The promise of digital transformation in Africa remains immense—but so too are the barriers holding it back. One of the most persistent and detrimental of these obstacles is the high cost of financial transactions, driven largely by fragmented systems and poor data governance. If Africa is to unlock its digital potential, the continent must urgently reform and standardize its digital and data ecosystems.

This urgency was a central theme at GITEX Africa 2025, held in Marrakech, Morocco recently. As Africa’s largest and most influential technology and startup exhibition, GITEX Africa brought together thousands of innovators, government leaders, corporate executives, and tech entrepreneurs from across the continent and beyond. The event served as a platform for critical conversations on the future of African tech—and a spotlight on the glaring gaps that continue to hinder progress.

Across the continent, numerous frameworks have been introduced to harmonize digital infrastructure, yet too many remain toothless. Without enforcement and binding commitments from all member states, these frameworks offer little more than aspirational rhetoric. What Africa needs is not more documents, but real implementation—systems that can talk to each other, scale efficiently, and reduce redundancies.

Standardization isn’t just a technical preference—it is an economic imperative. The current lack of interoperability between systems drives up operational costs and makes digital financial services unnecessarily expensive for end users. It is this cost barrier that continues to exclude millions from formal financial systems, stalling progress in inclusion and innovation alike.

At the heart of these challenges lies data—its quality, usability, and governance. While financial institutions and public agencies are awash with raw data, much of it is incomplete, poorly structured, or unreliable. This not only hampers innovation but also makes it costly to extract any meaningful insights. As a result, too many organizations default to gut instinct instead of informed, data-driven strategies.

Africa’s digital future depends on a shift in mindset: data must be treated not as a byproduct of operations, but as a core strategic asset. Systems should be built with the capacity not just to collect information but to convert it into actionable insights. This means investing in infrastructure that prioritizes clean, secure, and interoperable data from the outset.

Governance is key. Without strong oversight and clear standards, even the most promising digital initiatives are destined to fall short. But when governed well, data becomes a powerful tool—not only for business innovation but also for public policy and national development planning.

Ultimately, the goal of digital advancement must be to improve the quality of life. Technology should not exist for its own sake, but to make life easier, smarter, and more inclusive. Africa’s digital transformation cannot succeed without first solving the foundational issues of high transaction costs and weak data governance.

GITEX Africa has made it clear: the momentum is here. But progress depends on action, not just ambition.

Samwel Magesa (pictured)  is a seasoned banker based in Dar es Salaam. He can be contacted through email samwel.magesa@nbc.co.tz