Digital transformation of economic economies as a way of inclusive development

Abstract

The article is devoted to the study of the features of digital transformation of African economies, aimed at overcoming economic inequalities. The study compares Africa's B2C eCommerce Index with other regions of the world as of 2020, which found that the African region lags far behind all four components of the index. Due to the weak development of digital infrastructure in Africa, there are insufficient e-commerce volumes - about one percent of global e-commerce in 2020. The paper analyzes the composition of one hundred leading digital platforms, which determined that it includes only two African companies - Naspers and Prosus, both representing the Republic of South Africa. Thus, given the current situation of digitalization of African countries, we can conclude that it is necessary to intensify the digital transformation of the region. The study provides five examples of promising business models of startups (Mpost, Pargo, SpacePointe, Eteyelo, Swvl), which remove traditional constraints on African development and improve the infrastructure of remote rural areas of the continent. Improving the conditions for the digital transformation of the African region has led to certain results, one of which UN experts consider the "digital revolution in African agriculture." Considering the financial aspect of the digital transformation of African countries, it should be noted on October 25, 2021 the emergence of the continent's first digital currency - the Nigerian electronic naira (eNaira). In conclusion, the study identifies four main elements that can help develop policies for the digital transformation of African countries: 1) Investment in infrastructure - both traditional digital infrastructure and digital IT infrastructure; 2) investing in policy by creating a digital and technology-friendly business and regulatory environment; 3) investing in the development of digital skills by improving basic education; 4) investment in risk management systems to address cybersecurity threats. Thus, investing in the digital transformation of Africa today contributes to inclusive development.