Home Editorial Digital IDs Can Unlock Human Potential and Economic Value in Africa
Editorial

Digital IDs Can Unlock Human Potential and Economic Value in Africa

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Over 500 million Africans lack identity documents, leaving them invisible in the eyes of the law and excluded from many vital services. However, this widespread absence of legal identity can be rapidly addressed through the application of digital technology, which not only promises to end this “scandal of invisibility” but also offers significant economic benefits.

According to the United Nations Economic Commission for Africa (ECA), 542 million people in Africa do not possess identity cards. Of these, 95 million children under the age of five have never had their births registered, and 120 million children lack birth certificates. This staggering gap in civil registration denies individuals the right to be recognized as persons before the law, a fundamental human right. As Oliver Chinganya, Director of the African Centre for Statistics at the ECA, points out: “Without proof of legal identity, people cannot acquire nationality and are effectively rendered stateless. This impacts their ability to access education, employment, and healthcare, and ultimately stifles a country’s productivity and human potential.”

The ECA emphasizes that the integration of digital identity systems offers a viable solution. By linking digital identity with civil registration, African countries can begin to tackle the infrastructure and logistical challenges that have historically made it difficult to issue legal documents to all citizens. To achieve this, ministries and departments must prioritize planning, budgeting, and scaling up the delivery of legal documents, while building the necessary infrastructure to support these efforts. Such initiatives could make “invisibility” a thing of the past.

Formal identity systems are essential for ensuring that all citizens are treated fairly by their governments. The United Nations’ Sustainable Development Goal 16.9 underscores the importance of providing legal identity for all, including birth registration, by 2030. However, challenges such as political instability, inadequate infrastructure, and concerns over privacy and inclusivity continue to impede progress in many African nations.

Mactar Seck, Chief of Technology and Innovation at the ECA, explains that digital identity (ID) systems can offer a robust solution. A digital ID is a unique, verified, and authenticated identity created with individual consent and accessed through digital channels. Unlike traditional paper-based IDs, digital IDs are standardized, involve minimal data capture, and can be remotely verified. Seck notes that digital IDs have the potential to drive economic value by formalizing economic transactions, promoting financial inclusion, and enabling secure interactions that require high levels of trust. Analysis suggests that implementing digital ID programs could unlock economic benefits equivalent to 3% to 13% of GDP by 2030.

Beyond economic value, digital ID systems also promise to improve access to education, healthcare, and job opportunities, contributing to social inclusion. Digital ID can enhance civic participation and support safer migration, ensuring that no one is left behind in Africa’s development. However, as Seck notes, significant challenges remain in implementing these systems across the continent, including limited infrastructure, low digital literacy, and widespread distrust in government institutions.

A successful digital ID initiative requires a comprehensive and collaborative approach tailored to the unique needs of each country. This includes regular assessments and adjustments based on feedback and evolving circumstances. Governments, international organizations, and the private sector must work together to develop and implement Digital ID frameworks that respect privacy and security while addressing concerns about identity theft or misuse.

In conclusion, digital identity systems hold immense promise for Africa, both in terms of unlocking economic value and ensuring that every individual is recognized by the state. By addressing the current challenges and working collaboratively, African nations can ensure that digital IDs become a cornerstone of their development strategies, empowering millions of people and driving the continent’s progress forward.

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