GOVERNANCE AND THE DIGITAL ECONOMY IN AFRICA VOLUME 1 DIGITAL FOR GOVERNANCE REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA — DIGITAL TOOLS FOR BETTER GOVERNANCE © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. 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The University of Namibia in Windhoek. Campus, lecture hall and the general information centre, library and computer banks. Photo ID: JH-NA070903_0008 World Bank. https://www.flickr.com/photos/worldbank/5320868551/in/album-72157634090168746/ GOVERNANCE AND THE DIGITAL ECONOMY IN AFRICA VOLUME 1 DIGITAL FOR GOVERNANCE REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA — DIGITAL TOOLS FOR BETTER GOVERNANCE Maria Delfina Alcaide, James Anderson, Michael Kramer, Hunt LaCascia, Travis Mells, and Justin Valentine Governance and the Digital Economy in Africa is a joint program of the Governance Global Practice, Digital Development Global Practice, and Finance, Competitiveness and Innovation Global Practice. >>> Acknowledgments The Governance and the Digital Economy in Africa program was jointly led by the Governance, Digital Development, and Finance, Competitiveness, and Innovation Global Practices of the World Bank. The program of work was co-led by James Anderson, Tania Begazo, and Georgiana Pop. This report was prepared by a team including Maria Delfina Alcaide, James Anderson, Michael Kramer, Hunt LaCascia, Travis Mells, and Justin Valentine, with inputs from Vineet Surapaneni and Kelly Flanagan. This report draws on the following detailed background studies: (i) ICT Procurement in Africa, by Hunt LaCascia, Justin Valentine, Travis Mells, Vineet Surapaneni, Kelly Flanagan, Maria Delfina Alcaide, and Michael Kramer, (ii) Adoption of e-GP in Africa by Hunt LaCascia, Justin Valentine, Travis Mells, Vineet Surapaneni, Kelly Flanagan, Maria Delfina Alcaide, and Michael Kramer, and (iii) Vulnerabilities of ICT Procurement to Fraud and Corruption by Hunt LaCascia and Michael Kramer. The team appreciates the guidance provided by the participants in the review, especially the Chair, Boutheina Guermazi (Director, AFCRI), the responsible Practice Managers (Manuel Vargas, EAWG2; Michel Rogy, IDD02; and Martha Licetti ETIMT), and the peer reviewers for this volume, Kimberly Johns and Tiago Peixoto from the World Bank, and Camilo Cetina from the Development Bank of Latin America. Jana Kunicova, Jerome Bezzina, and Rafael Saute also provided helpful written comments. Helpful comments were provided at the concept stage by Debbie Wetzel, (Director, AFCRI, at the time, and Chair), by the peer reviewers Tiago Peixoto, Kimberly Johns, Moustapha Ndiaye, and Tim Kelly, and by Hiba Tahboub, Joel Turkewitz, and Henri Fortin. The team is grateful to Katherine Siess and Akanksha Baidya for support with the final publication, and to Maria Lopez and Bruna Sofia Simoes for design of the cover and the body of the document, respectively. The advice of peer reviewers and others for the background papers that informed this volume are also appreciated. (All are from the World Bank unless otherwise indicated.) For comments on the background paper “ICT Procurement in Africa” we thank: Charles Pierre Marie Hurpy, Khalid Bin Anjum, and Rajesh Kumar Shakya, peer reviewers, and Leonard Mutuku Matheka, Onur Erdem, Zubair Khurshid Bhatti, and Gael Raballand. For comments on the background paper “Adoption of eGP in Africa” we thank Carey Kluttz (Open Contracting Partnership), Sunday Esene Osoba and Rajesh Kumar Shakya, peer reviewers, as well as Leonard Mutuku Matheka, Onur Erdem, Zubair Khurshid Bhatti, and Gael Raballand. For comments on the background paper “Vulnerabilities of ICT Procurement to Fraud and Corruption” we thank Carey Kluttz (Open Contracting Partnership), Walid Dhouibi, and Rajesh Kumar Shakya, peer reviewers, as well as Leonard Mutuku Matheka, Onur Erdem, Zubair Khurshid Bhatti, and Gael Raballand. The team that prepared this report would also like to acknowledge the broader project team. In addition to those who authored the present report, the broader team includes the co-TTLs Tania Begazo and Georgiana Pop, as well as Davida Cannon, Pascal Jaupart, Ana Riuval, Clara Stinsoff, Henri Fortin, Hadiza Nyelong Eneche, Linda Gathoni Kirigiand, Mavo Ranaivoarivelo, Hannelore Maria Niesten, Goncalo Miguel Banha Coelho, Xavier Stephane Decoster, and Dennis Sanchez Navarro. The team thanks Boutheina Guermazi (Director, AFCRI), Manuel Vargas (Practice Manager, EAWG2), Michel Rogy (Practice Manager, IDD02), Isabel Neto (Practice Manager, IDD04) and Martha Licetti (Practice Manager, ETIMT) for their guidance and support to the project. This report was prepared with support from the Digital Development Partnership. >>> Abbreviations AI artificial intelligence AII Africa Integrity Indicators AOS Africa Olleh Services Limited API application programming interface BIANCO Bureau Indépendant Anti-Corruption CAG Accountant and Controller General CCC Crime and Corruption Commission CFM Citizen Feedback Mechanism CIT corporate income tax CR civil registration DE4A Digital Economy for Africa EACC Ethics and Anti-Corruption Commission EAP East Asia and Pacific ECA Europe and Central Asia EGDI Electronic-Government Development Index e-GIF Electronic-Government Interoperability Framework e-GP Electronic-Government Procurement EPI Electronic-Participation Index ERP enterprise resource planning FCPA Foreign Corrupt Practices Act GAAC Ghana Anti-Corruption Coalition GGEA Ghana Government Enterprise Architecture GIFMIS Ghana Integrated Financial Management Information System GIRG Global Indicators of Regulatory Governance GIZ German Agency for International Cooperation GTGP GovTech Global Partnership GTMI GovTech Maturity Index HCI Human Capital Index HIC High Income Country HRMIS Human Resource Management Information System IADB Inter-American Development Bank ICT information and communication technologies ID identification ID4D Identification for Development IFMIS Integrated Financial Management Systems IMF International Monetary Fund IPCRM Integrated Public Complaints Referral Mechanism IPPS Integrated Personnel Payroll System IT information technology LCR/LAC Latin America and Caribbean LIC Low Income Country MDA Ministries, Departments and Agencies MENA/ Middle East and North Africa MNA MIC Middle Income Country NCWSC Nairobi City Water and Sewerage Company NGO non-governmental organization NICR National ID and Civil Registry NIR National Identity Register NITA National Information Technology Agency OBI Open Budget Index OBS Open Budget Survey OECD Organisation for Economic Co-operation and Development OGD open government data OSI Online Service Index OTT Over-The-Top RWI Regulatory Watch Initiative SA South Asia SAI Supreme Audit Institution SARS South African Revenue Service SDG Sustainable Development Goals SME small and medium enterprise SN Sierra Network SOE state-owned enterprise SSA Sub-Saharan Africa TIN Tax Identification Number TVET technical and vocational education and training UN United Nations USSD Unstructured Supplementary Service Data VAT Value Added Tax WDR World Development Report WEF World Economic Forum ZILMIS Zambia Integrated Land Management Information System >>> Contents Acknowledgments iv Abbreviations vi Figures in the Executive Summary xi Figures in the Text xi Tables xiii Boxes xiii Executive Summary xv 1. Introduction 1 Africa’s governance challenge 1 Can digitization help? 2 Data and stories 3 Roadmap for the report 4 2. Progress in the adoption of digital tools and complements for better 7 governance Digital adoption by government and its impact on good governance 7 Laying the foundation of digital infrastructure, institutions, and other analog 11 complements Chapter summary: Progress in digital adoption shows results, but they are hampered by 22 weaknesses in analog complements and institutions 3. Governance risks in public procurement of ICT solutions 23 Understanding the governance risks in ICT procurement 23 Minimizing governance risks in ICT procurement 25 Chapter summary: Governance risks are large but manageable 26 4. Digital tools for providing information to the public 28 Online provision of information by government 28 Online publication of budget documents 31 Online publication of laws and regulations 35 Chapter summary: Digital tools are often used to provide information, but details and 36 institutional foundations are lacking 5. Digital tools for streamlining the provision of government services and 37 supporting efficiency E-government procurement 37 Digital tools for filing and paying taxes 46 Digital land registration systems 52 E-services for business registration 55 E-court systems 58 One-stop-shops for digital services and payments 62 Digital identification systems 63 Interoperable government systems and data infrastructure 65 Chapter summary: Basic functions can be found, but transactional features are rare 67 6. Digital tools for strengthening participation, accountability, and 69 anticorruption Digital tools for public participation in policy making 69 Digital tools for citizen feedback on services and projects 71 Digital tools for reporting and detecting corruption 74 Chapter summary: Countries are just scratching the surface on digital tools for 82 participation, accountability, and anticorruption 7. Summary of main findings 83 Index 87 >>> Figures in the Executive Summary Summary Figure A. Digital adoption: Basics are widespread, interactivity is not xv Summary Figure B. Digital tools for citizen participation in public policies and services xvi Summary Figure C. E-filing of taxes and corruption in taxation in Africa xvii Summary Figure D. Right to information laws in Africa xviii Summary Figure E. ICT skills by type: Africa vs. world xviii >>> Figures in the Text Figure 1. Government digital adoption vis-à-vis income level in the world 8 Figure 2. Government digital adoption within Africa 9 Figure 3. Government digital adoption and efficiency and transparency in Africa 9 Figure 4. Government digital adoption and corruption in Africa 10 Figure 5. Access to electricity in Africa by urban and rural population 11 Figure 6. Government digital adoption vis-à-vis internet use 12 Figure 7. Regulatory environment for ICT in Africa vis-à-vis the world 13 Figure 8. Legal framework’s adaptability to digital technology in Africa vis-à-vis the world 15 Figure 9. Government digital adoption vis-à-vis regulatory environment for digital technology 16 in Africa Figure 10. Legislation on data protection, privacy and cybercrime in Africa vis-à-vis the world 16 Figure 11. ICT skills by type: Africa vs. world 18 Figure 12. Government digital adoption vis-à-vis digital skills in Africa 19 Figure 13. Government digital adoption vis-à-vis external accountability in African regions 21 Figure 14. Online provision of information by governments in Africa 29 Figure 15. Online information on laws and budgets in Africa 29 Figure 16. Right to information laws in Africa 30 Figure 17. Online and timely publication of budgets in Africa and the world 32 Figure 18. Online availability of budget documents, and budget transparency and oversight in 34 Africa Figure 19. Use of digital tools for publishing laws and regulations in Africa and the world 35 Figure 20. Online publication of laws and regulations and ease of doing business in Africa 36 Figure 21. E-procurement platforms in Africa and the world 38 Figure 22. e-GP adoption in Africa by function: pre-awarding phase 39 Figure 23. e-GP adoption in Africa by function: post-awarding phase and supporting features 40 Figure 24. Top e-GP functions with reforms underway or planned 41 Figure 25. e-GP and ease of doing business in Africa 44 Figure 26. e-GP and corruption in procurement in Africa 45 Figure 27. Use of e-filing or e-payments for taxes in Africa and the world 46 Figure 28. E-filing and number of tax payments in Africa 49 Figure 29. E-filing and corruption in taxation in Africa 51 Figure 30. Digital tools in land and property management in Africa 53 Figure 31. Online information on land procedures, maps and plans in Africa and the world 54 Figure 32. Digitalization of land registries and efficiency in registering property 55 Figure 33. Digital tools for business registration in Africa, by sub-region 56 Figure 34. Online business registration and time to start a business in Africa 57 Figure 35. Digital tools in court case management in Africa 59 Figure 36. E-court systems and efficiency in court case management in Africa 60 Figure 37. African countries with a government interoperability framework 66 Figure 38. Digital tools for citizen participation in public policies and services 70 Figure 39. Use of digital tools for public consultation of draft regulations in Africa and the 71 world Figure 40. Use of platforms for filing complaints in Africa 75 Figure 41. Preconditions for reporting corruption in Africa 76 Figure 42. Digital tools for anticorruption in Africa 79 Figure 43. Online firm information and corruption in Africa 81 >>> Tables Table 1. Summary of recommendations xx Table 2. The most common and costly abuses in ICT procurement in Africa and elsewhere 24 Table 3. E-filing and corruption in taxation in Africa 51 Table 4. Online filing of complaints and corruption in Africa 81 >>> Boxes Box 1. What is GovTech? 2 Box 2. Sources of data 4 Box 3. Sub-regions in Africa 5 Box 4. The Africa Digital Economy Governance and Anticorruption Program 6 Box 5. The Regulatory Watch Initiative 14 Box 6. Strengthening digital skills 17 Box 7. Recommended measures to combat corruption in ICT procurement in Queensland State 25 (Australia) Box 8. Use of digital tools during budget formulation in Sierra Leone 33 Box 9. Lessons learned from e-GP adoption in Rwanda 43 Box 10. Benefits and challenges of the newly introduced electronic court case system in Kenya 61 Box 11. Ghana’s platform for digital services and payments 63 Box 12. Lesotho’s biometric digital identification system, with mobile registration technology, 64 and forthcoming verification and authentication of identity Box 13. Ghana’s interoperability of all key back-office government systems, with shared data 67 center and shared services Box 14. Tunisia’s “e-People” multifunctional e-participation platform 72 Box 15. Lesotho’s digital Citizen Feedback Mechanism (CFM) for service delivery 73 Box 16. Kenya’s whistleblower platform for anonymous reports of corruption 78 >>> Executive Summary That digital technologies can be tools for better governance is widely accepted—the degree to which they can meet their potential in Africa in the near future is an open question. Are the countries in Africa caught in trap with digital progress limited by the very governance problems that such technologies could address? Or have they already progressed with large leaps forward? What are the factors that limit progress from being even faster? The first set of questions is not hard to answer. Many African countries are behind in their adoption of digital tools for better governance, but many others are doing well for their level of income. Rwanda, Kenya, Uganda, and South Africa are all further advanced in the adoption of digital tools for governance than many countries at the same level of income. Others, however, such as Equatorial Guinea are well below their income peers. This diversity of experience is the subject of this report. 1. PROGRESS IS APPARENT IN MANY AREAS, BUT IT IS OFTEN LIMITED TO BASIC FUNCTIONALITY AND SHARING OF INFORMATION Whether it is in the adoption of electronic government procurement (e-GP), land registration, or tax information, the adoption of interactive features has lagged significantly behind the basic functionality of using digital tools to provide information. Digital tools for filing, tracking, and paying court cases are only available in a few African countries, despite benefits in terms of efficiency in filing, serving, and settling court cases—and reducing corruption in the judiciary. Several African governments have adopted one-stop-shops for digital services and payments for both citizens and businesses. >>> Summary Figure A. Digital adoption: Basics are widespread, interactivity is not Countries using e-GP systems for Countries using e-GP systems publication and notification for tendering Present Not Present IBRD 47321 | IBRD 47322 | No Data JUNE 2023 JUNE 2023 Source: World Bank Global Public Procurement Dataset 2021. <<< xv As a region, Africa is also lagging behind in the use of digital using these tools to report the results of the public consultation. tools for public participation in public policies and services, with The online disclosure of information from enterprises, especially only a small number of African countries using digital tools for state-owned enterprises (SOEs), is also highly underutilized in soliciting public comments on draft regulations, and even fewer Africa as a tool to prevent corruption. >>> Summary Figure B. Digital tools for citizen participation in public policies and services 1.00 0.90 0.85 0.80 0.73 0.70 0.64 0.60 Score (0-1) 0.60 0.53 0.50 0.44 0.33 0.37 0.40 0.30 0.16 0.20 0.10 - E-Information Sharing E-Consultation E-Decision-making Africa Wo rld Europe Source: United Nations E-Government Survey 2020, E-Participation Index More than a third of African countries have digital tools for Similarly, e-GP adoption in Africa is associated with improved reporting corruption, such as the filing of a complaint through the efficiency for businesses, and lower corruption when internet website of the Ombudsman. Tools such as the online disclosure use is high and there are mechanisms to hold the government of the asset declarations of senior officials and civil servants, and accountable. the e-filing of such asset declarations, are rare in Africa, as are automated fraud and corruption detection tools. For taxes, the same pattern emerges: The adoption of e-filing or e-payments of taxes in Africa is associated with a lower number 2. COUNTRIES THAT HAVE ADOPTED DIGITAL of tax payments per year, reduced tax compliance costs, and TECHNOLOGIES FOR BETTER GOVERNANCE increases in the tax returns filed. African countries with e-filing of TEND TO HAVE BETTER OUTCOMES taxes and high internet use have a lower level of corruption, on average, related to taxes. For nearly all of the applications studied, the countries with more digital adoption are showing better outcomes in terms of governance. African countries that publish more budget documents online enjoy higher budget transparency and stronger oversight over the budget process. In the countries that publish laws and regulations on a unified website, businesses can, on average, start operations and operate more easily. xvi >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Summary Figure C. E-filing of taxes and corruption in taxation in Africa E-filing or e-payments E-filing or e-payments and internet use 60% 60% informal payments to tax officials informal payments to tax officials Firms expected to give gifts or Firms expected to give gifts or 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 0.0 0.2 0.4 0.6 0.8 1.0 No Yes E-filing or e-payments for at least one E-filing or e-payments for at least one tax interacted with population using tax internet (0-1) Sources: World Bank Enterprise Surveys, 2006-2020; World Bank Doing Business 2020; International Telecommunication Union, Country ICT Data, latest available as of May 2021 In the African countries with websites that allow users to file and even if they exist, the provisions of the laws generally complaints online, corruption is slightly lower on average, and do not guarantee the right to information. Some fundamental if they have high internet use, corruption is considerably lower. information for governance, such as budget information, and indeed the text of laws and regulations, are not always While the causality is certainly complicated—better governed available online. countries may find it easier to adopt digital tools—it stands to reason that the tools themselves do help bring about better governance outcomes such as lower levels of corruption, a more supporting business environment, greater participation, and others. 3. LAGGING PROGRESS IN DEVELOPING ANALOG COMPLEMENTS, SUCH AS INSTITUTIONS, REGULATIONS, AND SKILLS LIMITS THE ABILITY OF DIGITAL TOOLS TO SUPPORT GOVERNANCE. Mechanisms of external accountability, such as a free media and an independent judiciary, are generally weak although they are the foundations of open and transparent governance. Laws on access to information are lacking in many countries, <<< xvii >>> Summary Figure D. Right to information laws in Africa Countries with right to information laws adopted Rating of the qualities of the laws if adopted 124 52 IBRD 47331 | no data IBRD 47332 | JUNE 2023 JUNE 2023 Source: Center for Law and Democracy, Global Right to Information Rating, 2020. Danker shades correspond to higher assessed quality. Limitations related to skills are also limiting the adoption of digital adoption, and vice versa. However, several African digital tools for better governance. The level of education and countries face a significant shortage of digital skills, including digital skills in Africa is in line with the level of government countries with stronger government digital adoption. >>> Summary Figure E. Information and Communications Technology (ICT) skills by type: Africa vs. world 60 Percentage of youth/adults 50 40 30 (%) 20 10 0 Basic ICT skills Standard ICT skills Advanced ICT skills Africa Wo rld OECD: high income Source: United Nations, Sustainable Development Goals (SDG) Indicators, Indicator 4.4.1, 2014-2018 xviii>>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE The benefits that digital tools bring for governance are more ICT procurement. Digital antifraud technologies are barely visible in the countries with high internet use and strong used but could be implemented to improve outcomes in the mechanisms of external accountability. The benefits are also procurement and implementation of ICT systems. larger where governments adopt digital services in addition to providing information online. 6. PRIORITIES DEPEND ON THE COUNTRY, BUT NO COUNTRY SHOULD FALL VICTIM TO THE 4. THE DIGITAL DIVIDE BETWEEN URBAN PRIORITIZATION TRAP. AND RURAL AFRICA TRANSLATES INTO A GOVERNANCE DIGITAL DIVIDE WHICH ALSO This volume highlights a broad range of policy recommendations EXISTS BETWEEN THE HIGHER AND LOWER as summarized in Table 1. As a regional report, the relative EDUCATED, THE RICHER AND THE POORER, importance of each will depend on the country, on its relative AND MEN AND WOMEN. weaknesses, and on its stage of digital development. Some of the policy recommendations can be initiated immediately, and Internet use in Africa is low in absolute terms, and there are should be, such as strengthening the foundational guarantees significant digital divides between population groups. On of transparency and participation and building other analog average, only 26 percent of the population in Africa use the complements. Others may need to be sequenced: more internet, which is less than half the global average (54 percent). advanced functionality, such as interactive online services, Internet use is particularly low in the poorest countries in should perhaps come once basic information provision has Africa. While in high-income countries in Africa 61 percent of been achieved and sustained. But countries should take care the population use the internet, in middle-income countries it to avoid the “prioritization trap” in which progress in some is 34 percent and in low-income countries it is just 12 percent. areas are held back due to limited progress in other areas The large majority of the African population, especially the seen as priorities. There is always progress to be made even poorest, do not have easy access to governance-oriented when there are weaknesses in foundational areas.1 digital tools, even if they are provided by the government. A digital divide also exists between men and women in Africa, including divides in internet access and mobile phone access, and the use of internet to pay bills or buy online shows large gaps according to income. Access to electricity by the rural population (39 percent) is half of that by the urban population (78 percent), contributing to an urban-rural divide in access to digital tools that rely on electricity. 5. GOVERNANCE RISKS RELATED TO THE PROCUREMENT OF DIGITAL TECHNOLOGY EXIST BUT ARE NOT INSURMOUNTABLE. The procurement and implementation of Integrated Financial Management Information Systems (IFMIS) systems and other Information and Communications Technology (ICT) systems allow significant opportunities for fraud, waste, and abuse, but a number of good practices can help African governments reduce the risk of corruption during the ICT procurement process. Governments can also pay closer attention to agent fees, requirements, deliverables, and costs associated with 1. See also World Development Report 2016: Digital Dividends, p. 180 which outlines a classification system for public services amenable to digital technologies. <<< xix >>> Table 1. Summary of recommendations Summary of recommendations Issue Recommendations will depend on the country. Many African countries would benefit from the following: Laying the foundations • Ensure access to digital infrastructure, not only by government bodies and large firms, but by the Digital infrastructure population, as well. Continuing to work to ensure access to the internet, to electricity, and to mobile and complements networks, is needed for the digital economy generally, and also for the application of digital tools for better governance. • Develop and foster the digital skills necessary to run the digital economy and for the population Skills to benefit from it. Education, broadly, and technical education in areas that support ICT can help ensure continuing innovation and reduce risks of a digital divide. Regulatory • Foster a regulatory environment that is flexible and adaptive, while also providing necessary Environment protections in terms of data privacy and cybersecurity. • Nurture competition to ensure that it is not stymied by favorable or punitive treatments to certain Competition firms through taxation or state ownership. (See Volume 2: Governance of Digital for a detailed examination of these issues.) • Ensure the legislative framework supports the underlying principles of transparency and accountability. For countries lacking access to information legislation, or for whom such systems Foundational are weak, improving them must be a priority with or without digital technologies. This refers to guarantees of both generalized access to information laws and implementation systems and specific provisions transparency and related to relevant topics such as budget transparency, procurement transparency, income and participation asset declaration transparency, online availability of laws and regulations, disclosures of financial statements of SOEs, and others. • Have the confidence to strengthen independent institutions of accountability such as free and Analog foundations open media and independent and professional judiciaries. Ensure that fundamental protections for institutions of for whistle-blowers are in place and trusted. Pass the legislation, and instill the practice, of public accountability consultations on draft laws and regulations. Without these analog institutions, the ability for digital technologies to improve governance will be limited. Digital tools for providing information to the public • Incrementally expand the functionality of digital systems to move beyond simple provision of information toward interactive features. These are highlighted in the report for each section, for Provision of example the functions of e-GP systems that support greater interaction including in the post-award information phase. The background papers that informed the present report and the World Bank’s GovTech Global Partnership both provide useful guides on the development of such systems. • Move beyond simple publication of enacted budgets to also publicize budget proposals, audit Budget information reports, and others key documents related to the budget process. More generally, publish information when decisions can still be influenced, and not just when decisions are already taken. Laws and • Publish primary and secondary legislation online in a unified system that is up to date and reliable. regulations xx >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Summary of recommendations Issue (continued) Digital tools for streamlining the provision of government services • Incrementally expand the functionality of digital systems to move beyond simple announcement e-GP of procurements and tender awards to supporting greater interaction including in the post-award phase. Filing and paying • Develop and roll out the use of digital tools for filing and paying taxes, with due attention to security taxes and fraud protections. Land registrations • Roll out electronic systems, with appropriate safeguards, for registering property, registering systems; business businesses, management of land, and court management, as demanded by country circumstances. registration, and Incrementally expand functionality. court management • Bring administrative procedures together in one-stop shops and support the interoperability of One-stop shops systems. Digital tools for strengthening participation, accountability, and anticorruption Public participation • Use digital technologies to supplement traditional modes of consulting on draft laws, regulations, in policy making and major policy and planning initiatives. Citizen feedback on • Introduce mechanisms for citizens to provide feedback and complaints, including anonymously. services • Develop the capabilities and practices of using digital tools to uncover risks of fraud and detection Reporting and related to government procurement, social benefits, taxation, and others. The massive amounts detecting corruption of data generated by the digital revolution can be a valuable resource for detecting fraud and corruption, but skills and systems are needed to exploit this resource. Governance risks in public procurement of digital technologies Minimizing • Update approaches to the procurement of ICT to minimize risks of corruption and to optimize governance risks efficiency of the process. 7. REAPING THE GOVERNANCE BENEFITS taxation meeting its objectives? How are SOEs in the sector OF DIGITAL TECHNOLOGIES CALLS FOR governed? These and other questions are examined in Volume ATTENTION TO THE GOVERNANCE OF THE 2: Governance of the Digital Economy: “Regulating the digital DIGITAL ECONOMY. economy in Africa: managing old and new risks”. This volume is part of a larger project examining the promise and prospect of digital adoption for better governance in Africa. How has the governance of the digital economy progressed? Are the mechanisms for competition functioning well, and is <<< xxi 1 xxii >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE 1. >>> Introduction Digital technologies hold great promise for Africa. Around the world, digital technologies are helping to cut transactions costs for firms, streamline business services, and help connect people to markets. The COVID-19 pandemic and response have also highlighted the value of digital technologies for contract tracing and other public health responses, for coping with stay- at-home restrictions, for managing supply chains, and other purposes.2 Digital tools also hold promise for improving governance, providing new ways for enhanced citizen engagement, allowing greater accountability by strengthening “paper trails” and transparency, and reducing opportunities for corruption and rent seeking. These problems, while not new, have also been thrown into the spotlight by COVID-19.3 Africa’s governance challenge The countries in Africa are not alone facing governance challenges, nor in the need to confront corruption. At a time when headlines around the world draw attention to the problem of corruption in “developed” countries and the role of financial centers in facilitating corruption, the problem is clearly not Africa’s alone. In the recent Pandora Papers leak, the number of politicians from Sub- Saharan Africa (SSA) and Middle East and North Africa (MENA) combined was about the same as in Latin America and Caribbean (LCR), and 20 percent less than those in Europe and Central Asia (ECA).4 And the companies named in that leak were an even smaller fraction of those other regions. Consider also the number of cases under the US Foreign Corrupt Practices Act (FCPA): Of the 25 countries with the most FCPA cases, only four are on the African continent.5 While corruption is not unique to Africa, it is also undeniable that it is a hindrance for the development of many countries in Africa. According to firms in the World Bank’s Enterprise Surveys, one in three firms reported giving “gifts” to secure government contracts.6 Corruption scandals routinely make headlines in local media, and many people experience corruption in their daily lives. According to surveys conducted by Afrobarometer, the share of the population experiencing bribery ranges from 3 percent in Cabo Verde to 60 percent in Liberia. For the continent as a whole, people are more likely to perceive the problem as worsening than improving.7 2. Tania Begazo, COVID-19: We’re tracking digital responses worldwide. Here’s what we see. World Bank Digital Development Blog. May 5, 2020. 3. CAF. COVID-19: Digital Solutions to Prevent Corruption. CAF News, April 16, 2020. 4. International Consortium of Investigative Journalists data as reported in “Opening Pandora’s Box: What the Latest Leaks Mean for the World Bank’s Mission”. Washington, D.C.: World Bank Group. 2021. 5. Stanford Law School Foreign Corrupt Practices Act Clearinghouse, a collaboration with Sullivan & Cromwell LLP. Accessed March 9, 2022. 6. This fraction is smaller than that in South Asia (45 percent) and East Asia and Pacific (40 percent). World Bank Enterprise Surveys. Accessed March 9, 2022. 7. Christiaan Keulder, 2021. Africans see growing corruption, poor government response, but fear retaliation if they speak out. Afrobarometer Dispatch No. 4881 Nov. 10, 2021. INTRODUCTION <<< 1 Corruption is but one aspect of governance, and arguably a and connecting people to each other and to markets.” symptom of other problems as much as it is a problem in itself. Inclusive digital technologies are seen as key for the labor The Mo Ibrahim Index of African Governance tracks topics market and financial markets alike.10 such as participation, rights, inclusion, and the rule of law. These aspects of governance all have intrinsic value, as well The benefits of digitization for governance are well-studied as instrumental value. In the 2020 report, they found that the globally. The GovTech Global Partnership (GTGP)11, for foundations for economic opportunity and human development example, calls GovTech12 the “golden opportunity” for have been improving, while participation, rights, and inclusion developing countries, affording the potential to boost government have seen worsening in the past decade.8 This divergence efficiency, transparency, responsiveness, and citizen trust. The does not suggest the harmlessness of poor governance, 2020 GovTech launch report finds that “decades of research however, since the counterfactual is not known. How much on e-government, digital government and GovTech have shown faster and more inclusive might growth have been if there measurable impacts on governance dimensions of service were better opportunities for citizens and firms to participate in delivery, efficiency, accountability and corruption”.13 public matters, if stronger rule of law provided confidence and certainty in economic affairs, if all had confidence that taxes Even corruption, the bane of firms and citizens around the would be spent efficiently and with integrity? world, can be mitigated with the introduction of digital tools. The World Bank’s 2020 report Enhancing Government Effectiveness and Transparency: The Fight Against Corruption Can digitization help? highlights the different ways in which the use of digital technology by governments can contribute to prevent and detect corruption. Digital technology can improve transparency, Digitization is widely seen as a boon for development— simplify bureaucratic procedures, limit the discretion of public building up the digital economy is a priority area for the officials, and provide near real-time feedback to expose illicit World Bank’s support to Africa:9 “From mobile money to behavior. For several public sector management areas, digital drones, the digital economy in Africa is driving growth and technology has been used to “disrupt” fraud and corruption.14 innovation, bringing more people into the formal economy BOX 1. WHAT IS GOVTECH? The GovTech Global Partnership, established by the World Bank and partner institutions in 2019, defines GovTech as a whole of government approach to public sector modernization. GovTech emphasizes three aspects of public sector modernization: citizen-centric public services that are universally accessible, a whole-of-government approach to digital government transformation, and simple, efficient and transparent government systems. Other organizations have also used the term GovTech, with slightly different areas of emphasis. The InterAmerican Development Bank refers to Govtech ecosystems in a way that emphasizes the entrepreneurial community; ecosystems composed of startups, scale-ups, and digital SMEs with solutions developed for public institutions. The Development Bank of Latin America and Oxford Insights similarly emphasize start-ups, referring to GovTech ecosystems as tech-based, data-driven startups that contribute to government capabilities for service delivery. The 8. Mo Ibrahim Index of African Governance. 2020. Africa’s Governance Performance Declines for the First Time in a Decade. 9. World Bank Group, Supporting Africa’s Transformation: World Bank Africa Strategy for 2019–2023. 10. Jieun Choi, Mark Dutz, and Zainab Usman. 2020. The Future of Work in Africa : Harnessing the Potential of Digital Technologies for All. Africa Development Forum. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/32124 License: CC BY 3.0 IGO.” 11. The GovTech Global Partnership is a multi-stakeholder initiative that includes advanced and aspiring GovTech countries, development partners, private sector, academia, civil society and others involved in the GovTech domain. 12. GovTech is a whole-of-government approach to digitalization that promotes simple, transparent and efficient government. GovTech supports digital transformation to deliver simple, transparent and universally accessible services, promote civic participation, accountability and trust, and modernize core government operations. 13. World Bank, 2020. GovTech Launch Report and Short-Term Action Plan. EFI Insight-Governance. Washington, DC: World Bank. 14. Similarly, the World Economic Forum (WEF) 2020 report on “Hacking corruption in the digital area: How tech is shaping the future of integrity in times of crisis” stresses the importance of digital technology for fighting corruption. According to the report, “tech is the most promising driver of integrity”. The report explains that tech-based solutions enable transparency, and powered by data and behavioral insight, are disrupting corruption risks and boosting integrity systems. Tech and data can also be used to better detect, reveal, and deter corruption. Importantly, tech innovations are accelerating new forms of accountability based on the smarter exploitation of big data and fostering partnerships for integrity. 2 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE World Economic Forum defines GovTech as a public-private partnership between governments and tech-related startups to unravel public problems. In this report, GovTech will be used in the sense outlined by the GovTech Global Partnership, emphasizing a whole of government approach to public sectors modernization. At times, specific applications of digital tools will also be referred to as GovTech tools, although this is for convenience. A true whole of government approach emphasizes aspects of digital adoption that go beyond specific applications, such as interoperability and data infrastructure. Sources: World Bank (2022) GovTech: Putting People First. IADB (2021) Govtech Ecosystems in Latin America: innovation focused on improving services to citizens. CAF, Development Bank of Latin America (2021) GovTech is Here to Stay. World Economic Forum (2019) Here’s how tech can help governments fight corruption. The World Development Report (WDR) 2016 on Digital This report explores the promise of digitization for better Dividends also argued that the use of digital technology by governance in Africa. It is the first of two volumes summarizing governments can expand political participation, advance voice, findings from the Africa Digital Economy Governance and and improve public sector capability. Potential benefits include Anticorruption program. increased efficiency and productivity in tax, customs and public financial management, more competition in procurement processes, improved efficiency in service delivery, improved Data and stories monitoring of the performance of public sector workers, and the opportunity for citizens to give specific feedback quickly. To examine the relationship between digital tools and governance, the report draws on a number of sources. Many The 2016 World Development Report also cautioned that of the qualitative stories of digital adoption draw on the World reaping those “digital dividends” was not a simple matter, but Bank’s Digital Economy for Africa Country Diagnostics 2019- one that relied on analog complements. Other cross-country 2020. To provide some analytical findings, the report also studies also point to the need to complement government draws on data compiled from existing sources. The data was digital adoption with stronger institutions to maximize its compiled into a single database with three blocks: government impact on better governance or even to have an impact at all.15 digital tools, complements to government digital adoption, and The relationship between digital adoption and governance is governance and institutions. circular and can be mutually reinforcing. The most recent data was used whenever possible and The potential for digital technologies for better governance composite indicators were generally avoided. The preference has also been highlighted in the context of global and of this report has been for indicators that are as specific as regional agreements.16 At recent Regional Conference of possible, so as to be able to analyze issues in detail. There Heads of Anti-Corruption Agencies in Commonwealth Africa was also a preference for outcome indicators based on the in Rwanda, the Secretary General opened, “We can win the views and experiences of citizens and enterprises. Because war against corruption through collaboration, cooperation of data availability, expert assessments were used for many and a Whole-of-the-Commonwealth approach using the parts of the report, for example expert assessments of the transformative technologies”. qualities of e-GP systems. 