Experts Highlight Digital ID as Key to Unlocking Economic Growth in Africa

Addis Ababa — Implementing digital identity systems could significantly boost economic growth in African countries, potentially unlocking value equivalent to 3 to 7 percent of GDP, according to experts at the 12th StatsTalk-Africa Webinar. Organized by the African Centre of Statistics (ACS) at the United Nations Economic Commission for Africa, the webinar focused on the development of inclusive national identity systems that link digital and legal identities, addressing privacy, security, and identity theft concerns.

According to Ethiopian News Agency,Chief of Technology and Innovation at ECA, digital IDs can promote economic formalization, increase service inclusion, and enable digital transactions requiring high trust levels. He projected that by 2030, countries implementing digital ID programs might see economic value increases between 3 and 13 percent of GDP. Digital IDs not only facilitate economic transactions but also promote broader social benefits, such as improved access to education, healthcare, and labor markets. However, challenges such as infrastructure limitations, low digital literacy, and distrust in government institutions pose significant hurdles.

Seck called for a tailored approach to digital ID implementation in Africa, emphasizing inclusivity, accessibility, and capacity building. Oliver Chinganya, Director of the African Centre of Statistics at ECA, and William Muhwava, Chief of Demographic and Social Statistics, highlighted the importance of legal identity systems in ensuring equitable government treatment and addressing the issue of approximately 542 million Africans without identity cards.