This technical background paper delves into the role and importance of state-owned enterprises (SOEs) within Africa's digital economy, along with the potential risks they pose to competition and market dynamics. Drawing upon new data on selected SOEs, the analysis focuses on the presence of SOEs and the competitive landscape within digital infrastructure, mobile, wireless, international calling, and data markets. While the policy and regulatory framework have progressed towards fostering more open markets, various aspects remain on the policy agenda. Governments stand to benefit from reassessing the policy and regulatory frameworks governing SOE operations and determining the most effective means to establish and uphold a level playing field for all market participants, be they public or private entities.
Authors
- Citation
- “ World Bank . 2024 . State-Owned Enterprises in Digital Infrastructure and Downstream Digital Markets in Africa . Governance and the Digital Economy in Africa Technical Background Paper Series . © Washington, DC: World Bank . http://hdl.handle.net/10986/41606 License: CC BY-NC 3.0 IGO . ”
- Collection(s)
- Other papers
- DOI
- https://doi.org/10.1596/41606
- Identifier externaldocumentum
- 34321043
- Identifier internaldocumentum
- 34321043
- Published in
- United States of America
- RelationisPartofseries
- Governance and the Digital Economy in Africa Technical Background Paper Series
- Report
- 190411
- Rights
- CC BY-NC 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by-nc/3.0/igo
- UNIT
- EFI-AFR2-GOV-FM & PS-2 (EAWG2)
- URI
- https://hdl.handle.net/10986/41606
- date disclosure
- 2024-05-28
- region geographical
- Africa
- theme
- Financial Sector Integrity,Job Creation,Investment and Business Climate,Data Development and Capacity Building,Financial Stability,ICT,State-owned Enterprise Reform and Privatization,ICT Solutions,Finance,Private Sector Development,Regulation and Competition Policy,Public Sector Management,E-Government, incl. e-services,Jobs,Business Enabling Environment,Data production, accessibility and use,Transparency, Accountability and Good Governance,Public Administration
Files
Table of Contents
- GOVERNANCE AND THE DIGITAL ECONOMY IN AFRICA 1
- TECHNICAL BACKGROUND PAPER SERIES 1
- 1. Executive Summary 7
- 2. SOEs: their role in digital infrastructure and digital markets 10
- 3. Data Collection 16
- 4. SOE presence in digital sectors in Africa 17
- 5. SOEs and competitive neutrality in digital infrastructure and digital markets: policy considerations in Africa 22
- 5.1. Overview 22
- 5.2. Competitive neutrality in Africa’s digital sector 24
- 5.2.1 Streamlining the operational form of government business – separating commercial from non-commercial activities of SOEs 24
- 5.2.2 Identifying the costs of any given function 25
- 5.2.3 Achieving commercial rates of return 26
- 5.2.4 Accounting for Universal and Public Service Obligations (USOs and PSOs) 29
- 5.2.5 Regulatory neutrality 29
- 5.2.6 Tax neutrality 32
- 5.2.7 Debt neutrality and outright subsidies 33
- 5.2.8 Preferential treatment in public procurement 35
- 6. Conclusion 36
- Annex 1: Questionnaire 37
- Annex 2: SOEs covered by the questionnaires (by country) 47
- Annex 3: SOEs and weak competitive neutrality: impacts on markets and the implications for development 49
- Bibliography 52
- GOVERNANCE AND THE DIGITAL ECONOMY IN AFRICA 57