15. Sources include: Setyobudi, Christian RA; Setyaningrum, Diah. 2019. “E-government and corruption perceptions index: A cross-country study”. Jurnal Akuntansi dan Auditing Indonesia 23 (1) Juni 2019. Nascimiento, João Carlos Hipólito Bernardes do; Macedo, Marcelo Alvaro da Silva; Siqueira, José Ricardo Maia de; Rabelo Neto, Alexandre. 2019. “Government corruption and Internet access diffusion: global evidence”. Revista de Administraçao Pública, 2019, vol.53, n.6, pp.1011-1039. Hyun Park, Chul; Kim, Koomin. 2018. “E-government as an anti-corruption tool: Panel data analysis across countries”. International Review of Administrative Sciences, November 2018. Máchová, Renáta; Volejníková, Jolana; Lnenicka, Martin. 2018. “Impact of e-government development on the level of corruption: Measuring the effect of related indexes in time and dimensions”. Review of Economic Perspectives, vol. 18, issue 2, 2018, pp- 99-121. Knack, Stephen; Biletska, Nataliya; Kacker, Kanishka. 2017. “Deterring Kickbacks and Encouraging Entry in Public Procurement Markets: Evidence from Firm Surveys in 88 Developing Countries”. Policy Research Working Paper No. 8078. World Bank, Washington, DC. Kochanova, Anna; Hasnain, Zahid; Larson, Bradley. 2016. “Does E-Government Improve Government Capacity?: Evidence from Tax Administration and Public Procurement”. Policy Research Working Paper No. 7657. World Bank, Washington, DC. Elbahnasawy, Nasr G. 2014. “Government, Internet Adoption and Corruption: An Empirical Investigation”. World Development, vol. 57, May 2014, pages 114-126. Kim, Chon-Kyun. 2014. “Anti-Corruption Initiatives and E-Government: A Cross-National Study”. Public Organization Review, 2014, vol. 14, issue 3, 385-396. 16. See, for example, the G20 High-Level Principles for Promoting Public Sector Integrity Through the Use of Information and Communications Technologies (ICT). And the United Nations Convention Against Corruption obliges states parties “to cooperate within their means to respond to offences covered by this Convention committed through the use of modern technology.” INTRODUCTION <<< 3 Some of the data presented in this report does not come from is the case, for example, for some of the indicators from the the list of standard indicators of the original source, but rather World Bank Doing Business 2020 and the Africa Integrity were constructed based on supplementary information. This Indicators 2020.17 BOX 2. SOURCES OF DATA • Afrobarometer Survey 2014-2015. • Center for Law and Democracy, Global Right to Information Rating, 2020 • Global Integrity Africa Integrity Indicators 2018, 2020 • International Budget Partnership Open Budget Survey 2021 • International Telecommunication Union Country ICT Data 2021 • International Telecommunication Union ICT Regulatory Tracker 2020 • Open Data Watch Open Data Inventory 2018-2019 • Transparency International Global Corruption Barometer for Africa 2019 • United Nations Conference on Trade and Development Global Cyberlaw Tracker 2020 • United Nations Sustainable Development Goals Indicators 2014-2018 • United Nations E-Government Survey 2020 • World Bank Doing Business 2020 • World Bank Enterprise Surveys 2006-2020 • World Bank Global Indicators of Regulatory Governance 2018 • World Bank GovTech Maturity Index 2022 • World Bank Survey on e-GP implementation in Africa 2021 • World Bank Sustainable Energy for All database 2018 • World Economic Forum Executive Opinion Survey 2018-2019 The report explores how these indicators of the use of digital Roadmap for the report tools for better governance correlate with better outcomes, such as lower levels of corruption. Clearly, the causality can Chapter 2 provides an overview of progress in government be complex, with less corrupt places being able to implement digital adoption in Africa, and the impact it has had on digital solutions more easily, for example, or with both good governance. It also looks at progress in establishing digital adoption and lower integrity influenced by some third important complements to government digital adoption, such factor, such as good leadership or historical factors. But the as digital infrastructure, digital institutions, digital skills, and correlations, where they exist, may also reflect the instrumental mechanisms for accountability. The chapter explores the role of digital technologies in improving those outcomes. The status of these complements in Africa in absolute terms and charts in the report depict the values of the various indicators relative to the level of digital adoption by governments. It tries and simple correlations are described in the text, but the report to assess whether these complements are missing in Africa as stops short of econometric analysis. The dataset is available a whole, in certain sub-regions of Africa, or in specific African for those who wish to conduct econometric analysis controlling countries. The chapter also tries to identify cases in which the for various endogeneities and confounders. complements are strong, but digital adoption is weak. 17. As the Doing Business study has been the subject of some controversy, it is worth pointing out that the report focuses on objective measures about the use of digital tools collected as part of the Doing Business effort, not the overall Doing Business rankings, and only as part of a larger set of data from some 18 sources. The recent evaluation by the Independent Evaluation Group drew some lessons, most of which (on collection, use in dialogue, etc.) are not pertinent here. The one that is pertinent emphasizes using the indicators in conjunction with others. “Recognizing the powerful motivational effect of reform indicators, this evaluation notes the limitations in the coverage and guidance offered by any single indicator set on its own and advocates integrating them with complementary analytic tools and indicators.” World Bank, 2022. The Development Effectiveness of the Use of Doing Business Indicators, Fiscal Years 2010-20 - An Independent Evaluation. Washington, DC: World Bank Group. 4 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Chapter 3 explores the governance risks associated with provision of information to the public, focusing specifically on the public procurement of ICT in Africa and proposes some transparency of budget documents and publication of laws measures and concrete actions to mitigate them. and regulations. Succeeding chapters examine the use of digital tools by Chapter 5 focuses on tools that streamline the provision of governments in Africa for three different governance purposes. government services and automatize interactions with the This part of the report builds not only on cross-country data, public. This chapter pays particular attention to the adoption of but also country stories that illustrate some of the challenges e-government procurement (e-GP), as well as digital tools for faced by African countries in the adoption of digital tools, and filing and paying taxes, land registration, business registration, the benefits from adopting them. Chapter 4 examines the and judicial systems. The chapter also looks at digital BOX 3. SUB-REGIONS IN AFRICA Africa is a large continent. To explore patterns that go beyond national borders, this report sometimes presents data grouped by sub-regions following the United Nations “Standard Country or Area Codes for Statistical Use”. The report refers to “Sub-Saharan Africa” only when needed due to an original citation or a specific grouping of countries used by international organizations. Northern Africa Northern Africa Central Africa Central Africa Western Africa Western Africa Southern Africa Southern Africa Eastern Africa Eastern Africa IBRD 47333 | JUNE 2023 identification systems and online one-stop shops. Chapter 6 examines the use of digital tools for strengthening participation and accountability, including digital tools for reporting and detecting corruption. Finally, Chapter 7 summarizes the main findings of the report. INTRODUCTION <<< 5 2 BOX 4. THE AFRICA DIGITAL ECONOMY GOVERNANCE AND ANTICORRUPTION PROGRAM This report is part of a broader effort to support Africa’s ambitions to take advantage of the digital revolution to improve governance. The main objectives are to document digital tools that can expand the development impact of the digital economy on governance and to identify critical governance risks that can dampen the effect of digital technology adoption. Volume 1. Volume 2. Digital Tools Governance for Better of the Digital Governance Economy The present report, Volume 1: Digital for Governance, builds on regional and global work related to the use of digital technologies by governments in order to strengthen governance and reduce the space for corruption. The companion report, Volume 2: Governance of Digital, analyses risks related to economic governance along the digital value chain with focus on digital infrastructure and data regulation as enablers for the digital economy in Africa. • Characteristics and outcomes of digital markets in Africa. (International Connectivity; Fiber networks for backbone and metro connectivity; Fixed broadband retail; Telecom towers; Mobile retail; Mobile Money; Data centers; Digital services) • An overview of the public institutions that set rules on digital markets in Africa, the actors that support economic governance of digital • Addressing old economic governance risks for digitalization: channeling resources to the state through taxation and direct participation in markets • Addressing new governance risks for digitalization: safeguarding users through data and competition rules • Strengthening economic governance of the digital economy The two volumes are based on detailed studies of various aspects of the digital economy and governance in Africa. These background studies, which are also publicly available, provide considerable detail on topics such as: • Procurement of Information and Communications Technologies (ICT) in Africa. • Adoption of e-Government Procurement (e-GP) in Africa • Vulnerabilities of ICT Procurement to Fraud and Corruption • Regulating Digital Data in Africa • Taxes and Parafiscal Fees on Digital Infrastructure Services in Africa • Corporate Governance and Transparency of State-Owned and State-Linked Digital Enterprises in Africa • State-Owned Enterprises in Digital Infrastructure and Downstream Digital Markets in Africa • Antitrust and Competition Advocacy for Digital Markets in Africa • Competition Policy in Digital Markets in Africa 6 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE 2. >>> Progress in the adoption of digital tools and complements for better governance Before examining specific applications of digital tools for better governance, some context is needed. How far along are African countries in developing those digital applications? Are the analog foundations in place maximizing the impact of digital tools for better governance? At the broadest level, are digital government solutions associated with better governance outcomes? Digital adoption by government and its impact on good governance Based on the World Bank’s GovTech Maturity Index,18 African countries have a lower level of digital public services, but not unusually so for their levels of income per capita, which are also among the lowest, on average, in the world. (Figure 1) Some African countries have much higher levels of digital adoption for governance than countries in other regions at the same level of income. 18. The World Bank’s GovTech Maturity Index (GTMI) covers four focus areas—supporting core government systems, enhancing service delivery, mainstreaming citizen engagement, and fostering GovTech enablers. The Figure is based on the overall GTMI. PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 7 >>> Figure 1. Government digital adoption vis-à-vis income level in the world Sources: World Bank GovTech Maturity Index 2022; World Bank World Development Indicators. Note: African countries are denoted by three-letter country codes. Countries in other regions are simply marked “x”. Within Africa, the association between the level of income and Among all the African sub-regions, the northern and eastern government digital adoption also shows anomalies. Some regions have achieved the highest level of adoption of digital African countries with the highest levels of income, such as tools by government, as measured by the GTMI . Although Libya and Equatorial Guinea, have very weak government the progress of these sub-regions is remarkable, they are digital adoption. In contrast, some of the countries with low still short of the global average. The central sub-region of levels of income, such as Rwanda and Uganda, are among the Africa has the lowest level of digital adoption, with a large gap strongest performers in Africa on the GTMI. This suggests that compared to southern Africa (Figure 2). in Africa, as elsewhere, there are major drivers of government digital adoption apart from income. 8 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Figure 2. Government digital adoption within Africa By sub-region By income group 0.60 0.8 GovTech Maturity Index 2022 GovTech Maturity Index 2022 0.50 0.7 0.40 0.6 0.30 0.5 0.4 0.20 0.3 0.10 0.2 0.00 0.1 a ca a a a ric ric ric ric fri Af Af Af Af 0.0 lA rn rn th n tra er LIC Lower MIC Upper MIC HIC or te he en st es N ut Ea C W So Source: World Bank GovTech Maturity Index 2022 Although subsequent chapters will examine governance with assessments of the ease of doing business. The Online outcomes in more detail, it is worth exploring how the overall Service Index includes both online information services and level of government digital adoption correlates with governance. online transactional services, and both are highly correlated In fact, the adoption of digital tools by governments in Africa is with the Ease of Doing Business Index.19 Indeed, the associated with better governance along several dimensions. correlation is somewhat stronger for the measure covering Digital adoption by governments in Africa, as measured by the online transactions showing the value of going beyond simple UN Online Service Index is strongly and positively correlated provision of information (Figure 3). >>> Figure 3. Government digital adoption and efficiency and transparency in Africa Online information only Online information and online services 100 100 Ease of Doing Business (0-100) Ease of Doing Business (0-100) 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Open Government Development Online Service Index (0-1) Index (0-1) Sources: United Nations E-Government Survey 2020; World Bank Doing Business 2020 19. The OGDI measures the policy and institutional framework for open government data (OGD), the existence of OGD portal and features, and data availability in various sectors (such as health, education, employment, social security, environment and justice) and data application (such as through organizing hackathons). PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 9 What about corruption, the bane of development?20 finding is obtained when digital adoption is interacted with Government digital adoption in Africa is associated with measures of independent media and judiciary oversight from lower corruption, based on reported experiences of both the Africa Integrity Indicators.21 This suggests that in Africa citizens and enterprises. It is worth noting that the impact internet use and independent oversight over the government that online technologies can have on governance outcomes contribute to a stronger relationship between digital adoption depends on how much the population has access to them. by government and lower corruption. Put another way, in The correlation between government digital adoption and the absence of independent oversight, digital tools are less corruption in Africa becomes even stronger when digital effective for controlling corruption. adoption is interacted with internet use (Figure 4). The same >>> Figure 4. Government digital adoption and corruption in Africa Corruption experienced by citizens Corruption experienced by firms 1 100 Firms experiencing at least one bribe 0.9 90 0.8 80 Total bribery rate (0-1) payment request (%) 0.7 70 0.6 60 0.5 50 0.4 40 0.3 30 0.2 20 0.1 10 0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 - GTMI-Public Service Delivery Index 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 GTMI -Public Service Delivery Index 1 100 0.9 90 0.8 80 Total bribery rate (0-1) Firms experiencing at least one bribe 0.7 70 0.6 60 payment request (%) 0.5 50 0.4 40 0.3 30 0.2 20 0.1 10 0 - 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 GTMI-Public Service Delivery Index interacted with Population Using GTMI-Public Service Delivery Index Internet interacted with Population Using Internet Sources: World Bank GovTech Maturity Index 2022; Transparency International, Global Corruption Barometer, Africa 2019; World Bank Enterprise Surveys, 2006-2020; International Telecommunication Union, Country ICT Data, latest available as of May 2021. 20. An excellent recent summary of the literature on this question can be found in Carlos Santiso, 2022, “GovTech against corruption: What are the integrity dividends of government digitization?” Data & Policy, Volume 4. 21. The measures used are: “Media without prior government restraint or censorship” and “Judiciary independence guaranteed in practice”. 10 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Laying the foundation of digital African population, especially the poorest, do not have easy access to many governance-oriented digital tools, even if they infrastructure, institutions, and are provided by the government. The picture is somewhat other analog complements different when it comes to mobile cellular networks. For the continent as a whole, 86 percent of the population has access As seen from the examples in the previous sections, to take to mobile cellular networks. Digital tools for governance that advantage of governance-oriented digital tools requires more rely on mobile do not face as stark a set of divides as that of than the tools themselves: The digital infrastructure and internet usage. enabling regulatory environment are both widely recognized as necessary complements to government digital adoption.22 While there are many reasons for the low rate of internet Similarly, digital skills are needed to take advantage of digital usage, one is fundamental: access to electricity is very weak. tools and employing those tools for better governance needs In Africa, access to electricity reaches 55 percent of the to rest on institutions of accountability. How do countries in population, on average, while it reaches 90 percent for the Africa compare along these dimensions? world as a whole. Importantly, there is a large gap in access to electricity between the urban and the rural population in Africa. Access to electricity by the rural population (39 percent) is INTERNET AND MOBILE half of that by the urban population (78 percent). The gap is AVA I L A B I L I T Y even larger in the east, west and central subregions. The rural population in Africa is at a big disadvantage when it comes to Internet use in Africa is low in absolute terms, and there are access to government digital tools. significant digital divides between population groups. Internet use can provide a good indication of the level of internet access by the population, even if it reflects other factors, as For more details, see Volume 2, “Regulating the Digital well. On average, only 26 percent of the population in Africa Economy in Africa: Managing old and new risks” and use the internet, which is less than half the global average (54 the technical background papers that informed that percent). Internet use is particularly low in the poorest countries study. In addition, see the Broadband Commission for in Africa. While in high-income countries in Africa 61 percent Sustainable Development’s “Connecting Africa Through of the population use the internet, in middle-income countries Broadband: A strategy for doubling connectivity by 2021 the percentage is 34 percent and in low-income countries it and reaching universal access by 2030”. is just 12 percent. This means that the large majority of the >>> Figure 5. Access to electricity in Africa by urban and rural population Africa vs. World Sub-regions in Africa 100 100 Percentage of the population Percentage of the population with access to electricity (%) with access to electricity (%) 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Northern Eastern We stern Central Southern Africa Wo rld Africa Africa Africa Africa Africa Urb an Rural Urb an Rural Source: World Bank, Sustainable Energy for All (SE4ALL) database, 2018 22. As noted by the World Development Report (WDR) 2016 on Digital Dividends, “with greater internet use in a country, the scope for digital engagement (of governments) with citizens also increases”, and that “as long as access is not universal, there is a risk of leaving those unconnected behind”. PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 11 A digital divide also exists between men and women in Africa. digital gaps in Africa between the male and female population, Based on data from the Economist Intelligence Unit for 26 and between the younger and older population, although they African countries, the gender gap in internet access in Africa are smaller. These digital divides along gender and income (26 percentage points) is twice as high as in the world on dimensions translate into a governance digital divide. average (13 percentage points). The gender gap in mobile phone access in Africa (11 percentage points) is significantly While internet use remains low in the African continent, lower than the gender gap in internet access, but it is still compared to other world regions, the level of internet use is higher than in the world on average (6 percentage points). in line with the level of government digital adoption, and vice versa. Africa has a considerably lower level of government The World Bank Findex data on the use of internet to pay bills digital adoption than South Asia, but about the same level or buy online provides some additional insights into the digital of internet use as this other world region. Within Africa, divide in Africa. Based on the 40 African countries with available some sub-regions and individual countries are making data, the largest digital gap is between the population with considerable investments relative to the level of internet use. secondary education or more and the population with primary In the eastern and western sub-regions, where internet use education or less. While 13 percent of the population with is very low, many governments are heavily investing in digital secondary education or more use the internet to pay bills or technology. In contrast, in northern Africa, where internet use buy online, this is the case for only 4 percent of the population is more than double than in the rest of the continent, several with primary education or less. The second largest digital gap governments are adopting little digital technology. In fact, the is between the richest 60 percent and the poorest 40 percent. diversity among countries in northern Africa is striking, with The share of the richest who use the internet to pay bills or buy some countries very advanced in terms of government digital something online (10 percent) is twice as high as that of the adoption (Tunisia, Morocco, Egypt). poorest (5 percent). The Findex data shows that there are also >>> Figure 6. Government digital adoption vis-à-vis internet use In the world In Africa 1.00 0.60 Northern 0.90 Eastern Africa OECD 0.50 Africa Southern 0.80 ECA HIC Africa GovTech Maturity Index GovTech Maturity Index 0.70 SA Western MNA 0.40 LAC Africa 0.60 EAP 0.50 0.30 Central SSA Africa 0.40 Africa 0.20 0.30 0.20 0.10 0.10 0.00 0.00 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 Population using internet (%) Population using internet (%) Sources: World Bank GovTech Maturity Index 2022; International Telecommunication Union, Country ICT Data, latest available as of May 2021 12 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE S U P P O RT I N G R E G U L AT I O N an overview of how the ICT regulatory environment in Africa compares with other parts of the world. In addition to the digital infrastructure, the institutional environment for digital technology is an important enabler The overall ICT regulatory environment in Africa is not very of digital government.23 The GovTech Global Partnership different from the rest of the world, but Africa is lagging includes “an enabling regulatory environment” as one of the behind in the regulatory regime, competition framework and four critical analog complements for the digital technology some specific modern aspects. Based on the ICT Regulatory transformation of the public sector, and produces a measure Tracker25 of the International Telecommunication Union, the called the GovTech Enablers Index to capture this important overall regulatory environment for ICT in Africa is somewhat dimension of policy.24 Similarly, the GovTech Index of the similar to the rest of the world. Africa gets an overall score of Inter-American Development Bank (IADB) includes the 70, while the global average is 74, on a scale ranging from “policy environment” as one of the two components of the 0 to 100. On aspects of regulatory authority and regulatory Government Pillar of the Index. The Regulatory Watch mandates, Africa is slightly above the global average, while Initiative (RWI) tracks regulation along several dimensions for on aspects of regulatory regime and competition framework a growing number of African countries (Box 5). for the ICT sector, Africa is just slightly below. However, when compared to Europe, it is clear that Africa has significant room The companion volume to this report examines several for improvement of its regulatory regime and competition aspects of regulation in more depth. This section provides framework (Figure 7). >>> Figure 7. Regulatory environment for ICT in Africa vis-à-vis the world 100 90 ICT Regulatory Tracker Score 80 70 60 50 (0-100) 40 30 20 10 0 Regulatory Authority Regulatory Regulatory Regime Competition Ma ndates Fra mework Africa Wo rld Europe Source: International Telecommunication Union, ICT Regulatory Tracker and Global ICT Regulatory Outlook 2020 23. Regulations are among the three analog complements for a digital economy identified in the WDR 2016. According to the WDR, regulations that encourage competition also facilitate higher adoption of digital technologies. The companion to this report, Governance of the Digital Economy, will examine competition and its barriers in greater detail. 24. The GovTech Enablers Index is part of the GovTech Maturity Index. 25. The ICT Regulatory Tracker measures four aspects of ICT regulation: regulatory authority (focusing on the functioning of the separate regulator), regulatory mandates (who regulates what), regulatory regime (what regulation exists in major areas) and the competition framework for the ICT sector (level of competition in the main market segments). The indicator ranges from 0 to 100. PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 13 The World Economic Forum’s (WEF) executive opinion survey robotics, app- and web-enabled markets, big data analytics, provides further information on the adaptability of the legal and cloud computing. framework to specific aspects of digital technology. One of these indicators focuses on digital business models, such Based on the African countries with available data, the as e-commerce, sharing economy, and fintech, providing an adaptability of the legal framework to digital business models indication of whether there is an enabling environment for in Africa is below but not far from the global average.26 In digital platforms. The other indicator from the WEF’s opinion contrast, the adaptability of the legal framework to emerging survey focuses on the adaptability of the legal framework to five technologies in Africa is still quite weak. types of emerging technologies, namely artificial intelligence, BOX 5. THE REGULATORY WATCH INITIATIVE The Regulatory Watch Initiative (RWI), a flagship product of the World Bank’s Community of Practice on Regulation, provides an easy-to-use and effective platform for advising World Bank operations across sectors and guiding regulatory reform nationally and regionally. It currently covers regulatory practice across 27 countries located in the western Africa, eastern Africa and Mediterranean MENA regions. The RWI has highlighted several stylized facts: • Licensing: The openness of license regimes is critical for the development of broadband, namely competitive and transparent bidding processes and overall information transparency. • Spectrum: No spectrum scarcity exists in either the 2G/3G frequencies or the digital dividend bands in the countries under study. However, due to lack of assignment of these frequencies by regulators, there is significant pent-up demand for access to spectrum from operators combined with a reluctance to commit millions of dollars in spectrum fees in advance. • International access: The development of open regulatory frameworks and the strict enforcement of wholesale regulation of national and international connectivity is even more crucial in countries with geographical disadvantages. • Fair markets: Any “anti-Over the Top (OTT)” regulatory measures, such as blocking access or taxation, had dramatic negative effects on market development as a whole. • Regulatory governance: The approach to universal service funding varies greatly between countries. Only a handful of countries have modern definition of Universal Service or have defined and implemented concrete funding mechanisms. Source: Jerome Bezzina Lara Srivastava (2021) “Promoting digital development through best practice and data-driven regulation” World Bank Digital Development blog. April 22, 2021. Northern Africa performs significantly better than the other standouts in Africa on the legal framework for digital business African subregions on the legal framework for emerging models are Rwanda, Seychelles and Kenya, and the standouts technologies, while central Africa is lagging behind in the legal on the legal framework for emerging technologies are South framework for both digital business models and emerging Africa, Algeria, Egypt, and Rwanda. technologies. As perceived by business executives, the 26. World Economic Forum Executive Opinion Survey 2018-2019 14 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Figure 8. Legal framework’s adaptability to digital technology in Africa vis-à-vis the world 100 Average score (0-100) 90 80 70 60 50 40 30 20 10 0 Emerging technologies Digital business models Africa Wo rld Wo rld 's top performer Source: World Economic Forum, Executive Opinion Survey 2018-2019, published on The Global Competitiveness Report 2019 and The Network Readiness Index 2020 In Africa, a strong regulatory environment for digital technology data protection authorities also need to be established with the is associated with strong government digital adoption. There capability to enforce such rules in relation to digital markets. are no countries in Africa with a very weak overall ICT regulatory environment and yet strong government digital Cybercrime legislation has been adopted in many African adoption. Conversely, there are no countries in Africa with countries. The large majority of African countries (72 percent) a very strong overall ICT regulatory environment and weak have already adopted such legislation, and a slightly larger government digital adoption. This suggests that the digital share of them (76 percent) have either adopted or drafted regulatory environment can be seen as a necessary condition it. The adoption rate in Africa is not very different from the for widespread digital adoption. adoption rate in the world as a whole (79 percent). Importantly, many countries in Africa still need to develop a regulatory framework to ensure privacy in online activity. Legislation on data protection and privacy has been adopted For more details, see Volume 2, “Regulating the Digital in half of the countries in Africa. The adoption rate in Africa Economy in Africa: Managing old and new risks” and the is significantly lower than in the world, where on average technical background papers that informed that study. about two thirds of countries have adopted such legislation. Nevertheless, when countries with draft legislation are also taken into account, the picture in Africa changes considerably. In total, about two thirds of countries in Africa have either adopted or drafted legislation on data protection and privacy. It is important to note, however, that in addition to legislation, PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 15 >>> Figure 9. Government digital adoption vis-à-vis regulatory environment for digital technology in Africa Overall regulatory environment for ICT Regulatory environment for digital business models 1.00 1.00 0.90 0.90 GovTech Maturity Index GovTech Maturity Index 0.80 0.80 0.70 0.70 0.60 0.60 0.50 0.50 0.40 0.40 0.30 0.30 0.20 0.20 0.10 0.10 0.00 0.00 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 ICT Regulatory Tracker: Overall Score Legal framework's adaptability to (0-100) digital business models (0-100) Sources: GovTech Maturity Index 2022; International Telecommunication Union, ICT Regulatory Tracker and Global ICT Regulatory Outlook 2020; World Economic Forum, Executive Opinion Survey 2018-2019, published on The Global Competitiveness Report 2019. Eastern and southern Africa have low adoption rates of data countries have drafts of such legislation, while in southern protection and privacy legislation, with 27 percent and 40 Africa, 60 percent of the countries have drafts. If all countries percent, respectively. Interestingly, these two subregions are with the draft legislation end up adopting it, the current also the ones with the strongest levels of government digital imbalance with digital adoption would be largely corrected, adoption in Africa. Without an adequate legal framework for and many of the risks associated with it ameliorated. online privacy, these subregions face the risks of low usage of their wide range of government digital tools and invasions Finally, other aspects of the regulatory environment are also of privacy. important. These include the establishment of competition authorities and enactment of competition rules that are Encouragingly, the situation in these subregions seems to be implemented, as well as consumer protection rules prohibiting changing, as many countries are drafting legislation on data misleading commercial practices in digital markets. These and protection and privacy. In eastern Africa, 40 percent of the other topics are examined in Volume 2 of this study. >>> Figure 10. Legislation on data protection, privacy and cybercrime in Africa vis-à-vis the world Data protection and privacy (adopted) Data protection and privacy (adopted or draft) Cybercrime (a dopted) Cybercrime (adopted or draft) 0% 20% 40% 60% 80% 100% Percentage of countries with legislation Africa Wo rld Source: UNCTAD Global Cyberlaw Tracker 2020 16 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE D I G I TA L S K I L L S digital transformation of the public sector. The Partnership acknowledges that in developing countries many citizens lack Another critical analog complement for the adoption of basic digital skills and literacy, and that these issues should digital tools is the extent of digital skills in the economy. In shape GovTech project design, together with other aspects the framework of the World Development Report on Digital such as connectivity and access to devices. The objective of Dividends, skills are among the three necessary analog the Partnership is to ensure the technological transformation complements for a digital economy. The WDR makes the of governments is inclusive and does not exacerbate existing point that skill upgrading by workers, entrepreneurs, and divides. The World Bank’s DE4A initiative provides resources civil servants is necessary so that all can benefit from digital for countries wishing to strengthen their digital skills (Box 6). opportunities. The report warns that without the required skills, there is a risk that digital technology exacerbates The UN approach to e-government also attaches a lot socioeconomic disparities. Rigorous evidence remains limited, of importance to skills. Human capital is one of the three but it suggests that most gains from digital technology accrue dimensions of the E-Government Development Index (EGDI). disproportionally to the better educated. However, the EGDI does not capture the specific skills for digital technology, as the human capital component measures “Skills to use the technology” are considered by the GovTech general literacy, schooling years and school enrollment. Global Partnership as a critical analog complement for the BOX 6. STRENGTHENING DIGITAL SKILLS Countries wishing to strengthen their digital skills have a valuable resource in the World Bank’s Digital Economy for Africa #DE4A guidebook Digital Skills: The What, the Why, and the How. The guidebook supports country planning teams to develop plans through a systematic assessment of the current and expected changes in demand for digital skills at various levels as well as of the current supply, and supports the development of the Country Action Plans by covering coordinated actions in five strategic areas: • The development of enabling policies for the development of Digital Skills, a Digital Skills Framework customized for each country (adapted from global frameworks), and a system of Digital Skills assessments. • Reform of priority Digital Skills education and training programs in higher education and TVET institutions (including introduction of new programs), including Digital Skills courses at the intermediate level for students in all courses and, at the advanced level, reform of electrical engineering, computer science and other engineering, science and mathematics programs. • Enhanced use of online courses and integration of a range of digital tools, from the most basic to sophisticated, in teaching-learning across selected courses. • Increased and affordable highspeed broadband connectivity in research and educational networks at the national as well as higher education and TVET institution levels. Improved development and management of campus networks and infrastructure. • Capacity building of staff and development of efficient and digitally enabled business processes in Ministries of Higher Education/TVET/Education and relevant national authorities (such as the Higher Education or TVET authorities). Source: World Bank DE4A (2021). Digital Skills: The What, the Why, and the How. Methodological Guidebook v 2.0. PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 17 A large majority of Africa’s population lacks basic digital skills, countries have business-related digital skills at roughly 50 and more advanced digital skills are generally scarce. Based percent the global average, with the lower tail falling below on data from the United Nations Sustainable Development 30 percent. South Africa, Nigeria and Kenya have the highest Goals (SDGs) Indicators,27 which is available for 14 African penetration of digital skills among LinkedIn users. South Africa countries,28 the percentage of youth/adults with basic ICT has business-related digital skills equivalent to the world skills29 in Africa is 21 percent. In the world, the percentage of average, while in Nigeria and Kenya such skills are above 75 youth/adults with basic ICT skills is twice as high as in Africa, percent the global average. and in OECD high-income countries, it is almost three times as high as in Africa. The share of youth/adults with standard As perceived by business executives, digital skills of the African ICT skills30 in Africa (13 percent) is significantly lower than the population are among the weakest in the world, but they are not share of youth/adults with basic ICT skills. Only 5 percent of overly weak relative to the level of government digital adoption.34 youth/adults in Africa have advanced ICT skills.31 Unlike Africa, some world regions appear to have a remarkable Another measure of advanced digital skills is the one used mismatch between government digital adoption and digital by the World Bank and the French Development Agency skills. East Asia and the Pacific, for example, has the second in a study on the future of work in Africa.32 The publication weakest score on the Online Service Index (OSI) and, at uses the relative penetration of business-related digital the same time, is perceived by business executives to have skills33 among LinkedIn users in 27 African countries. In these stronger digital skills than most other world regions. The Latin countries, LinkedIn users constitute on average 4 percent America and Caribbean (LAC) region, in contrast, has relatively of the population. The authors find that most of the sampled weak digital skills compared to the GovTech Maturity Index. >>> Figure 11. ICT skills by type: Africa vs. world 60 Percentage of youth/adults 50 40 30 (%) 20 10 0 Basic ICT skills Standard ICT skills Advanced ICT skills Africa Wo rld OECD: high income Source: United Nations, Sustainble Development Goals (SDG) Indicators, Indicator 4.4.1, 2014-2018 27. Indicator 4.4.1: Proportion of youth/adults with ICT skills, by type of skill. Data is available for 88 countries in the world. There is data from 2014 to 2018. 28. Algeria, Botswana, Cabo Verde, Burundi, Côte d’Ivoire, Djibouti, Egypt, Morocco, Niger, Sudan, Togo, Tunisia, Zambia and Zimbabwe. 29. It consists of the average value of the following four computer-based activities: copying or moving a file or folder, using copy and paste tools to duplicate or move information within a document, sending e-mails with attached files, and transferring files between a computer and other devices. The data from the latest available year has been used to compute values. 30. It consists of the average value of the following four computer-based activities: using basic arithmetic formula in a spreadsheet; connecting and installing new devices; creating electronic presentations with presentation software; and finding, downloading, installing and configuring software. The data from the latest available year has been used to compute values. 