Digital IDs are a mainstay in Africa’s internet economy drive

Countries across the continent are rapidly adopting national digital ID systems, a key pillar of the continent’s growing internet economy. These digital identities promise financial inclusion, secure online transactions and improved access to public services, all while strengthening fraud prevention.

SPECIAL REPORT | BIRD AGENCY | African nations are rapidly adopting digital ID systems to enhance security, streamline identity verification, expand financial inclusion, and accelerate the digital economy.

Nigeria is the latest to redefine its national digital ID rollout, targeting 180 million National Identification Numbers (NIN) by 2026. A World Bank restructuring document reveals Nigeria’s revised target, overriding the previous goal of 148 million by June 2024.

“Progress has been made in establishing a robust and inclusive ID system. This includes upgrades of critical IT systems… to allow for storage of 250 million NIN, which is scheduled for completion by March 2025,” the World Bank report states.

Nigeria initially secured US$430 million from the World Bank’s Identity for Development Initiative (ID4D) in 2020 to implement the program. As of December 2024, data from the National Identity Management Commission (NIMC) shows 115 million Nigerians have been issued chip-embedded cards.

The urgency for smart IDs is clear. Fraud involving national IDs, driver’s licenses, work permits, alien cards, and voter IDs is surging in Africa, fueled by tech-savvy youth leveraging generative AI to create sophisticated fake IDs.

A 2025 SMILE ID report shows national ID fraud accounted for 27% of cases last year, followed by driver’s licenses (24%), work permits and alien cards (19%), and voter IDs (14%). In response, African governments are prioritizing digital IDs to bolster security and counter fraud.

Nigeria’s ambitious push mirrors a broader continental trend. At least 15 countries have implemented or are legislating national digital ID systems to ensure secure data storage and verification.

Kenya launched its digital ID program in 2023, issuing citizens a Unique Personal Identifier (UPI) embedded in the Maisha Card, which features a microprocessor chip.

“The rollout of the Maisha card is a transformative step that has the potential to streamline identity verification, improve service delivery, enhance governance, and align Kenya with 21st-century digital advancements,” says Fred Nasubo, a lecturer at Taita-Taveta University and author of Branding Kenya.

Benin was an early adopter, launching the RAVIP (Recensement Administratif à Vocation d’Identification de la Population) campaign in 2019 and issuing nearly half a million digital IDs by 2020. Botswana, Mozambique, and Morocco have since integrated digital IDs into national security and e-governance systems.

Namibia has issued its ‘New Look’ ID card since 2021, replacing the old national ID and South West Africa card. The new card, compliant with the International Civil Aviation Organization, doubles as a travel document to other countries such as Botswana.

Some countries, like Ethiopia, are linking digital IDs to financial transactions. Ethiopia’s Fayda ID is now mandatory for banking and has been expanded to healthcare and education. According to a 2024 government report, a pilot project enrolling post-secondary students has already migrated biometric data for 640,000 students into the system.

Rwanda’s Single Digital ID (SDID) system, launched in 2023, now covers over 90% of the population, enabling seamless access to government services, banking, and mobile connectivity, according to SMILE ID. The ID is accepted as a cross-border travel document to countries in the EAC.

Somalia is following suit, with its National Identification and Registration Authority (NIRA) partnering with the Somali Banking Association to integrate the national ID system with financial services.

South Africa is also advancing its digital ID framework. The South African Reserve Bank, Revenue Service (SARS), and Department of Home Affairs are collaborating to develop a unified credential.

“The absence of a digital identity means that in South Africa I have an ID number, I have a tax number, I have one for registering a company, and another for being a hospital patient,” SARS Commissioner Edward Kieswetter noted at a South African Institution of Taxation event in November, 2024.

Zambia also secured a US$100 million World Bank grant in 2024 to modernize its digital public infrastructure, laying the groundwork for a national digital ID system.

As part of this effort, SMART Zambia, the government’s e-government division, recently completed staff training on the Modular Open-Source Identity Platform (MOSIP), the backbone of the digital ID rollout.

Beyond security, digital IDs are poised to accelerate Africa’s digital economy.

Africa’s digital economy grew from 1.1% of GDP in 2012 to 4.5% in 2020 and is projected to reach 5.2% by 2025 and 8.5% by 2050, according to Digital Reality.

“This growth is due to better internet access, vibrant startups, more tech talent, and improved policies. Initiatives like the African Continental Free Trade Area are also helping,” the global data center platform notes.

*****

SOURCE: bird story agency