In recent years, Africa has shown a growing interest in the development of Digital Public Infrastructure (DPI) through continental-level efforts, such as the Digital Transformation Strategy for Africa (2020-2030), as well as numerous national-level initiatives. However, Africa faces a wide range of challenges that must be tackled efficiently and upfront. With India making substantial progress in DPI, this piece discusses how India can serve as a model for African countries for the successful large-scale implementation of such systems.
Effective DPI implementation begins with a clear grasp of its three core pillars – digital identity, digital payments and data exchange systems – which act as a backbone for digital societies. The development of such infrastructure is important to Africa as it can facilitate sustainable development, economic growth, and job creation. Moreover, research suggests that the proper implementation of DPI can lead to a GDP growth of 20-33 percent by 2030 in low- and middle-income countries, making it an attractive investment.
Through the India Stack programme, India has made considerable progress in the development of foundational DPI systems. Over 95 percent of India’s population has a digital ID, the Unified Payments Interface (UPI) has revolutionised digital payments — processing over 18 billion transactions monthly, and the Digital Infrastructure for Knowledge Sharing (DIKSHA) platform supports over 200 million students and 7 million teachers.
A strong digital identity system is crucial as it allows citizens to present verifiable forms of identification. If harnessed properly, Africa can use digital ID systems to increase access to healthcare and education across the population, which can facilitate poverty alleviation.
In order to achieve this extent of success, India had to overcome numerous challenges similar to those faced by Africa today. Thus, Africa can benefit from drawing lessons from India’s success — facilitating development, knowledge sharing, and stronger ties between the two.
Digital identity enables citizens to obtain secure and accessible identification through a streamlined, safe, and cost-effective system. A strong digital identity system is crucial as it allows citizens to present verifiable forms of identification. If harnessed properly, Africa can use digital ID systems to increase access to healthcare and education across the population, which can facilitate poverty alleviation.
The African Union (AU), recognising the vitality of digital infrastructure, has developed the Digital Transformation Strategy for Africa (2020-2030), outlining priorities and emphasising the need to create a digital single market through the Africa Continental Free Trade Area (AfCTA). With digital IDs being the foundation for further DPI systems, their development has been deemed crucial. On a national level, 85 percent of African countries possess national ID systems underpinned by an electronic database. However, authentication for transactions and online services remains limited to countries such as South Africa, Cabo Verde, and Seychelles.
Recognising this gap and the need to modernise, South Africa has developed the Automated Biometric Identification System (ABIS), a unified platform for biometric measures of citizens, which has seen notable progress. The government plans to utilise this system in conjunction with the national identity system, establishing a benchmark for other African nations.
As one of the largest digital ID initiatives in Africa, Nigeria’s programme is centred around a 12-digit National Identification Number (NIN), which is used to issue General Multi-Purpose Cards. This has integrated biometric data with demographic information, with the added benefit of being linked to financial services. The country has seen significant progress, and as of 2024, over 115 million NINs have been issued, with an aim to reach 180 million by 2026.
Issues such as the lack of birth registration for children, low digital literacy, infrastructure gaps, and high one-time costs are just some of the challenges encountered. Second-order concerns, such as the absence of appropriate legislative frameworks and the lack of data protection and privacy laws, must also be addressed.
Yet, Africa continues to face significant challenges which hinder its progress, including the fact that 8 of the 10 countries with the largest ID gender gaps are on the continent. Issues such as the lack of birth registration for children, low digital literacy, infrastructure gaps, and high one-time costs are just some of the challenges encountered. Second-order concerns, such as the absence of appropriate legislative frameworks and the lack of data protection and privacy laws, must also be addressed.
India’s Aadhar programme tackled similar issues through a rapid rollout focusing only on vital data fields, coupled with targeted rural camps and the establishment of a robust legal framework via the Aadhaar Act, 2016. Today, Aadhar has over 1.37 billion users, utilising biometrics for welfare schemes and access to formal financial institutions. African countries can adopt these solutions to create scalable and accessible infrastructure.
Digital payment systems have become vital to economies across the globe. Allowing for secure payments while expanding accessibility to formal financial institutions and improving traceability, these systems have seen growth in Africa since the 2000s. Such systems also play a pivotal role in stimulating the economy, lowering trade costs, and integrating the continent into the fourth industrial revolution.
As one of the fastest-growing digital payment markets, the Digital Transformation Strategy for Africa underscores the importance of digital financial services in the successful implementation of AfCTA, as well as in creating a regulatory environment that allows for interoperability. Moreover, Africa lacks legacy infrastructure, allowing for the seamless adoption of new technology and solutions.
