Bridging Africa’s Digital Divide: Insights from John Omo, Secretary General of the ATU
In an insightful discussion during GSMA Africa’s launch of the South African Digital Economy Report 2024, John Omo, Secretary General of the African Telecommunications Union, provided a strategic outlook on the role of telecoms in Africa’s economic transformation. Omo’s observations underscored the critical intersection of technology, policy, and infrastructure in driving digital growth across the continent.
- 00:19Digital Economy Growth in South Africa
- 01:12Telecoms as Economic Drivers in Africa
- 02:00Taxation Challenges for Digital Growth
- 03:38Policy Changes to Boost Telecom Investment
- 04:21Overcoming the Digital Divide in Africa
- 05:43Progress in ICT Development and Future Potential
Telecoms as a Growth Catalyst
Omo emphasized the evolving perception of telecoms from a standalone service industry to a pivotal enabler across key sectors like agriculture, health, education, and transportation. With projections that South Africa’s digital economy could account for 20% of GDP by 2025, Omo highlighted the transformative potential of integrating ICT into various economic activities. This integration not only accelerates GDP growth but also fosters socio-economic inclusivity, particularly in underserved regions.
Bridging the Digital Divide
Addressing Africa’s digital divide, Omo identified two primary obstacles:
- Infrastructure Deficits: Sparse settlement patterns and challenging terrains make it costly to extend connectivity to rural areas.
- Skills and Affordability Gaps: Many potential users lack either the digital literacy or the financial means to access available services. Tackling these gaps requires a holistic approach involving infrastructure investment, affordable pricing strategies, and widespread digital literacy campaigns.
Policy and Taxation: A Double-Edged Sword
A recurring challenge, Omo noted, lies in how governments view telecoms as a revenue-generating mechanism rather than a strategic growth driver. Taxation models, including high spectrum auction fees, excise duties, and VAT on services, often burden operators. This discourages investment in network expansion and innovation, ultimately delaying connectivity improvements. Omo called for a shift in perspective—governments should prioritize long-term economic gains from digital transformation over short-term fiscal revenues. Lowering entry barriers for new technologies and players could unlock broader economic benefits.
The Way Forward
Omo cited the rapid ICT advancements in Southeast Asia as an inspiration for Africa. He advocated for a robust public-private partnership model to implement transformative policies and investment strategies. Such collaborations could help Africa leapfrog developmental hurdles, accelerating its journey toward universal connectivity.
While progress in Africa’s telecom sector is evident, Omo urged stakeholders to act with greater urgency. By addressing structural challenges, reforming taxation regimes, and fostering public-private collaboration, Africa can unlock its immense digital potential. His message was clear: telecoms are not merely a cash cow but the engine driving the continent’s future economic prosperity.
This interview underscores the need for senior policymakers, industry leaders, and stakeholders to align on actionable strategies that bridge Africa’s digital divide and position ICT as a cornerstone of sustainable development.
