Microsoft: Digital Economy Will Drive Inclusive Growth, Boost Africa’s Global Competitiveness

Emma Okonji

Microsoft, a global software company has stated that the clamour for digital economy is no longer a standalone sector, but cuts across the foundation upon which Africa’s economic resilience, regional integration, and sustained prosperity will be built. 

The company however said the gains of a digitised economy would not only depend on private-sector innovation, but critically on the effectiveness and efficiency of the public systems that underpin economic activity.

The Director, Government Affairs, Microsoft West Africa, Nonye Ujam, who said this in a statement while analysing the state of digital economy across Africa, stressed the need for a digitised government across African countries, which according to her, is a necessary critical infrastructure need for the digital economy.

Addressing the analog bottleneck in a digital economy, Ujam said: “Across Africa, core economic and administrative processes, from business registration and tax administration to land transactions and licensing, are mediated through government systems. Yet in many countries in Africa, these systems remain manual, paper-based, or only partially digitised, with new technologies layered onto legacy workflows that have not fundamentally evolved. Fragmented platforms, inconsistent data standards, and limited interoperability across agencies introduce friction across the economy, slowing business activity, increasing transaction costs, and undermining trust in public institutions. Where the foundation is constrained, digital programmes often produce ineffective outcomes.”

She therefore called on African countries to unlock every potential through digitisation.  

Industry statistics showed that Africa’s digital economy would reach $250 billion by 2030, up from $115 billion in 2020 and $180 billion in 2025, with a further projection to reach $500 billion by 2040 and $700 billion by 2050. 

Making reference to Nigeria as a country with strong potential to emerge as a leading digital economy on the continent, underpinned by over 154 million internet users and a dynamic innovation ecosystem, Ujam said: “It has been reported that Artificial Intelligence alone is projected to deliver up to $136 billion in productivity gains across four major African markets by 2030, with Nigeria accounting for approximately 43 per cent of this value. The trajectory is reinforced by a resilient startup ecosystem that continues to attract significant capital, securing $410 million in 2024, representing 18.6 per cent of Africa’s total funding, and exceeding $555 million in 2025, most significantly in FinTech and digital service delivery.”

She however said sustaining the momentum would largely depend on the strength of public-sector infrastructure.

According to her, “Nigeria has taken a decisive step forward with the introduction of the National Digital Economy and E-Governance Bill, 2024, establishing the foundation for a more coherent and future-ready digital ecosystem. This legislation seeks to establish a unified legal and institutional framework for digital transformation, institutionalisation of electronic administrative processes, enhanced interoperability across government institutions, while establishing a secure foundation for public-sector data governance.”

By embedding digital-first operations into public administration, these reforms position government as an enabler of economic activity, reducing friction, strengthening transparency, and creating a more efficient, investment-ready environment in which businesses can innovate and scale, she said.

Citing global best practice as best possibility for a digital economy, Ujam said international experience has shown that well-governed public sector digitisation delivers measurable economic and institutional gains, adding that Estonia offers a leading example, having transformed public administration through the end-to-end digitalisation and automation of core government processes.

“By building an integrated digital infrastructure, Estonia has created a more responsive public sector, improved citizen satisfaction, and strengthened trust in state institutions. India has similarly developed one of the world’s most advanced digital public infrastructures. The country’s information technology sector already contributes approximately 13 percent to the GDP, with projections for the digital economy reaching 20 percent by 2030. These examples underscore a clear lesson that digital public infrastructure must be built as a platform for long-term transformation,” Ujam said.  

According to her, in Nigeria, Microsoft is advancing transition through targeted investments in skills and building institutional capacity.

Initiatives such as Digital Skills Nigeria, the 3MTT programme, and strategic engagements with the Ministry for Communications, Innovation and Digital Economy, the National Information Technology Development Agency and the Nigeria Data Protection Commission, have been instrumental to the success of reaching over six million Nigerians with critical digital and AI skills and certifying over 150,000 to date, she said.  

“Beyond skills, Microsoft is advancing the adoption of secure, scalable cloud infrastructure and interoperable digital platforms that underpin next-generation e-government systems. Through Microsoft Azure and its suite of AI-powered services, governments and startups are enabled to unlock the full value of data, driving more agile, inclusive, and citizen-centric public service delivery. This is complemented by enterprise-grade security capabilities and a principled approach to Responsible AI, grounded in transparency, accountability, and governance frameworks that help build trust, strengthen resilience, and support the long-term sustainability of digital public services,” Ujam further said.

She was of the view that embedding digital-first principles across public administration, would reduce economic friction, expand inclusion and position Nigeria as a regional leader in Africa’s digital transformation journey.