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Dr Samuel Chindaro
In line with National Development Strategy 1 (NDS1) and the drive to make Zimbabwe an upper middle-income economy by 2030, President Mnangagwa recently launched three information and communication technology (ICT) policies.
These three policies — the National ICT Policy, the Smart Zimbabwe 2030 Master Plan and the National Broadband Plan — were launched at Somabhula Secondary School.
All these initiatives are strongly backed by the President’s commitment and vision towards a digital economy, as reflected by his speech at the 2022 World Economic Forum in Davos, Switzerland, in which he said “the future of business, of development, wealth creation, now depends on the digital economy”.
The Second Republic has, therefore, been steadfast in embracing emerging technologies as the core and foundation of economic development.
Digital transformation is basically about using the latest technology to do what you already do, but better.
It refers to the adoption of digital technology to transform services or businesses.
This is achieved by replacing manual processes with digital ones.
The digital economy is an umbrella term that describes how traditional economic activities (production, distribution and trade) are being transformed by the internet and world wide web technologies.
The global economy is undergoing digital transformation and it is happening rapidly. From the use of mobile money, internet banking, working from home, shopping and social/business communication, digital technology has transformed our lives and will continue to do so.
This trend was accelerated by the Covid-19 pandemic, which required people to work remotely and hold virtual meetings.
Zimbabwe’s economic future, prosperity, national security, cost of living and productivity are going to be dependent on achieving growing success in digital technology.
To grow towards a digital economy, fundamental building blocks should be in place. These include fast internet access and cyber security capabilities.
It is, therefore, vital that these foundations are made available and strengthened.
This is a fact recognised by the launch and implementation of the National Broadband Plan and captured in the Revised ICT Policy (2022-2027).
Digital skills, as well as access to digital infrastructure and accessibility, are fundamental to addressing barriers associated with digital exclusion and inequality.
Alongside these foundations, a regulatory framework that protects businesses and individuals should be established and reviewed regularly, in line with new developments. The Second Republic has already gone a long way towards this, putting in place the Cyber Security and Data Protection Act to support cybersecurity and fight cybercrime, as well as enhancing the capability of the Postal and Telecommunications Regulatory Authority of Zimbabwe.
This should be supported by the establishment of a dedicated cyber security centre and data protection authority.
It is vital to ensure that the country’s cyber security is fortified against hostile elements.
To move towards a digital economy, it is important to ensure that the country’s technology businesses have access to the skills and funding they need to innovate, develop and grow.
The Government should, therefore, work with schools, universities and businesses to deliver digital skills that the digital economy needs. This can be achieved through apprenticeships and skills training, among other activities.
Improving digital education in schools and increasing undergraduate enrolment in Computer Science will raise the base level of skills of the next generations to enter the workforce.
A dedicated policy for ICT in education might be required to ensure that ICT is integrated in schools from primary school level.
Knowledgeable and confident teachers are key to ensuring the computing curriculum is taught well in schools.
The Ministry of Primary and Secondary Education, in collaboration with the Ministry of ICT, Postal and Courier Services, should ensure that every school is equipped with the knowledge to teach computing and ensure that children have the digital skills they need to participate in a digital society.
Digital transformation of the economy alters conventional notions about how businesses are structured, how consumers obtain goods and services, and how states need to adapt to new regulatory challenges.
The digital economy has the potential to profoundly shape economic interactions among states, businesses and individuals.
With the emergence of the digital economy, issues such as privacy rights, competition and taxation will require national and international regulations.
Data gathering and tracking of individual behaviour by digital firms has implications on privacy rights.
Data collected on individuals can be analysed and monetised by technology firms without compensation to users.
The data is not only used to predict but influence behaviour.
The data collected is at risk of breaches, where personal information can be intentionally or inadvertently exposed.
The digital economy has implications for international tax rules.
Digital technology companies produce goods that are not necessarily tied to specific geographical locations, which complicates taxation of those companies.
Digital technology can, therefore, enable tax evasion and tax avoidance.
Regulatory issues will require close cooperation among nations in economic and political blocs such as the Southern African Development Community (SADC).
President Mnangagwa, whose vision is to accelerate the move towards a digital economy, is taking over the leadership of SADC this week, which should see him push this agenda in the region.
People now regularly work from different offices or their homes, more so since the pandemic has pushed remote working to the fore.
While the location of where we work has changed, we all expect the same level of interaction and output as experienced in the physical office.
The emergence of this flexible approach to working requires organisations to promote the creation of a pool of digital talent to enable effective next-generation digital businesses that prove to be effective, even when distributed to different places and time zones.
Covid-19 has certainly accelerated this transition in some respects but has also highlighted the need for organisations to adopt a more open-minded approach to longer-term digital enablement of the workforce.
Alongside Government efforts to promote a digital economy, businesses should also digitise their operations.
For example, a digital economy has substantial impact on retail sales of consumer goods.
One effect has been the proliferation of retailers with no physical presence, such as eBay or Amazon.
It is, therefore, important for traditional retailers to restructure their businesses to adapt to a digital economy.
Failure to do so will result in retailers going bankrupt because of failure to anticipate and adapt to a digital economy.
Going digital will enable smaller retailers to compete with large and established multinational brands.
It is interesting to note that Uber, one of the world’s largest taxi companies, owns no vehicles, and Airbnb, one the world’s largest accommodation providers, owns no real estate.
This is, therefore, an interesting and exciting time to get involved in the digital economy.
There is so much potential to harness emerging technologies to push businesses further ahead and grow the economy.
Even though the Second Republic is taking a lead on this, it is important that all sectors play their part towards achieving a digital economy as set in NDS1 and Vision 2030.
Dr Samuel Chindaro holds a PhD in Electronics (University of Kent), MSc in Electronics and IT (University of Birmingham) and a B. Eng Hons in Electronic Engineering (NUST). He is also a Chartered Engineer (Institution of Engineering and Technology). This article was produced for The Sunday Mail. Feedback: [email protected]
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