31. It consists of the value for writing a computer program using a specialized programming language. The data from the latest available year has been used to compute values. 32. Jieun Choi, Mark A. Dutz, and Zainab Usman (Editors). 2019.“The Future of Work in Africa: Harnessing the Potential of Digital Technologies for All”. Co-publication of the Agence Française de Dévelopement and the World Bank. 33. Relative penetration of digital skills is measured as the sum of the penetration of each digital skill across occupations in a given country, divided by the average global penetration of digital skills across the same occupations. Skill group penetration is defined as the percentage of the top-50 individual skills that belong to a given skill group. A total of digital 21 digital skills are considered: social media, graphic design, graphic literacy, web development, development tools, data storage technology, data science, computer networking, technical support, software development life cycle, cybersecurity, computer hardware, mobile application development, human-computer interaction, scientific computing, animation, enterprise software, artificial intelligence, software testing, cloud computing, and game development. 34. Response to the survey question “In your country, to what extent does the active population possess sufficient digital skills (e.g., computer skills, basic coding, digital reading)?”. Source: World Economic Forum, Executive Opinion Survey. The score ranges from 0 (not at all) to 100 (to a great extent). Data for this indicator is available for 38 countries in Africa and 141 countries in the world. 18 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE A second measure of skills leads to similar, but not identical, are generally not graduating (only a low percentage of them conclusions. The “expected years of school”,35 from the do). The quality of basic education remains a key constraint World Bank’s Human Capital Index (HCI), is a more objective for the South African education and training system and labor measure, albeit one that focuses on education generally, market. The production of post-school graduates does not rather than digital skills, per se.36 By this measure the East meet labor market demands. 37 Asia and Pacific region is skills-rich, compared to its level of GovTech maturity. Despite the fact that Rwanda is one of Africa’s top performers in e-government, there is a rather modest usage and uptake of Several of the African countries with stronger government e-services in the country. This is due, in part, to gaps in digital digital adoption have an important shortage of digital skills. In skills, limited internet usage, and weak mobile ownership. South Africa, for example, digital skills development at schools Rwanda is outperformed by many other African countries in still has a long way to go, and students pursuing ICT degrees relation to digital skills acquisition in the workforce.38 >>> Figure 12. Government digital adoption vis-à-vis digital skills in Africa Perceived digital skills Level of education 0.80 0.80 ECA OECD OECD HIC ECA HIC GovTech Maturity Index 0.70 0.70 GovTech Maturity Index SA SA 0.60 MENA 0.60 MENA LAC LAC 0.50 EAP EAP 0.50 0.40 Africa Africa SSA 0.40 SSA 0.30 40 45 50 55 60 65 70 0.30 Digital skills among active population 8 9 10 11 12 13 14 (0-100) Expected years of school (0-14) Sources: GovTech Maturity Index 2022; World Economic Forum, Executive Opinion Survey 2018-2019, published on The Global Competitiveness Report 2019; World Bank, Human Capital Index 2020. 35. Sum of age-specific enrollment rates between ages 4 and 17. The indicator ranges from 0 to 14. Age-specific enrollment rates are approximated using school enrollment rates at different levels: pre-primary enrollment rates approximate the age-specific enrollment rates for 4 and 5 year-olds; the primary rate approximates for 6-11 year- olds; the lower-secondary rate approximates for 12-14 year-olds; and the upper-secondary approximates for 15-17 year-olds. Enrollment rates are retrieved from the UNESCO Institute for Statistics, supplemented with data provided by World Bank staff. Most recent estimates as of March 2020 are used. 36. Alternative measures of the level of education such as the percentage of the overall population that have completed at least a certain level of education would be better, but unfortunately data for most African countries is either missing or too old. 37. World Bank, 2019. “South Africa Digital Economy Diagnostic”. 38. World Bank, 2020. “Rwanda Economic Update. Accelerating Digital Transformation in Rwanda”. PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 19 Basic digital literacy in Uganda is limited, as a majority of The 2016 WDR on Digital Dividends extensively documents households and individuals do not currently use the internet. that digitalization by itself will not change the nature of public Most Ugandan children do not enter secondary level, which services if strong institutional mechanisms are not in place. is where basic digital skills and competencies are acquired Using cross-country data, the report shows that countries with under the current system. Moreover, basic and intermediate a higher quality of government institutions also adopt more digital skills courses at secondary schools are optional. digital technologies. Importantly, the WDR warns of the risk Advanced digital skills instruction is generally in short supply, of control when there is information without accountability. and enrollment in STEM programs is low. In Uganda, there This is, if digital technology is used for providing information is no national Digital Skills framework and there is no ICT in to citizens and businesses, but there is no mechanism to hold Education policy or strategy. 39 governments accountable, it can end up benefiting political elites and increasing government’s capacity to influence its discourse. In Mozambique, there is a wide digital literacy gap in the country that excludes the poorest from the benefits of the Case studies of anticorruption tools bolster this link. The digital world. Mozambique’s educational levels are among World Bank’s 2020 global report on Enhancing Government the lowest in the world. Most young people lack basic literacy Effectiveness and Transparency: The Fight Against Corruption and numeracy skills, which are essential pre-requisites for the makes it clear that digital technology alone is not a panacea. acquisition of even the most rudimentary digital skills. Less According to the report, ICT should be complemented with than 10 percent of the population of the population over 25 strong institutional mechanisms so that corruption becomes years old has completed upper secondary education, and just more costly and less attractive.42 The report also draws 136 of every 100,000 go on to university, which highlights the attention to the risk of overinvestment in digital technology if skills shortage that the country faces.40 governments rely too much on the latest technologies without addressing deep-seated governance issues in the public In Nigeria, public service digital initiatives are said to sector. Empirical evidence from cross-country studies also experience poor implementation due to weak digital literacy point to the need to complement government digital adoption and ICT skills. The Nigerian Civil Service is considerably with stronger institutions in order to maximize its impact on challenged in ICT adoption and skillsets. In addition, there is better governance, or even to have an impact at all.43 a wide digital literacy gap that excludes the poorest from the benefits of the digital world. The quality of Nigeria’s education Some key mechanisms for external accountability, such as an system ranks low in the continent, and Nigeria is reported to independent media and judiciary, are generally very weak in have among the lowest shares of government expenditure in Africa. Independent oversight by the media and the judiciary, education. 41 as measured by two of the Africa Integrity Indicators (AII), is very weak in the vast majority of African countries. Eighty percent of the countries in Africa get a score of either 0 or I N S T I T U T I O N S O F A C C O U N TA B I L I T Y 25 on the indicator “Media without prior government restraint or censorship”,44 on a scale ranging from 0 to 100. There is To make digital tools effective for improving governance, no country getting a score of 100, and just 6 countries get a some foundational institutions of accountability are needed. score of 75. Similarly, 56 percent of African countries get a 39. World Bank, 2020. “Digital Solutions in a Time of Crisis”. Uganda Economic Update 15th edition, July 2020. 40. World Development Indicators and World Bank, 2019. “Mozambique Digital Economy Diagnostic”. Executive Summary Report. The former statistic refers to 2017. 41. World Bank, 2019. “Nigeria Digital Economy Diagnostic Report”. 42. Kai Kaiser, 2020. “Chapter 7. GovTech: Emerging Technologies to Disrupt Public Sector Fraud and Corruption” in Rajni Bajpai and Bernard Myers (eds) Enhancing Government Effectiveness and Transparency—The Fight Against Corruption. The World Bank. 43. Hyun Park, Chul; Kim, Koomin. 2018. “E-government as an anti-corruption tool: Panel data analysis across countries”. International Review of Administrative Sciences, November 2018. Kochanova, Anna; Hasnain, Zahid; Larson, Bradley. 2016. “Does E-Government Improve Government Capacity?: Evidence from Tax Administration and Public Procurement”. Policy Research Working Paper No. 7657. World Bank, Washington, DC. Kim, Chon-Kyun. 2014. “Anti-Corruption Initiatives and E-Government: A Cross-National Study”. Public Organization Review, 2014, vol. 14, issue 3, 385-396. 44. The indicator assesses the following: “In practice, there is no prior government restraint (pre-publication censoring) and the government doesn’t promote the media’s self-censorship”. A 100 score is earned where all the following conditions are met: 1) the government never prevents the publication of information, and 2) the government doesn’t promote the media’s self-censorship (for ex. with threats, discrimination in the application of tax laws, government advertising, etc.). A 50 score is earned where any of the following conditions apply: 1) the government occasionally prevents the publication of information, or 2) it occasionally encourages the media to self-censor (for ex. with threats, discrimination in the application of tax laws, government advertising, etc.). A 0 score is earned where at least one of the following conditions apply: 1) the government usually prevents the publication of information, or 2) it usually encourages the media to self-censor (for ex. with threats, discrimination in the application of tax laws, government advertising, etc.). 20 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE score of either 0 or 25 in the indicator “Judiciary independence the level of government digital adoption. With the exception guaranteed in practice”,45 and 85 percent of them get a score of Tunisia, in northern Africa media and judiciary oversight of 50 or below, in a scale ranging from 0 to 100. are rather weak,46 in absolute terms and also relatively to the availability of government digital tools. Northern Africa has a Southern Africa is the subregion with the strongest government similar average score on GovTech Maturity Index as western digital adoption, and at the same time, the strongest and eastern Africa, but independent oversight is significantly mechanisms for external accountability, as measured by weaker, especially when compared to the western subregion. the two above-mentioned indicators. With relatively strong The independence of the media and the judiciary in northern accountability foundations, the south subregion has good Africa is similar to that of the central Africa sub-region on potential to obtain governance benefits from digital technology. average. As pointed out in the WDR 2016, in this subregion In contrast, central Africa performs rather weakly on both there could be a risk of control by government and political government digital adoption and external accountability. elites, because of the combination of information availability with very weak accountability. Although the south sub-region is on average the one that is best positioned to improve its governance with digital technology, The opposite case is western Africa, which has stronger than there are individual countries from other subregions with strong average media and judiciary independence. The freedom of government digital adoption and also strong mechanisms for the media in western Africa is very similar to that of southern external accountability, including Tunisia and Cabo Verde. Africa, but the level of digital adoption in the west is significantly lower. The governance of the west subregion seemingly could In northern Africa, and to a lower extent eastern Africa, the benefit from increased digitalization of government, as some mechanisms for external accountability are weak relative to key institutional foundations seem to be already in place. >>> Figure 13. Government digital adoption vis-à-vis external accountability in African regions Independent media Independent judiciary 0.60 0.60 Northern Northern GovTech Maturity Index GovTech Maturity Index Africa Eastern 0.50 Africa 0.50 Eastern Southern Africa Southern Africa Africa Western Africa 0.40 Western 0.40 Africa Africa 0.30 0.30 Central Central Africa Africa 0.20 0.20 0 10 20 30 40 20 30 40 50 60 Media without prior government Judiciary independence guaranteeed restraint or censorship (0-100) in practice (0-100) Sources: GovTech Maturity Index 2022; Global Integrity, Africa Integrity Indicators, 2022 45. The indicator assesses the following: “In practice, the independence of the judiciary is guaranteed”. A 100 score is earned where all the following conditions are met: 1) judges have autonomy to interpret and review existing laws, legislation and policy, and 2) judges operate without fear or favor, independent from other branches of government. A 50 score is earned where any of the following conditions apply: 1) judges’ autonomy to interpret and review existing laws is occasionally restricted, or 2) judges are occasionally subject to negative or positive political incentives (for example, judges are demoted/promoted or relocated to worse/better offices in retaliation/ reward for making certain decisions). A 0 score is earned where at least one of the following conditions apply: 1) judges rarely have autonomy to interpret and review existing laws, legislation and policy, or 2) judges are routinely subject to negative or positive political incentives (for example, judges are frequently demoted/promoted or relocated to worse/better offices in retaliation/reward for making certain decisions). 46. All countries in northern Africa except Tunisia get a 0 score on the 2020 Africa Integrity Indicator “Media without prior government restraint of censorship”. All countries in northern Africa except Tunisia and Morocco get either a 0 or a 25 score on the 2020 Africa Integrity Indicator “Judiciary Independence guaranteed in practice”. Morocco gets a score of 50 on this latter indicator. PROGRESS IN THE ADOPTION OF DIGITAL TOOLS <<< 21 3 Chapter summary: Progress in digital Legislation on data protection and privacy has so far only been adopted in half of the countries, while there has been adoption shows results, but they are a very weak adaptation of the legal framework to emerging hampered by weaknesses in analog technologies. complements and institutions A large majority of the African population lacks basic digital skills, and the more advanced digital skills are generally Governments in Africa are behind on digital adoption, but scarce. Africa is by far the world region with the lowest level of this is not unusual for their level of income. Importantly, education, and among the world regions with the lowest level those African governments that have adopted more digital of digital skills, as perceived by businesses. On average, the technology enjoy better governance in terms of transparency, level of education and digital skills in Africa is in line with the efficiency, and lower corruption. The benefits are more visible level of government digital adoption, and vice versa. However, in the countries with high internet use and strong mechanisms several African countries face a big shortage of digital skills, of external accountability. The benefits are also larger where especially countries with stronger government digital adoption. governments adopt digital services in addition to providing information online. Mechanisms of external accountability, such as a free media and an independent judiciary, are generally very weak in Internet use remains low in the continent, and because of this, many African countries. Without these and other mechanisms access to government digital tools is limited to a minority of the of accountability, digital technology adoption might not result African population. Access to digital tools is particularly limited in better governance or might have a very limited impact. in low-income countries, where internet use is very low, and in Some sub-regions in Africa are more at risk than others. In rural areas where the large majority of the population do not northern Africa, and to a lower extent in eastern Africa, the have access to electricity. Digital divides also exist between mechanisms of external accountability appear to be weak the higher and lower educated, the richer and the poorer, and for the level of government digital adoption. The southern men and women. sub-region is the best positioned to reap the governance benefits of digital technology, as it has the strongest adoption Compared to other world regions, the level of government by governments, and, at the same time, the strongest digital adoption in Africa is in line with the level of internet mechanisms of external accountability. use in the continent, and vice versa. However, within Africa, some sub-regions and individual countries are experiencing pronounced imbalances. In the eastern sub-region, where internet use is very low, many governments are heavily investing in digital technology. In contrast, in northern Africa, where internet use is more than double than in the other sub- regions of Africa, several governments are adopting little or no governance-oriented digital technology. In those African countries with a stronger regulatory environment for digital technology, government adoption has been higher. The overall ICT regulatory environment in Africa is not very different from the rest of the world, but on some specific aspects, African countries should put more effort. Africa is slightly behind on issues related to the competition framework for the ICT sector and the regulatory regime. 22 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE 3. >>> Governance risks in public procurement of ICT solutions Most of this report focuses on the use of digital technologies for improving governance. Developing and rolling out better technologies, however, is no simple matter. What is the best way to go about procurement of ICT systems? How can the risks that corruption will weaken the digital rollout be minimized? Understanding the governance risks in ICT procurement The procurement and implementation of Integrated Financial Management Information Systems (IFMIS) and other ICT systems present significant opportunities for abuse that threaten the stability and economic development of the regions affected. The risks primarily occur in four broad categories: corruption, bid rigging, collusive bidding, and fraudulent practices. Fraudulent practices include shell company vendors, phantom vendors, purchases for personal use, resale or diversion, and false, inflated, and duplicate invoices (Table 2). There are many publicized cases of corruption that took place during the procurement of ICT systems in various countries across the world, including African countries. In addition, there are currently a number of investigations underway, such as one in South Africa.47 For more details, see “ICT procurement in Africa” and “Vulnerabilities of ICT procurement to Fraud and Corruption”, technical background papers prepared as part of this project. There are several reasons that abuses seem prevalent in IFMIS and ICT systems. The large scale and complexity of such systems provide many opportunities to improperly rig contract specifications, manipulate implementation and inflate prices, and make it difficult to detect such abuses. Abuses are also motivated by the expense and potentially large profit margins of IFMIS and ICT systems. The large profits provide ample margins to offer and pay substantial bribes to corrupt officials. 47. See, for example, Alexander Winning (2020). “Exclusive: South Africa tries to recover over $23 million from SAP for ‘unlawful’ contracts”. Reuters. August 7, 2020. GOVERNANCE RISKS IN PUBLIC PROCUREMENT OF ICT SOLUTIONS <<< 23 >>> Table 2. The most common and costly abuses in ICT procurement in Africa and elsewhere Scheme Description A bribe is the giving or receiving of a “thing of value” to corruptly influence a contract award or the execution of a contract. A “kickback” is a bribe paid incrementally by the contractor as it is paid. Most bribes in exchange for large contract awards in international development projects are paid Bribes and as kickbacks, often totaling 15-20 percent of the contract value, with percentages lower in very big kickbacks contracts. In highly corrupt areas, the percentage can be much higher. Bribes also can be paid to inspectors and supervisory personnel to influence the supervision, resulting in the acceptance of lower quality, overpriced or unnecessary goods or services. Conflicts of interest refer to hidden interests in vendors or contractors. In lieu of bribes, project or government officials can take undisclosed financial interests in companies or suppliers that provide Conflicts of interest goods, works and services to the project. Such improper interests create the same negative impact on selection, prices and terms as bribes and kickbacks. Bid rigging refers to secret agreements between a favored bidder and procurement personnel to improperly manipulate the procurement process to steer a contract award to the favored bidder, often Bid rigging as the result of corruption. Detection of bid rigging is often the first and best indication of underlying corruption in the procurement process. Collusive bidding refers to agreements by contractors or suppliers to cooperate in the bidding process in order to avoid competition and inflate prices to artificially high levels. Where collusive bidding is Collusive bidding well established, prices can rise substantially, in some cases by as much as several hundred percent. Collusion in international projects often involves corruption, in which government or procurement personnel allow or facilitate the collusion in exchange for bribes. Shell company vendors refer to firms that are secretly owned by procurement or agency officials employed by the procuring agency. This scheme is typically classified as conflict of interest. Shell Shell company companies usually operate as unnecessary middlemen, buying and reselling readily available goods vendors and services at a markup without providing any additional value. Shell companies also can refer to fictitious companies set up by corrupt officials to act as purported suppliers or subcontractors in order to receive bribes or hide assets. Procurement or payment personnel can create a fictitious contractor, consultant, vendor, or supplier that does not provide any goods or services in order to embezzle project funds. The fictitious companies often purportedly provide consulting or other hard to verify services. Project or government officials can Phantom vendors also set up “middleman” companies that are used to purchase goods or services for resale at higher prices, or shell companies that subcontract all work received. Contractors also can set up fictitious companies to submit complementary bids in collusive bidding schemes. Purchases for This corresponds to the purchase of inappropriate personal “consumer items” (e.g., laptops, vehicle personal use, repairs, etc.). This is a common abuse that can be quite costly if not adequately controlled, particularly if resale, or diversion the improper purchases are used to supply inventory for side businesses, which is not uncommon. A contractor or supplier can commit fraud by knowingly submitting false, inflated, or duplicate invoices False, inflated, and with the intent to defraud, either acting alone or in collusion with contracting or payment personnel. The duplicate invoices submission of duplicate, false or inflated invoices often are used to generate funds for bribe payments, often with the approval of or at the suggestion of the bribe recipients. Source: “Fraud Detection in Africa Procurement and ICT Procurement”. Background Note prepared for the World Bank. 2021 24 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Minimizing governance risks in ICT requirements and to a better understanding of the available vendors and their offerings. By conducting market research, procurement governments can better position themselves to successfully execute a public procurement action. Maintaining direct contact There are a number of good practices that can help African with the supplier market can help procurement officials gain governments reduce the risk of corruption during the ICT insight into current and upcoming ICT technologies and trends.54 procurement process. Although it may be impossible to completely eliminate corruption in the ICT procurement process, Furthermore, there are several specific actions that governments there are a number of key procurement techniques that can can take to reduce the vulnerability of ICT procurements provide governments with tools for improved ICT procurement to corrupt practices. During the planning phase of an ICT outcomes. These techniques include a GovTech Procurement procurement, close scrutiny should be paid to requirements, Framework,48 the Principle of Value for Money,49 Framework deliverables, and costs associated with ICT procurement, as Agreements,50 Total Cost of Ownership,51 and Use of Competitive well as to agent fees. Moreover, governments should make Dialogue in the Procurement of Disruptive Technology.52, 53 wider use of e-GP systems that can standardize procurement processes while simultaneously improving transparency around Other practices that can lead governments to improved ICT the process as a whole.55 An example of a government that has procurement outcomes include conducting market research taken specific steps to combat corruption in ICT procurement is and maintaining direct contact with the supplier market. Market the Government of Queensland State, in Australia. The state research is an important first step in developing a procurement maps and monitors corruption risks in ICT procurement and strategy. A successful undertaking of market research makes recommendations to procurement agencies to minimize contributes to the definition and refinement of product or service them (Box 7). BOX 7. RECOMMENDED MEASURES TO COMBAT CORRUPTION IN ICT PROCUREMENT IN QUEENSLAND STATE (AUSTRALIA) The Crime and Corruption Commission (CCC) of Queensland produced in 2018 a publication seeking to raise awareness, particularly among agency managers and members of procurement panels, of the corruption risks associated with ICT and how to minimize those risks. The publication draws on CCC complaints, investigations, and research to illustrate what can happen when corruption risks and vulnerabilities are not adequately factored into ICT procurement processes. In the publication, the CCC makes the following recommendations to all agencies to reduce corruption in ICT procurement: 1. Ensure procurement and contracting practices are transparent, accountable, and meet obligations in accordance with legislation, codes, and policies. 2. Have a detailed planning process which includes risk identification and assessment adequate to the level of value, complexity, and sensitivity of the procurement. 3. Be alert to the possibilities of “grooming” of staff by potential vendors or other interested parties. 4. Proactively anticipate and explore conflicts of interest and increase disclosure obligations. 5. Scrutinize applications for secondary employment carefully to identify potential conflicts of interest. 6. Find out how frequently “urgency” is given as a reason for taking shortcuts with the proper procurement process, and why it is happening. Source: Crime and Corruption Commission of Queensland, August 2018. “Prevention in focus. ICT procurement – what are the corruption risks?”. https://www.ccc. qld.gov.au/sites/default/files/Docs/Publications/CCC/Prevention-in-Focus-ICT-procurement-2018.pdf 48. The GovTech Procurement Framework is a five-step GovTech procurement framework that provides a strategic and holistic plan for the design, procurement, and implementation of GovTech solutions, with key activities and deliverables for each step. 49. The principle of Value for Money (VfM) means the effective, efficient, and economic use of resources, which requires an evaluation of relevant costs and benefits, along with an assessment of risks, and non-price attributes and/or life cycle costs, as appropriate. 50. Framework agreements can be defined as a “contracting mechanism in which long-term contracts provide the terms and conditions under which smaller repeat purchasing orders (or call-off orders) may be issued for a defined period of time.” Framework agreements make it easier for a procurement organization to fill the requirements for products that are routinely purchased over a specified period of time; for ICT, this could include hardware, software, and cloud and SaaS services. 51. Total Cost of Ownership (TCO) can be defined as an estimate of the total costs associated with a solution over the whole of the operational life including, final disposal. TCO takes into consideration the purchase price, any initial fees, all other costs, and any benefits received. 52. For complex contracts that may come from the use or deployment of disruptive technologies, the use of competitive dialogue should be considered. Competitive dialogue is an interactive multistage selection process that facilitates dynamic engagement between buyers and suppliers. 53. World Bank, 2021. “ICT Procurement Practices”. Background Paper. Final draft, May 2021. 54. Ibid 55. Ibid GOVERNANCE RISKS IN PUBLIC PROCUREMENT OF ICT SOLUTIONS <<< 25 In addition, digital antifraud technologies offer significant Artificial Intelligence (AI) in fraud detection refers primarily to opportunities for improving governance outcomes in the “cognitive machine learning” programs in which computers procurement and implementation of ICT systems, in Africa can find useful indicators, patterns, or trends in very large data and elsewhere. The primary types of digital anti-fraud tools sets and unstructured data, without reference to predetermined and technologies include: ex-post56 rule-based data analytics, programming rules. AI programs can find previously unknown ex-ante57 rule-based automated fraud detection systems, indicators of potential fraud that would elude standard rule- artificial intelligence and machine learning programs, and based algorithms. AI programs also can be deployed to read blockchain technology.58 and analyze unstructured data, such as written content in documents, emails and text messages, invoices, and other Ex-post, rule-based data analytics refers primarily to “rules- records to identify indicators of bid rigging, false invoices, and based” analysis of datasets to identify potential indicators other offenses. The programs can be particularly useful in or patterns of fraud, waste, or abuse. The indicators are finding patterns and indicators of complex frauds in new data then matched to the potential scheme or schemes that, environments. However, limitations of AI programs include depending on the significance of the indicators, are subject the complexity and expense of the programs. In addition, to further investigation to determine if they are in fact present. AI applications are often unnecessary to adequately detect Most such analysis is done ex-post by auditors or oversight and prove the most common and costly fraud and corruption personnel. Digital data analysis can provide greatly improved schemes; rule-based systems, as discussed above, are transparency and accountability. Big and small data analytics adequate to do so. permit the analysis of 100 percent of the relevant data sets much more quickly and accurately than the traditional Blockchain is a shared digital ledger in which information is examination of paper records, which often are time consuming secured by cryptographic and other means so that the contents efforts limited to small sample data sets. Digital programs can can be transparently examined by all authorized parties and examine in seconds data that would require weeks or months cannot be improperly copied, altered, or deleted. As a result, to collect and analyze in paper form. it has certain potential antifraud applications. For example, blockchain technology can be used to ensure that the terms, Ex-ante, rule-based automated fraud detection systems pricing, and other data in procurement transactions are not can continuously run ex ante small data analytics in improperly altered or deleted. If the information is digitalized, e-GP and IFMIS systems. Such programs can identify or an automated fraud management system, using blockchain block potential fraud, waste, or abuse before losses are for increased security, could automatically match the original incurred i.e., before contracts are awarded or invoices paid. invoice data and price information to later copies to prevent E-Procurement systems offer platforms for the installation the fraudulent increase in prices. Blockchain technology of programs known as Integrity Filters which can instantly would not, however, prevent many of the common fraud review 100 percent of all transactions, block non-compliant and corruption abuses in procurement and IFMIS systems, or improper procurement transactions, provide instant including corruption in the award of contracts and the approval alerts of possible fraud, permit detailed real-time remote of inflated or improper payments approved by insiders. monitoring by oversight agencies, etc. Similarly, IFMIS solutions59 offer great potential for improving transparency and accountability by linking IFMIS and Enterprise Resource Chapter summary: Governance risks Planning (ERP) systems to a central data warehouse to record and monitor all financial transactions on a real-time are large but manageable basis. These solutions can provide continuous monitoring and ex ante alerts of potential fraud, many related to The procurement and implementation of IFMIS systems accounts payable transactions. and other ICT systems allow significant opportunities for fraud, waste, and abuse. The risks primarily occur in four 56. Ex-post fraud detection refers to efforts to detect fraud after the fact, after the schemes have been launched and losses incurred. 57. Ex-ante fraud detection refers to efforts to proactively detect and prevent fraud and abuse through computer assisted techniques, before the schemes have been implemented and losses incurred. 58. Hunt LaCascia and Michael Kramer, 2021. “Vulnerabilities of ICT Procurement to Fraud and Corruption.” World Bank. 59. These are some examples of commercial fraud detection and prevention solutions that can be installed or linked to IFMIS and ERP systems: SAP HANA FRAUD MANAGEMENT, APPZEN, OVERSIGHT SYSTEMS, and GALVANIZE - ACL ESSENTIALS. 26 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE broad categories: corruption, bid rigging, collusive bidding, and fraudulent practices. There are many publicized cases of corruption that took place during the procurement of ICT systems in various countries across the world, including in some African countries. Among the reasons for the abuses are the large scale and complexity of IFMIS and ICT systems, providing many opportunities for abuse and making it difficult to detect abuses. Similarly, the expense and potentially large profit margins of such systems provide ample margins to offer and pay substantial bribes to corrupt officials. Although it may be impossible to completely eliminate corruption in the ICT procurement process, there are a number of best practices that can help African governments reduce the risk of corruption during the ICT procurement process. One approach is to apply key procurement techniques such as a GovTech Procurement Framework. Other practices that can lead governments to improved ICT procurement outcomes include conducting market research to inform the procurement strategy and maintaining direct contact with the supplier market. There are several actions that governments can take to reduce the vulnerability of ICT procurements to corrupt practices. These actions include a closer scrutiny on agent fees, requirements, deliverables, and costs associated with ICT procurement, a wider use of e-GP systems to standardize processes and improve transparency. Finally, governments in Africa and elsewhere can leverage the potential of digital antifraud technologies for improving outcomes in the procurement and implementation of ICT systems. The primary types of digital anti-fraud tools and technologies include ex-post rule-based data analytics, ex-ante rule-based automated fraud detection systems, artificial intelligence and machine learning programs, and blockchain technology. GOVERNANCE RISKS IN PUBLIC PROCUREMENT OF ICT SOLUTIONS <<< 27 4. >>> Digital tools for providing information to the public The Internet has been called “the information superhighway”. Is the superhighway connecting governments with citizens? Does information travel on a one-way street or with restrictions of what type of information is permitted on the road? This section tries to answer these questions for Africa. Online provision of information by government O N L I N E P R O V I S I O N O F I N F O R M AT I O N BY G O V E R N M E N T S E X I S T S , B U T D E TA I L S A R E L A C K I N G In Africa, online information provision does take place in a broad-brush way, but some fundamental information for governance is lacking online in many places. In the vast majority of African countries, 10 percent or more of ministries and autonomous agencies have websites,60 data is available online on the website of the National Statistics Office61 to some degree, and more generally, governments share information online to the public62 to some extent (Figure 14). 60. A 100 score is earned where all the following conditions are met: 1) all ministries and autonomous agencies (public service providers) have websites, and 2) are updated at least once a month. A 50 score is earned where any of the following conditions apply: 1) about half of the ministries and autonomous agencies (public service providers) have websites, or 2) the websites are updated less than once a month. A 0 score is earned where less than 10% of the ministries and autonomous agencies (public service providers) have websites. 61. Based on the overall score of the Open Data Inventory. The indicator assesses data availability on National Statistics Offices (NSO) websites. The indicator includes a total of 21 data categories organized into three groups: social statistics (9 data categories), economic statistics (7 data categories) and environment (5 data categories). Data is assessed on ten elements of coverage and openness. 62. Based on the subcomponent e-information sharing (stage 1) (%) of the E-Participation Index. It ranges from 0 (lowest) to 1 (highest). It measures the use by government of online tools for providing public information to its citizens. 28 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Figure 14. Online provision of information by governments in Africa Ministries and autonomous agencies Online data inventory E-participation have websites overall score information sharing 100 58.3 0.8704 75 50 25 6.9 0.0370 IBRD 47334 | IBRD 47335 | IBRD 47336 | JUNE 2023 JUNE 2023 JUNE 2023 0 No Data Sources: Global Integrity, Africa Integrity Indicators, 2020; Open Data Watch, Open Data Inventory Score 2018-2019; United Nations E-Government Survey 2020. Darker colors correspond to better scores. While online information is available in general, some specific and several types of budget documents (Figure 15), which will and fundamental information for governance is lacking online be explained in detail later in this section. in many countries. This is the case of laws and regulations >>> Figure 15. Online information on laws and budgets in Africa Primary laws published on Share of budget documents published unified websites timely online 1.0 .875 .75 .625 .5 .375 .25 .125 IBRD 47337 | JUNE 2023 0 IBRD 47338 | JUNE 2023 No Data Sources: World Bank, Global Indicators of Regulatory Governance, 2018; International Budget Partnership, Open Budget Survey 2021 DIGITAL TOOLS FOR PROVIDING INFORMATION TO THE PUBLIC <<< 29 Importantly, the legal principles of transparency are not nor that the systems for widespread adherence are present. present in many places in Africa, and if present, they are often Among the African countries that have adopted right to not strong. Underlying the ability of digital tools to support information laws, the laws of about half are below the world information provision is the legal framework for mandating median in quality63, suggesting a pattern similar to the rest of such information provision. Right to information laws have the world where many countries also need to improve their been passed in many countries, but they are far from access to information legislation.64 (Figure 16). Moreover, as ubiquitous in Africa. Based on data from 2020, 56 percent of measured by the Africa Integrity Indicators, only five African African countries do not have this law (Figure 16). countries are assessed to have systems for which the effectiveness of the citizen requests for public information65 More importantly, the existence of a right to information law is acceptable.66 does not imply that the law has the most important features, >>> Figure 16. Right to information laws in Africa Countries with right to information Rating of the qualities laws adopted of the laws if adopted 124 IBRD 47331 | 52 IBRD 47332 | JUNE 2023 no data JUNE 2023 Source: Center for Law and Democracy, Global Right to Information Rating, 2020 63. This corresponds to a rating of less than 75 points, in a scale ranging from 0 to 150. 64. This corresponds to a rating of more than 100 points, in a scale ranging from 0 to 150. 