Bawumia proposes

Former Vice President Dr. Mahamudu Bawumia has proposed a new development plan for Africa. He introduced the concept of "smart formalisation" at Cambridge University’s Africa Business Conference on Saturday. This approach aims to help African governments better understand and interact with their citizens.

Dr. Bawumia highlighted that many African economies remain informal after over sixty years of independence. He pointed out issues like lack of unique identification, no national property address system, and financial exclusion. These problems hinder economic growth and competitiveness in a changing world.

He stated that societies facing these challenges often experience low productivity, high unemployment, and increased poverty. Dr. Bawumia emphasized that this situation has persisted for decades in many African countries.

To address these issues, he proposed solutions to build a resilient African economy. He believes that intra-country and international integration can facilitate trade and improve government services.

"Smart formalisation" is about creating systems that allow governments to know their citizens better. This would enable effective communication between governments and citizens at lower costs.

Dr. Bawumia explained that technology can minimize fears of victimization through anonymity, fostering safer interactions. He noted that successful economies in the Global North have used similar strategies to lift citizens out of poverty.

He stressed the importance of adopting modern technologies like blockchain and artificial intelligence for Africa's progress. Dr. Bawumia expressed confidence that smart formalisation could accelerate economic growth in Africa.

He argued that achieving consistent high growth rates is essential for overcoming current risks. This model has worked in Asia, lifting billions out of poverty.

Dr. Bawumia urged the need for digitalization as part of the 4th industrial revolution to stay competitive. While industrialization is crucial, he emphasized smart industrialization and collaboration through digital technologies.

He referenced Ghana's success in using digitalization to strengthen its economy during his vice presidency. Ghana now has a robust national identity system, a digital address system, and interoperable payment systems.

Dr. Bawumia spoke on "Africa's Digital Transformation: Building Resilient Economies Through Innovation." The Cambridge Africa Business Conference gathers leaders shaping Africa's economic landscape each year.