Imagine a world where every citizen has seamless access to government services, small businesses can grow by entering new markets, and women have equal financial opportunities. Digital Public Infrastructure (DPI) is crucial in turning this vision into reality. DPI functions as a digital network that connects people, data, and money, much like how roads link individuals and goods. More than just a collection of digital tools, DPI enables shared, interoperable systems that enhance service delivery, boost trade, and broaden economic participation. As South Africa takes on the G20 presidency, African leaders have a unique opportunity to champion a new approach to digital transformation, establishing the groundwork for a secure, efficient, and interconnected economy.
A Smarter Approach to Public Services
Social programs designed to support vulnerable populations often face significant inefficiencies, such as fraud, misallocation of resources, fragmented data systems, and bureaucratic delays. Digital Public Infrastructure (DPI) can address many of these issues by integrating digital identity systems, payments, and data-sharing mechanisms. For instance, in India’s Andhra Pradesh state, biometric IDs were linked to welfare payments, which reduced fraud in a rural employment program by 40% and saved the government nine times its investment. Similarly, during the COVID-19 pandemic, Brazil utilized digital IDs and payments to deliver emergency aid to 70 million people, ensuring that the funds reached those who needed them most. African countries can adopt similar strategies to strengthen their social protection systems.
The traditional model, where each ministry creates its own isolated digital system, is inefficient and leads to resource waste. Even the wealthiest nations struggle with this fragmented approach. DPI provides a more efficient alternative: national platforms that reduce duplication, lower costs, and improve service delivery. Open-source technology further enhances affordability, allowing governments to scale solutions without the burden of high licensing fees. A key component of this system is a robust digital ID infrastructure, supported by an independent verifier, which serves as a single, trusted source for each individual’s online presence. This ensures there are no duplicate digital identities, helping to prevent fraud, corruption, and resource leakage, ultimately bringing trust and integrity to the digital ecosystem.
Fueling Trade and Private Sector Innovation
For African nations seeking to boost trade under the African Continental Free Trade Area (AfCFTA), Digital Public Infrastructure (DPI) is essential. Without trusted digital systems, cross-border trade remains inefficient and complicated. DPI lays the groundwork for secure payments, standardized credentials, and smooth data exchange. For instance, a Malawian entrepreneur could use DPI to verify their identity, showcase their product quality, and securely complete a transaction with a South African buyer, thus overcoming barriers and fostering greater trust. By simplifying these processes, DPI transforms trade agreements into tangible economic benefits for businesses across the continent.
DPI also serves as a driving force for private sector innovation. Open banking, powered by DPI, allows financial institutions to securely share customer data (with consent), making transactions more seamless, reducing fraud, and expanding access to financial products. Brazil’s open finance model, for example, has enabled over 800 financial institutions—including banks, credit unions, and fintech startups—to offer more competitive services. African nations can leverage this model to promote innovation and competition, ensuring that small businesses and startups have the opportunity to scale while reaching underserved communities.
Ensuring Inclusion and Safeguards
Women and marginalized communities often face the biggest challenges when it comes to financial and digital inclusion. Expanding access to Digital Public Infrastructure (DPI) can help break down these barriers, enabling them to open bank accounts, access credit, and participate fully in the digital economy. India’s experience illustrates this potential: between 2011 and 2021, the adoption of digital banking more than doubled, successfully narrowing the gender gap in financial access.
DPI also enhances the accessibility of digital services in rural areas. Existing infrastructure, such as post offices, can be leveraged as community access points for payments, social programs, and other essential services, avoiding the need for costly new networks.
However, the benefits of DPI are contingent upon strong governance. Without proper safeguards, digital systems can be vulnerable to misuse, including surveillance, exclusion, or fraud. To build trust, data protection laws, secure authentication methods, and transparent oversight are critical. The UN’s Universal DPI Safeguards Framework offers a guideline for responsible implementation. African nations have an opportunity to lead by example, embedding accountability and resilience into digital systems to safeguard citizens’ rights.
Seizing the Moment
South Africa’s G20 presidency presents a historic opportunity to position Africa at the forefront of global digital transformation. By prioritizing Digital Public Infrastructure (DPI), South Africa has the chance to influence global discussions, beginning with concrete, country-led initiatives that inform the entire continent. African leaders must seize this moment to develop interoperable, inclusive systems that serve the needs of their people. To lead, Africa must demonstrate real-world successes in DPI, promote collaboration, and create a digital future that benefits everyone.
