AI Governance Key To Africa’s Digital Transformation – Oyedeji

The group managing director of First HoldCo Plc, Mr Wale Oyedeji, has highlighted the critical role of AI governance in shaping Africa’s digital economy.

He stated this during his keynote address titled, ‘AI Governance: Advancing Regulations, Ethics and Risk Resilience in Africa’s Digital Economy’ at the ISACA GRC conference held in Lagos, recently.

Oyedeji stressed the significance of ethics, risk resilience, and robust regulatory frameworks in maximising the potential of Artificial Intelligence.

He asserted that the digital economy is transforming global economic landscapes, with Africa poised to benefit significantly.

“Technologies such as e-commerce, data analytics, robotics, and Artificial Intelligence are driving this change,” he explained.

Oyedeji believed that Africa’s dynamic youthful population, rich cultural diversity, and abundant natural resources present a unique opportunity for accelerated digital transformation, contingent on strengthening infrastructure and enhancing connectivity.

To achieve full participation in the global digital economy, he emphasised the need to establish five foundational pillars: Digital Infrastructure, Digital Platforms, Digital Financial Services, Digital Entrepreneurship, and Digital Skills.

Oyedeji acknowledged the African Union’s commitment through the Digital Transformation Strategy for Africa (2020–2030), which aims to leverage digital technologies for socio-economic development, market integration, job creation, and poverty reduction while promoting Africa’s ownership of digital tools.

He noted that this conference serves as an excellent platform for evaluating the continent’s progress and exploring how AI Governance can further boost this advancement.

Oyedeji pointed to Nigeria’s National Digital Economy Policy and Strategy (2020–2030) as a mirror of this ambition. Launched in 2019, it is built on eight strategic pillars, including developmental regulation and digital literacy, which provide a comprehensive framework for positioning Nigeria as a competitive player in the digital economy.

According to Oyedeji, recent GSMA studies reveal both opportunities and challenges. In 2024, mobile technologies are projected to contribute 7.7 per cent of Africa’s GDP, approximately $220 billion, with expectations to rise to $270 billion by 2030. Currently, however, nearly 75 per cent of Africa’s population remains unconnected, despite 416 million individuals using mobile internet. This highlights a significant potential for digital inclusion, especially given that 67 per cent of households lack access to computers or smartphones.

In the financial sector, he emphasised that “AI governance must focus on proficiency, safety, security, and compliance. Ethical standards, transparency, and accountability should be foundational to every AI initiative.

Governance frameworks must ensure that AI systems are both auditable and explainable, while aligning with established privacy standards. Key elements should include bias testing, clear transparency protocols, human-override mechanisms, and mandatory risk assessments.”

As Africa moves towards a fully digital economy, Oyedeji noted that the transformation brought by Artificial Intelligence is already underway.

He underscored that advancing regulation, ethical standards, and building risk resilience are essential, reinforcing that these priorities work in tandem to enhance the quality of the continent’s digital future.

“Without sound governance, AI presents risks; with it, AI becomes a powerful accelerator for growth, inclusion, and competitiveness across Africa,” he said.

He added by recognising the profound impact ISACA professionals have in this evolving landscape.

“You are positioned at the crossroads of trust, assurance, security, and innovation, serving as guardians of digital integrity. As AI finds deeper integration across various sectors, your expertise will be crucial in shaping standards that protect consumers and strengthen national ecosystems,” Oyedeji explained.