Digital trust: a prerequisite for Africa's emergence

Over the past twenty years, the mobile phone has become a vital link with the 'outside world'. By providing access to ubiquitous services such as WhatsApp, email and social networks like Twitter, Instagram and TikTok, the mobile phone has become an object that is difficult to do without or just to part with. Whereas we once used landlines to communicate with friends and physically went to the shops to pay for our shopping in cash, now we communicate, access information, buy goods and services, or even find work, remotely and at the touch of a screen.

In industrialised countries with a formalised private sector, developed infrastructures and functional public administrations, these technological advances often represent "comfort" innovations, improving the way they work. In low-income countries, particularly in rural areas, the spread of digital technologies plays a more structuring role. This is particularly true of mobile telephony, which in some remote areas is often the first modern communications infrastructure. 

Worldwide, there are now more than 4.9 billion mobile phone subscribers, including 1.7 billion in Asia, 460 million in Latin America and around 495 million in sub-Saharan Africa (GSMA, various years). Adoption has taken place in different socio-economic and political environments, in countries with multiple languages, with different mobile phone and internet service providers and, in many cases, without substantial public sector investment. 

Why is it so popular? Quite simply because the mobile phone (whether basic or smart) is a communication device, linking people together, providing access to information, markets and services at a much lower cost than traditional alternatives (Aker et Mbiti 2010, Aker et Blumenstock 2014, Aker, Ghosh et Burrell 2016). In Tanzania, farmers in Arusha can send an SMS to find out maize and sunflower prices in the capital, ten hours away by bus. In Niger, mobile phone technology has reduced price dispersion on the cereal and cowpea markets, mainly by improving the flow of information and spatial arbitrage (Aker 2010). In Nigeria, day labourers can call contacts in Benin to enquire about job opportunities without making the costly $40 journey. In Kenya, the introduction of mobile money has enabled households affected by shocks to access money transfers and smooth their consumption (Jack et Suri 2014). Yet, despite this potential, evidence of these 'success stories' is limited to specific sectors, countries and technologies, and on a larger scale their impact on people's well-being and livelihoods has yet to be demonstrated (Abate et al, 2023).

So the question of the role of information technology in development remains. While a growing body of research suggests that mobile phones are doing exactly what they promised - reducing research costs, increasing access to information and financial services, and making markets more efficient - public and private sector initiatives have not fully met expectations, especially in rural areas (Abate et al, 2023). 

The four panels showed that the digital revolution is a tangible reality in Africa, especially with the increase in mobile phones adoption, and that, digital transformation has become essential for all economic actors. However, the spread of digital technologies presents challenges alongside opportunities. It is clear that digital trust is a prerequisite for Africa's emergence. These are some of the conclusions drawn from the international conference:
 
 The first panel introduces the book on mobile phones and development in Africa. It explores the potential of digital technology in Africa and assesses the benefits and risks of mobile phones on people's lives and livelihoods. By adopting a multidisciplinary approach, this text synthesises research findings and empirical evidence on the anticipated impacts of mobile phones. It identifies digital development initiatives and their effects, and proposes an intervention framework for digital development. Mobile phones have significant effects on savings, vulnerability to shocks, human capital, trade revenues, investment, poverty, mortality, and tax revenues. While people can benefit from these advantages, investing in digital education is imperative. Experiences shared by professionals in the field show that technology can address the demographic, economic, and social challenges faced by the continent. However, companies, especially tech companies, are receiving less capital investment. Representatives of sub-regional institutions such as UEMOA and ADB, who were present at the conference, responded to this call by assuring that regulations and financing are in place to enable governments to take advantage of digital technology. By investing in, and using technology, the private sector is absolutely better equipped to meet the challenges of development.

The second panel examined the integration of digital technology into businesses, highlighting how it could support SMEs in sub-Saharan Africa. African economies are mainly powered by SMEs. Several private initiatives demonstrate their effective digital adoption. For instance, Betastore is a multiservice digital platform for informal businesses. It provides information to these informal businesses about the activities of their value chain to facilitate trade. Agristore offers electronic services for farmers, encouraging the digital transition in the agricultural sector. Djamo provides digital financial services for credit and savings. Digitalisation is revolutionising markets by enabling interactions between economic actors, including suppliers, consumers, and government. It digitises business activities and provides essential data for the financial sector. Digital technology is enhancing business activities and favoring the formalisation of the informal sector, with significant implications for revenue mobilisation. The discussions explored various ways to finance technological transformation, such as using public resources, public-private partnerships, and pooling digital installation costs at the sub-regional level within countries.

The third panel demonstrates that digitisation offers to governments an opportunity for optimal resource management and revenue mobilisation, as illustrated by e-tax in Côte d'Ivoire and the TresorPay-Tresor money solution. This centralised digital platform enhances the efficiency of revenue collection and expenditure payment, while at the same time providing accessible public services. Digitisation can help customs administration by facilitating data gathering for analysis so that to reduce the costs of international trade. However, tax administrations must be adequately prepared for digital transformation. It was also important to consider the extent to witch mobile phones operators could support the State in revenue mobilisation. Mobile operators have an extensive network that reaches segments of the population that are difficult for tax authorities to access. For instance, Orange provides a rapidly expanding mobile money solution that could benefit the State. However, it should be noted that mobile operators are subject to high taxes, which contributes to the high costs for end consumers. It is crucial to find an appropriate balance between private and public sector taxation in the context of this digitalisation.

The conference concludes with a scientific approach to the subject of internet and democracy in sub-Saharan Africa. Internet provides greater transparency on issues of political governance, but also exposes citizens to the risk of misinformation and misperceptions about politics. Empirical results show a negative relationship, suggesting that the Internet has a downward influence on preferences and perceptions of democracy. The ambivalence of the Internet as a source of information requires an enlightened use. To achieve this, it is essential to ensure reliable information, promote civic participation, and verify information through media education. Trust emerged as a central element in the discussion on digital and politics.

The discussions highlighted digital innovations that contribute to the African continent's digital dynamism.  In order to strengthen people's trust in digital technology, it is crucial to promote and support these initiatives. All economic actors must also take advantage of this digital revolution to shape a future that is inclusive and prosperous.