65. Data is from 2020. It corresponds to the question “In practice, citizen requests for public information are effective”. A 100 score is earned where all the followingconditions are met: 1) records are available online or on paper less than two weeks after requested, and 2) costs are limited to photocopying. A 100 score is possible even if there are exceptions for information protected by national security or individual privacy laws. A 50 score is earned where any of the following conditions apply: 1) many records are not online and/or it takes between two and four weeks for citizens to obtain them, or 2) costs sometimes are higher than photocopying. A 0 score is earned where at least one of the following conditions applies: 1) most records are not online and it takes more than a month for a citizen to obtain them, or 2) costs are usually higher than photocopying. 66. This corresponds to a score of 50, 75 or 100, in a scale ranging from 0 to 100. Four African countries get a score of 50, one African country gets a score of 75, and no African country get a score of 100. 30 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Online publication of budget Within Africa, there are large differences between the southern and the central regions. While in the south a majority documents of the budget documents are being posted online and timely, in the central region this is the case of a minority of budget Digital tools can promote budget transparency and public documents. In the other three subregions of Africa, about half access to budget information. If budget information is of the budget documents are posted online timely. published online, everyone can easily access it, provided they have internet access and sufficient digital skills. While Africa is lagging behind in using online tools for budget dissemination, the gap with the rest of the world is Budget transparency is important for several reasons. not very large. In Africa, about half of the budget documents Clarity about the use of public funds is necessary so that are available online timely, and on average in the world this public representatives and officials can be accountable for is the case of about two thirds of the budget documents. effectiveness and efficiency. As public spending is vulnerable Middle East and North Africa is less open (43 percent of not only to waste and misuse, but also to fraud and corruption, budget documents online timely) than Sub-Saharan Africa transparency can help maintain high standards of integrity (52 percent of budget documents online timely) in terms of in the use of public funds. Importantly, budget decisions can budget availability. profoundly affect the interest and living standards of different people and groups in society, and transparency facilitates an There are examples of African countries that are posting all or informed and inclusive debate about budget impacts. almost all of the budget documents, and examples of countries that have made remarkable progress over time. In three of the This section explores the use of digital tools in Africa for 42 countries of the 2021 OBS, namely South Africa, Ghana, publishing budget information, and whether the expected and Zimbabwe, all of the budget documents are available to impacts are evident in the continent. the public online and in a timely manner, and in Benin, Cote d’Ivoire, Mozambique, Nigeria, and Uganda nearly all the budget documents are online timely. CONSIDERABLE PROGRESS IN P U B L I S H I N G B U D G E T I N F O R M AT I O N Benin is highlighted as a country that has made rapid and meaningful reform. The country increased its Open Online tools are widely used in Africa for publishing budget Budget Index (OBI) score from 1 in 2012 to 65 in 2021, information, but only for certain types of budget documents, reflecting continuous efforts on the part of the Budget Office and with large differences across sub-regions. Out of the 42 to publish additional budget documents and improve the African countries with available data in the 2021 Open Budget comprehensiveness of existing documents.69 As of 2021, Survey (OBS)67, the vast majority publish online and timely68 seven key documents are available online and timely. the enacted budget and the executive’s budget proposal. However, the audit report, pre-budget statement and mid- year budget review are only published online and timely in a minority of them. The other budget documents are available in a slim majority of countries. 67. Data for the following countries are not available: Cabo Verde, Congo Rep, Djibouti, Eritrea, Gabon, Guinea, Guinea-Bissau, Libya, Mauritius, Mauritania, and Seychelles. 68. By “online and timely” it is understood available to the public online and in a timely manner. 69. Open Budget Survey 2021. DIGITAL TOOLS FOR PROVIDING INFORMATION TO THE PUBLIC <<< 31 >>> Figure 17. Online and timely publication of budgets in Africa and the world Enacted budget We stern Europe, US & Canada Citizens budget Eastern Europe & Central Asia Executive's budget proposal East Asia & Pacific In-year budget reports Latin America & Caribbean Pre-budget statement Sub-Saharan Africa Year-end budget report South Asia Audit report Africa Mid -year budget review Mid dle East & North Africa 0% 25% 50% 75% 100% Percentage of African countries 0 25 50 75 100 publishing the document online and Overal OBI timely (out of 42 countries) Source: International Budget Partnership, Open Budget Survey 202 Digital tools can also be used during budget formulation. Such tools might be used to provide information to citizens, businesses, and civil society at the early stages of the budget process, and also to facilitate and promote their participation in budget formulation. Sierra Leone, a champion in Africa on public participation in the budget process, is a good example of this (Box 8). 32 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE BOX 8. USE OF DIGITAL TOOLS DURING BUDGET FORMULATION IN SIERRA LEONE Sierra Leone is among the top three performers in Africa in the Open Budget Survey (OBS) indicator on public participation in the budget process. In the 2019 OBS, the country obtained a score of 31, while the global average score is 14. Over the last several years, the Government of Sierra Leone has strengthened the inclusiveness and openness of public participation during the budget formulation process. The Government incorporated public participation as part of the Open Government Partnership Action Plan and mandated public participation as a requirement by law in 2016. The government holds a series of events to hear from different groups and members of the public, including a day-long Policy Hearing, Bilateral Budget Discussions, and meetings with local councils. All these consultation events are now fully open to the public. The government also has structured events to hear public views and invited civil society groups to chair sessions during the Policy Hearing. In addition, the government includes a wide range of groups in the Policy Hearing representing interests such as women farmers, youth with disabilities, and people living with HIV. The Policy Hearing and the local consultations are announced online in the budget calendar of the Ministry of Finance (https://mof.gov.sl/budget-calendar/) and also via radio announcements. In addition, the website of the Ministry of Finance publicizes a user-friendly citizens’ budget, with lots of illustrations and charts to facilitate the understanding (https://mof.gov. sl/citizens-budget/). In the Bilateral Budget Discussions, each ministry and government entity holds discussions on their proposed budget. They include civil society representation. Some of the sectoral budget discussions have been web streamed on the YouTube channel of Sierra Network (SN) Radio. The videos include parts of the budget discussions, as well as interviews with key stakeholders. These are some examples: • Road Safety 2020 Budget Hearing • Electricity Distribution and Supply Authority 2020 Budget Hearing • Police 2020 Budget Hearing • Produce Marketing Board 2020 Budget Hearing In the city of Freetown, the property tax reform launched in 2019 involves, among other things, a new IT system to facilitate the administration of property taxes. Reform efforts have also used technology in simple yet effective ways to build trust and improve the taxpayer experience. These efforts include, for example, digital town halls to improve two-way communication between taxpayers and officials and facilitate participatory budgeting. The changes that the government has made to their public engagement process has expanded public input and access to budget and policy decisions. Such feedback on how the government uses public input is critical to the sustainability of public participation and is one area where civil society hopes that the government will continue to improve. Source: “Open Budget Survey 2019” report from the International Budget Partnership; Prichard, W., A. B. Kamara, and N. Meriggi. 2020. “Freetown Just Implemented a New Property Tax System that Could Quintuple Revenue.” African Arguments, May 21; website of the Ministry of Finance of Sierra Leone (mof.gov. sl); and YouTube. DIGITAL TOOLS FOR PROVIDING INFORMATION TO THE PUBLIC <<< 33 IMPACT: ENHANCED provide a stronger role for formal oversight institutions in the T R A N S PA R E N C Y, S T R O N G E R budget process. This might suggest that the online tools for O V E R S I G H T, A N D M O R E P U B L I C disseminating budget information facilitate and strengthen PA RT I C I PAT I O N oversight of budgets in Africa. It could also suggest that, in the countries with a stronger role of formal oversight institutions, In Africa, the online availability of budget documents is a key there is a higher demand for budget transparency.72 element of budget transparency and is important for formal oversight institutions. Data from the OBS shows a correlation There is also a moderate and positive correlation between between the online and timely availability of budget documents, budget transparency and public participation in the budget on the one hand, and measures of participation and oversight, process in Africa.73 As in the case of budget oversight, this could as measured by the Open Budget Index (OBI),70 on the other suggest that online tools for budget dissemination facilitate and hand. Online budget transparency enables other citizens and encourage public participation. It could also suggest that those official bodies such as Supreme Audit Institutions (SAIs) to African governments that put more reform efforts on budget exercise better control over budgetary policymaking.71 Those transparency are also often the ones that put more reform African countries with more budget transparency tend to efforts on developing mechanisms for public participation. >>> Figure 18. Online availability of budget documents, and public participation and oversight in Africa Public participation Budget oversight 100 100 Public Participation Index (0- Oversight by Legislature and 90 90 80 80 70 SAI Index (0-100) 70 60 60 50 50 100) 40 40 30 30 20 20 10 10 0 0 0 1 2 3 4 5 6 7 8 0 1 2 3 4 5 6 7 8 Number of budget documents published Number of budget documents online and timely (our of 8) published online and timely (our of 8) Source: International Budget Partnership, Open Budget Survey 202 70. The OBI assesses public availability of budget information. It uses 109 questions to measure the extent to which each country makes eight key budget documents available to the public on the relevant government website in a timely manner as well as the comprehensiveness of the budget information provided in these publicly available documents. Based on the simple average of the numerical value of the responses to these 109 questions, each country receives a budget transparency score from 0 to 100. 71. “Oversight” indicator from the Open Budget Survey. It assesses the role of formal oversight institutions, including the legislature and the national audit office, in the budget process. It uses 18 questions to measure the role of the legislature and supreme audit institution in the budget process. The responses to the questions are averaged, and each country receives a score from 0 to 100. 72. In addition, the online publication of budget information will be most effective when part of a broader government interoperability framework linking budget information with information from other systems such as e-GP and tax systems. Interoperability is discussed in Chapter 5. 73. “Participation” indicator from the Open Budget Survey. It assesses the opportunities for the public to participate in the budget process. It uses 18 questions to measure the extent to which governments include the public in budget decision-making and monitoring. The responses to the questions are averaged, and each country receives a score from 0 to 100. 34 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Online publication of laws and (GIRG), primary laws and secondary regulations are published online on a unified website75 in 46 percent and 44 percent of regulations African countries, respectively. Just 19 percent of them publish online draft regulations,76 and there is only one country in As in the case of budget documents, the online publication Africa that publishes regulatory impact assessments online,77 of laws and regulations can significantly enhance public namely South Africa. access to this information. Citizen access to government laws and regulations is important for the creation of a business The publication of laws and regulations is much more common environment in which investors make long-range plans and in northern Africa than in all the other subregions of Africa. In investments. The extent to which African governments use northern Africa, 83 percent of countries publish primary laws online tools for disseminating laws and regulations, both and secondary regulations on a unified website. In contrast, approved and draft ones, is examined here.74 in other regions of Africa, on average 43 percent of countries publish primary laws on a unified website, and 37 percent of countries do so for secondary regulations. L I T T L E U S E O F D I G I TA L TO O L S FOR PUBLISHING LAWS AND Importantly, the gap between Africa and the rest of the world is R E G U L AT I O N S large, especially for draft regulations. Africa is the only region in the world where laws and regulations are on a unified website Less than half of African countries use digital tools to publish in a minority of countries. In all the other world regions, laws and laws and regulations in a unified manner, and a small minority regulations are online in the majority of countries. In the world use them to publish draft regulations. Based on 2018 data on average, 75 percent of countries publish primary laws on a from World Bank Global Indicators of Regulatory Governance unified website, and 69 percent do so for secondary regulations. >>> Figure 19. Use of digital tools for publishing laws and regulations in Africa and the world Sub-Saharan Africa Africa Mid dle East & North Africa Latin Am erica & Caribbean Wo rld South Asia East Asia & Pacific Europe & Central Asia OECD: high incom e 0% 25% 50% 75% 100% Percentage of countries Dra ft regulations published online Secondary regulations published online on unified website Prima ry la ws published online on unified website Source: World Bank, Global Indicators of Regulatory Governance, 2018 74. See also “Rule-of-Law Foundations: Improving Access to Laws & Regulations in Africa”, a finalist in the IMF Anti-Corruption Innovation Challenge. 75. For primary laws: Indicator is 1 (=yes) if answer is yes for at least one of these two questions: 9.b.a (primary laws accessed on a unified website managed by the government) and 9.b.b (primary laws accessed on a unified website managed by the private sector). For secondary regulations: Indicator is 1 (=yes) if answer is yes for at least one of these two questions: 10.b.a. (secondary regulations accessed on a unified website managed by the government) and 10.b.b (secondary regulations accessed on a unified website managed by the private sector) 76. Indicator is 1 (=yes) if answer is yes for at least one of these two questions: 4.1.a (draft regulations published on a unified website) and 4.1.b (draft regulations published on the website of the relevant ministry or regulator) 77. Indicator is 1 (=yes) if answer is yes for at least one of these two questions: 7.8.a (impact assessments published on a unified website) and 7.8.a.b (impact assessments published on the website of the relevant ministry or regulator). DIGITAL TOOLS FOR PROVIDING INFORMATION TO THE PUBLIC <<< 35 5 The gap with the rest of the world is particularly large with IMPACT: EASIER TO DO BUSINESS regard to the publication of draft regulations. While in Africa IN THE FEW COUNTRIES WITH just 19 percent of countries publish draft regulations online, ONLINE LEGAL DOCUMENTS in the world, on average, 58 percent of countries do so. This is about three times more than in Africa. The gap with The publication of laws and regulations online in a unified some regions in the world is even larger. Draft regulations manner contributes to the ease of doing business. There is a are published online in all OECD high-income countries, and positive and moderate correlation between the publication of in Europe and Central Asia, draft regulations are published primary laws and secondary regulations on a unified website, online in almost all countries. on the one hand, and the Ease of Doing Business indicator, on the other hand. Those African countries with this digital tool have, on average, greater ease of doing business. This is not surprising since the online availability of information on laws and regulations makes it easier for businesses to know rules and procedures and to get started and operate (Figure 20). >>> Figure 20. Online publication of laws and regulations and ease of doing business in Africa Primary laws Secondary regulations 90 90 Ease of Doing Business (0-100) Ease of Doing Business (0-100) 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 No Yes 0 No Yes Primary laws published on unified Secondary regulations published on website unified website Sources: World Bank, Global Indicators of Regulatory Governance, 2018; World Bank Doing Business 2020 Chapter summary: Digital tools are Importantly, some fundamental information for governance, such as budget information, and the text of laws and regulations, often used to provide information, are not always available online. Only a few types of budget but details and institutional documents are available online in most African countries. Furthermore, fewer than half of the countries publish their laws foundations are lacking and regulations on a unified website, and just a small minority of them publish their draft regulations online. In Africa, the use of digital tools for providing information to the public does occur in a broad-brush way. In the vast majority The use of digital tools for providing information seemingly has of countries, ministries and agencies have websites, and had a positive governance impact. Those African countries statistical data is available online to some degree. However, the that publish more budget documents online enjoy higher legal principle of transparency is not present in many places. budget transparency and a stronger oversight over the budget Laws on access to information are lacking in many countries, process. In the countries that publish laws and regulations on a and even if they exist, they often fall short of guaranteeing the unified website, businesses can, on average, start operations right to information. and operate more easily. 36 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE 5. >>> Digital tools for streamlining the provision of government services and supporting efficiency Apart from providing information to the public, digital tools can also be used in the provision of services by the government. There are multiple ways in which they can be used in this regard: the digitalization of the government back-office systems supporting the services, the provision of information on the available services and business opportunities with government, and the direct provision of transactional services to business and citizens. In line with the GovTech principle of citizen-centricity in service delivery, this section focuses on the latter two. More specifically, this section explores the use of digital tools by African governments to support efficiency in the delivery of services to the public and in the execution of other core government functions that require interaction with the public, such as procurement and taxation. The section also looks at the governance impact of the use of such digital tools. Each service or function is reviewed in a specific sub-section, focusing on the services and functions for which data is available. In addition, it reviews the use of whole-of-government approaches to digital service delivery, such as one-stop-shops for digital services and payments, and interoperable government systems. E-government procurement For governments to achieve their goals, they must have access to the right capabilities, capacities, services, and products. In many cases, these need to be obtained from the private sector through public procurement processes. At the same time, public procurement activities are executed with taxpayer money, which makes it a sensitive domain that must be carried out efficiently and to high standards in order to safeguard the public interest. Public procurement accounts for between 10 percent and 25 percent of global public spending and, cumulatively, governments spend US$13 trillion on public contracts every year.78 For more details, see “Adoption of e-Government Procurement (e-GP) in Africa”, a technical background paper prepared as part of this program. 78. Joel Turkewitz, 2020. “Chapter 1. Public Procurement” in Rajni Bajpai and Bernard Myers (eds) Enhancing Government Effectiveness and Transparency—The Fight Against Corruption. The World Bank. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 37 Electronic Government Procurement (e-GP) has the LOW ADOPTION OF E-GP potential to make a positive contribution to the efficiency and effectiveness of this important government function. Some of While the large majority of governments in Africa have an e-GP the potential benefits of e-GP include, for example, a reduction platform, usage of the platform is low, especially compared to in contract delays and an increase in supplier performance. In the other regions. According to the Doing Business data on addition, e-GP also has the potential to decrease corruption contracting with government, in two thirds of African countries, in procurement. End-to-end e-GP solutions can standardize the government has an e-GP platform. The adoption rate is procurement processes and reduce human discretion, while lower than in the other world regions, but the gap between simultaneously improving transparency around the process Africa and the rest of the world is not large. On average, about as a whole. The shift to digital platforms for procurement 85 percent of countries in the world have such a platform. activities can also enable greater oversight as the data can readily be analyzed for trends and anomalies.79 And the The low usage rate of e-GP platforms may reflect its relatively benefits can far outweigh the costs. In Ukraine, the ProZorro recently adoption. Only 22 percent of the African countries e-GP platform saved the government some $1 billion in its with an e-GP platform have a usage of 50 percent or above. first two years, despite costing only a small fraction of that.80 Usage of the e-GP platform is particularly low compared to the world average, where the percentage of countries with a This section reviews the extent to which governments in Africa usage of 50 percent or above is about three times as high as have adopted e-GP, and the impact it has had on efficiency, in Africa. effectiveness, and corruption. In addition, it covers some country stories illustrating the challenges that African countries face in the adoption and implementation of e-GP and makes some recommendations to address them. >>> Figure 21. E-procurement platforms in Africa and the world Availability of e-procurement platform Usage of e-procurement platform Africa Sub-Saharan Africa Sub-Saharan Africa Africa Mid dle East & North Africa Mid dle East & North Africa Latin America & Caribbean South Asia Wo rl d Latin America & Caribbean East Asia & Pacific Wo rl d South Asia East Asia & Pacific Europe & Central Asia Europe & Central Asia OECD: high income OECD: high income 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Percentage of countries with e-procurement Percentage of countries with usage of e- platform procurement platform of 50% or above Sources: World Bank Doing Business 2020, Contracting with Government. Usage refers to the frequency that the electronic platform is used for the works contracts procured by the procuring entity for a standardized case. 79. World Bank, 2021. “Background Paper: Adoption of e-GP in Africa”. 80. Open Government Partnership, 2021. “Obscurity Allows Oligarchs to Dominate Public Procurement”. September 22, 2021 38 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Many African countries are publishing tender notices, but other Based on the 2021 e-GP survey, the implementation of e-GP e-GP functions and features are rarer, especially those for varies considerably across sub-regions in Africa. For example, transactions with the procurement entity. A survey conducted while in southern Africa all countries have the e-Publication/ by the World Bank in 2021 on e-GP implementation in Africa81 Notification function, in the north and west sub-regions, 60 shows that the only e-GP function that is implemented in a percent of countries have this function. Another example is majority of African countries is e-publication/notification. All the e-Tendering. In northern Africa, 60 percent of the countries other functions of the pre-awarding phase—e-procurement have this function, whereas in the south and west sub-regions, planning, e-tendering, e-evaluation/awarding, and e-reverse just 20 percent of the countries have it.82 auction—are only implemented in a minority of countries. There is a low level of implementation of e-GP post-awarding The Doing Business 2020 data shows a similar pattern. Most functions and key supporting features such as e-Complaints countries in Africa have the e-GP feature of accessing notices, or integrity filters. According to the 2021 e-GP survey for but fewer e-GP systems provide access to award decisions, Africa, the level of implementation of the e-GP functions and even fewer to tender documentation. Importantly, just a of the post-awarding phase is in all cases lower than that few African countries have online features for transactions of the functions of the pre-awarding phase. E-Contract between the bidder and the procurement entity, such as the Management is implemented in merely 16 percent of African submission of tenders, the submission of bid security, and countries, and e-Catalogues in 18 percent of them. The other asking for clarifications. post-awarding functions are implemented in an even lower percentage of countries. There are some sub-regions in Compared to the world average, the e-GP systems in Africa are Africa with no implementation of certain e-GP post-awarding particularly weak in terms of access to tender documentation. functions, for example, in southern Africa, where none of the In a majority of countries in the world, the e-GP systems allow countries have implemented any of the four functions of the access to tender documentation, whereas in Africa this is the post-awarding phase. case in just 28 percent of countries. There is also an important gap between Africa and the world in the adoption of features for online transactions with the procurement entity. >>> Figure 22. e-GP adoption in Africa by function: pre-awarding phase World Bank 2021 Africa Survey Doing Business 2020 e-Publication/Notification Accessing notices Accessing award e-Procurement Planning decisions Accessing tender documentation e-Tendering Submitting tenders e-Evaluation/Awarding Asking for clarifications e-Reverse Auction Submitting bid security 0% 20% 40% 60% 80%100% 0% 20% 40% 60% 80%100% Percentage of African countries Africa Wo rld Percentage of countries with the e-GP function with the e-GP feature Sources: World Bank, Survey on e-GP implementation in Africa, 2021; World Bank Doing Business 2020, Contracting with Government 81. Data used in this report is based on the 09-04-2021 version of the database. In this version, data was available for 69% - 83% of African countries, depending on the indicator. 82. The percentages are based on the countries in each sub-region with available data. For example, in the case of northern Africa, data is available for 5 out of the 6countries (all except Libya). \ DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 39 Some of the e-GP supporting features are available in just a Other supporting features such as e-complaints, e-registration few African countries. This is the case for example of integrity and e-vendor management are available in more countries, filters, which are a powerful digital tool for detecting fraud but still their use is quite low. For example, e-complaints, and corruption in procurement ex-ante, i.e., before contracts which constitutes an important digital tool for accountability are awarded or invoices are paid.83 At present, only two in procurement processes, is available only in 22 percent of countries in Africa are using integrity filters, namely Tunisia African countries. and Côte d’Ivoire. >>> Figure 23. e-GP adoption in Africa by function: post-awarding phase and supporting features Post-awarding phase Supporting features 100% Other 40% 80% e-Registration 34% 60% e-Complaints 22% e-Vendor Management 20% 40% Tra nsverse Search 16% 16% 18% 20% 12% 14% Mo nitoring and 13% Reporting/BI 0% e-Signature 8% g t t s en en ue sin em em og Integrity Filters 5% ha al ag ag rc at Pu an an C e- M M e- 0% 20% 40% 60% 80%100% ct ue tra og Percentage of African countries on al at C with e-GP feature e- C e- Source: World Bank, Survey on e-GP implementation in Africa, 2021 GROWING ADOPTION OF E-GP The functions with the largest share of reformers include FUNCTIONS IN SOME COUNTRIES among others e-tendering and e-evaluation/awarding. Sixteen percent of African countries are either developing or planning A significant group of countries are currently expanding their e-tendering, and 14 percent of countries are doing the same range of e-GP functions, and some countries have already for e-evaluation/awarding. adopted most functions. For all the functions and supporting features covered in the 2021 e-GP Africa survey, there are The development and planning of new e-GP functions and always some countries in which the function or feature is supporting features is taking place predominantly in the south either under development or planned in the next two years. sub-region. In southern Africa, 40 percent of countries are 83. For more details, please see section “Governance risks in public procurement of ICT solutions” 40 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE developing or planning e-tendering, and 25 percent are doing Tunisia and Tanzania have both adopted multiple e-GP the same for e-evaluation/awarding. Moreover, 67 percent functions and supporting features. Tunisia’s e-GP system is of the countries in the south sub-region are developing or called Tuneps (https://www.tuneps.tn/) and has all the functions planning e-complaints, 50 percent e-vendor management, 40 and supporting features except e-procurement planning, percent e-registration, and 40 percent e-catalogues. e-contract management, e-complaints and e-signature.84 E-procurement planning and e-contract management are Another encouraging finding from the e-GP 2021 survey is that under development. Tanzania’s e-GP system has a very similar there are already some champions in Africa. Some countries name, Taneps (https://www.taneps.go.tz/epps/home.do) and in Africa have managed to adopt most of the e-GP functions has all the functions and features except transverse search, and supporting features. This is the case of Tunisia, Tanzania, monitoring and reporting/business intelligence, e-signature Rwanda, Angola, Nigeria, and Zambia. These countries have and integrity filters.85 Transverse search and monitoring and already implemented 65-76 percent of the 17 e-GP functions reporting/business intelligence are under development. and supporting features covered in the e-GP survey. >>> Figure 24. Top e-GP functions with reforms underway or planned e-Procurement Planning e-Tendering e-Evaluation/Awarding e-Vendor Management e-Catalogues Mo nitoring and Reporting/BI 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Percentage of African countries Implemented Implemented, under development, or planned in next two years Source: World Bank, Survey on e-GP implementation in Africa, 2021 84. For e-signature, there is a “don’t know” answer in the survey. 85. For e-signature and integrity filters, there are “don’t know” answers in the survey. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 41 CHALLENGES IN ADOPTING E-GP challenges were common barriers in e-GP in the building sector. There were also political, social, and cultural barriers Governments in developing countries face a number of to the implementation, and management did not recognize challenges, both external and internal, in the adoption and the benefits of e-procurement. As a consequence, there was implementation of e-GP. External challenges include the lack minimal management support and commitment.89 of government or political leadership, the legal and regulatory infrastructures, a lack of definitive government policy to In South Africa, there was limited use of e-GP in the implement e-GP, unreliable IT infrastructure, socio-economic construction sector, which was attributed to (1) the lack of and cultural barriers, and lack of awareness and training a definite government policy to implement e-GP; (2) the on e-GP systems. Internal challenges include management reliability of ICT infrastructure; (3) the high costs of installing support and leadership, lack of staff training or ICT expertise to and operating e-GP systems; and (4) the perceived negative conform with e-GP-related regulations, resistance to change impact of e-GP adoption on smaller firms and employment of from employees, old IT infrastructure in need of upgrade, people in the department.90 high installation and operation costs for e-GP systems, and minimal benefits.86 Another challenge is that of adopting the In Kenya, staff training in the use of e-GP was a key barrier. defining appropriate and consistent data standards and data Staff training was found to influence compliance to regulatory infrastructure. Developing these standards and infrastructure instruments such as the Public Procurement and Disposal Act can facilitate the use of data for procuring entities to plan, in the Kenyan context.91 run and close tenders and other types of public contracting, while also facilitating efficiency in public spending and in policy making. Developing these data standards and data S U C C E S S FAC TO R S I N E- G P infrastructure needs to be an integral part of e-GP reforms. ADOPTION Some examples from Africa illustrate these challenges. A There are several factors that contribute to successful e-GP case study on e-GP implementation in LesothoOrg87, which is adoption. For a successful e-GP adoption, governments should a public institution in Lesotho, identified some of the above- conduct a readiness assessment prior to implementation. mentioned challenges. Internal challenges of lack of expertise, A readiness assessment identifies the potential challenges system problems, employee resistance, lack of management that might arise when introducing new technology and support, and poor IT infrastructure and system integration accompanying procedures, structures, and processes within were strongly identified as barriers to the realization of the full a current organizational context. As part of a readiness potential of e-GP. Customer and supplier demands, as well assessment, a gap analysis is performed to identify gaps or as the lack of regulatory policies featured as external factors risk areas that should be addressed and remedied before or affecting adoption.88 as part of the implementation plan. There are a number of readiness assessments that are oriented specifically towards Other examples of African countries that have faced e-GP and can be leveraged as existing resources to jump start challenges with e-GP implementation include Nigeria, South governments on their e-GP journey.92, 93 Africa, and Kenya. In Nigeria, technical and infrastructure 86. Kabanda, Salah et. al. 2019. “The Role of Institutional Pressures in the Adoption of e-Procurement in Public Institutions in Developing Countries: The Case of Lesotho,” The African Journal of Information Systems, Vol. 11, Issue 3. 87. LesothoOrg is different from the Government of Lesotho. The Government of Lesotho has not yet implemented e-GP. It is still at the very initial stage of an e-GP readiness assessment. LesothoOrg is a public institution which serves, as one of its mandates, the Government of Lesotho’s agendas. In 1995, the Government of Lesotho (GoL), passed the Privatisation Act which saw LesothoOrg being privatised. In 2010, LesothoOrg automated its procurement processes, with the intention of addressing the challenges they faced with regards to the manual operation system. 88. Kabanda, Salah et. al. 2019. “The Role of Institutional Pressures in the Adoption of e-Procurement in Public Institutions in Developing Countries: The Case of Lesotho,” The African Journal of Information Systems, Vol. 11, Issue 3. 89. Aduwo, E.B., Ibem, E.O., Uwakonye, O., Tunji-Olayeni, P. and Ayo-Vuaghan, E.K. (2016) Barriers to the uptake of E-Procurement in the Nigerian building industry. Journal of Theoretical and Applied Information Technology, 89,1, 133 – 147. 90. Laryea, S., Ibem, E. O., Pagiwa, R., and Phoi, R. (2014) Electronic procurement in the South African construction sector: case study of government departments in the Gauteng Province. In Proceedings of the DII-2014 Conference on Infrastructure Investments in Africa. 25-26 September 2014 Livingstone, Zambia ISBN 978-0-86970- 782-1 91. Ndumbi, C.W. and Okello, B. (2015) Effect of Staff Training on level of Compliance to Public Procurement System in Parastatals in Kenya. International Journal of Economics, Commerce and management, 3,6,613-626. 92. For example: (1) Electronic Government Procurement (e-GP) Readiness Self-Assessment (jointly developed by the Asian Development Bank [ADB], Inter-American Development Bank [IADB], and World Bank); (2) Open Contracting Playbook (developed by the Open Contracting Partnership); and (3) Methodology for Assessing Procurement Systems [MAPS] (jointly developed by the World Bank and Organisation for Economic Co-operation and Development [OECD]). 93. World Bank, 2021. “Technical Background Paper: Adoption of e-GP in Africa”. 42 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE In addition, there are several other critical factors that can In Rwanda, a pioneer in Africa in e-GP, the factors that promote successful e-GP adoption, and that project teams can contributed to the successful adoption of e-GP include, among consider as they embark on the journey to implementing e-GP others, political leadership, partnering with an experienced solutions. Such factors include: end-users’ uptake and training, technology company, piloting e-GP in selected organizations, supplier adoption, business case and project management, advertising the system and helping enterprises to learn to use system integration, security and authentication, re-engineering it, and using straightforward and simple technology for end the process, performance measurement, top management users (Box 9). The success story of Rwanda created a ripple support, change management, e-procurement implementation effect across the continent, leading other countries to sign strategy, and technology standards.94 In addition, adherence to contracts to implement e-GP. In 2018, Zambia joined Rwanda the open contracting data standard is important for establishing as one of the pioneers of e-GP in Africa, and other countries an effective and interoperable system. like Tanzania and Uganda began to follow suit. BOX 9. LESSONS LEARNED FROM E-GP ADOPTION IN RWANDA In 2013, the Rwandan government performed a feasibility study, funded by the World Bank, on e-GP implementation. The feasibility study “found that an [e-GP] system in Rwanda could increase efficiency and transparency in public spending”. Later in 2014, the Rwandan government launched an initiative that focused on improving the country’s public financial management, which included US$12 million to establish and pilot an e-GP system. To establish the e-GP system, the government contracted directly with Africa Olleh Services Limited (AOS), a joint venture between the Rwandan government and Korea Telcom Corporation, one of the Republic of Korea’s largest telecoms. AOS developed a customized e-GP system based on Korea’s model. The World Bank provided technical support, and in July 2016, the government piloted the system with several national ministries and agencies and district governments. Officials in pilot organizations were provided training on the e-GP system and the government conducted media campaigns across the country to advertise the system and encourage registration and participation. The pilot ran for one year, at which point the system was expanded nationwide beginning July 1, 2017. Per Rwandan law, all public procuring entities had to use the e-GP system from that date. The key lessons learned from the experience of Rwanda include: • Political Leadership – Leaders initiated the reform of Rwanda’s procurement processes by passing a new procurement law in 2007 and establishing a new regulatory body for procurement in 2008. In addition, leaders sought expertise from the Republic of Korea, which has one of the most advanced e-GP systems in the world, to customize a new system for Rwanda. • Institutional Capacity – Institutional capacity was a critical component of this reform. By partnering with a Korean company to form a joint venture, and seeking out support from the World Bank, Rwanda was able to build capacity within its government to implement an e-GP system. The new system was instrumental in helping the government to enforce its procurement policies through in-built automated controls. The government also helped small and medium enterprises to learn to use the system by partnering with internet cafes across the country to train companies interested in bidding on government contracts. • Technology – Rwanda’s e-GP system was well-received, partly because the technology upon which it was based was straight forward and simple. The procurement website consisted of a single online portal and the automated bid processing system streamlined processes, reduced the ability of bidders to use falsified documents, and improved efficiency for both potential vendors and government organizations. The government’s procurement website greatly improved equal access to information on the bidding process for any member of the public. Source: World Bank, 2018. “Rwanda: Pioneering e-Procurement in Africa”. World Bank, Washington, D.C. