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Africa’s GDP to grow by $300b a year should countries adopt technology

Finance Minister Ken Ofori-Atta says research has revealed that Africa’s Gross Domestic Product (GDP) will grow by $300 billion a year by 2025 should African countries adopt digital technology.

He said there is a need for African countries to fast-track policies and programmes towards leveraging technology for economic growth.

“If we digitise as a continent, we can see a 10 per cent growth of our GDP because of technology.

“South Africa reduced cost by 22 per cent and revenues picked up in Rwanda by six per cent because of digital technology,” he said.

Mr Ofori-Atta made these remarks when speaking at the launch of an Integrated ICT System for Microfinance and Small Loans Centre (MASLOC) at the Jubilee House, in Accra.

The IT system is an innovative solution to address payment and settlement challenges facing MASLOC to enhance transparency and accountability in the disbursement and recovery of loans.

Mr Ofori-Atta lauded Vice President Bawumia for championing the government’s digitisation agenda saying it is the way forward towards formalising and transforming the Ghanaian economy.

 

However, the Minister admitted that the country has not reached digital maturity yet, and underlined the need to continue pursuing digital infrastructure to accomplish that agenda.

Commenting on the impact of the Covid-19 pandemic on the Ghanaian economy, the Finance Minister admitted that it was practically impossible for the government to sustain the economy following the imposition of a partial lockdown in Accra, Tema, Kasoa and Greater Kumasi.

He explained that it was largely due to the fact that, majority of the country’s population worked in the informal sector, therefore, after three weeks of lockdown, the government was left with little choice to lift the restriction on movements.

“When you look at what happened during the lockdown. It was quite clear after a point that given that 90 per cent of our population is informal and they go out each day to earn wages, it became increasingly impossible to continue with such a policy,” he added.

 

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