Digital transformation and economic growth in Africa: Harnessing fintech, e-commerce, and AI for inclusive growth

Digitalization, driven by financial technology (Fintech), e-commerce, and artificial intelligence (AI), is reshaping Africa’s economic development trajectory, promising to contribute over $180 billion in GDP annually by 2025. Despite strong growth in pace-setter economies such as Kenya, Nigeria, and South Africa, persistent constraints ranging from the shortage of infrastructure to fragmentation of regulatory regimes, data expenses, and low digital literacy still constrain inclusive digitalization. Data indicate a stark rural-urban gap where internet penetration is significantly smaller in underprivileged areas, exacerbating and even deepening inequality and excluding marginalized communities and SMEs from online opportunities. Comparative statistics of major African economies between the years 2018-2023 reveal that ICT sectors consistently dominate overall GDP growth, indicating their strength and central role in structural transformation, particularly in the face of crises such as the COVID-19 pandemic. To achieve the full potential of digital transformation, Africa must adopt standardized policy platforms, invest strategically in infrastructure, and utilize inclusive innovation strategies. It is through this intervention that digital technology can become a driver of sustainable, equitable growth and propel the vision of the African Union's Agenda 2063.