Unplugged 3 - Digital Transformation & Bridging the Global Digital Divide

Introduction

Digital technologies are transforming
global connectivity
• Despite progress, significant
inequalities persist
• Exploring digital transformation for
inclusion

Understanding the Digital Divide

Definition: Gap between those with and
without digital access
• Key dimensions: Infrastructure,
affordability, literacy
• Disparities between high and low-
income regions

Empirical Data on Digital Divide

2.9 billion offline
(ITU, 2021)

Mobile broadband in
Sub-Saharan Africa:
39% (GSMA, 2023)

High vs. low-income
internet penetration:
87% vs. 19% (World
Bank, 2022)

Role of IoT in Bridging Digital Divide

IoT enables remote
connectivity
• Used in agriculture,
healthcare,
education
• Example: Smart
farming in Africa
improving yields
(FAO, 2021)

The Digital Divide in the Age of AI – Why It Matters

AI is Transforming Industries: Healthcare,
finance, education, and governance rely on AI-
driven solutions.
Exclusion Worsens Inequality: Lack of access to
AI-powered tools limits opportunities in jobs,
learning, and healthcare.
Data & AI Bias Risks: Without diverse
participation, AI models may reinforce biases.
• Statistical Insight:
• 40% of the world lacks internet access,
preventing them from benefiting from AI
innovations.
• 80% of AI research is driven by tech-rich
nations, leaving others behind.

Consequences of the AI Digital Divide

Economic Disparity: AI-driven
automation benefits tech-equipped
nations while leaving others
struggling.
• Job Market Disruption: AI-skilled
workers gain higher wages, while
others face job losses.
• AI in Governance & Healthcare:
Unequal access to AI-powered public
services and healthcare.
• Case Study:
• Developed vs. Developing
Nations: AI-driven economies
(e.g., US, China) vs. low-tech
economies (e.g., parts of Africa,
South Asia).

Bridging the AI Digital Divide – The Path Forward

AI for All: Open-source AI tools and
cloud computing for accessibility.
Affordable AI Education: Online AI
courses and training for underserved
communities.
Public-Private Partnerships: Tech
companies working with
governments to expand AI access.
Regulation & Ethical AI: Policies
ensuring fairness and inclusivity in AI
development.
• Global Initiatives:
UNESCO’s AI for Humanity
Initiative
Google’s AI for Social Good

5G and Expanding Global

Connectivity
• Faster, reliable internet
• Enhances mobile banking, e-
learning
• Challenges: High costs,
regulation barriers

Cloud Computing for Digital Inclusion

Enables remote work, education
• Reduces infrastructure dependency
• Example: Google's Project Loon

Digital Finance and Financial Inclusion

Mobile banking, digital wallets
Example: M-Pesa Kenya – financial access for millions
McKinsey: Digital payments to boost Africa's GDP by
3%

E-Commerce and Economic

Empowerment
• Market access for businesses
• Example: Jumia (Africa’s leading
platform)
• Challenges: Security, logistics, costs

Introduction to Jumia – Africa’s Leading E-Commerce Platform

Founded: 2012, headquartered in
Lagos, Nigeria.
• Operations: Active in 11 African
countries, including Nigeria, Egypt,
Kenya, and Morocco.
• Business Model:
• Online marketplace for goods
(electronics, fashion, groceries).
• JumiaPay for digital payments.
• Jumia Logistics for deliveries.
• Key Stat:
• Over 8 million active
customers as of recent years.

Jumia’s Economic & Market Impact

• Job Creation: Directly and
indirectly employs thousands of
people, from tech roles to
delivery services.
• SME Growth: Provides an online
platform for 100,000+ small
businesses to reach customers.
• GDP Contribution:
• E-commerce in Africa is
expected to contribute $75
billion by 2025.
• Jumia is a major driver of this
growth.
• Mobile Penetration:
• 80%+ of Jumia’s traffic comes
from mobile users, leveraging
Africa’s high mobile adoption.

Challenges Facing Jumia’s E-Commerce Model

• Logistics Issues: Poor infrastructure
makes last-mile delivery expensive and
slow.
• Payment Barriers: Cash-on-delivery
remains dominant, limiting digital
transactions.
• Competition: Faces strong competition
from international players (Amazon,
Alibaba) and local startups.
• Profitability Struggles:
• Despite high revenue, Jumia has
struggled with consistent
profitability.
• $234 million net loss reported in
2021.

Case Study – Education Access

One Laptop Per Child (OLPC) Initiative
• Affordable laptops to students
• Challenges: Maintenance, training,
connectivity

Policy Approaches to Bridging the Divide Public-private

partnerships
Government
subsidies, incentives
International funding
(World Bank, IMF)

Challenges in Digital Transformation

High costs
Digital literacy gaps
Cybersecurity, privacy concerns

Future of Digital Inclusion

AI-driven learning
solutions
• Low-orbit satellites
(Starlink)
• Blockchain for secure
transactions

Discussion Question

• How can digital transformation ensure
inclusive economic growth in the Global
South?

Conclusion

• Opportunities for inclusion
• Addressing affordability, literacy,
infrastructure
• Cross-sector collaboration for progress