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 43 IMPACT: MORE EFFICIENCY AND on firm participation, but only in countries with higher levels of L E S S C O R R U P T I O N , E S P E C I A L LY development and better-quality institutions.95 WHEN THE MEDIA IS FREE The data from the 2021 e-GP survey and from Doing The empirical evidence from global studies shows that e-GP Business 2020 show an association between e-GP and higher can increase the number of firms participating in public efficiency for businesses in Africa. Doing business is, on procurement. One working paper found that firms are more average, assessed to be easier in the African countries where likely to participate in public procurement markets in developing e-tendering is implemented or where the e-GP feature of countries with more transparent procurement systems,94 while submitting tenders is available. In both cases, the correlation another working paper found that e-GP has a significant effect with the Ease of Doing Business is positive. >>> Figure 25. e-GP and ease of doing business in Africa E-Tendering E-Submission of tenders 90 90 80 80 (100= highest; 0=lowest) (100=highest; 0=lowest) Ease of Doing Business Ease of Doing Business 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 No Yes No Yes E-Procurement features: Submitting E-Tendering Tenders Sources: World Bank, Survey on e-GP implementation in Africa, 2021; World Bank Doing Business 2020 The cases of Zambia and South Africa illustrate some of to take on more of a supervisory than a transactional role. the efficiency and participation benefits. Zambia’s e-GP Stakeholders in Zambia have noted that e-GP has the system is used to track government agencies’ procurement potential to significantly reduce costs for bidders (for example, processes for the full life cycle of the transactions. Some for travel), increase competition, and increase value for money procuring entities, such as Zamtel, are completing hundreds for the procuring agencies. The platform has also assisted with of transactions per year within e-GP. Before the rollout of appeals processes by providing clear procurement records.96 e-GP, the procurement reporting system experienced a high risk of error and perceptions of unfairness and inequities in In South Africa, the e-Tender Publication portal and the procurement process. Since 2015, the decentralization the Central Supplier Database were launched in 2015. of public procurement and the digitization of the procurement National and provincial departments publish their tenders in system has allowed the Zambia Public Procurement Authority accordance with the demand plans for acquisition of goods, 94. Knack, Stephen; Biletska, Nataliya; Kacker, Kanishka. 2017. “Deterring Kickbacks and Encouraging Entry in Public Procurement Markets: Evidence from Firm Surveys in 88 Developing Countries”. Policy Research Working Paper No. 8078. World Bank, Washington, DC 95. Kochanova, Anna; Hasnain, Zahid; Larson, Bradley. 2016. “Does E-Government Improve Government Capacity?: Evidence from Tax Administration and Public Procurement”. Policy Research Working Paper No. 7657. World Bank, Washington, DC. 96. World Bank, 2020. “Accelerating Digital Transformation in Zambia. Digital Economy Diagnostic Report” 44 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE services and infrastructure. The e-Tender portal was the first Data from the World Bank e-GP survey in Africa shows no step towards implementing government’s e-GP system as correlation between e-publication/notification and corruption part of the Integrated Financial Management System and in procurement, and a weak negative correlation between directly contributed to reducing duplication, fragmentation, e-tendering and corruption in procurement (Figure 26). The and inefficiency in government tender publications. However, Doing Business 2020 data shows similar results in Africa for unlike in Zambia, in South Africa there is no single e-GP the e-GP features of accessing notices and submitting tenders. system covering comprehensive end-to-end processes of (Corruption in procurement is measured by the indicator procurement system conducting procurements using functions “percentage of firms expected to give gifts to secure government and tools online, except the publication of transversal contract” from the World Bank Enterprise Surveys.) procurement in g-Commerce portal, which is already in use.97 The findings change when the level of internet use and external In Africa, e-GP is associated with lower corruption in accountability, such as media and judiciary oversight,100 are countries with high internet use and strong mechanisms for taken into consideration. The correlation between the various accountability. The empirical evidence from global studies measures of e-GP101 and corruption in procurement becomes shows mixed evidence on the impact of e-GP on corruption. negative and stronger (Figure 26, lower right). This might While one study found no systematic relationship between suggest that merely advertising procurement opportunities is e-GP and bureaucratic corruption,98 another found that in not sufficient to address corruption, and that access to internet, developing countries with more transparent procurement digital skills, and mechanisms for accountability matter, too. systems, firms are more likely to report fewer and smaller kickbacks to officials.99 >>> Figure 26. e-GP and corruption in procurement in Africa e-Publication/Notification only e-Tendering only 80 80 Percentage of firms expected to Percentage of firms expected to give gifts to secure government give gifts to secure government 70 70 60 60 contracts (%) contracts (%) 50 50 40 40 30 30 20 20 10 10 - - No Yes No Yes E-Publication/Notification E-Tendering 99. World Bank, 2019. “South Africa Digital Economy Diagnostic” 100. Kochanova, Anna; Hasnain, Zahid; Larson, Bradley. 2016. “Does E-Government Improve Government Capacity?: Evidence from Tax Administration and Public Procurement”. Policy Research Working Paper No. 7657. World Bank, Washington, DC. 101. Knack, Stephen; Biletska, Nataliya; Kacker, Kanishka. 2017. “Deterring Kickbacks and Encouraging Entry in Public Procurement Markets: Evidence from Firm Surveys in 88 Developing Countries”. Policy Research Working Paper No. 8078. World Bank, Washington, DC 102. The measures of external accountability considered are: “Media without prior government restraint or censorship” and “Judiciary independence guaranteed in practice” (Africa Integrity Indicators, 2020). 103. The e-GP measures considered are: E-Publication/Notification (World Bank 2021 e-GP Africa Survey), E-procurement feature: Accessing Notices (Doing Business 2020), and e-Tendering (World Bank 2021 e-GP Africa Survey). DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 45 e-Publication/Notification & higher internet use e-Publication/Notification & more accountability 80 80 Percentage of firms expected to give gifts to secure government contracts Percentage of firms expected to give gifts to secure government contracts 70 70 60 60 50 50 40 40 (%) (%) 30 30 20 20 10 10 - 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 - 0 25 50 75 100 E-Publication/Notification interacted E-Publication/Notification interacted with with Population using internet (1=high; Media without prior government restraint 0= low) or censorship (100=high; 0=low) Sources: World Bank, Survey on e-GP implementation in Africa, 2021; World Bank Enterprise Surveys, 2006-2020; International Telecommunication Union, Country ICT data, latest available as of May 2021 Digital tools for filing and paying taxes of the purported benefits, reflecting broader institutional, infrastructural, and technological challenges.108 The digital In Africa, tax authorities are considered the least trustworthy divides outlined earlier in terms of skills and digital literacy, and the most likely to engage in corruption. Many people as well as factors such as trust, culture, and preferences may also believe their tax systems are unfair, inequitable, and hinder digital adoption for better governance of taxation. For unaccountable. They overwhelmingly think the taxes they pay digital adoption to be successful, the tools must be designed do not improve public services.104,105 in a user-centric way. Can digital tools help? In theory, yes. A range of digital tools This section examines the level of adoption by African for taxes are available, and they have the potential to increase countries of digital tools for tax compliance, with a focus on efficiency and transparency and to reduce opportunities for e-filing and e-payment, and the impact that such adoption has corruption. Electronic filing and payment systems as well as tax had on efficiency and corruption. It also covers some country management information systems are spreading rapidly. Even stories on the challenges faced by some African countries, as where payments are based on in-person tax assessments, well as some success stories. technology can be used both to calculate, and display, tax liabilities; and enable electronic payments to be directly registered in central databases.106 There is a growing range of ADOPTION OF E-FILING AND options for making payments directly to the tax agency instead E - PAY M E N T O F TA X E S A S S O C I AT E D of to tax officers, limiting opportunities for corruption.107 WITH INCOME In reality, however, despite significant investments in According to the in-depth information of Doing Business 2020, taxpayer-facing services like e-filing and e-payments, many only a minority of African countries have an online system for low- and middle-income countries are yet to realize many filing or paying taxes. Just one fifth of countries have e-filing 104. Bratton, M., and E. Gyimah-Boadi. 2016. “Do Trustworthy Institutions Matter for Development? Corruption, Trust, and Government Performance in Africa.” Dispatch No. 112, Afrobarometer, Accra, Ghana. 105. Isbell, T. 2017. “Tax Compliance: Africans Affirm Civic Duty but Lack Trust in Tax Department.” Policy Paper No. 43, Afrobarometer, Accra Ghana. 106. Roel Dom, Anna Custers, Stephen Davenport & Wilson Prichard. 2021. “Innovations in Tax Compliance: Building Trust, Navigating Politics and Tailoring Reform”. World Bank Group, 2021 (draft for decision review, 14 May 2021). 107. Okunogbe, O. M., and V. M. J. Pouliquen. 2018. “Technology, Taxation, and Corruption: Evidence from the Introduction of Electronic Tax Filing.” Policy Research Working Paper 8452, World Bank, Washington, DC. 108. Roel Dom, Anna Custers, Stephen Davenport & Wilson Prichard. 2021. “Innovations in Tax Compliance: Building Trust, Navigating Politics and Tailoring Reform”. World Bank Group, 2021 (draft for decision review, 14 May 2021). 46 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE or e-payments for at least one tax, among VAT109, corporate driver of adoption. In Africa, just 4 percent of low-income income tax110 and social security contributions111. The share of countries have e-filing or e-payments for at least one tax. In countries that have e-filing or e-payments for all these three contrast, 35 percent of lower-middle-income countries have taxes is even lower. this tool. Northern Africa is by far the sub-region with the highest adoption Compared to other world regions, Africa is lagging far behind of e-filing. While half of the countries in northern Africa have in the adoption of these digital tools: Sub-Saharan Africa has e-filing or e-payments for at least one of the taxes, in the other the lowest share of economies using e-filing or e-payments of regions of Africa, just 17 percent of the countries have this tool. taxes. While 56 percent of economies in the world are using In the central Africa sub-region, none of the countries have e-filing or e-payments, in Sub-Saharan Africa this is the case adopted e-filing or e-payments for any of the three taxes. of just 17 percent of the economies. Among OECD high- income economies, the percentage is 97 percent.112, 113 A country’s income level is seemingly a key precondition and >>> Figure 27. Use of e-filing or e-payments for taxes in Africa and the world Africa World 97% Percentage of African countries 25% 100% using e-filing or e-payments Percentage of economies using e-filing or e-payments 20% 90% 20% 19% 15% 80% 15% 13% 70% 11% 60% 56% 10% 50% 5% 40% 0% 30% 17% 20% es x s ns x ta xe ta x tio 10% ta ta e d bu m de e ee co re t ri ad 0% r in th n th co e te e he lu th it y ra Va lt a e ld po of r ric Al m or cu or co ne Af W se C in to n al ra h as ci ig ha So le h Sa D: At b- EC Su O Sources: World Bank Doing Business 2020; World Bank and PwC, Paying Taxes 2020 109. Indicator is 1 (=yes) if e-filing or e-payments of value added tax (or consumption tax, goods and services tax, sales tax) are allowed. Indicator is 0 (=no) otherwise. If the value added tax does not exist in the country, the indicator is also 0. E-filing or e-payments are considered to exist when, in the DB country details for Paying Taxes, the answer is “online” for “Notes on Payments”. 110. Indicator is 1 (=yes) if e-filing or e-payments of corporate income tax (or business profit tax) are allowed. Indicator is 0 (=no) otherwise. If corporate income tax does not exist in the country, the indicator is also 0. E-filing or e-payments are considered to exist when, in the DB country details for Paying Taxes, the answer is “online” for “Notes on Payments”. 111. Indicator is 1 (=yes) if e-filing or e-payments of social security contributions (or pension and unemployment insurance contributions) are allowed. Indicator is 0 (=no) otherwise. If social security contributions do not exist in the country, the indicator is also 0. E-filing or e-payments are considered to exist when, in the DB country details for Paying Taxes, the answer is “online” for “Notes on Payments”. 112. World Bank Group, 2020. “Doing Business 2020” report, Chapter 3. 113. World Bank Group and PwC, 2020 “Paying Taxes 2020” report. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 47 CHALLENGES IN ADOPTION OF I M PA C T: B R O A D E N E D TA X B A S E , D I G I TA L T O O L S F O R TA X AT I O N STREAMLINED PROCESSES, AND LESS CORRUPTION Examples from around Africa show that adopting a complete e-filing and e-payment system and ensuring its usage is a When digital tools are adopted for tax filing and tax payments, journey full of challenges. Based on the Doing Business does it make a difference? The adoption of e-filing or 2020 in-depth information, South Africa is one of the few e-payments of taxes in Africa is associated with a lower number countries in Africa that already has e-filing or e-payments for of tax payments per year. The use of e-filing or e-payments three types of taxes. Nevertheless, the uptake by businesses for taxes in Africa is moderately and negatively correlated has not been easy. Comparative research from South Africa, with the number of tax payments per year, as measured by Nepal, and Ukraine shows that the learning curve for e-filing the “Payments” Doing Business indicator.117 In those African can be quite steep, particularly for small businesses, and countries with the option of e-filing or e-payments for at least that requirements to submit paperwork alongside e-filing can one tax, businesses must make, on average, a lower number of offset potential gains.114 tax payments per year. The number of tax payments is further reduced in those countries where e-filing or e-payments are Zambia has managed to adopt e-filing or e-payments for available for a higher number of taxes. three different types of taxes, although the country still faces challenges. Major challenges to tax collection include the The Doing Business data suggest that the use of online large cash economy and large informal sector. Furthermore, systems for tax filing and payment resulted in efficiency interfaces with banks for e-payments or mobile money gains in several economies in Africa in 2018 including Côte accounts are not yet available. Although the Tax Online d’Ivoire, Kenya, Mauritius, and Togo. Côte d’Ivoire and Kenya platform is functional, several stakeholders noted that its are among the nine countries in the world experiencing the interface is not user friendly.115 largest reductions in the number of payments in 2018, after the introduction or scale-up of online filing.118 Senegal has made some progress but has many challenges ahead. The country has recently launched an online corporate In Côte d’Ivoire, the number of payments was reduced tax system (e-tax), but just for the largest companies. by 38 in 2018. Online filing was introduced in 2017 and Extending its services to SMEs and citizens is a priority for became mandatory for certain taxpayers in 2018, resulting the Government of Senegal, but this entails many challenges. in reductions in the number of payments indicator for VAT, The short-term needs include, for example, establishing business license tax, tax on real estate for developed and a more robust load-balancing solution to support online undeveloped land, payroll tax, corporate income tax, and procedures in the context of higher data flow. In the medium special tax on equipment. In Kenya, the number of payments term, the country is planning to develop a custom-made was reduced by 11 in 2018. Since February 2018, the use of mobile solution intended for individuals and micro and small online filing and payment systems has been mandatory for enterprises that would facilitate online interactions between social security contributions. taxpayers and administration. Funding for this project has been mobilized through the State budget. However, the integration of payment options in the module calls for the adoption of a decree regulating online payment options for all individual taxpayers.116 114. Yilmaz, F., and J. Coolidge. 2013. “Can E-Filing Reduce Tax Compliance Costs in Developing Countries?” Policy Research Working Paper 6647, World Bank, Washington, DC. doi:10.1596/1813-9450-6647. 115. World Bank, 2020. “Accelerating Digital Transformation in Zambia. Digital Economy Diagnostic Report” 116. World Bank, 2019. “Digital Economy for Africa. Country Diagnostic of Senegal” 117. The indicator measures the number of tax payments per year. It captures the total number of taxes and contributions paid, the method of payment, the frequency of payment, and the frequency of filing. It includes taxes withheld by the company, such as sales tax, VAT and employee-borne labor taxes. The number of payments takes into account electronic filing. Where full electronic filing and payment are allowed and are used by most medium-size businesses, the tax is counted as paid once a year even if filings and payments are more frequent. 118. “Paying Taxes 2020” report, by World Bank Group and PwC. 48 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Figure 28. E-filing and number of tax payments in Africa E-filing or e-payments for at least one of three taxes E-filing or e-payments for three taxes 70 70 60 60 Paying Taxes - Payments 50 Paying Taxes - Payments 50 (number per yeaar) (number per year) 40 40 30 30 20 20 10 10 0 0 none at least not all all one three three E-filing or e-payments for at least one of E-filing or e-payments for all three three taxes: corporate income tax, social taxes: corporate income tax, social security contributions, value added tax security contributions, value added tax Source: World Bank Doing Business 2020 Global empirical evidence shows that e-filing reduces tax integrating and automating the domestic tax functions and compliance costs. A study covering 198 countries found that providing new electronic avenues for settling tax liabilities, e-filing systems significantly reduce tax compliance costs for reduced revenue collection costs and has enabled real-time businesses, as measured by the number of tax payments, the revenue and audit monitoring.122 time required to prepare and pay taxes, the probability of being visited by tax officials, the number of visits by tax officials, and In Ghana, filing and payment of taxes such as personal income the perception of tax administration as an obstacle to firms’ tax, corporate income tax, VAT, among others, can now be done operation and growth.119 through the portal of Ghana’s Revenue Authority or through the Digital Services and Payments Platform (discussed in a later The channels by which the adoption of digital tools translate section and in Box 11.). The automation of tax and business into better outcomes are illustrated by several African registration systems in Ghana has significantly broadened the countries where e-filing and e-payments for taxes has led to a tax base and streamlined business processes.123 reduction of tax compliance costs, and that has also brought other benefits such as an increase in tax returns. Several governments in Africa have begun capitalizing on the potential of mobile money payments for one or more type of In South Africa, for example, the introduction of e-filing and taxes. This is the case for example of Mauritius, Tanzania, improved automation reduced red tape and temporal expenses Kenya, Rwanda and Uganda.124,125 relating to tax assessments and customs evaluations.120,121 Similarly, in Kenya, the introduction of its iTax system, fully In Mauritius, the Mauritius Revenue Authority, in collaboration 119. Kochanova, Anna; Hasnain, Zahid; Larson, Bradley. 2016. “Does E-Government Improve Government Capacity?: Evidence from Tax Administration and Public Procurement”. Policy Research Working Paper No. 7657. World Bank, Washington, DC. 120. CIAT (Inter-American Center of Tax Administrations). 2020. ICT as a Strategic Tool to Leapfrog the Efficiency of Tax Administrations. Seattle: Bill & Melinda Gates Foundation; Panama City: CIAT. 121. IMF (International Monetary Fund). 2020. “Digitalization in Sub-Saharan Africa.” In Regional Economic Outlook: Sub-Saharan Africa, April 2020. COVID-19: AnUnprecedented Threat to Development. IMF, Washington, DC 122. Ndung’u, N. 2019. “Digital Technology and State Capacity in Kenya.” Policy Paper No. 154, Center for Global Development, Washington, DC. OECD (Organisation for Economic Co-operation and Development). 2016. Technologies for Better Tax Administration: A Practical Guide for Revenue Bodies. Paris: OECD Publishing. doi:10.1787/978926446439-en. 123. World Bank, 2019. Ghana Digital Economy Diagnostic. 124. GSMA (GSM Association). 2014. “Paying Taxes through Mobile Money: Initial Insights into P2G and B2G Payments.” Mobile for Development (blog), December 4. https://www.gsma.com/mobilefordevelopment/programme/mobile-money/paying-taxes-through-mobile-money-initial-insights-into-p2g-and-b2g-payments/. 125. Wasunna, N., and J. Frydrych. 2017. “Person-to-Government (P2G) Payment Digitisation: Lessons from Kenya.” Case study, GSM Association (GSMA), London. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 49 with the State Bank of Mauritius, enabled mobile money the probability of paying bribes to tax officials by 5 percent.130 payments for income taxes, resulting in a 12 percent increase in returns filed within one year. Similarly, in Tanzania, the A study focused on Africa points in the same direction. Tanzania Revenue Authority recorded decreases in tax A recent IMF study on taxation, corruption, and trust in avoidance one year after enabling mobile money payments Africa found that higher overall digital adoption131 led to a for property taxes and personal income taxes.126 decrease in perceptions of corruption of tax officials by 4.2 percentage points and notably increased their confidence in The use of digital technology to communicate with taxpayers tax officials by 2.5 percentage points, based on data from the has brought similar benefits to some African countries. For Afrobarometer survey. However, this effect was significantly example, evidence from Rwanda found that SMS messages dampened when governments shut down the internet or to taxpayers about public services led to substantial increases limited social media use.132 in taxes declared in addition to being a cost-effective mode of engaging with taxpayers for whom mobile technology is the Using the information from Doing Business 2020 on the use prevailing mode of communication.127 of e-filing or e-payments in Africa, a similar finding emerges. In the African countries with online filing or payments for at Another example is Sierra Leone’s capital, Freetown. In least one tax, the percentage of firms expected to give gifts 2019, Freetown started a reform of its property tax. After a or informal payments during meetings with tax officials133 is successful pilot period, the project is now expanding to the slightly lower on average than in the countries without online broader population and is expected to generate a fivefold filing and payment. This is also the case when another increase in revenues for the city of Freetown. Central to the measure of corruption is used, namely the percentage of the reform effort is a new IT system to facilitate the administration population saying that all or most tax officials are involved in of property taxes. Reform efforts have also used technology corruption, from the Afrobarometer.134 in simple yet effective ways to build trust and improve the taxpayer experience.128 These efforts include automating and In the countries with a higher number of taxes with the option providing more pertinent information to taxpayers about their of e-filing or e-payments, corruption is even a bit lower tax bills and liabilities, initiating electronic communications on average. Nevertheless, the most important impact on with taxpayers, and allowing mobile payments to reduce face- corruption is observed in the countries with high internet use. to-face interaction with officials. It also includes digital town Among the African countries with e-filing or e-payments, those halls to improve two-way communication between taxpayers countries with high internet use have on average a significantly and officials and facilitate participatory budgeting.129 lower level of corruption in taxation than the countries with low internet use. This is the case for the two above-mentioned In those African countries with e-filing of taxes and high measures of corruption. (Table 3, Figure 29) internet use, there is a lower level of corruption related to taxes on average. The same global study that found that e-filing reduces tax compliance costs, also found that e-filing reduces 126. GSMA (GSM Association). 2014. “Paying Taxes through Mobile Money: Initial Insights into P2G and B2G Payments.” Mobile for Development (blog), December 4. https://www.gsma.com/mobilefordevelopment/programme/mobile-money/paying-taxes-through-mobile-money-initial-insights-into-p2g-and-b2g-payments/. 127. Mascagni, G., D. Mukama, and F. Santoro. 2019. “An Analysis of Discrepancies in Taxpayers’ VAT Declarations in Rwanda.” Working Paper No. 92, International Centre for Tax and Development (ICTD), Brighton, UK. 128. It should be noted that studies have also found that higher internet use is correlated with lower levels of trust. See Pascal Jaupart and others, 2022, “Internet Access and Trust Towards Public Institutions: Evidence from the African Continent”. Processed. 129. Prichard, W., A. B. Kamara, and N. Meriggi. 2020. “Freetown Just Implemented a New Property Tax System that Could Quintuple Revenue.” African Arguments, May 21. 130. Kochanova, Anna; Hasnain, Zahid; Larson, Bradley. 2016. “Does E-Government Improve Government Capacity?: Evidence from Tax Administration and Public Procurement”. Policy Research Working Paper No. 7657. World Bank, Washington, DC. 131. Digital adoption is measured by: World Bank’s Digital Adoption Index (DAI) dataset, year 2014; World Bank’s Open Budget and Public Financial Management (PFM e-services) indices; United Nations data on E-Government, E-Participation and Online Services Index 132. Ouedraogo, R., and A. Sy. 2020. “Can Digitalization Help Deter Corruption in Africa?” Working Paper No. 2019/68, International Monetary Fund, Washington, DC. doi:10.5089/9781513545691.001. 133. Indicator from the World Bank Enterprise Surveys. Data is from 2006 to 2020, depending on the country. There is data for 46 African countries. 134. Percentage of people answering “All of them” or “Most of them” to the survey question: “How many of the following people do you think are involved in corruption, or haven’t you heard enough about them to say? Tax Officials, like Ministry of Finance officials or Local Government tax collectors”. Data is from the 2014-2015 survey. There is data for 36 African countries. 50 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Table 3. E-filing and corruption in taxation in Africa Firms expected to give gifts or informal People saying that all or most tax payments during meetings with tax officials are involved in corruption officials No e-filing 17% 37% E-filing for at least 1 tax 10% 30% E-filing for 3 taxes 7% 25% E-filing for at least 1 tax with low 14% 35% internet use (i.e., below 50%) E-filing for at least 1 tax with high 5% 23% internet use (i.e., above 50%) Sources: World Bank Enterprise Surveys, 2006-2020; Afrobarometer Survey, 2022; World Bank Doing Business 2020; International Telecommunication Union, Country ICT Data, latest available as of May 2021. The three taxes referred to in the first column are corporate income tax, social security contributions, and value added tax. >>> Figure 29. E-filing and corruption in taxation in Africa E-filing or e-payments E-filing or e-payments and internet use 60% 60% Firms expected to give gifts or informal Firms expected to give gifts or informal 50% 50% 40% 40% payments to tax officials payments to tax officials 30% 30% 20% 20% 10% 10% 0% None At least 0% one 0.0 0.2 0.4 0.6 0.8 1.0 E-filing or e-payments for at least one E-filing or e-payments for at least one tax: corporate income tax, social tax interacted with population using security contributions, value added tax internet (0-1) 70% 70% 70% officials are involved in corruption People saying that all or most tax officials are involved in corruption People saying that all or most tax officials are involved in corruption People saying that all or most tax 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% None None At least At least 0.0 0.2 0.4 0.6 0.8 1.0 one one E-filing E-filing oror e-payments e-payments for for atat least least one one E-filing or e-payments for least one tax tax: tax: corporate corporate income income tax, tax, social social interacted with population using security security contributions, contributions, value value added added tax tax internet (0-1) Sources: World Bank Enterprise Surveys, 2006-2020; Afrobarometer Survey, 2022; World Bank Doing Business 2020; International Telecommunication Union, Country ICT Data, latest available as of May 2021 DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 51 Digital land registration systems system emboldens citizens and businesses to question unreasonable procedures.139 The land administration role of the government is crucial for This section examines the adoption and impact of digital the economy. Registered land property rights are necessary land registration systems in Africa, both in terms of the to support investment, productivity, and growth. Owners computerization of the registry and the availability of online with properly registered titles are more likely to invest in the services. The section also covers other applications of digital local economy, engage the economy’s workforce and boost tools for the land administration, such as the online provision productivity. The benefits of land registration extend beyond of information on the procedures for transactions related land the private sector. For governments, having reliable, up-to- and property. date information in cadastres and land registries is essential to assess and collect taxes correctly.135 In addition, studies show that documented land rights help to drive food security, SOME PROGRESS IN DIGITIZATION OF LAND equal access to land, reduce land conflicts and disputes, REGISTRATION, LESS FOR ONLINE SERVICES and provide a means of collateral for overall economic and social development.136 In Africa, land governance has been A minority of African countries have digitalized their land identified as a contributor to inequality.137 registration systems, and just a few of them have online transactional services for land-related issues. The in- Digitalization can significantly facilitate and improve the depth information from Doing Business shows that just 37 administration of land. Economies that invest in a digital land percent of countries have a digitalized property registry,140 or property registration system benefit in several ways. One either in a scanned or fully digital format, and even fewer way is through greater efficiency. Computerization helps (24 percent) have an electronic database for checking reduce duplication in the storage of information and makes encumbrances.141 Only three countries in Africa—Kenya, it possible to consolidate a large amount of information in Mauritius and Rwanda—have digitalized property registries one database. It also optimizes processes by streamlining in a fully digital format. workflows and helps compile information in ways not possible with manual systems. Faster processes reduce There are big disparities within Africa. While in southern the time involved in transferring property rights and speed Africa and northern Africa more than half of countries have up mortgage applications, saving the land registry and a digitalized property registry and an electronic database for applicants much time.138 checking encumbrances, in all the other sub-regions of Africa the share of countries is one third or below. Computerization also strengthens transparency by making land records more accessible to all stakeholders. A computerized Importantly, few countries in Africa have online tools for system makes it easier for different people to access data in transactions and complaints related to land and property different locations at the same time. By sharing information management. Just three countries have a system that allows online, it takes away discretion and reduces opportunities for to apply online for property or land registration,142 the same arbitrary action. With simple and transparent rules, a digital as noted earlier with respect to digitized property registries: 135. Source: https://www.doingbusiness.org/en/data/exploretopics/registering-property/why-matters 136. Source: https://landadmin.trimble.com/industries/government/ 137. World Bank, 2022. Inequality in Southern Africa: An Assessment of the Southern African Customs Union. World Bank. 138. World Bank, 2016. Doing Business 2016. Case Study: “Registering property, the paths of digitalization”. 139. Ibid. 140. Indicator is 1 (=yes) if land title certificates are kept at the immovable property registry of the largest business city of the economy in either a scanned computerized format or a fully digital computerized format. Indicator is 0 (=no) if the land title certificates are kept in paper format. 141. Indicator is 1 (=yes) if there is a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, restrictions and the like). Indicator is 0 (=no) otherwise. 142. Indicator is 1 (=yes) if it is possible to apply online for the registration of property, land or deeds. It refers to the registration with the property/land/deeds registry, but not registration with the tax authority. Indicator is 0 (=no) otherwise. 143. The DB country details for Rwanda do not mention that land registration can be done online, but the DB Reforms of Rwanda for 2018 include the implementation of online services to facilitate the registration of property transfer. In addition, the websites of the government of Rwanda allow to do online sporadic land registration, online property tax registration request, and online mortgage registration. 52 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Kenya, Mauritius and Rwanda.144 Similarly, only two African to land or property.145 Searching land titles and/or checking countries (Mauritius and Seychelles) have a specific and encumbrances online146 is possible in only 13 percent of independent mechanism for filing complaints online related African countries. >>> Figure 30. Digital tools in land and property management in Africa Digitalization of internal systems Digitalization of internal systems Digitalized property Online title search registry scanned or and/or encumbrances fully digital format check Electronic database Online application for for checking registration of property encumbrances Online filing of Digitalized property complaints on registry fully digital land/property through format specific and independent me chanism 0% 20% 40% 60% 0% 20% 40% 60% Percentage of African countries Percentage of African countries Source: World Bank Doing Business 2020 SOME ADOPTION OF TECHNOLOGIES Other countries that do not yet have a fully digital property W E L L- S U I T E D FO R L A N D registry are nonetheless benefiting from Geographic MANAGEMENT Information System (GIS) technology. For example, in Nigeria, Kaduna state restructured its land registry and created the Some African countries are leveraging modern technology Kaduna Geographic Information Service where all land records such as blockchain and Geographic Information System (GIS) were GIS mapped. All land titles and property maps have technology. In Kenya, the government has deployed a new been scanned and all records are digital. It also modernized online land registry that leverages blockchain technology approval processes, which resulted in the most significant and hopes to enable end-to-end land-related transactions improvement recorded in the Doing Business rankings since online, including ownership transfers, registration of charges, 2008. Other states such as Nasarawa, Edo, and Lagos have discharges, cautions and withdrawals, as well as payments of established similar modern land management systems.147 land rent, stamp duty and capital gains tax (where applicable), land searches and submission of other relevant applications. Another example is Zambia. The Ministry of Lands launched The use of blockchain technology will allow the system to Zambia Integrated Land Management Information System reliably capture transaction histories, weeding out cases of (ZILMIS) in 2013. The platform tracks land registration, the fraud, and link land and property entitlements to their rightful deeds and data obtained from land surveys, the surrender owner. The system has been inspired by electronic registration of lease rights, and land-related disputes. The data system systems used in Netherlands, UK and Canada which are is based on geographic information system infrastructure, considered examples of international best experience.145 and modules are being installed to define plot boundaries. 144. Indicator is 1 (=yes) if (a) there is a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration and/or the cadastral mapping agency, and (b) the contact information specified in the DB country details includes an online link that allows to file complaints online. Indicator is 0 (=no) if there is not a specific and independent mechanism for filing complaints, or if the online link specified in the DB country details does not allow to file complaints online. 145. Indicator is 1 (=yes) if it is possible to do online the title search and/or the encumbrances check. The indicator is 0 (=no) otherwise. If it is not possible to check the encumbrances online, but it is possible to search the property ownership online, the indicator is still 1 (=yes). If the title search can be done through other digital means such as via SMS (case of Rwanda) the indicator is still 1 (=yes). If it is possible to submit online a request on the title, but the document is issued in paper format (case of Algeria), the indicator is still 1 (=yes). If the electronic title search can only be conducted at the property registry office, the indicator is 0 (=no). 146. World Bank, 2019. “Kenya Digital Economy Assessment” 147. World Bank, 2019. “Nigeria Digital Economy Diagnostic Report” DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 53 Currently ZILMIS is a standalone system though it requires even lower for the online publication of complete information. information from the National Spatial Data Infrastructure Less than one third of African countries publish online all the system to complete its processes. ZILMIS is being used to information151 on land procedures, maps, and plans. store data as part of the national land audit and national land titling program. The rollout focused only on state land given The Doing Business Registering Property “Transparency of that legislation does not allow private land titling. Also, land Information Index” allows comparisons of Africa with other data are decentralized but need to be centralized and digitized world regions. This is a broad indicator of public availability of to be input into the database.148 information related to land and property transactions, covering both online and offline public availability. Based on this indicator, Africa is behind other regions in this transparency of information U S E O F D I G I TA L TO O L S F O R measure, but not by much. Africa receives a 2.3 on this index, P R O P E RT Y- R E L AT E D I N F O R M AT I O N compared to the global average of 2.9 (on a 0-6 scale). PROVISION MIRRORS OTHER REGIONS The Doing Business in-depth information also shows that a large majority of African countries (70 percent) publish online The use of digital tools for providing information on procedures building laws and regulations, including regulations dealing for government services is higher, and on this aspect, Africa with construction permits.152 Based on the Doing Business is seemingly not very different from other regions of the world. indicator “Quality of Building Regulations Index”,153 which For slightly more than half of African countries, some degree largely captures the online availability of information, Africa of information on the procedures for property transactions149 is is lagging compared to other regions. Nevertheless, as in available online. The share of countries is somewhat lower (39 the case of the “Transparency of Information Index”, the gap percent) for information on cadastral maps and plans150, and between Africa and other regions is relatively small. >>> Figure 31. Online information on land procedures, maps and plans in Africa and the world Africa World 60% South Asia Percentage of African countries 50% Sub-Saharan Africa 40% Africa Mid dle East & North Africa 30% Latin America & Caribbean 20% Wo rl d 10% East Asia & Pacific Europe & Central Asia 0% At least some All information OECD: high income information online 0 1 2 3 4 5 6 online Transparency of Information Index, Procedures for property transactions Registering Property (0= lowest; 6= highest) Cadastral maps and plans Source: World Bank Doing Business 2020 148. World Bank, 2020. “Accelerating Digital Transformation in Zambia. Digital Economy Diagnostic Report” 149. From the Doing Business database. Indicator is 1 (=yes) if at least one of the following three types of information on the procedures for property transactions is available online: (a) list of documents that are required to complete any type of property transaction; (b) the applicable fee schedule for any type of property transaction at the agency in charge of immovable property registration in the largest business city; and (c) specific timeframe for delivery of legally binding document that proves property ownership. Indicator is 0 (=no) if none of the above-mentioned types of information are available online. 