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Dr. Mahamudu Bawumia, former Vice President of Ghana, has proposed a bold digital approach—what he calls “smart formalisation”—as the key to tackling Africa’s deep-rooted development challenges.
Speaking at the Cambridge Africa Business Conference on Saturday, May 17, 2025, under the theme “Africa’s Digital Transformation: Building Resilient Economies Through Innovation,” Dr. Bawumia addressed the persistent problems many African nations continue to face more than six decades after independence.
He identified a number of systemic obstacles to progress: the absence of a reliable national identification system, lack of a working digital address framework, a largely informal economy dominated by cash transactions, limited access to financial services, weak tax systems, and fragmented government data platforms. Other issues included inefficient healthcare services, rural healthcare gaps, poor credit infrastructure, and high borrowing costs.
“These challenges continue to drag productivity, fuel unemployment, and keep millions in poverty,” Dr. Bawumia said.
He argued that Africa’s opportunity for transformation lies in leveraging digital tools to formalise key aspects of society and governance in a smart, integrated manner. “Smart formalisation,” as he described it, involves using technology to create connected systems that allow governments to interact more effectively with their citizens while delivering services more efficiently and affordably.
“In my view, digital transformation must go beyond policy conversations—it should be the foundation of Africa’s development strategy,” he stressed. “Smart formalisation creates a feedback loop where better service delivery encourages greater participation, which in turn improves governance outcomes.”
Dr. Bawumia explained that such an approach empowers states to build trust, track citizens’ needs more accurately, and manage resources better. He drew comparisons with post-war recovery strategies in advanced economies, noting that Africa now has access to cutting-edge tools such as artificial intelligence, blockchain, and mobile technologies that can fast-track progress without replicating outdated systems.
He urged African leaders to see digital transformation not just as a tool for efficiency but as a fundamental solution to long-standing structural weaknesses.
According to Dr. Bawumia, embracing smart formalisation could unlock inclusive growth, modernize public services, and strengthen economic resilience across the continent.
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