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By Tito ANABAGANA & Dr. David ALEMZERO Digital identity is conceptualized as an assemblage of electronic characteristics that distinctly delineate an individual in the online realm. The verification of one’s identity is imperative for gaining access to various services and opportunities; nevertheless, over 1.5 billion individuals—predominantly from rural, impoverished, and marginalized demographics—are devoid of legal identification. Although the United Nations aspires to achieve universal legal identity by the year 2030, the prevailing systems are frequently fragmented, exclusionary, and exhibit deficiencies in robust design. Digital identity, and in particular mobile-centric solutions, presents a secure, scalable, and inclusive way to mitigate this disparity. The utilization of resources from mobile operators has the potential to stimulate socio-economic advancement in emerging markets, notably within the African continent. However, to avert fragmentation and safeguard digital sovereignty, collaborative efforts are requisite to ensure that identity systems are trustworthy, appropriate for their intended purpose, and universally accessible. Gaining insight into who possesses identification—and the attributes of such systems—is essential for addressing this global predicament. Global Context According to the latest iteration of the Identification for Development’s (ID4D) Global Dataset, approximately 850 million individuals worldwide lack any official documentation of their identity. A significantly greater number are not identifiable through digital means. This encompasses no fewer than 1.5 billion individuals who possess no digital confirmation of their identity; at least 1.25 billion individuals are devoid of verifiable digital identification; the lack of a government-sanctioned form of electronic identification adversely affects a minimum of 3.3 billion individuals. In the year 2016, Identification for Development (ID4D) produced comprehensive data and cost assessments pertaining to global identification coverage, thereby addressing the deficit in data and knowledge concerning the population lacking access to verifiable identity documentation. Identification terrain in Africa. In today’s hyperconnected digital age, the absence of universal digital identity solutions remains a major barrier to financial inclusion and economic growth. Digital IDs—legally recognized, verifiable credentials—enable secure access to services while meeting compliance standards like GDPR and eIDAS. While standalone digital IDs are a foundational or entry level, they fall short in a fragmented ecosystem. True progress lies in interoperable identity frameworks that seamlessly connect financial systems, government platforms, and cross-border trade. Although countries like Ghana, South Africa,Kenya,Rwanda,Morocco and Nigeria have made strides with national ID systems (Ghana Card, SA Smart Card, National ID Agency (NIDA), National Population Register & Digital Civil Register (NID/NPR),Huduma Namba, NIN), the next challenge is interoperability. Africa’s digital economy—fueled by mobile money ($1 trillion annually) and e-commerce demands integrated identity solutions that enable cross-border trade under AfCFTA, access to financing, and global remote work opportunities. About 100 million people in Sub-Saharan Africa don’t have access to formal identification documents, a barrier to adopting regulated and finance platforms. Infrastructure and financial education problems exist, particularly in rural areas with limited broadband. A study found that approximately 81% of the populace in sub-Saharan Africa is devoid of legal identities, a situation that digital identification systems frequently neglect to rectify. The EU’s eID Wallet offers lessons in overcoming fragmentation, but Africa must tailor solutions to its unique context—leveraging mobile networks, serving informal workers, and bridging linguistic diversity. With AfCFTA projected to generate $450 billion by 2035, interoperable digital identity is the invisible backbone of this transformation. Sub-Saharan Africa received $54 billion in remittances in 2023, according to the World Bank, but transferring money is still the most expensive in the world, with costs averaging 7.9 percent for a $200 transfer. Because of these inherent issues, digital identification has become a desirable remedy. This will enable people to access digital assets with the right identification system to ensure transparency and avoid fraudulent activities. In economies that don’t have digital public infrastructure, it is important to develop them to bring about inclusivity and development and as tools for international savings, payments, and trade. Chainalysis reports that stablecoins currently make up over 43% of all cryptocurrency transactions in Sub-Saharan Africa, indicating their expanding market share and potential to reduce remittance costs, as suggested by studies from the Digital Dollar Project. This can be achieved via a robust identification system. Envision a future in which a Ghanaian entrepreneur utilizes their national identification to obtain financing from South Africa, engage in commerce in Côte d’Ivoire, and access cloud computing services in Morocco, all facilitated through efficient verification processes. In order to realize this vision, Africa must transcend fragmented systems and develop inclusive, interconnected identity frameworks that effectively unlock economic potential on a large scale. The continent stands at a historic juncture to transcend traditional barriers and establish a genuinely integrated digital economy. Table 1 shows the best results in implementing digital identity in Africa, while 35 African countries are developing and advancing their basic legal identity and national identity systems to address the identity gap. Table 1. African Countries with Emerging Robust Digital ID Systems Source. Authors’ creation. Figure 1: Regional ID Systems in Africa Source. Authors’ construct The Challenge of Fragmented Identification For decades, African nations have struggled with incomplete and disjointed identity management systems. Many citizens lack formal identification, while others hold multiple IDs from different institutions for instance voter cards, tax numbers, and