Digital ID to unlock Africa’s economic value if fully implemented – Experts

Addis Ababa, February 21, 2024 (FBC) – Countries implementing digital identity could unlock value equivalent to 3 to 7 percent of GDP, says statistics and data experts at the 12th StatsTalk-Africa Webinar in Addis Ababa Ethiopia on Tuesday.

The monthly webinar was organized by the African Centre of Statistics (ACS) of the ECA (United Nations Economic Commission for Africa) on the theme, “Building Inclusive National Identity Systems – Inter-linking digital identity and legal identity”

Mactar Seck Chief of Technology & Innovation at ECA said Digital ID can create economic value for countries primarily by enabling greater formalization of economic flows, promoting higher inclusion of individuals in a range of services, and allowing incremental digitization of sensitive interactions that require high levels of trust.

“Analysis of digital ID Systems indicates that individual countries could unlock economic value equivalent to between 3 and 13 percent of GDP in 2030 from implementing digital ID programs,” said Mr Seck while making a presentation on Digital Identity for Citizens at the webinar.

A digital ID is said to be an identity verified and authenticated to a high degree of assurance over digital channels, unique, and established with individual consent. Unlike a paper-based ID, a digital ID can be authenticated remotely over digital channels.

The aim of the StatsTalk session was to demystify concepts, processes, divergences and developments in the digital identity and legal identity systems in order to address the concerns about privacy, security, and the potential for identity theft or misuse of personal information.

Oliver Chinganya, Director, African Centre of Statistics at ECA said formal identity systems are critical for making sure all citizens are treated fairly by their governments. A “legal identity for all” is one of the United Nations Sustainable Development Goals and aims to provide legal identity for all, including birth registration, by 2030. However, challenges such as lack of infrastructure, political instability, and issues related to privacy and inclusivity remain to be tackled in many countries.

Whereas, Mr Seck noted that Digital ID can also unlock noneconomic value not captured through quantitative analysis. Digital ID can also promote increased and more inclusive access to education, healthcare, and labour markets; can aid safe migration, and contribute to greater levels of civic participation.

However, he said challenges persist in Implementing Digital IDs in Africa: these include limited infrastructure, low digital literacy and lack of trust in government institutions.

In moving forward, he said it is crucial to take into account the local context and ensure that digital ID systems are tailored to the unique needs and challenges of specific regions within Africa. More emphasis on inclusivity, accessibility, and ongoing capacity building will contribute to the sustained success of digital ID initiatives.

“The successful implementation of digital ID systems requires a comprehensive and collaborative approach, considering the specific needs and challenges of each African country,” said Mr Seck, adding that regular assessments and adjustments based on feedback and changing circumstances will contribute to the long-term success of the initiative.

He noted that collaboration and commitment between governments, international organizations, and the private sector is essential for successful implementation of Digital ID Frameworks.