Digital Public Infrastructure (DPI) is emerging as a transformative force in governance, capable of modernizing public financial management (PFM), enhancing service delivery, and fostering inclusive growth. Across Africa, governments are recognizing the potential of DPI to address systemic challenges, improve fiscal transparency, and empower vulnerable and marginalized populations. These themes took center stage at the International Conference on Public Finance in the Digital Era, hosted by Collaborative Africa Budget Reform Initiative and ODI Global (ODI), in November 2024 in South Africa.
The conference brought together public finance practitioners, policymakers, and experts from across the continent and internationally to share insights and strategies for leveraging DPI in public finance. From South Africa’s innovative social grant systems to Zambia’s efforts in revenue mobilization, the discussions underscored the urgent need to scale up digital solutions that can drive sustainable development on the continent. DPI is not just about technology - it represents a new way of thinking about governance that prioritizes efficiency, equity, and resilience.
This is the first of a series of blogs on the key takeaways from the conference.
What is DPI?
DPI is a relatively new term. It often refers to a set of foundational systems - like digital IDs, interoperable databases, payment platforms or data-sharing frameworks - that enables countries to provide economic opportunities and deliver social services efficiently and effectively. Unlike isolated digital tools, DPI emphasizes integrated, scalable systems serving multiple purposes across sectors. This foundational approach can significantly change how finance ministries operate, for instance by ensuring better coordination and efficiency in digital investments, with a clear focus on improved service delivery for citizens.
What does DPI mean for the way we manage public resources?
DPI can support evidence-based decision-making by providing real-time public spending and revenue data. For example, Ghana’s Ministry of Finance Expenditure Tracking (MOFET) system enables real-time expenditure tracking, which has reduced data collection time by 50%. This capability allows finance ministries to monitor fiscal performance more effectively, allocate resources strategically, and address inefficiencies. However, the promise of DPI extends beyond improving internal government operations. During the conference, speakers highlighted how DPI has already started to reshape public finance systems in several African countries. For instance, Uganda’s Online Transfer Information Management System (OTIMS) platform streamlines information on intergovernmental fiscal transfers, thus improving accuracy and equitable resource distribution. The eMUNI Monitoring System of the National Treasury of South Africa enhances transparency in municipal finances, and its Financial Management Capability Maturity Model (FMCMM), which strengthens financial management across government departments.
A new role for the Ministry of Finance?
A key part of the conference explored the role of the Ministry of Finance in promoting DPI.
It is clear that the Ministry of Finance plays a pivotal role in driving digital reforms: providing challenge and oversight over allocations to digital initiatives and avoid duplicative spending that African governments simply cannot afford. At the same time, ministries of Finance have also traditionally been leading the implementation of digital PFM reforms across governments, such as Integrated financial management information systems (IFMIS), which will likely require constant adjustments to ensure that they remain effective and relevant.
However, a DPI approach – which recognizes the potential for exploring broader linkages with the economy - may require ministries for Finance to step out of their traditional role.
Finance ministries must also act as enablers of cross-sectoral collaboration to ensure cohesive investment in digital infrastructure. As the stewards of national budgets, they are uniquely positioned to set the vision for DPI adoption and ensure that digital initiatives align with broader fiscal and development goals.
Furthermore, a DPI approach requires strong leadership as well as fostering a culture of innovation and adaptability to navigate the challenges of digital transformation and design systems that ultimately contribute to better governance and improved quality of life for citizens. . And as the custodians of government resources – who yield significant soft power – ministries of Finance can significantly influence the way government institutions approach digital reforms.
Finally, ministries of Finance have the power to frame international conversations around digital reforms. Platforms like CABRI, represent a significant opportunity for countries across the continent to speak through a common voice and enhance knowledge sharing among finance ministries. South Africa’s G20 Presidency in 2025 presents a strategic opportunity. Building on the DPI agendas advanced by India and Brazil, South Africa indeed has the chance to position Africa as a leader in global digital governance. By advocating for investments in digital infrastructure, capacity building, and inclusive policies, South Africa can amplify Africa’s voice on the international stage.
The International Conference on Public Finance in the Digital Era highlighted the transformative potential of DPI to modernize public finance systems, enhance transparency, and drive inclusive growth. As South Africa prepares to shape the global agenda at the G20, the continent has an unprecedented opportunity to position itself as a champion of digital governance. By leveraging DPI, African nations can build financial systems that are not only modern and efficient but also inclusive and resilient.
The journey toward digital transformation is not without challenges. But with strong leadership, regional collaboration, and a commitment to inclusivity, Africa can harness the power of DPI to create a brighter, more equitable future for its citizens.