health IDs that do not integrate with each other. This fragmentation creates inefficiencies, increases fraud risks, and excludes millions from essential services like banking, healthcare, and social protection. In certain instances, governmental bodies and private entities engage in redundant initiatives, thereby squandering resources on overlapping registration mechanisms. The dynamics of cross-border commerce and mobility are similarly impeded, as both travelers and enterprises encounter onerous verification protocols attributable to the dissonance in identity systems across nations. Ghana previously initiated the National Identification System (NIA) card and subsequently transitioned to the ECOWAS card, which is embedded with enhanced security features. However, this card still lacks functionality that would permit its use as a banking instrument for the purpose of monetary savings. This indicates a pressing necessity for the establishment of a multipurpose card of such a nature, which may necessitate additional fiscal expenditures from the state. There is currently the ECOWAS card, the SADC identification framework, in addition to the East African e-passport. Notwithstanding, all these systems require seamless integration at the continental level. Central Africa lacks a cohesive identification framework for the subregion, relying instead on individual national identification systems. This fragmentation obstructs effective identification and hinders developmental progress within the subregion and the broader region as a whole. The evolution of national identification systems within North Africa is characterized by fragmentation, as each nation adopts its own unique framework informed by local socio-political dynamics and technological conditions. This decentralized methodology results in disparate outcomes. For example, the biometric system in Mauritania encountered substantial public opposition, underscoring the ideal that digitization possesses profound social dimensions, transcending mere technical considerations. Conversely, Morocco implements a variety of synergistic initiatives, including national identification cards and civil registries, to forge a cohesive ecosystem and mitigate redundancy. Technological advancements, such as blockchain, are currently being investigated to facilitate the establishment of secure, unified digital identities for the purpose of accessing a multitude of services. Consequently, the efficacy of these solutions is contingent upon the availability of internet access, which is not uniformly distributed. The absence of official identification continues to pose a significant obstacle to socio-economic inclusion. Although digital identities hold considerable promise for narrowing this divide, their effectiveness is ultimately predicated on robust political commitment and the cultivation of citizen trust in the areas of data security and governance. The shift toward interoperability Recognizing these challenges, African nations are progressively implementing cohesive digital identity frameworks. These systems facilitate the secure exchange and utilization of identity data across diverse platforms, thereby ensuring that a singular identifier is acknowledged across multiple domains, including governmental services, financial institutions, and healthcare sectors. The African Union’s initiative for interoperability aims to achieve this objective by amalgamating the various subregional identification cards into a continent-wide integrated system, thereby enhancing the reliability and efficiency of the identification process. Key initiatives to drive this shift include: The African Union’s Digital Transformation Strategy (2020-2030) delineates a framework that underscores the necessity for cohesive digital identity systems to promote continental integration within the context of the African Continental Free Trade Area (AfCFTA). There exists a critical imperative to formulate regulations governing e-commerce and digital trade at the AfCFTA, predicated upon a reliable identification system. The transnational flow of data is integral to the facilitation of digital trade. This data flow ought to be characterized by transparency and minimized costs. The significance of subregional identification systems is paramount, necessitating their alignment with the overarching regional identification framework. National Digital ID Programs: Countries like Nigeria (with its NIN system), Kenya (Huduma Namba), and Ghana (Ghana Card) are implementing foundational ID systems that serve as a single source of truth for identity verification. Each country needs to build a robust ID system by collecting and gathering data to build a comprehensive one multipurpose card instead of the idiosyncratic cards, which will then be integrated at the subregional level and then the regional level. Regional Collaboration: The Economic Community of West African States (ECOWAS) and other regional blocs are working toward cross-border ID recognition to ease mobility and trade. The Ecowas card is one the West African Subregion has implemented to drive seamless integration of identity services The Benefits of Interoperable Identification -Financial inclusion: banks and mobile money providers can seamlessly verify identities, bringing unbanked populations into the formal economy. – This will allow people to get access to financial services and increase their credit rating. Once financial institutions are able to identify customers through knowing your customer (KYC) process, they are confident in the possibility of granting loans to individuals who can empower small businesses to promote inclusive economic development. This will go a long way to ensure the integrity and stability of the financial system and avoid the situation of financial institutions undertaking subprime lending causing a financial bubble. Also, having a credible identification system doesn’t need customers of financial institutions to provide collateral security before accessing a loan. -Improved delivery of services: Governments can streamline the distribution of services, access to health care and voter registration by eliminating duplicate records. Countries do not need to have an electoral card. A card can be used for that purpose for voting and identification purposes. A card for different