150. Indicator is 1 (=yes) if at least one of the following two types of information on cadastral maps and plans is available online: (a) applicable fee schedule for accessing maps of land plots; and (b) timeframe of the cadastral/mapping agency to deliver an updated cadastral plan. Indicator is 0 (=no) if none of the above-mentioned types of information are available online. 151. For procedures for property transactions, online posting of “all information” means that all the three types of information mentioned in a previous footnote are available online. For cadastral maps and plans, online posting of “all information” means that the two types of information in a previous footnote are available online. 152. The indicator is 1 (=yes) if building laws and regulations are available online. Indicator is 0 (=no) otherwise. A score of 1 is assigned if building regulations (including the building code) or regulations dealing with construction permits are available on a website that is updated as new regulations are passed. 153. This index evaluates the accessibility and transparency of building regulations. The index ranges from 0 to 2. It has two components: (i) whether building regulations are easily accessible; and (ii) whether the requirements for obtaining a building permit are clearly specified. 54 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE I M PA C T : F U L L D I G I T I Z AT I O N M A K E S unless it is in a fully digital computerized format (Figure 32). THE DIFFERENCE In the three African that have digitalized their registries in a fully digital format, which are also the countries that offer In Africa, only registries digitalized in a fully digital format seem online property registration, the average number of days for to correlate with improved efficiency in registering property. registering property is 23. In contrast, in the other African Based on the Doing Business indicator “Registering Property countries, the average number of days is 52. For the countries – Time (days)”,154 having a digitalized property registry does with a digitalized property registry in a scanned format, the not seem to improve registration efficiency significantly, average number of days is 51. >>> Figure 32. Digitalization of land registries and efficiency in registering property Either scanned or fully digital format Fully digital format 200 200 Registering Property - Time (days) Registering Property - Time (days) 180 180 160 160 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 No Yes No Yes Digitalized property registry: Digitalitzed property registry: Scanned or fully digital Fully digital Source: World Bank Doing Business 2020 E-services for business registration The formal registration of businesses has important spillover effects for the economy and the public sector. Where formal Business registries play a critical role in any economy’s entrepreneurship is high, job creation and economic growth business environment. When starting a business also tend to be high. Moreover, as more businesses formalize, is burdensome and lengthy, resource-constrained the tax base expands, enabling the government to spend on entrepreneurs might not have the opportunity to turn their productivity-enhancing areas and pursue other social and ideas into a business. Evidence suggests that regulatory economic policy objectives.157 reforms making it easier to start a formal business are associated with increases in the number of newly registered Online services can encourage the registration of businesses, firms and with higher levels of employment and productivity. as they reduce the time and cost for registration, as well as Conversely, overly cumbersome regulation of startups is improve access for smaller firms operating at distance from associated with high levels of corruption and informality.155,156 the registrar’s offices. For governments, having an electronic registration record allows them to meet their growing demands 154. The time captures the median duration that property lawyers, notaries or registry officials indicate is necessary to complete a procedure. It is calculated in calendar days. The time estimates of all procedures are added to calculate the total time required to obtain transfer the property title, taking into account simultaneity of processes. It is assumed that the minimum time required for each procedure is one day, except for procedures that can be fully completed online, for which the time required is recorded as half a day. 155. Klapper, Leora, and Inessa Love. 2011. “The Impact of Business Environment Reforms on New Firm Registration.” Policy Research Working Paper 5493, World Bank,Washington, DC. 156. Motta, Marialisa, Ana Maria Oviedo and Massimiliano Santini. 2010. “An Open Door for Firms: The Impact of Business Entry Reforms.” Viewpoint 323, World Bank Group, Washington, DC 157. Source: https://www.doingbusiness.org/en/data/exploretopics/starting-a-business/why-matters DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 55 for company information within the government for regulatory one fourth of African countries (24 percent). However, there are oversight and audit purposes.158 big differences within Africa. While in southern Africa, this is possible in 60 percent of the countries, in the central sub-region This section reviews the adoption of these electronic services of Africa, it is only possible in 11 percent of the countries. in Africa, and some of the related challenges with the adoption. It also provides some evidence on the governance impact that Searching or reserving the company name online160 is possible they have had. in a slightly larger share of African countries (37 percent). Like in the case of application for business registration, there are large differences among sub-regions in Africa. In southern W I D E VA R I AT I O N I N AVA I L A B I L I T Y Africa all countries have this digital tool. O F D I G I TA L B U S I N E S S R E G I S T R AT I O N , A N D L I M I T E D Electronic services are used more widely in other regions than U P TA K E E V E N W H E R E AVA I L A B L E in Africa. According to Doing Business,161 today the majority of economies use ICT for services ranging from name search Digital tools for registering businesses are available only in a to full online business registration. Electronic services are minority of African countries, except in the south sub-region. available in more than 90 percent of high-income economies, Applying online for business registration159 is possible in about and in about 40 percent of low-income ones. >>> Figure 33. Digital tools for business registration in Africa, by sub-regio 100% Percentage of African countries 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Northern Africa Central Africa We stern Africa Eastern Africa Southern Africa Online application for business registration Online reservation or search of company name Source: World Bank Doing Business 2020 The lack of an end-to-end digital service and a low usage the user experience of these services is often poor quality. One are some of the problems faced by African countries with particular problem is the lack of services that can be started online business registration. For example, in Seychelles, it and completed entirely online (end-to-end). Too many services is possible to apply for a range of key government services allow citizens to start online, but then end up with a physical trip online, such as the registration of a new business. However, to a government office, and submissions of paper forms. The 158. Source: https://www.doingbusiness.org/en/data/exploretopics/starting-a-business/good-practices 159. DB in depth information. Indicator is 1 (=yes) if it is possible to apply online for business registration. Indicator is 0 (=no) otherwise. Business registration refers to theregistration of the business as a whole at the companies’ registry, and not the registration with other government agencies for specific issues (taxes, employees and social security contributions, certain commercial operations, etc.). If it is possible to download the application forms online and submitting the completed documents by e-mail (case of Congo Dem. Rep.), the indicator is 1. If it is possible to download the forms online but the application must be done in a physical location, the indicator is 0. 160. Indicator is 1 (=yes) if it is possible to reserve or search the company name online. Indicator is 0 otherwise. If it is only possible to do the online name search in the physical location of the government agency, using the internal government online systems and databases, the indicator is 0 (=no). If the name reservation or search is not explicitly mentioned in the procedures for starting a business (which is the case of 9 out of 54 African countries), then the indicator is 0 unless it is possible to apply for business registration online (which is only the case of Burkina Faso). 161. https://www.doingbusiness.org/en/data/exploretopics/starting-a-business/good-practices 56 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE standard experience for citizens remains a mixture of paper In spite of the availability of these functions, the use of forms and face-to-face meetings. The low offer of end-to-end Zambia’s web-portal for business registration is low. Although services can be partially attributed to the absence of platforms the proportion of businesses registering online has increased that allow users to easily pay and sign online. over time, still only 10 percent of all registrations are currently performed online.163 Increasing uptake of such web-portals In Seychelles, the limited end-to-end digitalization of processes relies crucially on a strategy of outreach and communication on associated with challenges in user-centricity has led to a low availability of the system, as well as fundamental complements uptake of digital services. In 2017, out of 13 digital services mentioned earlier in this report. provided by the government, only three of them had an uptake above 50 percent. Amongst the ten remaining services, the average uptake was 3.2 percent. The uptake for the e-service I M PA C T : FA S T E R R E G I S T R AT I O N to submit a business license was 0 percent.162 A N D L I N K E D D ATA B A S E S Unlike Seychelles, Zambia does have an end-to-end online The Doing Business data shows that in those African countries service for business registration. Zambia has a One-Stop- with online application for business registration, the total time Shop web-portal that allows new businesses to access and to start a business is slightly less.164 In other words, in the complete all the procedures required to start a business. It African countries where there is the option of applying online is an automated business registry service with full online for business registration, on average slightly fewer days are registration facilities, starting from a company name search needed to start a business (16 days) than in the countries that to final registration after an online payment for the business do not have such an option (23 days). The weak correlation license. A call center is available for inquiries. An online could be explained by the fact that the application for business application can typically be completed in four hours, and then registration has a limited impact on the overall time required applications are reviewed and either approved or denied by a to start and operate a business (because of other additional project team. The platform then uses web services to share procedures), or that the overall time to start and operate a the information with other relevant agencies. business depends as well on non-digital factors. >>> Figure 34. Online business registration and time to start a business in Africa 90 Starting a Business - Time Men 80 70 60 50 (days) 40 30 20 10 0 No Yes Online application for business registration Source: World Bank Doing Business 2020 162. World Bank, 2018. “Digital Government in Seychelles. Analysis and Recommendations” 163. World Bank, 2020. “Accelerating Digital Transformation in Zambia. Digital Economy Diagnostic Report”. It should be noted thatthe majority of payments are made online using Visa’s credit and debit card system. 164. In Africa, having an online tool to apply for business registration is negatively but weakly correlated with the total number of days to start and operate a business, as measured by the indicator “Starting a Business – Time Men (days). This captures the median duration that business incorporation experts indicate is necessary for five male married entrepreneurs to complete all procedures required to start and operate a business with minimum follow-up and no extra payments. It is calculated in calendar days. The time estimates of all procedures are added to calculate the total time required to start and operate a business, taking into account simultaneity of processes. It is assumed that the minimum time required for each procedure is one day, except for procedures that can be fully completed online, for which the time required is recorded as half a day. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 57 Evidence from some individual countries shows that the An efficient court case system has myriad important benefits. introduction of online business registration has made the Judicial reforms targeting the quality, speed, and access procedure quicker and easier. In Nigeria, for example, there of the judiciary lead to improvements in productivity and have been extensive efforts to automate business registration, economic development. Using a world database of judicial and most of it can now be done online. The Corporate Affairs reforms, Chemin (2018)168 finds that these reforms improved Commission transitioned its processes from manual systems firm productivity by 22 percent in sectors requiring more to online, and many other states have followed suit. The relationship-specific investments.169 average time to register a business has been reduced by 25 percent at the federal level.165 Together with other reforms, adoption of electronic “paperless” court systems can help address painfully slow case progress, In Ghana, the automation of tax and business registration persistent problems with lost paper files, and clients frustrated systems has significantly broadened the tax base and by years of procedures and appeals. Building such systems, streamlined business processes by reducing the number of days however, is not a trivial matter. To be effective, the judiciary for registering businesses. Ghana has a digital business registry would need structured data on criminal prosecutions, civil which makes the registration process less cumbersome. The cases, and other key statistics. Technology that automates digital portal used for registration is a public-private partnership processes would need to first consider the data structures supported by the National Information Technology Agency and interoperability frameworks. As we have seen with other and the Ministry of Finance. The digital business registry digital tools, foundational institutions may help put digitization improves the efficiency of processing registration applications in context. Information management and the handling of files, and the Registrar General’s Department aims to complete the user-centricity of processes, all may contribute to the processing applications within 48 hours if the applicant meets amenability of digital court solutions. all requirements. It makes business registration accessible to all firms, irrespective of their location, and eliminates the activities of This section reviews the applications of digital tools for court middlemen who add friction to the business registration process case management in Africa, and the evidence on the impact while increasing the cost of doing business. The integration of of such digital tools. the business registry portal with the e-tax portal of the Ghana Revenue Authority has further improved efficiency. The Tax Identification Number (TIN) is used as the linking identifier.166 M I N I M A L A D O P T I O N O F D I G I TA L TOOLS FOR COURT CASE MANAGEMENT E-court systems Digital tools in court case management are only available in a tiny minority of African countries, and Africa has the lowest An efficient court system is essential for upholding the rule of law penetration of these tools in the world. Based on the in-depth and is essential for a fair and predictable business environment information from Doing Business 2020, electronic court case that is conducive to growth. Surveys and external observers, management170 is available only in 11 percent of African however, do not paint a positive picture in terms of Africa’s countries, while less than 6 percent of the countries have progress over the last two decades. The data from the World electronic filing of initial court complaint,171 electronic serving Justice Project’s Rule of Law Index shows that the rule of law in of complaints filed to the court,172 and electronic payment of Africa has been progressively declining, although some countries court fees.173 The publication of commercial judgements either have consistently performed well. Similarly, Freedom House’s online or on paper174 is slightly more widespread (22 percent Freedom in the World Survey shows a decline in political and of African countries). civil rights in the continent for the period 2007-2017.167 165. World Bank, 2019. “Nigeria Digital Economy Diagnostic Report” 166. World Bank, 2019. “Ghana Digital Economy Diagnostic”. Stock-taking report. 167. Fombad, Charles Manga, 2018. “An overview of the crisis of the rule of law in Africa”. Africa Human Rights Law Journal 2018, vol.18, n.1, pp.213-243. 168. Chemin, Matthieu. 2018. “Judicial Efficiency and Firm Productivity: Evidence from a World Database of Judicial Reforms.” Review of Economics and Statistics, November 2. 169. World Bank, 2020. “Doing Business 2020”. Chapter 2, The effects of business regulation. 170. Indicator is 1 (=yes) if there are any electronic case management tools in place within the competent court for the use by judges and lawyers. If the electronic case management is only for the use by judges, the indicator is still 1. The indicator is 0 (=no) otherwise. 171. Indicator is 1 (=yes) if the initial complaint can be filed electronically through a dedicated platform within the competent court. Indicator is 0 (=no) otherwise. 172. Indicator is 1 (=yes) if it possible to carry out service of process electronically for claims filed before the competent court. Indicator is 0 (=no) otherwise. 173. Indicator is 1 (=yes) if court fees can be paid electronically within the competent court. Indicator is 0 (=no) otherwise. 174. Indicator is 1 (=yes) if judgments rendered in commercial cases, at least at the appellate and supreme court level, are made available to the general public through publication in official gazettes, in newspapers or on the internet or court website. Indicator is 0 (=no) otherwise. 58 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE publication of commercial judgments. Whereas 80 percent The same data shows that these digital tools have mainly of the countries in the southern sub-region publish them on been adopted in southern and eastern Africa. In the northern, paper or online, in the northern, central and western sub- central and western sub-regions, there are hardly any regions, either none or very few of the countries do. Africa countries that have adopted them. The differences across has the lowest rate of adoption in the world in terms of digital sub-regions are particularly remarkable in the case of the tools for court case management.175 >>> Figure 35. Digital tools in court case management in Africa Judgements in commercial cases published on paper or online Electronic court case management Electronic filing of initial court complain Electronic serving of complaints filed to the court Electronic payment of court fees 0% 5% 10% 15% 20% 25% Percentage of African countries Source: World Bank Doing Business 2020 While rates of adoption are low, some countries in Africa to reduce the costs associated with manual execution of tasks have recently introduced electronic court case systems that and save time, especially with regard to court case timetables include e-filing and other digital tools for court users. As of and calendar management for judges. 2019, only Mauritius, Rwanda and Namibia had electronic filing of initial court complaints, and the electronic payment Another country that has recently adopted an electronic court of court fees was only available in Mauritius and Rwanda.176 system is Kenya. The disruptions caused by the COVID-19 pandemic forced the Kenyan judiciary to come up with Recently, a few other countries have adopted these tools, measures to mitigate the effects of the pandemic and assure including Ghana. This country has now an “E-Justice Portal”177 litigants of their right to a fair trial and access to courts. Some that allows to file a case and track the status of the case easily, of the measures taken by the Kenyan judiciary included quickly and in a secure manner. Payment of court fees can adopting, in July 2020, a virtual court and a paperless court also be made using the online portal. E-justice is an electronic case management system. The system has two interfaces: the case management system for the registry-side of the entire user interface which is accessible to litigants via the “E-Filing court process. At the moment, e-justice in Ghana is just being Portal”178, and the court interface accessible to judicial officers. applied at the Law Court Complex in Accra as a “proof-of- The system supports electronic filing of documents, electronic concept” pilot, but the target is to connect all courts in the service, electronic search of cases, electronic payment and country to the system in the near future. The portal is expected receipting and electronic request for extraction of orders.179 175. Doing Business Court Automation indicator: This indicator ranges from 0 to 4 and evaluates four aspects of court automation: (i) whether the initial complaint can be filed electronically; (ii) whether the initial complaint can be served electronically; (iii) whether court fees can be paid electronically; and (iv) whether judgments rendered in commercial matters are made available to the public. The index is computed based on the methodology in the DB17-20 studies. 176. Based on Doing Business 2020, which reflects the 2019 situation. 177. Accessible via: https://judicial.gov.gh/ 178. Accessible via: https://www.judiciary.go.ke/ 179. Gilbert Juma, 2020. “Embracing electronic court case management systems: Lessons from the Kenyan experience during COVID-19”. Africa Connected, Issue 5, November 2020. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 59 IMPACT: HIGHER EFFICIENCY AND In addition, there is a moderate correlation between the H I G H E R A C C O U N TA B I L I T Y online or offline publication of commercial judgments and judiciary accountability, as measured by the indicator The electronic filing and management of cases is associated “Judges give reasons for their decisions”182 from the Africa with higher efficiency in Africa, while the online publication of Integrity Indicators. The African countries that do not judgements seemingly contributes to higher accountability. publish commercial judgments have, on average, weaker Those African countries with electronic court case management performance in this indicator. Seventy-one percent of the and electronic filing of court complaints perform on average countries that do not publish commercial judgments get a significantly better in terms of efficiency in case management, low score on this indicator (i.e., 50 or below), while this is as measured by the indicators “Efficiency of legal framework in the case of just 17 percent of the countries that publish such settling disputes”180 of the World Economic Forum Executive judgements either online or offline. Opinion Survey, and “Enforcing Contracts – Filing and Service (days)”181 of Doing Business. >>> Figure 36. E-court systems and efficiency in court case management in Africa Perceived settlement efficiency Number of days for filing and service 100 100 inefficient; 100= extremely efficient) Enforcing Contracts - Filing and Efficiency of legal framework in settling disputes (0=extremely 90 90 80 80 70 70 Service (days) 60 60 50 50 40 40 30 30 20 20 10 10 0 0 No Yes No Yes Electronic filing of initial court Electronic filing of initial court complaint complaint 100 100 inefficient; 100= extremely efficient) Efficiency of legal framework in settling disputes (0=extemelly Enforcing Contracts - Filing and 90 90 80 80 70 70 Service (days) 60 60 50 50 40 40 30 30 20 20 10 10 0 0 No Yes No Yes Electronic court case management Electronic court case management Sources: World Bank Doing Business 2020; World Economic Forum, Executive Opinion Survey 2018-2019, published on The Global Competitiveness Report 2019 180. Response to the survey question “In your country, how efficient are the legal and judicial systems for companies in settling disputes?”. The score ranges from 0 (extremely inefficient) to 100 (extremely efficient). 181. The time for filing and service captures the time from the moment plaintiff decides to sue until defendant is served. 182. The indicator assesses whether in practice, national-level judges give reasons for their decisions/judgments. More specifically, the indicator assesses whether: 1) judges routinely provide formal reasoning for their rulings, 2) their reasoning references the laws/jurisprudence they considered and the specific interpretation they gave them in relation to the case, and 3) their reasoning is public. Data is from 2020. 60 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE The newly introduced electronic court case system of Kenya However, stakeholders have also experienced challenges, illustrates some of the efficiency benefits, as well as other mainly related to the digital infrastructure (Box 10). benefits such as the minimization of fraud and corruption. BOX 10. BENEFITS AND CHALLENGES OF THE NEWLY INTRODUCED ELECTRONIC COURT CASE SYSTEM IN KENYA Since its introduction on July 1, 2020, the new electronic court case system of Kenya has brought many benefits for litigators and judicial officers alike. From a litigator’s perspective, the system saves time and resources that would have otherwise been used in filing and serving physical documents. The system has automated the filing and serving process entirely except for the Supreme Court of Kenya, where parties are still required to file and serve physical copies. Travelling time and costs associated with service and filing of documents have also been eliminated. The system also acts as a link between advocates and the court, making virtual proceedings a reality. From the court’s perspective, the system makes it easier for judges and judicial officers to access court files. Once parties have filed their documents, the system generates a complete copy of the court file, and any documents filed in future is automatically linked to the file on the system. The system also provides prompts and updates for judicial officers as to when a matter is coming up for a mention or hearing, allowing judicial officers to keep an online diary of their matters with relative ease. E-payments for filing of documents help promote accountability. When there was a manual payment and receipting system, the payments associated with filing of documents and payment of fines were at risk of corruption and fraud. The online system, in contrast, keeps track of all payments, and digital receipts are generated for all payments. The system has eased the transmission of judgments and rulings. Once parties have consented to a judgment being delivered via email, the courts proceed on that basis. It therefore saves the courts time that would have otherwise been lost in physical reading of judgments in open court. Despite the benefits of the electronic system, stakeholders have experienced challenges. These challenges are not related to the system itself, but rather are mainly infrastructural or technical in nature. The challenges arise from the lack of access to proper computers, inadequate training, and poor internet connectivity. Fast internet is unevenly distributed in Kenya. This poses a challenge for users in accessing the electronic system, since the large number of users creates a lot of traffic on the portal. The problem is compounded for litigants in small towns in rural parts of Kenya where fast internet is largely inaccessible. The unstable electric supply is another hindrance for the effective functioning of the system. In most towns, consistent power supply is a major challenge. Moreover, the implementation is proving difficult in criminal litigation. Accused persons on remand pending the outcome of their decisions have no access to computers and other facilities for virtual hearings. Recognizing the pitfalls of technology, the Chief Justice has provided for the use of alternative technology, including approval for manual filing of documents whenever the system collapses. To prevent system failures, a proper backup system is also required. Source: Gilbert Juma, 2020. “Embracing electronic court case management systems: Lessons from the Kenyan experience during COVID-19”. Africa Connected, Issue 5, November 2020. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 61 One-stop-shops for digital services (http://ebusiness.go.ke/ebusiness.html). The eCitizen platform serves as a single point of access for a wide range of and payments government-to-citizen e-services such as filing of tax returns, and applications for birth and death certificates, marriage “GovTech” is a whole-of-government approach to public sector registration, passport and visas, driving licenses, etc. Both modernization that promotes simple, efficient, and transparent Kenyan citizens and foreign residents can apply for these government with the citizen at the center of reforms. GovTech services and pay via mobile money, debit cards and eCitizen envisions a whole-of-government approach with interoperable agents. The eBusiness portal enables individuals owning government systems, seamlessly connected e-service businesses to access government-to-business services online. solutions, and citizen service centers providing access to all Through a single account, a business will be able to access public services and fostering easily accessible, efficient, and services such as business licenses, permits, and registrations transparent government with citizens at the center of reforms. offered by different government departments conveniently. While much of the discussion about digital adoption gives the Another example is Rwanda’s Irembo platform (https://rdb. impression that tools can simply be adopted, in reality genuine irembo.gov.rw/rolportal/en/aboutus). Irembo is an e-service improvements in governance come only from careful attention portal, which facilitates the citizen to submit the application to process re-engineering and simplification which may be and make the payment for various services. A joint project of done together with digitization. Digitizing a bad service without the Government of Rwanda and the Rwanda Development these steps can reduce efficiency and quality of services and Board, it is a web-based application for every citizen and leave the administrative burden and red tape unchanged. business in Rwanda to access all government e-services. The Service modernization is more than just applying technology Government’s Irembo platform provides access to a growing and can go hand in hand with digital tools for service delivery. array of public services. Services offered include online visa/ residency permit applications, online land management and This section reviews the use in Africa of one of the main ownership administration, and civil registration. whole-of-government approaches to public service delivery, namely one-stop-shops for digital services and payments, Uganda also has a similar platform called e-Citizen (https:// which can also be referred to as e-services platforms. These ecitizen.go.ug/). The eCitizen portal is a one-stop online platforms allow a single access to a large number of available center for Government online services for both citizens and government digital services and payments. The benefits businesses. Its main objective is to enhance Government include making all government services more transparent and service delivery to citizens, non-citizens, businesses and to accessible, and increasing the timeliness and convenience of Government Ministries, Departments and Agencies (MDAs). transactions with government anytime and from anywhere. The portal is systematically structured to offer seamless The evidence provided in this section comes from individual navigation and quick access to all the services. Services country stories, as there is no cross-country data on this. can be accessed through online search, by subject, by topic or through a given MDA link. The portal allows to access services such as e-Tax, Business registration, trading license S O M E C O U N T R I E S A R E M O R E F U L LY registration and social security statements among others. I N T E G R AT I N G S E RV I C E S Ghana initially developed an e-government portal for government Some African governments have already adopted one-stop- digital services, and later it developed a new e-payment portal.183 shops for digital services and payments for both citizens and Recently, it has integrated both portals into a single platform businesses. For example, Kenya has one platform for citizens called “Platform for Digital Services and Payments” or https:// services called eCitizen (https://www.ecitizen.go.ke/), and www.ghana.gov.gh/ , which includes a wider range of services another platform for businesses services called eBusiness than the original portal (Box 11). 183. World Bank, 2019. “Ghana Digital Economy Diagnostic”. Stock-taking Report 62 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE BOX 11. GHANA’S PLATFORM FOR DIGITAL SERVICES AND PAYMENTS Ghana.GOV (https://www.ghana.gov.gh/), Ghana’s Platform for Digital Services and Payments, provides as a single point of access – a one-stop shop – to government services for the public sector. The platform includes a wide range of services for both citizens and enterprises. The list of services are classified by individuals, enterprises, ministries and agencies. There is a tool to search for services. The plaftorm allows to submit applications online and to check the application status by introducing the phone number and the application number. The platform has all the links to redirect the user to the website of the relevant ministry or agency such as the Ghana Revenue Authority or the Registrar General’s Department. In addition, the platform allows to make digital payments. E-Payment is designed to facilitate electronic payment for government services by citizens, businesses, and other entities conducting business with the Government of Ghana. The e-Payment accepts a range of payment options, including card payments, mobile money, and bank transfer. Available services include payment of fixed fees, tangible goods, and services payments. Payments for taxes are also supported. The online services and payments that can be accessed through Ghana.GOV include for example: • Apply for passport • Book appointment for giving notice of intended marriage • Open an estate case after the death of a person • Apply for business registration or conversion • Pay for an existing business registration • File taxes • Pay direct and indirect taxes • Pay custom duty • Pay the lands comission bill and stamp duty Source: https://www.ghana.gov.gh; World Bank, 2019. “Ghana Digital Economy Diagnostic”. Stock-taking Report In addition, reforms are underway in some African countries, government systems. All the existing mobile applications on where governments are either improving their one-stop-shops public services for citizens and enterprises are already available for digital services or developing a new one. For example, on a space of the portal of the Government of Tunisia.185,186 South Africa launched in 2018 a National e-Government Central Portal for access to selected online services (https:// www.gov.za/services/online-services), as a part of new Digital identification systems e-Government roadmap. The State Information Technology Agency of South Africa is expected to develop the necessary The emergence of digital public and private platforms has shown integration platform to connect each department’s back-end the value of verifiable digital identity credentials and ability to systems with the central portal (front-office) with the objective prove identity digitally. Digital identification systems facilitate of improving the level of online services.184 the secure identification and authentication of a person, entity or device, and bind the user of an online transaction with their Tunisia is planning of a new portal for government digital services “real world” or legal identity. Combined with digital certificate and mobile applications aimed at interoperability between 184. World Bank, 2019. “South Africa Digital Economy Diagnostic”. 185. http://fr.tunisie.gov.tn/169-applications-mobiles.htm 186. World Bank, 2020. “Diagnostic de l’Économie Numérique de la Tunisie”. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 63 services, digital identification and authentication are also the Registering births, deaths, citizenship, and documenting all of basis for e-signatures, which enable knowledge, approval, them are important foundations. If registration processes are acceptance, or obligation to be authenticated without requiring difficult for users, then digitalization might not come as a first physical presence.187 policy option to consider. But digital identification systems can be useful for many purposes; the World Bank’s ID4D program has Apart from facilitating digital service delivery, trusted and highlighted the value of identification systems, made stronger inclusive identification systems have been shown to reduce when digital, for healthcare and agriculture and for addressing poverty and inequality, foster financial inclusion, facilitate issues such as child marriage and forced displacement.191 safe and orderly migration, improve public sector efficiency and more.188,189 The large majority of African countries have digital identity systems. Based on 2018 data for 51 African countries, 94 This section provides a brief overview of the progress that Africa percent have national identification (ID) systems, and, in all, has made in the introduction of digital identity (ID) systems, 74 percent have digital ID systems.192 Despite the existence and the adoption of systems to facilitate the verification and of such systems, however, much of the population may still authentication of identity by government agencies and the be unregistered, and the divides outlined earlier, along urban- private sector. rural, income, or gender lines, can also limit the true extent of digital ID systems. D I G I TA L I D E N T I T Y S YS T E M S The World Bank DE4A country diagnostics193 reveal that A R E C O M M O N , B U T P O P U L AT I O N while there has been significant progress in the adoption and COVERAGE IS NOT UNIVERSAL AND coverage of digital ID systems, very little has been done in “ N E X T G E N E R AT I O N ” S Y S T E M S A R E terms of the “next generation” of digital identification systems, MISSING those that enable seamless verification of identity and online authentication services. Lesotho is an example of a country Many wealthy countries, notably anglophone countries, do that has been piloting an initiative in this regard. Lesotho is not have national unique foundational identification systems, considered a pioneer in Africa in digital identification, not only much less digital systems, although special-purpose systems because of the pilot initiative, but also because it is one of may exist.190 The institutional foundations for digital IDs begin the few countries in Africa with a fully biometric system, and with registration and record keeping whether digital or not. because it has achieved a high degree of inclusiveness thanks to the adoption of mobile registration technology (Box 12). BOX 12. LESOTHO’S BIOMETRIC DIGITAL IDENTIFICATION SYSTEM, WITH MOBILE REGISTRATION TECHNOLOGY, AND FORTHCOMING VERIFICATION AND AUTHENTICATION OF IDENTITY In Lesotho, the transition to a digitized and centralized ID system began in 2013. Since its launch, Lesotho’s national ID system has steadily expanded coverage and strengthened links to service delivery. Over the course of three years, enrollment reached over 85 percent of the eligible population. Lesotho is one of the few countries in Africa with a fully biometric National ID. The cornerstone of civil registration (CR) and identification in Lesotho is the National Identity Register (NIR), which is underpinned by a digital database and identity management system that uses biometric technology to confirm the uniqueness of identities. 187. World Bank, 2020. “Digital Economy for Africa Country Diagnostic Tool and Guidelines for Task Teams”. Version 2, 24 June 2020. 