Digital transformation offers unprecedented opportunities for developing economies, but it also threatens to exacerbate existing inequalities. South-South and triangular cooperation is key to overcoming these challenges and enabling digital inclusion and sustainable development in Southern countries.
South-South and Triangular Cooperation (SSTC) : Different form of partnership
Digital technologies are revolutionizing economies worldwide, but their benefits are not evenly distributed. In the Global South, particularly in Africa, access to the Internet and digital resources remains limited. This creates a digital divide that accentuates inequalities in education, employment, and access to services. Bridging this gap is essential to achieving the Sustainable Development Goals (SDGs) and enabling marginalized communities to thrive in an increasingly digital world.
South-South and triangular cooperation (SSTC) offers a collaborative approach to tackling this digital divide. South-South cooperation is a partnership model between two or more Southern countries that facilitates the sharing of resources, technologies, and knowledge to address common development challenges. The triangular element builds on South-South cooperation by involving a Northern country or international organization to support partnerships among Southern countries. By fostering partnerships between developing countries and bringing in support from the North, SSTC enables knowledge sharing, capacity building, and investment in digital infrastructure.
Digital inequality : Barrier to inclusive development
The Internet has become an essential resource for education, commerce, and governance, but vast swaths of the planet remain disconnected. According to United Nations estimates, 2.9 billion people are still not connected, most of them living in developing countries. Even among those who are connected, the quality and affordability of access vary widely. In many least-developed countries, the cost of basic Internet services remains prohibitive. In some cases, the price of 5GB of fixed broadband exceeds 20% of the average monthly income.
This digital inequality has profound consequences. It prevents individuals from accessing essential services, participating in the digital economy, and contributing to innovation. For marginalized groups, such as women, rural populations, and people with disabilities, these barriers are even more pronounced. In Africa, women are 20 to 50 % less likely than men to use the Internet. Without concerted efforts to bridge the digital divide, these inequalities will continue to widen, leaving Southern countries further behind in the digital age.
Policy and institutional gaps
Despite progress made through SSTC, significant challenges remain. Many Southern countries lack the institutional capacities and regulatory frameworks needed to support digital innovation and protect user rights. In particular, the absence of stringent data protection and privacy laws poses a serious risk to vulnerable populations.
Only 48 % of least-developed countries have implemented data protection legislation, compared to 74 % of countries in the Americas. Without strong data protection laws, personal data can be collected, processed, and even sold without users’ consent or authorization. Secondly, weak or nonexistent data protection makes countries more vulnerable to cyberattacks. Unregulated digital environments are easy targets for cybercriminals, potentially leading to breaches of sensitive information, such as health or financial data, causing both economic and social harm.
Thirdly, when users perceive digital platforms as unsafe or susceptible to misuse, they are less likely to engage in online activities, hindering the growth of digital economies in developing countries. Finally, businesses and international organizations often require stringent data protection as a prerequisite for investment. Countries without these frameworks may struggle to attract investments and foreign partnerships, further limiting their digital growth and integration into the global digital economy.
The digital divide is not just about access but also about digital culture. Many people in Southern countries, even when they have Internet access, lack the skills to use digital technologies effectively. This is particularly true in rural areas, where educational opportunities are limited, as well as in marginalized communities, where digital inclusion initiatives often fall short.
Addressing these challenges requires a comprehensive approach that encompasses policy development, capacity building, and investment in digital infrastructure. Governments, international organizations, and the private sector must work together to create the conditions for inclusive digital growth.
Platform for digital transformation
South-South and triangular cooperation is already making significant strides in promoting digital inclusion. Through initiatives such as the Aspire to Innovate (a2i) program in Bangladesh, SSTC has facilitated the creation of digital centers that provide marginalized populations with access to information and services, regardless of their ICT literacy levels. These centers have been replicated in countries like the Maldives, Bhutan, and Fiji, demonstrating the potential of SSTC to scale successful digital initiatives across regions.
In addition to expanding access to digital infrastructure, South-South cooperation also facilitates the sharing of knowledge and expertise in digital governance. For instance, India’s success in digital financial services has inspired African countries to explore similar models, contributing to the establishment of inclusive financial systems without the need for extensive new infrastructure. These collaborations highlight the value of South-South cooperation as a means to accelerate digital transformation in Africa.
Policy recommendations
To fully leverage the potential of SSTC in digital transformation, several policy measures are necessary.
Strengthening institutions for digital governance
One of the crucial steps is to establish robust institutions capable of effectively regulating and promoting digital development. Governments in the Global South need to establish comprehensive frameworks for digital governance, ensuring responsible use of data and addressing privacy and cybersecurity concerns.
This involves adopting high-quality open government data standards and creating mechanisms to monitor the effectiveness of digital policies. For instance, regarding data protection and privacy laws, governments should develop and enforce data protection laws. Laws similar to the EU’s General Data Protection Regulation (GDPR) ensure data privacy and responsible use. Additionally, Kenya’s Data Protection Act of 2019 provides a legal framework for the collection, processing, and storage of personal data, setting a model for other countries in the region.
These laws should mandate that businesses and public entities obtain user consent, protect personal data, and establish accountability for data handling.
Promoting inclusive gender digital policies
Women in the Global South are disproportionately affected by the digital divide. To address this, governments and SSTC initiatives must adopt gender-sensitive policies that actively encourage women’s engagement in digital technologies. This involves creating opportunities for women to acquire digital skills and participate in the digital economy and ensuring that digital infrastructure projects are designed with women’s needs in mind.
Financial incentives aimed at supporting women entrepreneurs in the tech sector can further strengthen women’s participation in the digital economy. Such targeted financial support not only encourages female entrepreneurship but also integrates more women into the digital economy.
Moreover, digital infrastructure projects should be designed with the specific needs of women in mind, ensuring safety, privacy, and accessibility.
Expanding access to digital financial services
Digital financial services have the potential to promote financial inclusion and empower marginalized communities. Digital financial services empower marginalized communities by providing accessible, affordable, and secure financial solutions to the unbanked, particularly in remote areas where traditional banks are scarce.
To support this, SSTC should focus on developing regulatory environments that allow non-bank actors to operate payment systems, increasing competition and accessibility. At the same time, governments should invest in digital literacy programs to ensure that citizens can fully benefit from these services.
Investing in digital infrastructure
Achieving universal, affordable, and high-quality Internet access will require massive investments in digital infrastructure. However, these investments are costly. SSTC can play a crucial role in mobilizing the necessary resources by facilitating partnerships among developing countries and leveraging support from Northern countries.
These investments should prioritize rural areas and marginalized groups, ensuring that no one is left behind in the digital revolution.
Leveraging digital technologies for sustainable development
Digitization offers unique opportunities to advance the SDGs, particularly in areas such as climate action and poverty reduction. For example, blockchain technology can be used to track carbon emissions and ensure that climate finance reaches local communities. SSTC can facilitate the transfer of these technologies to Southern countries, helping them integrate digital solutions into their sustainable development strategies.
Digital transformation is not just a technological issue; it is a social and economic imperative. As Southern countries continue to face the challenges of inequality and underdevelopment, SSTC provides a powerful platform for promoting digital inclusion and sustainable growth. By fostering partnerships, sharing knowledge, and mobilizing resources, SSTC can help bridge the digital divide and ensure that the benefits of digitization are shared by all.
Conclusion
Realizing this vision will require concerted efforts from governments, international organizations, and the private sector. Strong institutions, inclusive policies, and investments in digital infrastructure are essential to creating a more equitable digital future.
With the right support, SSTC can be the catalyst that unlocks the full potential of the digital economy in the Global South.
