Digital economy: How India can provide the blueprint for Africa, write Wamkele Mene and Nandan Nilekani

Africa and India, with their large, youthful populations and rapid urbanisation, demand digital infrastructure at scale. In 2023, India’s consumption expenditure reached $2.52 trillion, while Africa is projected to host 1.7 billion people and $6.7 trillion in consumer and business spending by 2030.

However, there is a fundamental difference in how DPI must be implemented. As a single sovereign nation, India could roll out a foundational identity that serves all its citizens. Africa, by contrast, comprises 55 independent countries, each with its own identity framework and sovereignty. A one-size-fits-all approach is not feasible. Instead, Africa requires a harmonised-yet-decentralised approach to digital identity that respects national sovereignty while ensuring trade and economic integration interoperability.

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The African Union recently adopted the final components of the African Continental Free Trade Area (AfCFTA) Protocol on Digital Trade, marking a historic step toward a digitally integrated continent. By anchoring DPI at its core, the Protocol provides a legal foundation to align national identity systems and enable secure cross-border verification. It’s not about creating a new ID, but rather developing a digital credential layered on existing national IDs. Articles 13 and 15 of the Protocol emphasise interoperability and trusted credentials to unlock digital trade.

This can have wide-reaching impact. In 2021-22, only 78 percent of eligible individuals in 15 African countries had a national ID. Among unbanked adults, more than half cited lack of ID as a primary barrier to financial inclusion. A functional AfCFTA Digital ID can break this cycle, helping MSMEs expand and citizens access cross-border services and opportunities. As the continent moves toward the vision of a $2.5 trillion One African Market, this milestone can unlock inclusive growth by enabling secure digital verification, strengthening MSMEs that account for 80 percent of employment and 50 percent of GDP.

Africa can draw lessons from India’s Aadhaar journey, which began with targeted state pilots, like in Andhra Pradesh, where it improved pension and employment payments. Treated as a verifiable (not national) ID, Aadhaar’s early success built a strong revenue case, enabling national scale-up and a 10-year return on investment (RoI) of over 50 percent. Africa could adopt a similar path: Start with country-level pilots, expand regionally, and scale continent-wide.

This phased approach aligns with growing global momentum for secure, inclusive digital ID systems. With one-third of the world’s population expected to live in Africa by 2075, investing in trusted digital infrastructure is not just timely, it’s essential. The AfCFTA framework, Africa’s Digital Transformation Strategy (2020-2030), the Cross Border Data Exchanges Annex and UNDP’s Universal DPI Safeguards, offer a clear and shared path for coordinated, principles-based rollout. By prioritising data privacy, interoperability, and cross-border collaboration, Africa can shape a resilient, inclusive and digitally driven economic future. 

The writers acknowledge the support of Abhishek Srivastava from the United Nations’ Better Than Cash Alliance in researching this piece