188. World Bank, 2018. “Public sector savings and revenues from identification systems: Opportunities and constraints” 189. Rachel Ort and Tumelo Raboletsi, 2021. “National ID in Lesotho is putting citizens at the center”. World Bank Blogs, https://blogs.worldbank.org/governance/national- id-lesotho-putting-citizens-center 190. World Bank’s ID4D database, 191. See the resources available at the World Bank’s Identification for Development (ID4D) site https://id4d.worldbank.org. 192. Calculated based on World Bank 2018 ID4D database. https://id4d.worldbank.org/global-dataset 193. The DE4A country diagnostics reviewed are the ones published before December 2020. In addition, see an earlier compilation, World Bank (2017) The State of identification systems in Africa – a synthesis of country assessments. 64 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE To reach the approximately 200,000 people without a national ID, the Department of National ID and Civil Registry (NICR) launched an initiative to make the national ID more accessible to those living in rural areas and among marginalized and vulnerable groups who may be socially excluded, lack the supporting documentation needed to obtain an ID, or be constrained in their mobility. Partnering with the World Bank, Ministry of Finance, Ministry of Public Service, and Ministry of Social Development, the NICR invested in mobile registration technology that allows the Department to temporarily scale up capacity at its 10 district offices to meet demand and carry out registration drives outside their offices. These watertight suitcases contain all the equipment required to register a birth or issue a national ID anywhere in the country—including in someone’s home. Furthermore, Lesotho is now piloting an Application Programming Interface (API) to facilitate verification and the authentication of identity by government agencies (e.g., pensions and payroll) and the private sector (e.g., banks and insurance companies). A generic interface has been developed that enables the NICR platform to be connected to the digital platforms of other public and private sector entities. The next phase of improvements to the NICR system will include increasing service providers’ ability to conduct biometric authentication and increasing the robustness of the platforms’ data privacy and protection functionalities. In addition, a number of steps will still need to be taken before Lesotho’s existing legal framework is ready to support data sharing with the public and private sector. Improving identity verification services for public sector agencies (e.g. social assistance programs, drivers licensing, etc.) and the private sector (e.g. banks, mobile network operators, etc.) will generate further improvements in the efficiency of the public sector, while also improving access to financial services. The efforts of the Department National ID and Civil Registry represent an impressive start on the journey toward using a trusted and inclusive identification system to unlock shared growth and prosperity—all made possible by putting citizens at the center. Sources: World Bank, 2020. “Lesotho Digital Economy Diagnostic”; Rachel Ort and Tumelo Roboletsi, 2021. “National ID in Lesotho is Putting Citizens at the Center”, World Bank Blogs, https://blogs.worldbank.org/governance/national-id-lesotho-putting-citizens-center Interoperable government systems more. Interoperability layers are therefore the conduits through which governments, companies and people can exchange and data infrastructure data and queries, which is crucial for implementing shared systems and services, reducing duplicate data collection, and Interoperable government systems constitute a key whole-of- automating business processes.194 Interoperability underlies government approach that can contribute to improved efficiency many of the other digital applications described in this report. in the provision of government services and execution of Interoperability allows data from e-GP to feed into data of government functions. Interoperability is the ability of different public finance and budget execution. Interoperability also databases, systems, and devices—both within and across reduces the scope for corruption since inconsistencies across organizations—to communicate with and understand each databases are easier to spot when the systems can be easily other. This communication may involve multiple elements and linked. Similarly, data infrastructure needs to be built for many layers of technology, including wired connections, application of the digital applications described in this report to have effect. programming interfaces, web services, cloud services, and 194. World Bank, 2020. “Digital Economy for Africa Country Diagnostic Tool and Guidelines for Task Teams”. Version 2, 24 June 2020. DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 65 FULL INTEROPERABILITY OF interoperability. While progress has been made in Kenya in GOVERNMENT SYSTEMS REMAINS A relation to achieving greater interoperability, many systems GENERAL CHALLENGE, EVEN IN THE remain rather fragmented. Duplication and fragmentation of M O R E A DVA N C E D C O U N T R I E S I N digital public infrastructure, software and databases emerge D I G I TA L A D O P T I O N as key issues in Kenya, with a disconnect between central government and county government systems, as well as The World Bank Digital Economy for Africa (DE4A) country among various ministries, departments, and agencies.196 diagnostics195 show that African countries are generally far away These findings are borne out by the GTMI which measures from achieving the interoperability of all government systems. the state of the government interoperability framework as a Even some of the most advanced countries in government part of shared government platforms (Figure 37). digital adoption such as Kenya have only achieved partial >>> Figure 37. African countries with a government interoperability framework 30 13 11 No In draft/planned Yes Government Interoperability Framework Source: World Bank GovTech Maturity Index 2022. Indicator I-3. The eleven countries with interoperability frameworks are (eGIF). The Government of Ghana has a shared data center, Benin, Botswana, Burkina Faso, Cabo Verde, Ghana, Kenya, shared services, and there are plans for a government cloud Mauritius, Nigeria, South Africa, Tanzania, and Uganda. Ghana computing service (Box 13). provides a good example in it has not only has digitalized all its key back-office systems, but it has also achieved a functional interoperability among them. Interoperability is supported by the Ghana’s E-Government Interoperability Framework 195. The country diagnostics reviewed are the ones published before December 2020, more specifically those for: Cameroon, Ghana, Kenya, Lesotho, Mozambique,Nigeria, Rwanda, Senegal, Seychelles, South Africa, Tanzania, Tunisia, Uganda and Zambia. More information here: https://www.worldbank.org/en/ programs/all-africa-digital-transformation/country-diagnostics 196. World Bank, 2019. “Kenya Digital Economy Assessment” 66 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE BOX 13. GHANA’S INTEROPERABILITY OF ALL KEY BACK-OFFICE GOVERNMENT SYSTEMS, WITH SHARED DATA CENTER AND SHARED SERVICES The Government of Ghana has already digitalized all its systems for public financial management and human resource management. The Government of Ghana has an Integrated Financial Management Information System (GIFMIS), a budget preparation and reporting system (Hyperion), a Human Resource Management Information System (HRMIS), and Integrated Personnel Payroll System (IPPS). The interoperability among GIMIS, Hyperion, HRMIS and IPPS is now mostly functional. As long as they have connectivity, Ministries, Departments and Agencies and local governments can access payroll, invoices, budget information, and other key information online in real time. GIFMIS, HRMIS, and payroll reside at a shared data center at the office of the Accountant & Controller General (CAG). As such, they share computing, storage, and networking with the CAG. The National Information Technology Agency (NITA) is expected to provide the bulk of shared services. This includes e-mail, web hosting, videoconferencing, and processes to be defined within each Ministry, Department and Agency (MDAs) (for example, task planning, task assignment, escalation). The Smart Workplace platform is also available and gaining popularity among the MDAs. Currently there are also plans for a government cloud computing service to avoid the need for MDAs to own their own servers. The Ghana Government Enterprise Architecture (GGEA) is designed for increased interoperability through the principles of shared infrastructure services, service-oriented architecture, and event-driven architecture. The GGEA enables Ghana’s e-Government Interoperability Framework (eGIF). The eGIF is a set of policies, technical standards, and guidelines covering ways to achieve interoperability of public-sector data and information resources, ICT, and electronic business processes. eGIF will act as a foundation for the overall e-government strategy to ensure that government-wide systems are implemented in accordance with widely accepted policies, technical standards, and guidelines. Source: World Bank, 2019. “Ghana Digital Economy Diagnostic”. Stock-taking Report Chapter summary: Basic functions A large majority of African governments have platforms for e-procurement (e-GP), but the use of such platforms is very can be found, but transactional low compared to other regions. Moreover, e-GP platforms in features are rare Africa are mainly used to publish tender notifications. The other functions of the pre-awarding phase are used to a lower extent, While digital tools for providing information to the public especially the features that involve transactions between the are used to some extent in Africa, digital tools for providing bidder and the procurement entity such as submitting tenders. services are used to a much lower extent. This is the case The e-GP functions of the post-awarding phase are used even of transactional services such as the submission of tenders, less, and the use of some key supporting features such as filing and payment of taxes, registering businesses, registering e-complaints is low. The adoption of e-GP in Africa is full of land or property, and filing of court cases, among others. challenges, both internal and external, and requires a careful Nevertheless, many governments in Africa do use digital tools prior assessment of such challenges. for announcing procurement opportunities, and for providing information on the procedures for government services. On the positive side, a significant group of countries in Africa are expanding their range of e-GP functions and features, and DIGITAL TOOLS FOR STREAMLINING GOVERNMENT SERVICES <<< 67 6 some champions in e-GP adoption are starting to emerge in the used for providing information on the procedures for property continent. Importantly, e-GP adoption in Africa is associated transactions and construction permits. with improved efficiency for businesses, and lower corruption when internet use is high and there are mechanisms to hold Similarly, digital tools for filing, tracking, and paying court the government accountable. In addition, evidence from cases are only available in a few African countries, but recently developing countries shows that transparent procurement they have been introduced in a few more countries. These systems increase firm participation in procurement. countries perform significantly better than others in terms of the efficiency in filing, serving, and settling court cases. In addition, A minority of countries in Africa have an online system for e-payments can reduce the risk of fraud and corruption in the filing or paying taxes, and compared to other world regions, judiciary. The publication of commercial judgements either Africa is lagging far behind in this area, one made even more online or on paper is slightly more widespread on average, challenging by digital divides in skills and digital literacy, and but it is concentrated mainly in the southern sub-region, where low levels of trust. Although adopting a complete e-filing and the large majority of countries publish such judgements. The e-payment system and ensuring its usage can be challenging African countries that publish commercial judgements online for African countries, the governance benefits outweigh the or offline have on average stronger judiciary accountability. costs. The adoption of e-filing or e-payments of taxes in Africa is associated with a lower number of tax payments Some whole-of-government approaches to digital service per year. More generally, e-filing and e-payments reduce tax delivery are being used in Africa. Several African governments compliance costs and can increase the tax returns filed, as have adopted one-stop-shops for digital services and the experiences of several African countries show. Last but payments for both citizens and businesses. Other governments not least, in those African countries with e-filing of taxes and are improving or developing such platforms. Although the high internet use, there is a lower level of corruption related to interoperability of all government systems and the adoption taxes on average. of “next generation” digital identification systems remain challenges all over Africa, there are some success stories that As in the case of filing and paying taxes, online tools for may inspire other countries. registering businesses are available only in about one fourth of African countries. However, in the south sub-region, the online registration of businesses is possible in a majority of countries. While evidence from some individual countries shows that the introduction of online registration has made the procedure quicker and easier, there are also stories from countries facing a very low usage or inefficiencies related to the lack of an end- to-end digital service. Overall, in those African countries with online application for business registration, the total time to start a business is slightly less on average. Although more than one third of African countries have digitalized their property registration systems, just a few of them have online transactional services, such as applying for property or land registration. The digitalization of property registries has been accompanied by a reduction in the time for businesses and citizens to register property, but only in the few countries where the digitalization has been in a fully digital format. On the positive side, in a majority of African countries, digital tools are 68 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE 6. >>> Digital tools for strengthening participation, accountability, and anticorruption Digital tools for public participation in policy making Public participation is a governance outcome by itself, as it provides democratic legitimacy for institutions and greater accountability. In addition, public participation can contribute to improved quality of policies, services, and projects. In policy making, greater levels of consultation of draft legislation are associated with a higher quality of regulation.197 The extent to which digital technology has been leveraged in Africa for this purpose is reviewed here. O N L I N E P A R T I C I P A T I O N I S G E N E R A L LY W E A K A N D O N LY A F E W G O V E R N M E N T S C O N S U LT P O L I C I E S O N L I N E Africa is lagging behind in the use of digital tools for public participation, although there are some individual countries doing very well by global standards. The E-Participation Index (EPI) of the UN E-Government Survey offers insight on the use of digital tools for public participation in public policies and services. Two of the three sub-components of the EPI directly cover digital tools for public participation, namely e-consultation198 and e-decision-making.199 The other sub- component of the EPI, e-information sharing,200 focuses on digital tools for providing information to the public. In 2020, Africa gets a score of 0.33 on e-consultation, compared to the global average of 0.53. The score of Africa on e-decision-making is lower, and the gap with the rest of the world is larger. The global average for e-decision-making is more than double than the Africa average. 197. Edmund Malesky and Marcus Taussig. (2019). Participation, Government Legitimacy, and Regulatory Compliance in Emerging Economies: A Firm-Level Field Experiment in Vietnam. American Political Science Review, 113(2), 530-551. 195. E-Participation Index, subcomponent e-consultation (stage 2) (%). It ranges from 0 (lowest) to 1 (highest). It measures the use by government online tools for engaging citizens in contributions to and deliberation on public policies and services. 199. E-Participation Index, subcomponent e-decision-making (stage 3) (%). It ranges from 0 (lowest) to 1 (highest). It measures the use by government of online tools for empowering citizens through the co-design of policy options and co-production of service components and delivery modalities. 200. E-Participation Index, subcomponent e-information sharing (stage 1) (%). It ranges from 0 (lowest) to 1 (highest). It measures the use by government of online tools for providing public information to its citizens. DIGITAL TOOLS FOR PARTICIPATION, ACCOUNTABILITY, AND ANTICORRUPTION <<< 69 Nevertheless, there are a few countries in Africa that have Only a tiny minority of African countries use digital tools for levels of e-consultation well above the global average, and public consultation of draft regulations, while in the rest of the even similar to the Europe average. These countries are world these digital tools are used more widely. Based on 2018 Tunisia (score of 0.76), Rwanda (0.76) and Seychelles (0.67). data from the World Bank Global Indicators of Regulatory Countries with a score above the global average include Governance (GIRG), only 10 African countries publish online Ghana, Morocco, and South Africa. Similarly, there are a few draft regulations,201 and even fewer countries solicit online countries in Africa with levels of e-Decision-making close to public comments on draft regulations,202 namely Kenya, the Europe average, namely Tunisia (score of 0.64) and South Malawi, Morocco, South Africa and Tunisia. Morocco is the Africa (0.55). Other strong performers with a score above the only country in Africa that reports online the results of the global average include Ghana, Seychelles, and Angola. public consultations.203 >>> Figure 38. Digital tools for citizen participation in public policies and services 1.00 0.90 0.80 0.70 Score (0-1) 0.60 0.50 0.40 0.30 0.20 0.10 - E-Consultation E-Decision-making Africa Wo rld Europe Source: United Nations E-Government Survey 2020, E-Participation Index While only a small minority of countries in Africa use digital offer a variety of options such as opinion surveys, ideation tools for public consultation of draft regulations, in the rest forums, and consultations on new policies (including draft of the world these digital tools are used more widely. On laws and regulations) on the same website. In Africa, the average, 44 percent of the countries in the world solicit online websites in Morocco and Tunisia exemplify this trend (United public comments on draft regulations, and 32 percent report Nations, 2020).204 online the results of the public consultation. Digital tools for consultation of draft regulations are used in almost all OECD Tunisia has one platform for policy consultations, ideas for high-income countries, and in Europe and Central Asia, these improving government, and public debates (“Portail de la digital tools are used in the vast majority of countries. participation publique”, fr.e-participation.tn/a), and another platform for suggestions, information requests, forums, and Globally, there is a trend towards multifunctional reports on corruption and misuse of state resources (e-people, e-participation platforms. Many e-participation platforms https://www.e-people.gov.tn/main.do) (Box 14). 201. Indicator is 1 (=yes) if answer is yes for at least one of these two questions: 4.1.a (draft regulations published on a unified website) and 4.1.b (draft regulations published on the website of the relevant ministry or regulator) 202. Indicator is 1 (=yes) if answer is yes for at least one of these two questions: 5.1.a (comments solicited on a unified website) and 5.1.b. (comments solicited on the website of the relevant ministry or regulator) 203. Indicator is 1 (=yes) if answer is yes for at least one of these two questions: 6.2.a (consultation results reported on a unified website) and 6.2.b (consultation results reported on the website of the relevant ministry or regulator) 204. United Nations, 2020, “E-Government Survey 2020: Digital Government in the Decade of Action for Sustainable Development” 70 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Figure 39. Use of digital tools for public consultation of draft regulations in Africa and the world Sub-Saharan Africa Africa Mid dle East & North Africa Latin America & Caribbean Wo rld South Asia East Asia & Pacific Europe & Central Asia OECD: high income 0% 20% 40% 60% 80% 100% Percentage of countries Results of the public consultation reported online Public comments on draft regulations solicited online Source: World Bank, Global Indicators of Regulatory Governance, 2018 The section on policy consultations (“e-Consultations”) of the see the other suggestions, and check the status (accepted/ “Portail de la participation publique” of Tunisia constitutes an not-accepted) of the suggestions submitted. In addition, the open window on the subjects and themes that the government government of Morocco has launched a platform called Fikra wants to submit to the public to solicit their opinions and (http://fikra.egov.ma/), which is the suggestions box for the reactions. It offers a space for citizens to submit their opinion improvement of the administration (see the next sub-section concerning a public consultation, but also allows the citizen for more information on Fikra). to follow and consult the other public opinions and see information on the percentage of people who participated in the public consultation and on the result of this consultation. Digital tools for citizen feedback on The feedback from the administration is also published to give citizens an idea of the outcome of the consultation and its services and projects implication on the government’s final decision on a specific subject or theme. Collecting the feedback from the users of public services and government projects constitutes an important source The Moroccan government has launched several e-participation of downward accountability and can ultimately contribute to initiatives including a website to comment on draft legislation. improve the quality and efficiency of service delivery. It can also Citizens can comment on the drafts of laws and decrees on the help detect misconduct and bribery by public officials, and there website of the General Secretariat of Government (http://www. is even empirical evidence showing that a political dividend of sgg.gov.ma/Legislation.aspx). On the website, they can also the use of digital technology for participatory governance.205 205. Gorgulu, Nisan; Sharafutdinova, Gulnaz; Steinbuks, Jevgenijs. 2020. “Political Dividends of Digital Participatory Governance: Evidence from Moscow Pothole Management”. Policy Research Working Paper No. 9445. World Bank, Washington, DC). The study found that the greater use of digital technologies, specifically online complaints, in Moscow results in an increased number of votes and higher margin of victory for the incumbent local government. According to the authors, these findings highlight that the use of digital technologies as a tool for participatory governance convey to the public an image of a transparent, responsive, and capable government. DIGITAL TOOLS FOR PARTICIPATION, ACCOUNTABILITY, AND ANTICORRUPTION <<< 71 Digital technology can be used to facilitate the collection of of the administration. The platform offers a discussion forum to citizen feedback. Although there is no cross-country data get feedback from citizens and enable them to express their on digital mechanisms for user feedback in Africa, there are views. Citizens can submit ideas, vote for ideas and comment. stories showing that some African countries have succeeded There are three forums for sharing ideas: (1) Forum « Your in adopting this digital tool in different public sector areas. ideas for simplifying administrative tasks »: To suggest ways of simplifying administrative procedures such as implementing a quick queue...; (2) Forum « Your ideas for new e-Government EXEMPLARS OF THE USE OF DIGITAL TOOLS FOR services »: To suggest new online services such as making CITIZEN FEEDBACK appointments online, applying for the passport online ...; and (3) Forum « Your ideas for improving the Administration »: For Tunisia and Morocco use digital tools for citizen feedback all other suggestions. on administrative procedures. Tunisia and Morocco have multifunctional e-participation platforms that allow the There are also examples in Africa, such as Kenya and Lesotho, government to collect user feedback in the form of suggestions of the use of digital tools for user feedback on basic social on all administrative services and procedures. The platform of services. Kenya has one digital platform called “MajiVoice” Tunisia is called e-People, and among other features, it has a designed to source feedback on water service delivery (World space for people to submit suggestions on the performance of Bank, 2019)206, while Lesotho has recently launched a digital the administration and quality of the administrative procedures citizen feedback mechanism that will start in the health and provided (Box 14). transport services (Box 15). The platform of the Moroccan government is called Fikra (http:// fikra.egov.ma/) and it is the suggestion box for the improvement BOX 14. TUNISIA’S “E-PEOPLE” MULTIFUNCTIONAL E-PARTICIPATION PLATFORM The “e-People” portal of Tunisia (https://www.e-people.gov.tn/main.do) is one of the two multifunctional e-participation platforms that the Government of Tunisia has developed to engage with citizens. E-People is a digital platform for suggestions on administrative services, requests for information, denunciation of corruption cases, reports on the misuse of state resources, and a forum for citizens to discuss topics related to the public administration and its services. The platform has a space for people to submit suggestions online. The space is reserved for people to submit their proposals with a view to improving the performance of the administration and the quality of the administrative services provided. The administration seeks expertise and citizen intelligence to receive creative, innovative, and operational suggestions. The best suggestions are studied by the administration, valued, and rewarded and then adopted in public decisions that will have a positive impact on the delivery of administrative services and economic development. E-People also allows to request information concerning the administration and the administrative services it provides, from the simplest information to the most complex. One can immediately consult cases similar to his or her request for information to obtain the required information. If not satisfied, then they can complete an online information request form. The website has a space for people to forward their requests to the administration concerned, at any time and in complete confidentiality. They can follow the processing of their requests through the e-People platform in complete transparency and efficiency. An acknowledgment of receipt will be systematically sent to them after submitting the request, which will be recorded and processed by the departments concerned. A response will be sent to them within the time limits set in accordance with the regulations in force. 206. World Bank, 2019. “Kenya Digital Economy Assessment” 72 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE Importantly, the platform has an “Anti-Corruption” space that allows people to denounce online a corruption case. The protection of the personal data of the denouncer is guaranteed by this system. The denouncer has the choice to receive follow-up notifications on the progress of his or her case by e-mail or SMS. It also has an “Alert” space that is reserved for people to instantly report a problem affecting public property or alert public authorities of a sudden threat or waste of state resources. The objective is to encourage people, with their vigilant and active behavior, to help preserve state resources. The administration will react by intervening where the exceedances reported are found. Finally, there is a discussion space called “Forum” that allows people to exchange or post opinions and interact with other Internet users and with the administration on predefined topics relating to the public administration and its services. Through this space, the administration triggers a dialogue between citizens which will be moderated by the administration with a view to soliciting public opinion around topics of general interest and current affairs relating to the administration. Source: https://www.e-people.gov.tn/main.do; United Nations, 2020, “E-Government Survey 2020: Digital Government in the Decade of Action for Sustainable Development” MajiVoice is a beneficiary feedback system that uses dedicated SMS or USSD shortcode, through the Internet, or technology for customer complaint handling in the water by traditional channels such as walk-in service centers or utility in Kenya. The backbone of the Maji Voice system is the utility hotline, in which case customer care agents input a web-based task management software that allows utility the complaint into MajiVoice. For each complaint, moreover, staff to receive, process, and resolve consumer-submitted a unique reference number is sent to the consumer’s phone complaints following clear, guided workflows with an intuitive for free, which can then be used to query the exact complaint interface. The cloud-based MajiVoice system can be accessed status by SMS, USSD, or the Internet, or to follow up with from any Internet enabled device, be it a work-computer or customer care agents.207 smartphone. Consumers can submit complaints using a BOX 15. LESOTHO’S DIGITAL CITIZEN FEEDBACK MECHANISM (CFM) FOR SERVICE DELIVERY Lesotho’s Office of Prime Minister (OPM), with support from the World Bank Public Sector Modernization Project, started in 2018 the preparation of a pilot digital citizen feedback mechanism in service delivery. The original plan was to pilot the mechanism in a priority sector such as education, health, or transportation, and possibly scale up the system across sectors in future phases of support. The plan was that the platform would include: web-based data entry/collection, SMS communication, response analysis and reporting application, an SMS gateway connected to a long/short code for connectivity, and a couple of phones for making voice calls to service beneficiaries. Pilot studies were eventually conducted in the Ministries of Health and Transport, and in May 2021, the Prime Minister launched the digital Citizen Feedback Mechanism (CFM). The purpose of the CFM is to monitor public feedback on service delivery in various government ministries. The project aims at analyzing public sector performance by utilizing data through information technology. The feedback will be collected from end-users and be analyzed to identify problematic areas. 207. Belcher, Martin & Abreu Lopes, Claudia, 2017. “Maji Voice Kenya: Better complaint management at public utilities” DIGITAL TOOLS FOR PARTICIPATION, ACCOUNTABILITY, AND ANTICORRUPTION <<< 73 The CFM establishes open lines of communication between the service provision layers and direct beneficiaries of public services directly to understand their experience of accessing public services. The model focuses on a systems approach to identify trends and patterns instead of individual cases and highlight information to management at a granular level that can allow informed decisions to be taken and implemented. This pioneering system is complementary to the objectives of modernizing the public service and ushering in data- driven decision-making model where organizational decisions are based on actual data analysis results rather than intuition or observation. Source: “PM launches CFM”, Government of Lesotho, 8 May 2021 (https://www.gov.ls/7788-2/); and “Lesotho Digital Economy Diagnostic”, World Bank, February 2020. Nigeria also uses digital tools for citizen feedback on public BudgIT’s project officers aiding citizens offline to communicate projects. Over the last years, there has been an enormous with their elected representatives, and demand completion of interest in Nigeria in the area of citizen engagement. Several the government projects in their neighborhoods. Tracka is now states are investing in this area, since digital technology functional in 20 States. provides them the vehicle for obtaining citizen feedback directly, without intermediation. 208 IMPACT: IMPROVED COMPLAINT A good example of this is the “Eyes and Ears” Program in HANDLING Kaduna State (https://kadunaeyesandears.org/). The program has a citizen engagement platform called “Citizen Center”, Do the complaint handling systems make a difference? An which is a local home-grown solution using citizen feedback to evaluation conducted by the World Bank and the University track the implementation and results of all government projects of Cambridge to investigate the impact of an ICT mediated and programs funded under the budgeting framework. It allows beneficiary feedback system found that Kenya’s MajiVoice to collect real-time data on over 6,000 projects. The Citizen provides a successful customer feedback receipt and handling Center provides access through three approaches: a citizen solution. In its first year, at Nairobi City Water and Sewerage feedback app, a citizen engagement website, a call center/ Company (NCWSC), Kenya’s largest water utility and the first SMS toll-free. A Data Center in the Ministry of Budget and one to adopt Maji Voice, the number of complaints recorded Planning also houses the call center, and modern technology rose almost tenfold, resolution rates climbed from 46 percent is used for transcribing voice into text and producing a one- to 94 percent and time to resolution halved. MajiVoice has page dashboard (besides other reports) that is in the public resulted in significantly improved complaint handling and, domain, and that reports to the governor on the performance when combined with a supportive regulatory environment, it of contractors and projects. contributes to providing better accountability of the NCWSC to their customers/beneficiaries. 209, 210 Other programs such as BudgIT (https://yourbudgit.com/) perform a somewhat similar function and obtain citizen feedback on other public sector projects across the country. Digital tools for reporting and BudgIT is a civic organization that applies technology to intersect citizen engagement with institutional improvement. detecting corruption BudgIT uses an array of tech tools to simplify the budget and matters of public spending for citizens. Most emblematic is Digital technology has opened new ways for the reporting, the BudgIT’s project-tracking tool (Tracka) (https://tracka. detection, and prevention of corruption. There are many ng/). Tracka is a social platform that allows Nigerians to post ways in which technology can help curb corruption. Improving pictures of developmental projects in their communities, with access to information and reducing red tape are among those, and the previous sections of this report have dealt with 208. World Bank, 2019. “Nigeria Digital Economy Diagnostic Report” 209. Belcher, Martin & Abreu Lopes, Claudia, 2017. “Maji Voice Kenya: Better complaint management at public utilities” 210. World Bank, April 2015. “MajiVoice: A new accountability tool to improve public services” 74 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE these issues extensively. This section focuses on corruption of African countries, the websites of the ombudsman and/or reporting platforms, which are among the most popular regulatory agencies allow users to file complaints online.212 attempts to use technology to curb corruption.211 In addition, Similarly, the World Bank survey on e-GP in Africa shows that the section reviews digital tools for detecting and preventing just 22 percent of African countries have the e-complaints corruption, such as the online disclosure of asset declarations feature in their public procurement systems. of public officials, the online disclosure of the financial records of state-owned enterprises, and the use of automated fraud Even if there are online tools to submit complaints on and corruption detection tools. corruption, the preconditions for reporting corruption might not be there. In many places in Africa, such preconditions are weak. As explained previously in this report, some key P L AT F O R M S F O R O N L I N E mechanisms for external accountability, such as a free media R E P O RT I N G O F C O R R U P T I O N E X I S T, and an independent judiciary, are generally very weak in Africa. B U T D I G I TA L TO O L S A R E N OT Moreover, only the laws of a minority of African countries ENOUGH encourage and protect civil servants who report corruption. Based on data from 2018 from the Africa Integrity Indicators, Online tools for reporting corruption are only available in a the law requires civil servants to report corruption in just 30 minority of African countries, and preconditions for reporting percent of African countries,213 and the law protects civil corruption are weak in many places. While the online provision servants from recrimination or other negative consequences of information by the Ombudsmen and regulatory agencies is in an even lower share of countries (20 percent).214 Moreover, common in Africa, the active ability to use their online platforms an effective system would also ensure that feedback is to report corruption is limited to a minority of countries. The provided to citizens on their reports. A system that encourages latest available in-depth information from the Africa Integrity submission of complaints but does not provide feedback on Indicators, which is from 2018, shows that in just 37 percent the outcome can breed cynicism. >>> Figure 40. Use of platforms for filing complaints in Africa Ombudsmen and regulatory agencies Ombudsmen and regulatory agencies Ombudsmen and regulatory agencies have websites (darker color indicates say how to file a complaint allowing to file complaints more functionality) 100 75 50 25 0 IBRD 47339 | IBRD 47340 | IBRD 47341 | JUNE 2023 JUNE 2023 No Data JUNE 2023 Source: Global Integrity, Africa Integrity Indicators, 2018 211. Roberto Martinez B. Kukutschka, 2016. “Technology against corruption: The potential of online corruption-reporting apps and other platforms”. TransparencyInternational, 4U Anti-Corruption Resource Center, 28 November 2016. 212. Data is from 2018. Indicator is 1 (=yes) if users can file complaints online, either via website or e-mail, and/or if there are online complaint forms on the website. This has to be the case for the website of the national ombudsman, mediator or equivalent, and/or for the websites of most of the public services’ regulatory agencies. Indicator is 0 (=no) otherwise. 213. Based on the indicator “In law, civil servants are required to report cases of alleged corruption”. A YES (100) score is earned where the law creates a explicit legal requirement for civil servants to report any cases of alleged corruption they are aware of. A NO (0) score is earned if no such law exists. 214. Based on the indicator “In law, civil servants who report cases of corruption are protected from recrimination or other negative consequences”. A YES (100) score is earned where all the following conditions are met: 1) there is a law specifically created to protect public sector whistle-blowers, and 2) the law forbids termination, transfer, harassment or other negative consequences against whistle-blowers. Note: General protections for civil servants do not grant a YES. A NO (0) score is earned if no such law exists. DIGITAL TOOLS FOR PARTICIPATION, ACCOUNTABILITY, AND ANTICORRUPTION <<< 75 >>> Figure 41. Preconditions for reporting corruption in Africa Civil servants protected if they report corruption Media without prior government restraint or censorship (darker color indicates more media freedom) 75 50 25 0 IBRD 47343 | IBRD 47342 | JUNE 2023 JUNE 2023 Source: Global Integrity, Africa Integrity Indicators, 2018, 2020 EXEMPLARS ON THE USE OF The Judicial Service of Ghana has its own system for online ONLINE TOOLS FOR REPORTING submission of reports on corruption and other types of CORRUPTION complaints in the justice sector. In 2018, the Public Relations and Complaints Unit of the Judicial Service launched a In some countries, reports on corruption can be submitted complaints management platform.217 The new platform allows through the website of the anticorruption body, or through citizens to lodge a new complaint, to see the list complaints spaces specific for anticorruption on a government portal. For that he or she has lodged, and to track the status of a example, in Tunisia, the e-People multifunctional e-participation complaint. The name of the person, mobile number and e-mail platform215 has an “Anti-Corruption” space that allows people address are mandatory information to be able to create an to denounce online a corruption case to the Government of account. The complaints that can be submitted relate to the Tunisia. The protection of the personal data of the denouncer following matters: services rendered, conduct of a member of is guaranteed by this system. The denouncer has the choice the judiciary, and conduct of a staff of the judicial service. Such to receive follow-up notifications on the progress of his or her complaints include corruption and bribery. case by e-mail or SMS. (Box 14) In Kenya, it is possible to submit a non-anonymous report on In Ghana, the website of the Ghana Anti-Corruption Coalition corruption by e-mail through the website of the Ethics and Anti- (GAAC) has an online corruption reporting platform216, which Corruption Commission (EACC) of Kenya.218 The denouncer allows whistleblowers to submit corruption issues to the GACC. has to specify his or her name and e-mail to submit the report Whistleblowers must specify their name, e-mail address and online through the EACC website. Corruption reports can also mobile number. All reports submitted are treated as confidential. be submitted to other organizations different than the EACC. The GAAC is a unique cross-sectoral grouping of public, private, The EACC is one of the six organizations that participate in and civil society organizations with a focus on promoting good Kenya’s Integrated Public Complaints Referral Mechanism governance and fighting corruption in Ghana. (IPCRM), also called “Sema! Piga Ripoti”, which means “Speak Out! Submit your complaint”.219 The IPCRM is an 215. https://www.e-people.gov.tn/main.do 216. http://www.gaccgh.org/site/subcat_select.cfm?Report%20Corruption&corpnews_catid=18&corpnews_scatid=40 217. http://www.judicialservicecomplaints.net/ 218. https://eacc.go.ke/default/report-corruption/by-email/ 219. http://www.knchr.org/Portals/0/AllOtherReports/Sema!