In a powerful keynote address at the Cambridge Africa Business Conference, Dr. Mahamudu Bawumia, Ghana’s former Vice President, called for a continent-wide embrace of “Smart Formalisation”—a strategy he says is essential for transforming Africa’s largely informal economies into resilient, technology-driven systems.
“For over 60 years, many African economies have remained stuck in informality, plagued by inefficiencies, corruption, and a lack of public trust,” Bawumia said. “Smart Formalisation is about changing that—by using digital tools to bring people into the formal economy in a seamless, affordable, and inclusive way.”
Smart Formalisation, as defined by Bawumia, leverages technologies such as biometric identification, interoperable databases, and mobile platforms to create robust systems of governance and economic participation. He stressed that unlike traditional formalisation efforts, which often came with high bureaucratic and financial costs, Smart Formalisation can leapfrog outdated models through innovations like blockchain, AI, and mobile computing.
Ghana’s experience was presented as a living case study. The rollout of the GhanaCard—a biometric ID now linked to tax records, bank accounts, SIM cards, and health insurance—has helped move over 85% of adults into formal systems. By integrating government databases through a new platform called CADIS, Ghana has built one of the most digitally cohesive public service systems in Africa.
“We have shown that it is possible,” Bawumia said. “Digital transformation is not an option; it is a necessity if Africa is to achieve the high levels of growth—10% or more—that we need to lift millions out of poverty.”