Since 2020, digital payments in Africa have generated a revenue of over US$24 billion. Currently, approximately 31 countries are developing instant payment systems (IPS), while approximately 20 countries have already successfully developed IPS. A key driver of this development is M-Pesa, a joint venture between Safaricom and Vodacom Group in Kenya. The rise of M-Pesa in Kenya, with over 30 million customers, has propelled financial inclusion to 84 percent in 2021 from 26 percent in 2006. The platform has been supported by the flexible regulations set in place by the Central Bank of Kenya.
Ethiopia presents an interesting case, as financial technology has been a government-controlled sector until recently. In 2021, Telebirr was launched by Ethio Telecom, a state-owned company, as an online payment system in Ethiopia. Since then, the platform has experienced a rapid surge in users, reaching 54 million, and has processed transactions worth over 4.65 trillion Ethiopian Birr. Supported by government mandates such as Digital Ethiopia 2025, Telebirr is integrated with 29 banks across the nation and has a 309,000-strong agent network. Some notable successes include facilitating microloans and remittances, enabling payments to be tracked, and increasing P2P transactions, along with the number of individuals holding bank accounts.
High transaction fees, limited reach in rural areas, and low digital literacy present significant hurdles in the successful implementation of any digital payment model.
The two case studies enumerated above encounter challenges mirrored across the continent. High transaction fees, limited reach in rural areas, and low digital literacy present significant hurdles in the successful implementation of any digital payment model.
Interoperability is a major concern that is being addressed through the development of the Pan African Payment and Settlement System (PAPSS), a low-cost cross-border payment mechanism. This system has been vital to the growth of Small and Medium Enterprises (SMEs) by providing a platform for affordable payments in local currencies. Additionally, it has expanded the reach of formal financial institutions to underbanked regions while bridging the gap between formal and informal economies.
By working towards making African systems interoperable with India’s UPI, there can be increased economic cooperation and financial inclusion between the two hubs of development. Namibia is leading the way, with its central bank signing an agreement with the international arm of the National Payments Cooperation of India (NPCI) to support the development of UPI in the country. Furthermore, aspects such as the NPCI’s standardised regulations and no fees for P2P and bank-to-bank transfers can be leveraged by other countries to implement effective low-cost models.
One of the most common forms of DPI is data exchange systems. These systems allow for seamless and secure information sharing, acting as a framework for interoperable data sharing that underpins most digital services.
While the AU has a Data Policy Framework (2022), it has yet to see proper implementation. On a national level, African countries must address the problems of data privacy, safety, and security. A country leading on this front is Botswana, where in January 2025, the updated Data Protection Act was enforced. Notably, this act aims to regulate individual data, cross-border data sharing, implement data breach notifications, and put in place data protection officers to carry out impact assessments when required. Such frameworks, supported by strong enforcement as seen in Botswana, can prove to be beneficial to African nations.
India’s success in expanding data exchange beyond finance — particularly the tailoring of solutions for diverse and resource-constrained populations — has enabled it to build robust and holistic systems. Africa can leverage the lessons learnt by India and adapt solutions to its needs.
Smart Africa, a commitment to accelerate development through the use of information and communications technology, aims to harmonise cross-border data frameworks. A country aligning closely with this goal is Uganda, where in 2016, the government launched its data exchange programme, the UGHub platform, spanning 68 government agencies and 74 private entities. It enables the streamlining of services such as birth registration and tax filing. This system pilots cross-border data sharing with Rwanda, and could have broader implications in the future.
While Africa has numerous in-house models that it can follow, using India as a reference will help develop scalable data exchange systems. India’s success in expanding data exchange beyond finance — particularly the tailoring of solutions for diverse and resource-constrained populations — has enabled it to build robust and holistic systems. Africa can leverage the lessons learnt by India and adapt solutions to its needs.
Partnerships between India and Africa can serve a dual objective of enabling transformation in Africa while deepening India’s cooperation in a geopolitically strategic region. India has taken an interest in digital diplomacy, with Togo and Zambia signing MoUs with the Indian Institute of Technology Bombay (IIT-B). Additionally, an IIT Madras campus has been established in Zanzibar, offering courses such as Data Science and AI to help develop local skills.
As Africa stands at a crucial juncture in its DPI journey, India’s experience provides a roadmap. However, success will hinge on national implementation, safeguards, and cooperation. Collaboration, whether through task forces or agreements, will prove beneficial to all parties and promote the advancement of DPI in Africa.
Ananyaa Mehta is an intern with the Observer Research Foundation.
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