purposes is the ideal thing to do. -Enhanced security: Integrated systems mitigate identity fraud and enhance border security. The implementation of facial recognition technology for surveillance purposes in China and various other nations has contributed to a reduction in criminal activity or its complete eradication. The Ghanaian government’s initiative to establish a 24-hour economy could benefit from the deployment of a comprehensive identification system that facilitates the installation of closed-circuit television (CCTV) systems and facial recognition technology at strategic locations to combat crime in Ghana, given that individuals will be engaged in work around the clock. – Economic Growth: Organizations derive significant advantages from the establishment of dependable customer identification mechanisms, thereby mitigating the risks associated with lending activities and e-commerce transactions. The governmental apparatus can enhance policy formulation for the populace through meticulous strategic planning, employing targeted initiatives aimed at fostering economic growth and development. For example, governmental entities can more effectively identify individuals requiring support from safety net programs and policies necessitating targeted execution. For instance, the Ghanaian government, with respect to the NO Stress Fee policy, can utilize an efficient identification system to specifically identify individuals in Ghana who are in genuine need of financial assistance, as opposed to adopting a broad-based approach. This process may be facilitated through the integration with the Social Security and Insurance Trust (SSNIT), whereby household income levels are assessed and evaluated. Challenges and Way forward. Challenges and advancements, notwithstanding advancements, significant barriers persist. Issues surrounding data privacy, cybersecurity vulnerabilities, and reluctance to adapt from entrenched bureaucratic structures necessitate intervention. To uphold trust and foster acceptance, it is imperative to establish a robust legal framework, advocate for public awareness initiatives, and allocate resources towards enhancing digital infrastructure. The shift from disjointed identification mechanisms to cohesive and interoperable systems in Africa represents a pivotal step towards realizing a more integrated and inclusive future. Through the strategic application of technology and regional collaboration, the continent can fully harness the potential of its populace and economic resources. Figure 2. Mind Map Analysis of Bridging Africa’s Digital Identity Divide. Source. Authors’ Construct. Figure 2 presents a conceptual diagram, or mind map, that encapsulates the principal themes derived from the article “From Fragmentation to Integration: The Power of Interoperable ID in Africa.” The analysis segments are presumably organized around a central theme under the “Interoperable Digital Identity in Africa”, with branches that interconnect various concepts, challenges, advantages, and recommendations. Here is a systematic explanation of what each segment signifies, arranged by the thematic elements from figure : The Issue: Fragmentation & the Identity Deficit The segments within this category delineate the current fractured state of identity systems. Fragmentation in identity management: Pertains to the fundamental dilemma wherein disparate government agencies maintain isolated, unlinked ID databases (e.g., voter registration cards, tax identification numbers, health identification documents that lack interconnectivity). Redundant initiatives: Explains how this fragmentation results in governmental bodies and agencies squandering resources on overlapping and duplicative registration endeavors. Increased risk of fraud. A direct repercussion of fragmented systems, facilitating the perpetration of identity fraud. The challenge of the digital divide: The overarching issue that fragmented and non-digital identification systems exacerbate, obstructing individuals from engaging with economic activity. About 850 million individuals worldwide possess no official identification. Additionally, nearly 500 million individuals in Africa are disenfranchised from critical services due to the absence of identification.Approximately 100 million: Specifically, around 100 million individuals in Sub-Saharan Africa are devoid of formal identification documents.1.5 billion individuals t is the global tally of people who lack digital verification of their identity. 1.25 billion refers to 1.25 billion individuals who do not possess a verifiable digital identity. The Remedy lies in Interoperability. This category delineates the transition toward integrated systems. Interoperability as a solution: This represents the central tenet—the proposition that linking disparate ID systems constitutes the resolution to fragmentation. The digital identity layer: Signifies the foundational, interoperable framework that would underpin various services and sectors. The African Union’s Digital Transformation Strategy: A pivotal continental initiative advocating for the establishment of cohesive digital identity systems to bolster the African Continental Free Trade Area (AfCFTA). Cross-border trade is one of the principal objectives facilitated by interoperability, which permits seamless trade and mobility under agreements such as AfCFTA. The Advantages of Interoperability A unified identification framework presents transformative advantages across various sectors. Financial inclusion is prominently recognized as a fundamental benefit, enabling institutions to validate identities and incorporate unbanked demographics into formalized economic structures. Enhanced service delivery empowers public authorities to optimize healthcare and electoral mechanisms by eradicating superfluous records. Augmented security through integrated systems mitigates identity theft and fortifies border security, while economic development is catalyzed as businesses function with increased assurance and governments formulate targeted policies. International trade becomes frictionless, thereby facilitating commercial activities among African nations. The successful enactment of this initiative necessitates essential policy recommendations: the streamlining of bureaucratic procedures and associated costs, fostering