In the 21st century, first world states must look at Africa and help them move forward in investing with various sectors including science, technology, medicine, and independent banking. The combination of them all creates the capital for it and gives African nations a new form of independence using its untapped natural wealth, human resources, and government policies to execute a highly successful economic background that can challenge the Western-based globalisation trend that attracts foreign investment to establish continental hubs for technology that handles all trade. But first, African nations have to get their internal priorities in shape.
Africa has fallen behind with digital finance because, despite their abilities to organize, they have historically not been able to do so.
Africa has never been able to keep tabs with the Western world with their lack of resources and have only adopted years after the West can do so.
Africa’s lack of resources is also tied to the fact they have been hampered war, famine, and political instability since each country was granted independence. With no foreign funding and a lack of infrastructure, African nations have not been able to fully adapt to digitalization, even though it would help them the most in a global economy.
In Sub-Saharan Africa, they are very much behind with the number of people having a bank account, an estimated 66% of the population. But, with the potential for a burst of technology to deliver all financial services, people having their own account can rise and reach out to communities that wouldn’t even have a bank because of high operating costs that result in zero return. This is also widespread in many African areas because there is no infrastructure to keep one, even within the capital. If people had more money to control and to spend on certain things, it would boost the economy locally.
Digital finances create a lot of opportunities past the economics, such as the creation of continental progressive monetary policy that other regions of the world have. East Africa has set up a platform that other nations can follow to raise the capital outside banking. New innovations in the system will bring in more products and players into the monetary system and getting digital is going ahead of the curve. It is easier to look at transactions in the financial system and most African states are making strides in improving all illegal, corrupt financing that could come from some nations which will be the focus of sanctions.
African nations must make technology a priority to make the continent a place for first world nations to come, invent, and produce as a new way of promotion under globalization. Africa cannot stagnate to the back burner in a global economy and not having the technology in place is a way stagnation can happen. For industrial states, when working with a developing country, they have to show that they have the capacity to handle all necessary foreign investment and technology. Having foreign investment in digital, safe, and secured account helps those nations in trade agreements, as well as the skilled force to take in and expand.