protection of vulnerable groups must be ensured; and institutional accountability structures must be built to strengthen public trust as a means to better support inclusive recovery efforts. 

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‘Tobacco use is killing us and our planet’! Annually, tobacco use kills about 8 million people globally and 29,000 people in Nigeria. The economic costs of tobacco attributable disease on the Nigerian economy is estimated at US$1.71 billion per annum including the direct and indirect costs of tobacco. Tobacco smokers’ life expectancy is at least 10 years shorter than that of non-smokers. Exposure to second-hand smoke is a serious health hazard causing more than 41,000 deaths annually. Pregnant women who are exposed to secondhand smoke are more likely to have a complication before and after child delivery. Children are not immune to this danger; each year, 150, 000 children under the age of five are killed by secondhand smoking. The deleterious effect of tobacco extends to smokeless tobacco,  also a known cause of cancer. The nicotine in smokeless tobacco increases the risk of sudden death due to irregular heartbeat (ventricular arrhythmias).

Tobacco use is not only killing people, it is poisoning our environment! Tobacco endangers the health of the planet with an environmental burden of 600 million trees cut down annually for tobacco production, 200 000 hectares of land cleared, 84 million tonnes of CO2 emitted, and 22 billion tonnes of water consumed. Moreover, agrochemicals used in tobacco cultivation poisons the land, soil and water, and tobacco production saturates the air with tonnes of toxins. Cigarette smoking alone pollutes the air ten times more than gas emissions. In the year 2019 alone, about 4,211,962 cigarette butts were collected from beaches and waterways globally. This implies that tobacco butt is the second most common type of environmental litre after food wrappers. The cigarette butts contain toxic chemicals such as nicotine and heavy metals which endangers aquatic life and microorganism. 

Tobacco Taxation can mitigate these challenges

Tobacco taxation, passed on to smokers in the form of higher cigarette prices, has been acknowledged not only as one of the most effective control strategies for decreasing smoking and its adverse health consequences but also as an effective strategy for reducing the environmental burden of tobacco. Unfortunately, tobacco tax as an effective measure which encourages smokers to quit and prevents others from taking up smoking is the least effective in Nigeria. This ineffectiveness majorly is a result of the low tobacco excise tax rate. In addition, despite the magnitude of the health and environmental burden of tobacco consumption in Nigeria, the overall performance of tobacco tax policies is very poor. The recent 2018 special excise tax on tobacco products only raises the excise tax burden from 12 percent to an estimated 17 percent. This is contrary to best practices and far below the ECOWAS and WHO recommended benchmark of 50 percent and 70 percent respectively. The current tobacco tax structure in Nigeria is too low to discourage tobacco use and protect the environment.

Poor quality tax governance in terms of accountability, responsiveness and sound public finance management is one of the underlying causes of Nigeria’s ineffective tobacco tax system. The tobacco industry takes advantage of the administrative loopholes to undermine tobacco tax reforms. Strong tax administration as well as improving enforcement capacity enhances the impact of higher tobacco taxes (WHO).

Moreover, tobacco industry interference posed a challenge in implementing effective tobacco taxation in Nigeria. The Tobacco industry is one of the booming industries in Nigeria. Domestic market share is around 66 percent, imported market share is approximately 24 percent and illegal market share accounts for 10 percent of tobacco market supply in Nigeria. Given its vast resources and market power, the tobacco industry is a powerful force that is not deterred by government actions. The tobacco industry employs several strategies to influence policy and postpone regulation. Delaying tobacco control laws and authorizing new tobacco products are all examples of these interference. Nigeria's legislative authorities should be active to ensure that the tobacco industry does not play a decision-making role in tobacco legislations.

Increased tobacco taxation and an effective tobacco taxation system should be elevated by the government as top health policy priority in Nigeria. The key viable elements to address the weak tobacco tax system in Nigeria are (i) implement a broad-based, uniform tax that is difficult to avoid (ii) extend regulations and tax policy on tobacco products and sales to eliminate single-use filters and reduce post-consumption waste. (iii) beware of tobacco industry interference and (iv) earmark tobacco tax revenue to improve public health and safeguard the environment. Nigeria's national health systems require a paradigm shift away from fragmented response approach and toward more improved systemic approaches. This could significantly increase funds for health care, improve environmental conditions, enhance public trust, accountability and welfare.

Public participation is an integral aspect of ensuring effective and advanced data governance practices. African countries are largely in need of strong and efficient data governance systems. To build such systems, there is an urgent need to carry the public along in policy formation, development and output. A prerequisite for active public engagement in data policy making is a citizenry that is aware and knowledgeable about data issues.

This brief was authored by Tomiwa Ilori, Sone Osakwe and Adedeji Adeniran