%20Piga%20Ripoti%20Manual.pdf 76 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE internal digital tool that enables participating organizations In South Africa, anonymous corruption reports are also allowed. to re-route complaints submitted to them to the body with However, there is no overarching government platform for the appropriate mandate. All complaints are fed into a web- submitting such reports. Nevertheless, there are some specific based system and referred to the organization concerned. whistleblowing platforms, such as the one from the South Complainants receive a tracking number by SMS and a Africa Revenue Service (SARS). The SARS platform223 allows notification of progress. The IPCRM system has increased people to submit anonymous reports of suspected corruption the ease with which citizens can report corruption incidents on taxation, customs and excise duties. and has resulted in complainants receiving feedback on these reports in a more timely fashion. 220; 221 Other corruption reporting tools available in Africa include mobile apps and crowdsourcing platforms for sharing corruption Some African countries, such as Kenya, Madagascar, and personal experiences. In addition to whistleblowing platforms, South Africa, have whistleblowing platforms that allow mobile apps and crowdsourcing platforms offer an additional people to report corruption anonymously online. This type of digital venue for citizens to report corruption. Crowdsourcing solution not only makes reporting corruption easier and more platforms invite citizens to provide input on incidences of accessible, but also encourages whistleblowers to speak out, corruption, often in the form of sharing personal experiences. as they do not need to fear retaliation from public officials. Although these tools are not always managed by government authorities, the information from the reports can be used for In Kenya, a whistleblowing platform based on BKMS software identifying corruption trends and advocating for anticorruption is used by the Ethics and Anti-Corruption Commission (Box reforms. In addition, some of the reported cases can be further 16). The platform of Madagascar is newer and it relies on investigated and pursued with the appropriate authorities. GlobalLeaks software. It is used by the national anticorruption authority, which is the “Bureau Indépendant Anti-Corruption” One example in Africa is the mobile app “Eyes on Corruption”,224 of Madgascar (BIANCO). which was launched by the local chapter of Transparency International in Ghana, called Ghana Integrity Initiative. In only Madagascar’s whistleblowing platform222 can be accessed a few simple steps, one can report on the nature, number, through the website of BIANCO. BIANCO has implemented type, location, frequency, and value of actual corruption acts a secure online platform to allow whistleblowers to remain on this app. In addition, the app utilizes push notifications as anonymous and to submit sensitive information in a very means to send feedback messages to all users. The app is secure, always encrypted manner, respecting the transmission geared towards seeking redress to corruption related cases and processing of data. Connecting to the platform secures for victims of corruption and gathering the necessary evidence the data in transit between the whistleblower and BIANCO, but for public policy reforms. not the identity of the whistleblower’s computer. The platform maintains protocols to protect anonymity. 220. Niklas Kossow and Victoria Dykes, 2018 “Embracing Digitalization: How to use ICT to strengthen Anti-Corruption”. Published and commissioned by GIZ. 221. Transparency International Kenya, 2015. “Integrated complaints referral mechanism”: https://interagencystandingcommittee.org/system/files/uwajibikaji_pamoja_ transparency_international_2_pager.pdf 222. https://doleances.bianco-mg.org/#/ 223. https://secure.sarsefiling.co.za/AdHocCaseSourcing 224. https://www.eocapp.org/home/ DIGITAL TOOLS FOR PARTICIPATION, ACCOUNTABILITY, AND ANTICORRUPTION <<< 77 BOX 16. KENYA’S WHISTLEBLOWER PLATFORM FOR ANONYMOUS REPORTS OF CORRUPTION The Kenyan whistleblowing platform, built using BKMS software, has been in place since 2005. It was first introduced with support from GIZ Kenya and is now under the authority of the Kenyan Ethics and Anti-Corruption Commission (EACC). At the time the system was introduced, reluctance to report as well as retaliation against corruption whistleblowers were both significant problems in Kenya, according to a governance advisor at GIZ Kenya. Moreover, there were limited ways in which individuals could file reports, and the reports submitted were often lacking in quality. The online platform provides anonymity to whistleblowers, and the information it asks from reporters helps generate higher-quality submissions that are more feasible for officials to follow up on. Similarly, the digital system allows for easier case management of corruption reports, allowing officials to categorize and sort reports and maintain a constant (but still anonymous) interaction with the whistleblower through the use of unique IDs. The platform can be access thorugh the website of the Ethics and Anti-Corruption Commission (https://eacc. go.ke/default/report-corruption/). One can pass on information anonymously to the EACC through the Anonymous Whistleblower’s System on the website. By using this standardized whistleblower system, the whistleblower can remain absolutely anonymous. The platform aims at effectively protecting the whistleblower and providing him or her with a communications platform secured by the latest technology for submitting reports anonymously. If the whistleblower wishes so, the “BKMS Incident Reporting” protects his or her anonymity completely. The Kenyan platform has averaged annual reports in the thousands. However, these numbers have fallen off in the last few years. One major reason is the insufficient publicity for the portal – “The system depends on continually reminding the public of its existence,” the GIZ Kenya governance advisor notes. Previously, dozens of government ministries had links to the whistleblowing platform on their websites; today, after changes in leadership and priorities, this number has fallen significantly. Source: Niklas Kossow and Victoria Dykes, 2018. “Embracing Digitalization: How to use ICT to strengthen Anti-Corruption”. Published and commissioned by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).; and website of the Ethics and Anti-Corruption Commission of Kenya (https://eacc.go.ke/default/) Ghana also offers an example of a country with a enforcement and regulation and thereby reduce the scope crowdsourcing platform to report corruption. The platform is of corruption. called “IPaidABribe”,225 and it was launched in 2015 by the Ghana Integrity Initiative Consortium. The Consortium is Another example of a crowdsourcing platform is the one from made up of the Ghana Anti-Corruption Coalition, the Ghana “Corruption Watch”226 in South Africa, which is the local chapter Integrity Initiative, and the NGO SEND-Ghana. Ghana’s of Transparency International. Corruption Watch provides a IPaidABribe platform allows citizens to report on the nature, platform for reporting corruption anonymously. Anyone can number, pattern, types, location, frequency, and values of safely share what they experience and observe and can speak actual corrupt acts. The platform does not ask for the name or out against corruption. Corruption Watch uses the reports as phone details of the reporter, so as to encourage them to feel an important source of information to fight corruption and hold free to report on the formats provided. The reports provide a leaders accountable. They investigate selected reports of alleged snapshot of bribes occurring across the city of the reporter. acts of corruption, in particular those cases that have the most serious impact. In addition, they use them to conduct research on The Consortium uses the reports to argue for improving patterns and hot spots of corruption, and share the findings with governance systems and procedures, tightening law the public, like-minded NGOs and public sector bodies. 225. www.ipaidabribe.org.gh 226. https://www.corruptionwatch.org.za/report-corruption/ 78 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE K E Y D I G I TA L S TO O L S F O R Apart from using digital tools for publicizing asset declarations, DETECTING AND PREVENTING governments can also introduce the electronic submission C O R R U P T I O N A R E N O T W I D E LY of the declarations. E-filing the asset declarations has U S E D 227 numerous benefits, such as allowing for a broader coverage of declarants, and simplifying the submission process by making Some digital tools for detecting and preventing corruption, the declaration form more user-friendly. Rwanda and Uganda such as the online disclosure and e-filing of asset declarations, have digitalized their asset disclosure systems.231 are not found in most African countries. Asset declarations and their public disclosure constitute a powerful tool to prevent In Rwanda, for example, after the digitalization of asset corruption, and to detect illicit enrichment and conflicts of declarations in 2012, the number of those who declared interest. Based on in-depth information from the Africa Integrity increased, while the number of those who failed to declare Indicators, the asset declarations of senior officials and decreased. These positive results were also due to the members of civil service are not available online in any African introduction of tough sanctions. The country has been country,228 with the exception of South Africa, where the asset successful in collecting considerable financial resources declarations of members of parliament are available online. through the fines. Rwanda is considered a model for eastern This is not surprising considering that public disclosure of the Africa on asset declarations, and there is a project on sharing declarations is required by law in hardly any African countries. its experience with other countries in the region. However, in Based on the latest available data, which is from 2018, there Rwanda, declarations are not yet publicly available, and whistle are only three African countries where the law requires senior blowers are reluctant to report for fear of repercussion from officials of the three branches to publicly disclose the asset public officials. In addition, verifications of the declarations are declarations.229 No country in Africa requires public disclosure limited due to understaffing of the Ombudsman Office, which of the declarations of members of the civil service.230 is the body responsible for the management and verification of the declarations.232 >>> Figure 42. Digital tools for anticorruption in Africa We bsites of ombudsman and/or regulatory agencies allow to file complaints online Online registry of companies forbidden from bidding because of violating the law Financial records of a majority of SOEs available online Online disclosure of the asset declarations of senior officials of at least one of the three branches Online disclosure of the asset declarations of members of civil service Procurement: Integrity Filters Procurement: e-Complaints 0% 20% 40% 60% 80% 100% Percentage of African countries Sources: Global Integrity, Africa Integrity Indicators, 2018; World Bank, Survey on e-GP Implementation in Africa, 2021. 227. For an introduction to the use of digital tools for fraud detection, see World Bank (2020) Finding Fraud: GovTech and Fraud Detection in Public Administration. The study covers fraud detection in procurement, financial management and human resources. 228. Data is from 2020. For senior officials, indicator is 1 (=yes) if the asset declarations of senior officials are publicly available online, at least for the senior officials of one of the three branches of power (executive, legislative, judiciary). For members of civil service, indicator is 1 (=yes) if the asset declarations of civil service members are publicly available online. 229. Data is from 2018. Based on the indicator “In law, senior officials of the three branches of government (including heads of state and government, ministers, members of Parliament, judges, etc.) are required to disclose records of their assets and disclosures are public”. 230. Data is from 2018. Based on the indicator “In law, members of the civil service are required to disclose records of their assets and the disclosures are public”. 231. Dmytro Kotlyar and Laura Pop, 2019. “E-filing Asset Declarations: Benefits and Challenges”. World Bank, Stolen Assets Recovery Initiative. 232. Public presentation by Apollinaire Mupiganyi, director of Transparency International Rwanda Chapter. Presentation in the workshop “Illicit enrichment and assets declarations in Africa” of the International Anti-Corruption Conference (IACC) on December 4, 2020. DIGITAL TOOLS FOR PARTICIPATION, ACCOUNTABILITY, AND ANTICORRUPTION <<< 79 For State Owned Enterprises (SOEs), one key digital tool Despite their obvious advantages, it appears that very few to detect and prevent corruption is the online publication of current e-Procurement systems in Africa include Integrity their financial records. The in-depth information from the Filters or other ex-ante fraud prevention measures. Based on Africa Integrity Indicators reveals that the financial records 2021 World Bank survey on e-GP implementation in Africa, of a majority of SOEs are available online233 in merely 15 only Tunisia and Côte d’Ivoire have implemented some level percent of African countries. More generally, such financial of integrity filters. Uganda, Kenya, and Angola have indicated records are often not accessible to citizens in Africa. In half that they plan to begin to implement such programs in the next of the countries in Africa, the financial records of SOEs are two years. rarely available to the public or do not exist. Importantly, there are no countries in Africa where financial records are available online or offline to journalists, auditors, and citizens IMPACT: LOWER LEVELS OF “at least quarterly”, nor where the records can be obtained CORRUPTION immediately for free online or on paper in less than two weeks of requested at cost of photocopying.234 In the African countries with websites that allow to file complaints online, corruption is slightly lower, and if they have high internet use, corruption is considerably lower, on For more details, see Volume 2, “Regulating the Digital average. As measured by the Global Corruption Barometer, Economy in Africa: Managing old and new risks” and the a survey of citizens, the total bribery rate in those African technical background papers that informed that study. countries in which the websites of the Ombudsmen and/or regulatory agencies allow to file complaints online is lower than in the African countries without this digital tool. A similar Online registries of debarred companies, which is also a finding is obtained with the measure of corruption of the tool to prevent corruption from enterprises, are slightly more World Bank Enterprise Surveys, a survey of firms about their common in Africa. Based on the in-depth information from the experiences (Table 4). Africa Integrity Indicators, in 37 percent of African countries, there is an online registry of companies forbidden from Although there is a negative association between the online bidding because of violating the law (procurement, tax, labor, filing of complaints and corruption, the correlation is weak. corruption, etc.)235 Even if the digital tool to report corruption is available, it does not always work effectively and lead to the investigation and Automated fraud and corruption detection tools, such as punishment of the corrupt behavior. There may also be other integrity filters, are also very rare in Africa. There are some factors influencing the effect of this digital tool on the bribery tools and digital technologies that can be used to prevent and rate. One of the other factors involved is internet use. Among detect fraud and corruption, such as ex-post rule-based data the countries that have websites allowing to file complaints analytics and ex-ante rule-based automated fraud-detection online, those countries with high internet use have lower systems. Automated digital fraud detection and prevention levels of corruption than the countries with low internet use. systems can, for example, continuously run ex ante small This is the case for the two above-mentioned measures of data analytics in e-Procurement and IFMIS systems. Such corruption (Table 4). programs, known as integrity filters, can identify or block potential fraud, waste, or abuse before losses are incurred, before contracts are awarded or invoices paid. (This was discussed in Chapter 3.) 233. Data is from 2020. Indicator is 1 (=yes) if the financial records of a majority of SOEs are available online. Indicator is 0 (0=no) otherwise. The indicator is still 1 if the information on the financial records is not always complete, it is posted late, or it is not posted quarterly. 234. Data is from 2020. Based on the following indicator: “In practice, citizens can access the financial records of state-owned companies”. 235. Data is from 2020. Indicator is 1 (=yes) if the national registry of companies that are forbidden from bidding can be checked online. These are the companies that arefound guilty of violating the law (procurement, tax, labor, corruption, etc.). Indicator is 0 (=no) otherwise. If only the debarred companies of only a given sector are listed online (e.g., Algeria), the indicator is 0. If there are just a few companies listed in the online registry and there are grounds to believe that more companies should be in that list (e.g., Namibia and Eswatini), the indicator is still 1. If there is a section on a website on debarred companies, but there is no list of companies (e.g., Zimbabwe), the indicator is 0. 80 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Table 4. Online filing of complaints and corruption in Africa Firms experiencing at least Total bribery rate one bribe request Websites do not allow to file complaints online 33% 24% Websites allow to file complaints online 23% 16% Website allow to file complaints online and there is low 25% 19% internet use i.e., less than 50% Websites allow to file complaints online and there is high 14% 6% internet use i.e., more than 50% Sources: Sources: Transparency International, Global Corruption Barometer, Africa 2019; World Bank Enterprise Surveys 2006-2020; Global Integrity, Africa Integrity Indicators, 2018; International Telecommunication Union, Country ICT Data, latest available as of May 2021 The online disclosure of key firm information is moderately registry of companies that have violated the law is published correlated with less corruption in Africa. In those African online (Figure 43). Although the causality surely runs both countries where the financial records of SOEs are available ways, transparency of firm information, facilitated by online to citizens online or offline, firms tend to experience less tools, can be a powerful way to prevent corruption from firms. corruption. This is also the case for the countries where the >>> Figure 43. Online firm information and corruption in Africa Financial records of firms Law violations by firms 60 60 Percentage of firms experiencing at least one bribe payment request (%) Percentage of firms experiencing at least one bribe payment request 50 50 40 40 30 30 (%) 20 20 10 10 - - No Yes 0 25 50 75 100 Financial records of SOEs available to Online registry of companies forbidden citizens online or offline (0-100) from bidding because of violating the law Sources: World Bank Enterprise Surveys 2006-2020; Global Integrity, Africa Integrity Indicators, 2020, 2018 DIGITAL TOOLS FOR PARTICIPATION, ACCOUNTABILITY, AND ANTICORRUPTION <<< 81 7 Chapter summary: Countries anonymously. Other corruption reporting tools available in Africa include mobile apps and crowdsourcing platforms for are just scratching the surface sharing personal experiences of corruption. on digital tools for participation, Some digital tools for detecting and preventing corruption accountability, and anticorruption rarely used in Africa. This is the case, for example, of the online disclosure of the asset declarations of senior officials Africa is lagging behind in the use of digital tools for public and civil servants, and the e-filing of such asset declarations. participation in public policies and services. Nevertheless, Automated fraud and corruption detection tools, such as there are some individual African countries doing very well by integrity filters in e-procurement systems, are very rare, too. global standards. The websites of two countries in northern Africa are exemplifying a global trend towards multifunctional The online disclosure of information from enterprises, e-participation platforms. especially state-owned enterprises (SOEs), is highly underutilized in Africa as a tool to prevent corruption. Online Only a tiny minority of African countries use digital tools registries of debarred companies are slightly more common, for soliciting public comments on draft regulations, and but still they are used only in a minority of African countries. even fewer countries use them to report the results of the Meanwhile, the anticorruption benefits of online disclosure public consultation. In the rest of the world, digital tools for are seemingly significant. In those African countries where consulting draft regulations are used in almost half of the the financial records of SOEs are available to citizens online countries, and in the OECD high-income group, they are or offline, firms experience less corruption on average. The used in almost all countries. same happens in the African countries where the registry of debarred companies is published online. Although there is no data on the use of digital tools for collecting citizen feedback, there are stories of some African countries that have succeeded in adopting these tools for different public services and projects. Such stories include countries that have a single platform for collecting citizen feedback on all administrative services and procedures, countries that use digital technology for collecting and analyzing user feedback on basic social services such as health and clean water, and last but not least, countries that use various digital tools for collecting citizen feedback on the implementation and results of public projects. More than a third of African countries have digital tools for reporting corruption, such as the filing of a complaint through the website of the Ombudsman. In the African countries with websites that allow to file complaints online, corruption is slightly lower on average, and if they have high internet use, corruption is considerably lower. In some countries, reports of corruption can be submitted through the website of the anticorruption body, or through specific anticorruption spaces on a government portal. Some African countries even have whistleblowing platforms that allow people to report corruption 82 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE 7. >>> Summary of main findings This study has examined the progress of adoption of digital tools for better governance in Africa. Brief summaries are provided at the end of each chapter, but some messages are worth summarizing here: Progress in government digital adoption and key complements • • • • • Although governments in Africa are behind on digital adoption, including the adoption of digital tools for better governance, they are no further behind than countries at similar levels of income in other regions. And within any income strata, there are African countries that are doing relatively well compared to countries in other regions. African governments that have adopted more digital technology enjoy better governance in terms of transparency, efficiency, and lower corruption. The benefits that digital tools bring for governance are more visible in the countries with high internet use and strong mechanisms of external accountability. The benefits are also larger when governments adopt digital services in addition to providing information online. The digital divide between urban and rural Africa translates into a governance digital divide which also exists between the higher and lower educated, the richer and the poorer, and men and women. African countries with stronger regulatory environments for digital technology have higher adoption of governance-oriented digital adoption. (The companion volume in this project looks in greater detail at the regulatory environment.) • The levels of education and digital skills in Africa are in line with the level of government digital adoption, and vice versa. However, several African countries face a significant shortage of digital skills, especially countries with stronger government digital adoption. SUMMARY OF MAIN FINDINGS <<< 83 • Mechanisms of external accountability, such as a free media and an independent judiciary, are generally very • e-GP platforms in Africa are mainly used to publish tender weak in Africa. Without these and other mechanisms of notifications and contract awards. Other functions of accountability, digital technology adoption might not result the are used to a lower extent, especially the features in better governance or might have a very limited impact. that involve transactions between the bidder and the procurement entity such as submitting tenders. Digital tools for providing • e-GP adoption in Africa is associated with improved efficiency for businesses, and lower corruption when information to the public internet use is high and there are mechanisms to hold the government accountable. • The use of digital tools for providing information to the public does occur in the sense that the vast majority of • A minority of countries in Africa have an online system countries, ministries, and agencies have websites, and for filing or paying taxes, and compared to other world statistical data is available online. regions, Africa is lagging far behind in the adoption of these tools. • Laws on access to information are lacking in many countries, and even if they exist, it does not imply that the • The adoption of e-filing or e-payments of taxes in Africa is law is good enough to guarantee the right to information. associated with a lower number of tax payments per year, Some fundamental information for governance, such as reduced tax compliance costs, and increases in the tax budget information, and the text of laws and regulations, returns filed. African countries with e-filing of taxes and are not always available online. high internet use have a lower level of corruption related to taxes on average. • African countries that publish more budget documents online enjoy higher budget transparency and a stronger • Online tools for registering businesses are available only oversight over the budget process. In the countries in a minority of African countries, i.e., about one fourth that publish laws and regulations on a unified website, of them on average. While the introduction of online businesses can start operations, and operate more easily, registration has made the procedure quicker and easier in on average. some countries, there has also been limited usage related to the lack of an end-to-end digital service. Digital tools for providing • More than one third of African countries have digitalized their property registration systems, but only a few of them government services and supporting have online transactional services, such as applying for efficiency property or land registration. • Digital tools for providing services are used to a much • Digital tools for filing, tracking, and paying court cases are lower extent. This is the case of transactional services only available in a few African countries. These countries such as the submission of tenders, filing and payment of perform significantly better than the other ones in terms taxes, registering businesses, registering land or property, of the efficiency in filing, serving, and settling court cases. and filing of court cases, among others. In addition, e-payments can reduce the risk of fraud and corruption in the judiciary. • A large majority of African governments have platforms for e-procurement (e-GP), but the use of such platforms is very low compared to other regions. 84 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE • Several African governments have adopted one-stop- help African governments reduce the risk of corruption shops for digital services and payments for both citizens during the ICT procurement process. Other actions that and businesses. Although the interoperability of all governments can take to reduce the vulnerability of ICT government systems and the adoption of “next generation” procurements to corrupt practices include closer scrutiny digital identification systems remain challenges all over on agent fees, requirements, deliverables, and costs Africa, there are some success stories that can encourage associated with ICT procurement, a wider use of e-GP other countries. systems. • Governments in Africa and elsewhere can leverage the Digital tools for participation, potential of digital antifraud technologies for improving outcomes in the procurement and implementation of ICT accountability, and anticorruption systems. • Africa is lagging behind in the use of digital tools for public participation in public policies and services. Only a tiny minority of African countries use digital tools for soliciting Policy recommendations public comments on draft regulations, and even fewer countries use them to report the results of the public The findings summarized above suggest a number of consultation. recommendations for the countries of Africa to reach their potential in harnessing digital tools for better governance. The • More than a third of African countries have digital tools recommendations will depend on the country, but the following for reporting corruption, such as the filing of a complaint would be priorities for many countries. through the website of the Ombudsman. In the African countries with websites that allow to file complaints online, • Ensure access to digital infrastructure, not only by corruption is slightly lower on average, and if they have government bodies and large firms, but by the population, high internet use, corruption is considerably lower. as well. Continuing to work to ensure access to the internet, to electricity, and to mobile networks, is needed for the • Tools such as the online disclosure of the asset digital economy generally, and also for the application of declarations of senior officials and civil servants, and the digital tools for better governance. e-filing of such asset declarations, are rare in Africa, as are automated fraud and corruption detection tools. • Develop and foster the digital skills necessary to run the digital economy and for the population to benefit from it. • The online disclosure of information from enterprises, Education, broadly, and technical education in areas that especially state-owned enterprises (SOEs), is also highly support ICT can help ensure continuing innovation and underutilized in Africa as a tool to prevent corruption. reduce risks of a digital divide. • Foster a regulatory environment that is flexible and Governance risks related to the adaptive, while also providing necessary protections in terms of data privacy and cybersecurity. procurement of digital technology • Nurture competition to ensure that it is not stymied by • The procurement and implementation of IFMIS systems favorable or punitive treatments to certain firms through and other ICT systems allow significant opportunities for taxation or state ownership. (See Volume 2: Governance fraud, waste, and abuse. A number of good practices can of Digital for a detailed examination of these issues.) SUMMARY OF MAIN FINDINGS <<< 85 • Ensure the legislative framework supports the underlying • Use digital technologies to supplement traditional modes principles of transparency and accountability. For of consulting on draft laws, regulations, and major policy countries lacking access to information legislation, or and planning initiatives. The report provides examples of where such systems are weak, improving them must be some countries in Africa that are already doing this. a priority with or without digital technologies. This refers to both generalized access to information laws and • Develop the capabilities and practices of using digital implementation systems and specific provisions related to tools to uncover risks of fraud and corruption related to relevant topics such as budget transparency, procurement government procurement, social benefits, taxation, and transparency, income and asset declaration transparency, others. The massive amounts of data generated by the online availability of laws and regulations, disclosures of digital revolution can be a valuable resource for detecting financial statements of SOEs, and others. fraud and corruption, but skills and systems are needed to exploit this resource. • Have the confidence to strengthen independent institutions of accountability such as free and open media • Update approaches to the procurement of ICT to minimize and independent and professional judiciaries. Ensure that risks of corruption and to optimize efficiency of the fundamental protections for whistle-blowers are in place process. This report and the background papers provide and trusted. Pass the legislation, and instill the practice, some detailed guidance in this regard. of public consultations on draft laws and regulations. Without these analog institutions, the ability for digital technologies to improve governance will be limited. The governance benefits of digital • Incrementally expand the functionality of digital systems technologies will not become reality to move beyond simple provision of information toward without attention to the governance interactive features. These are highlighted in the report for each section, for example the functions of e-GP systems of the digital economy that support greater interaction including in the post-award Many African countries are leading the way, adopting digital phase. The background papers that informed the present tools for better governance at rates faster than similar report and the World Bank’s GovTech Global Partnership countries in other regions. And it seems to pay off. The study both provide useful guides on the development of such has shown, however, that the digital tools that make the systems. most difference are the ones that are interactive, precisely the ones that are lagging in the region. Moreover, the analog • Develop and roll out the use of secure digital tools for complements of skills, institutions, and regulations are lagging filing and paying taxes. In addition to the efficiency and in many places. Africa’s digital governance agenda calls governance benefits, such systems can also free up time for much more than putting IT systems in place. By paying for enterprises to focus on growth and jobs. attention to these analog complements, African countries can reap the governance rewards of the digital economy. • Roll out electronic systems, with appropriate safeguards, for registering property, registering businesses, management of land, and court management, as demanded by country circumstances. Incrementally expand functionality. • Bring administrative procedures together in one-stop shops and support the interoperability of systems. 86 >>> REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA—DIGITAL TOOLS FOR BETTER GOVERNANCE >>> Index Africa Integrity Indicators 4, 10, 20, 21, 29, 30, 45, 60, 75, 76, Open Budget Survey................................4, 29, 31, 32, 33, 34 79, 80, 81 Open Data Inventory….................................................. 28, 29 Afrobarometer...................................................1, 4, 46, 50, 51 Regulatory Watch Initiative.............................................13, 14 Algeria...........................................................12, 14, 18, 53, 80 Rwanda...........xv, 3, 8, 14, 19, 41, 43, 49, 50, 52, 53, 59, 62, Angola.......................................................................41, 70, 80 66, 70, 79 Botswana........................................................................18, 66 Senegal..........................................................................48, 66 Burundi.................................................................................18 Seychelles.........................................14, 31, 53, 56, 57, 66, 70 Cabo Verde.....................................................1, 18, 21, 31, 66 Sierra Leone.............................................................32, 33, 50 Cameroon............................................................................66 South Africa............xv, 14, 18, 19, 23, 31, 35, 42, 44, 45, 48, Congo, Democratic Republic of …...................................... 56 49, 63, 66, 70, 77, 78, 79 Congo, Republic of…...........................................................31 Stanford Law School..............................................................1 Côte d’Ivoire..................................................18, 31, 40, 48, 80 Sudan...................................................................................18 Djibouti.....................................................................12, 18, 31 Sustainable Development Goals...............................xviii, 4, 18 Egypt........................................................................12, 14, 18 Tanzania........................................................41, 43, 49, 50, 66 Equatorial Guinea.............................................................xv, 8 Togo................................................................................18, 48 Eritrea...................................................................................31 Transparency International Global Corruption Barometer…4, Eswatini................................................................................80 10, 81 Gabon..................................................................................31 Tunisia................12, 18, 21, 40, 41, 63, 66, 70, 71, 72, 76, 80 Ghana............31, 46, 49, 58, 59, 62, 63, 66, 67, 70, 76, 77, 78 Uganda.............................xv, 8, 20, 31, 43, 49, 62, 66, 79, 80 Global Right to Information Rating............................xviii, 4, 30 UNCTAD Global Cyberlaw Tracker......................................16 Guinea.................................................................................31 United Nations E-Government Survey...xvi, 4, 9, 29, 69, 70, 73 Guinea-Bissau.....................................................................31 World Bank International Consortium of Investigative Journalists............1 Doing Business......................xvii, 4, 9, 36, 38, 39, 44, 45, International Telecommunication Union................xvii, 4, 10, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60 12, 13, 16, 46, 51, 81 Enterprise Surveys....................xvii, 1, 4, 10, 45, 46, 50, Kenya..............xv, 14, 18, 42, 48, 49, 52, 53, 59, 61, 62, 66, 51, 80, 81 70, 72, 73, 74, 76, 77, 78, 80 Global Indicators of Regulatory Governance...........4, 29, Lesotho..............................................42, 64, 65, 66, 72, 73, 74 35, 36, 70, 71 Liberia....................................................................................1 Global Public Procurement Dataset................................xv Libya.....................................................................8, 12, 31, 39 GovTech Maturity Index...................... 4, 7, 8, 9, 10, 12, 13, Madagascar..........................................................................77 16,18, 19, 21, 66, 79, 86 Malawi..................................................................................70 Human Capital Index.....................................................19 Mauritania............................................................................31 Survey on e-GP Implementation in Africa...............4, 39, Mauritius......................................31, 48, 49, 50, 52, 53, 59, 66 40, 41, 44, 46, 75, 79 Mo Ibrahim Index of African Governance................................2 Sustainable Energy for All.......................................… 4, 11 Morocco...................................................12, 18, 21, 70, 71,72 World Economic Forum................2, 3, 4, 14, 15, 16, 18, 19, 60 Mozambique.............................................................20, 31, 66 Zambia......................18, 41, 42, 43, 44, 45, 48, 53, 54, 57, 66 Namibia................................................................cover, 59, 80 Zimbabwe.................................................................18, 31, 80 Network Readiness Index....................................................15 Niger.....................................................................................18 Nigeria...................................18, 20, 31, 41, 42, 53, 58, 66, 74 Online Service Index.........................................................9, 18 <<< 87 GOVERNANCE AND THE DIGITAL ECONOMY IN AFRICA MAIN REPORTS VOLUME 1 DIGITAL FOR GOVERNANCE: REACHING THE POTENTIAL FOR THE DIGITAL ECONOMY IN AFRICA — DIGITAL TOOLS FOR BETTER GOVERNANCE VOLUME 2 GOVERNANCE OF DIGITAL: REGULATING THE DIGITAL ECONOMY IN AFRICA — MANAGING OLD AND NEW RISKS TECHNICAL BACKGROUND PAPERS • ICT Procurement In Africa • Adoption of EGP in Africa • Vulnerabilities of ICT Procurement to Fraud and Corruption • Regulating Digital Data in Africa • Taxes and Parafiscal Fees on Digital Infrastructure Services in Africa • Corporate Governance and Transparency of State-Owned and State-Linked Digital Enterprises in Africa • State-Owned Enterprises in Digital Infrastructure And Downstream Digital Markets in Africa • Competition Advocacy for Digital Markets in Africa • Competition Policy in Digital Markets in Africa