Cameroon can use dgital economy as way-out- Economist

Dr Ariel Ngnitedem (PhD), Economist and Public Finance Expert, talks on the opportunities and benefits of digital economy.

Digital economy is a new concept in Cameroon. What is the place of this notion in the growth of the country’s economy?

Simply put, the place of the digital economy is central if not critical to the growth of any country’s economy. It is even more so to the Cameroon’s economy which is not only in dire need of exportations in order to mitigate its growing trade deficit, but also experiencing huge competitiveness problems both quality and quantity wise.

That is, in order to mitigate the weaknesses and threats to its competitiveness due to economic structural and governance pitfalls, Cameroon could use the digital economy as a way out or a viable alternative to the traditional economy. For instance, a sound e-business and e-commerce systems could help farmers in the rural and remote areas and businessmen and women in the informal sector to sell their products or buy fertilizers and other inputs for their activities

What are some of the probable challenges to developing digital economy in Cameroon?

As the digital economy is based on digital computing technologies, the first challenge is the access to the digital computing technologies popularly known as the supporting infrastructure made off of hardware (computers and other handheld devices like cell phones and iPods), software, telecommunication infrastructure, networks, etc...

The challenge here is to make this supporting infrastructure accessible to the greatest number of potential buyers and sellers, to potential businessmen and women who are willing to conduct business online both with the private and the public sector, including from registering a business to paying bills and taxes.

The second challenge is the availability and the access to the main components of the digital economy namely the e-business and the e-commerce. The challenge here is to design and put in place secured e-business and e-commerce systems readily available and functional both in urban and rural areas with all the actors involved.

This requires having a functional e-government with laws, regulations, rules and a good number of government services available online. It also requires a highly secured e-banking system that offers its customers the possibility to conduct banking operations online including paying for goods and services with credit cards, etc... It finally requires a reliable e-postal service which allows customers to send and receive goods bought online including tracking them online.

How can the concept be developed in spite of the wide digital divide?

In a developing country like Cameroon where the digital divide is a reality the concept of digital economy can still be developed. One way of developing this concept in spite of the wide digital divide is to rely on cyberspaces like cybercafés by promoting and sponsoring their creation in rural areas and poor neighbourhoods in urban areas and making their access cheaper and affordable for villagers and poor or under privilege urban dwellers.

Another way out is to rely on handheld devices like cell phones and the likes that are the most viable alternative means to curb the digital divide in developing countries in general and in Sub-Saharan African (SSA) countries in particular. As the rate of penetration of cell phones and handheld devices is growing tremendously both in rural areas and poor neighbourhoods in urban areas in SSA, promoting the development of cell phone based e-business and e-commerce applications will go a long way to develop the concept of digital economy despite a wide digital divide

What is role of the private sector and the civil society in this process?

The private sector has a very important role to play in the process of developing the digital economy in Cameroon as it is a development partner to the government and a main actor of the digital economy. Not only, does it partner with the public sector for the putting in place of the supporting infrastructure, but also it is mostly the one who actually makes the concept work.

There cannot be a vibrant digital economy without a vibrant private sector. The role of the civil society is a sort of an arbitration role, a whistle blower role. The civil society should make sure that neither the public sector nor the private sector commits abuses towards its customers, or crosses its boundaries. It should make sure that the rights of consumers are rightly safeguarded and protected.

What sectors of activity can be developed through the concept?

Barely all sectors of the economy could be boosted through the development of the concept of digital economy including the primary, the secondary and the tertiary sector. This said, the primary sector and the tertiary sector are the ones that are the most likely to benefit more from a well-developed digital economy. In fact, a well-developed digital economy will make it easier, faster and cheaper to bring services (tertiary sector) to the digital marketplace because they are tangible in nature.

Also, a well-developed digital economy will make it easier to bring exposure to farming products from potential buyers and by so doing will allow farmers to get access to a greater customer base. It will also make it easier to farmers to shop for their production inputs in the digital marketplace

Government is already laying the groundwork for the sustainable development of the concept. What should the committee in charge watch out for?

The Committee in charge of laying the groundwork for the sustainable development of the digital economy should watch out for one or two things. The first thing to watch out for is the security of financial transactions conducted online. It should make sure that the payment systems are highly secured from the payment devices to bank accounts. The second thing to watch out for is the scams and identity theft.

The Committee should guarantee scam-free payment systems to all buyers and protect the identity of all those who choose to conduct businesses online. Last but not the least the Committee should watch out for lost or theft of goods bought and sent online or goods bought online and not sent by the seller.