Bawumia: ‘Smart formalisation’ will surmount Africa’s challenges

Former Vice President of Ghana, Dr. Mahamudu Bawumia, spoke at the Cambridge Africa Business Conference. He emphasized a strategy called “smart formalisation.” This approach aims to transform public administration and economic systems through digital means.

Dr. Bawumia noted that many African countries still face serious challenges after over 60 years of independence. These issues include a lack of unique identification for citizens and no functional national property address system. The informal sector relies heavily on cash transactions, leading to widespread financial exclusion.

He highlighted other problems such as high interest rates and fragmented government databases. Health service delivery is inefficient, especially in rural areas, and tax compliance is weak. These factors contribute to low productivity, high unemployment, and ongoing poverty across Africa.

Dr. Bawumia believes that “smart formalisation” can help overcome these challenges. He described it as essential for accelerating Africa’s development. Digital transformation should not just be a goal; it is necessary for resilience.

He explained that this strategy involves creating integrated systems for better government-citizen interaction. This leads to improved services and greater citizen engagement. Modern technologies like blockchain and artificial intelligence can help African nations adopt smarter economic models.

Dr. Bawumia urged African governments to embrace digital transformation fully. He sees it as a strategic solution to deep-rooted structural issues. Through “smart formalisation,” Africa can achieve inclusive growth and build resilient economies.