The full digitisation of the economy in the Middle East and North Africa region could increase GDP per capita by at least 46 % over 30 years, which in the long run would represent an estimated gain of at least 1.6 trillion dollars for the region, the World Bank said in a report released on Wednesday.
Widespread use of digital services such as mobile money and paperless payments could provide a major boost to economic growth, said the report, titled «The Upside of Digital for the Middle East and North Africa, How Digital Technology Adoption Can Accelerate Growth and Create Jobs,»
In the first year, the gain in GDP per capita is estimated at nearly $300 billion. According to the World Bank, the universal adoption of digital technologies would double women’s labour force participation by about 20% over a 30-year period (increasing the number of women in the labour force from 40 to 80 million).
It could also increase employment in the manufacturing sector by at least 5% over 30 years, adding 1.5 million jobs over that period, an average of 50,000 new jobs each year.
Ferid Belhaj, World Bank Vice President for the Middle East and North Africa, said: «The gains from increasing the transformation to a digital economy are enormous, and governments should do everything they can to remove the obstacles to this transformation.»
In the report, the World Bank called for further opening up the telecommunications market to competition, which could help increase the supply and use of mobile money and digital payments and, in addition, improve financial inclusion by increasing access to current accounts.
Measures are also needed to put in place a stronger regulatory framework conducive to the development of e-commerce, including electronic signature systems, data privacy protection and cyber security.
The WB also recommends prioritising the reforms needed for the widespread use of paperless payments to accelerate the digital transformation of the economy in the region.
