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Digital technologies are increasingly recognised as crucial tools for developing countries to accelerate economic growth and sustainable development.
These technologies can enhance service delivery, create new jobs and wealth, improve accountability and transparency, and support evidence-based policy-making, ultimately boosting productivity and growth.
The rapid evolution of new and emerging technologies is influencing economic activities in profound ways, making the landscape both dynamic and complex.
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Zambia, with its youthful population, shows a strong appetite for digital technologies across various sectors of the economy.
According to the Zambia Statistics Agency (ZamStats), 48 percent of the population is under 14 years old, while only 3 percent are over 65.
Additionally, the 2021 World Development Index reported a youth unemployment rate of 26.1 percent, highlighting the urgent need for new opportunities to spur job creation across all sectors.
“Multiple assessments have revealed that Zambia has the necessary foundational elements to build a cohesive and integrated digital economy that unlocks several financial and economic opportunities for its citizens,” stated a report on Zambia’s digital economy.
The 2020 World Bank Digital Economy Diagnostic report acknowledged key advancements, such as the expansion of Global System for Mobile Communication (GSM) network coverage, the deployment of a backbone fibre network, increased uptake of digital financial services, and the digitalization of government services.
However, it also noted gaps in the policy, legal, and regulatory environment, as well as in digital skills and the innovation and entrepreneurship ecosystem.
A 2021 analysis by the Zambian government and the United Nations Capital Development Fund (UNCDF) echoed these findings, emphasizing that while Zambia possesses the necessary elements for building a digital economy, a more targeted approach is required to fully realize the benefits.
The report highlighted the need for enhanced coordination on policy and regulatory issues, increased investments in infrastructure, and the development of basic, intermediate, and advanced digital skills.
Digital platforms and services in Zambia are emerging across various sectors, such as Smartcare for patient records management in health, digital platforms in agriculture, and significant adoption of mobile money services in the financial sector.
Progress has also been made in digitalizing tax collection processes by the Zambia Revenue Authority (ZRA), marking a key milestone in the country’s journey towards a digital economy.
However, there is still work to be done to develop digital platforms in sectors like tourism, agriculture, and transportation, and to create linkages between existing services for a more integrated digital economy.
Enhancing the performance of existing digital platforms and expanding their reach across various sectors remain critical steps.
Investing in these areas could greatly increase efficiencies in both the public and private sectors by leveraging the potential of digital technologies.
Moreover, unlocking new opportunities in the digital economy for innovators, start-ups, and content creators can significantly contribute to overall economic growth in Zambia.
Zambia stands at a pivotal moment, where balancing innovation with effective regulation could unlock substantial benefits for its economy and citizens, driving the nation towards a more digitally inclusive future.
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