trust and inclusivity through community involvement, establishing robust governance complemented by rigorous data privacy regulations, and providing targeted government support for accurate allocation of social assistance. Economic Research found a substantial sum of 54 billion in remittances, presently hindered by an annual cost of $7.91 trillion, in addition to regional cooperation facilitated by organizations such as the Economic Community of West African States (ECOWAS) and the Southern African Development Community (SADC), advocate for a necessity for enhanced identification solution for the continent. Figure 3 below presents a word cloud analysis underscoring the paramount necessity for comprehensive digital identity frameworks throughout the African continent. Central themes revolve around “identification,” “access,” and “systems” as essential components for fostering economic advancement. Key words such as “interoperable,” “integrated,” and “comprehensive” indicate a concentration on cohesive, transnational solutions that facilitate seamless verification and registration procedures. Financial inclusion is identified as a significant impetus, with “economic,” “trade,” and “commerce” underscoring the pivotal role of identity in granting access to financial services. The focus on “national,” “governmental,” and “institutional” structures signifies the critical nature of synchronized policy frameworks. Terms such as “fragmented,” “barriers,” and “challenges” recognize existing impediments, whereas “initiatives,” “solutions,” and “implementation” allude to the strategic interventions required to establish an inclusive, interoperable identity infrastructure capable of propelling continental economic integration and individual empowerment. Figure 3: Word Cloud Analysis Source. Authors’ Construct Figure 3 below depicts the context of global ID coverage. This stacked bar chart explains a pronounced global identity crisis, with an estimated 1.9 billion individuals lacking formal identification in the year 2021. The data reveals considerable regional disparities in the accessibility of identification across varying income groups and geographical settings. Sub-Saharan Africa exhibits the most acute challenge, with in excess of 500 million individuals devoid of identification, signifying both the highest absolute figures and the proportion of the population without digital identity. South Asia ranks closely behind, with an approximate 471.9 million individuals lacking identification. It is noteworthy that children constitute a significant segment of the unidentified population on a global scale, as depicted by the orange segments in all regions. Countries classified as lower-income exhibit disproportionately elevated rates of identification inaccessibility, whereas upper-middle-income nations demonstrate comparatively superior coverage. The income classification established by the World Bank indicates a strong correlation between poverty and the deficits in identity documentation. This crisis disproportionately affects vulnerable populations, potentially restricting their access to essential services, financial inclusion, voting rights, and social protection initiatives, thereby perpetuating cycles of marginalization and inequality. Figure 4. Estimated people without ID in 2021(Millions) Source. Adapted from the WordBank Group. Conclusion and Policy recommendations. Interoperable digital identity is more than just a technical upgrade that is a catalyst for Africa’s socio-economic transformation. As nations move toward integrated systems, the vision of a borderless, digitally empowered Africa becomes increasingly attainable. The power of seamless identification lies in its ability to bridge gaps, foster trust, and drive progress across the continent. Policy recommendations: – It is imperative that governmental entities and various stakeholders collaborate effectively to eliminate the barriers that hinder individuals from acquiring legal documentation. Identity verification. This entails the eradication of disparities, the minimization of excessive bureaucratic procedures, and the reduction of fees associated with essential documentation and services through the reformulation of legal frameworks, the optimization of regulatory practices, and the enhancement of operational methodologies. Furthermore, it emphasizes the augmentation of customer service standards, the simplification of procedural frameworks, and the facilitation of access to identification services by situating service locations closer to community hubs and workplaces. Such measures will engender a more efficient, user-centric system that alleviates bureaucratic encumbrance and guarantees equitable access to vital services for all individuals. -Foresight, comprehensive involvement, and interaction with communities, local authorities, and civil society organizations are of paramount importance. Insufficient identification coverage occurs when service providers fail to comprehend user requirements and impediments. To augment access, it is imperative to implement awareness initiatives, feedback mechanisms, and grievance redress systems to foster trust. Involve civil society and marginalized populations in the identification of obstacles and the enhancement of inclusivity, thereby ensuring equitable access to official identification. Supervising and enhancing access to identification necessitates the implementation of systematic and frequent data collection methodologies. Inadequate data impedes comprehensive evaluations of both global and national identification coverage, particularly regarding older children. There is a pressing requirement for augmented data acquisition through national censuses and surveys, in addition to improved oversight of registration processes, issuance protocols, and inclusive practices. The disaggregation of data by gender and demographic factors is crucial to guarantee equitable access for underrepresented and marginalized populations. European Union Digital ID Regulation The EU Digital Identity Wallet: A Beginner’s Guide The World Bank ID4D,GLOBAL DATASET Volume 1 | 2021 Global ID Coverage Estimates SMART AFRICA- DIGITAL IDENTITY – Edition 2020 Tito Anabagana is a Researcher | Building the Future of Payments in Africa and Dr. Alemzero is a Lecturer and Researcher
