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 using digital tools.

Dr. Bawumia noted that many African countries still face serious challenges after 60 years of independence. These issues hinder productivity and progress across the continent. Key problems include a lack of unique citizen identification and no functional property address system.

He also highlighted the large informal sector reliant on cash transactions. Other concerns are widespread financial exclusion, high interest rates, and inefficient health services. These factors contribute to low productivity, high unemployment, and persistent poverty.

Dr. Bawumia proposed that “smart formalisation” could help overcome these challenges. He described it as essential for accelerating Africa’s development. Digital transformation is not just an option; it is necessary for resilience.

“Smart formalisation” means creating integrated systems for better government-citizen interaction. This leads to improved services and greater citizen engagement. He compared this potential with post-WWII developments in the Global North.

Modern technologies like blockchain and artificial intelligence can help African nations advance quickly. Dr. Bawumia urged governments to embrace digital transformation as a strategic solution to structural issues. Through this approach, he believes Africa can achieve inclusive growth and build resilient economies.