Bawumia urges Cambridge African students to lead smart formalisation drive

Former Vice-President Dr. Mahamudu Bawumia has called for digital transformation in Africa. He advocates for “smart formalisation,” a strategy to improve public administration and economic systems.

Dr. Bawumia spoke at the Cambridge Africa Business Conference. He aimed to inspire African students under the theme, “Africa’s Digital Transformation: Building Resilient Economies Through Innovation.” He addressed barriers to development and urged a shift in how innovation is scaled and rewarded.

He emphasized that Africa is not lacking in innovation. Instead, it struggles with systems to scale ideas and access capital. “We lack ecosystems that reward and retain them,” he stated, receiving applause from the audience.

Dr. Bawumia highlighted the paradox of African ingenuity. Many entrepreneurs create solutions but face challenges like poor infrastructure and limited financial access. He believes Africa needs to institutionalize innovation for sustainable growth.

He envisions a future where African businesses can serve clients globally using technology like blockchain. For this vision to succeed, innovation must become part of everyday governance and commerce.

Dr. Bawumia urged leaders to foster environments where innovation thrives as the norm. This requires strong digital infrastructure, trust, and policies that encourage risk-taking.

His main proposal is “smart formalisation.” This approach integrates digital tools for better governance and economic participation. It involves using biometric systems, mobile payments, and databases for transparency.

Such systems can create a “virtuous cycle.” Governments would provide better services while citizens engage more with the state, reducing corruption.

Dr. Bawumia also discussed structural challenges facing African nations post-independence. Issues include lack of unique identification systems, high cash dependence, and inefficient health care.

Despite these obstacles, he believes digital interventions can help Africa leapfrog traditional development models. Countries now have access to technologies like AI and blockchain that can redefine growth pathways.

He stressed that governments should fully integrate technology into public sector reforms. Initiatives like Ghana’s national ID system must be part of a unified strategy involving all economic actors.

Political will is crucial for achieving smart formalisation, according to Dr. Bawumia. He called on governments to invest in digital infrastructure alongside private sector collaboration.

He encouraged global investors to view Africa as a land of opportunities rather than crises. “Africa’s story is one of potential waiting to be scaled,” he concluded.

As Africa faces economic pressures and demographic changes, Dr. Bawumia's message resonates strongly at the conference. The continent's future depends on its ability to transform innovation into real change through effective systems.

With visionary leadership and inclusive governance, Africa could build resilient economies ready for the 21st century.