Exploring GovTech’s Potential: A $9.8 Trillion Opportunity for Governments and Citizens

The digital transformation of governments is one of the most exciting developments of our time. Last week in Davos, the World Economic Forum (WEF) unveiled its latest report, highlighting the vast potential of GovTech to reshape public administration. By 2034, GovTech could unlock a staggering $9.8 trillion in public value globally. For those of us working in this space, the opportunities - and the responsibilities - are immense.

The report delves into how digital tools, from AI-driven platforms to interconnected systems, can make governments more efficient, transparent, and sustainable. It’s not just about technology - it’s about creating value for people, improving trust in public institutions, and fostering inclusive societies.

Moving Beyond Data Sharing

One critical shift highlighted in both the WEF and OECD Public Governance reports is the need to move beyond simply sharing data. Open data initiatives, like Bahrain’s Open Data Portal, have laid the groundwork by making data available for public use. However, the next step is to add real meaning and functionality to these datasets by creating actionable building blocks that drive innovation and efficiency.

For instance, sharing transport data was only the beginning which started 15 years ago in many cities across Europe and Asia. The real impact comes from launching integrated services like dynamic traffic management platforms or urban planning tools based on this data. This aligns closely with the OECD report’s emphasis on building scalable Digital Public Infrastructure (DPI) - foundational systems that transform raw data into value-added services, such as digital identities, secure payments, and seamless government portals.

The message is clear: it’s no longer enough to make data available; we must create systems that make it meaningful and usable for both governments and citizens. And perhaps even in some cases even monetize certain features.

GovTech and the Foundations of Digital Society

At the heart of this transformation are foundational elements like digital identity, secure payment systems, and data-sharing frameworks. These tools are essential to building systems that are not only functional but also adaptable to diverse citizen needs. The WEF report underscores how these components are already showing results in countries like Azerbaijan, Malaysia, and Rwanda - emerging markets ready to rise and shine on the digital world map.

Ethiopia is another country taking significant steps toward leveraging Digital Public Infrastructure (DPI), with a strong focus on adopting MOSIP (Modular Open Source Identity Platform). Backed by the Gates Foundation , MOSIP offers an open-source solution for creating scalable, inclusive digital identity systems. This aligns closely with Ethiopia’s ambition to build robust DPI frameworks, which are being bolstered by funding and support from the The World Bank Group . The project aims to establish foundational systems that improve financial inclusion, streamline public services, and enable secure data-sharing across sectors.

The World Bank’s investment in Ethiopia signifies more than just financial support; it reflects a global commitment to fostering innovation in underserved regions. By aligning with MOSIP, Ethiopia can leverage a proven modular platform that balances scalability with adaptability to local contexts. However, the success of such initiatives hinges on rigorous testing in high-demand, real-world environments. Ensuring that MOSIP can navigate Ethiopia’s unique legal, cultural, and operational landscapes will be critical to achieving its full potential.

While Ethiopia’s efforts represent a promising leap forward, they also highlight the broader challenge of resisting the temptation to cut corners. Governments pursuing DPI must avoid the pitfalls of adopting readily accessible but less robust solutions. Such shortcuts can lead to inefficiencies, vendor lock-ins, and systems that fail to meet the complexities of governance. The Ethiopian case underscores the importance of investing in long-term, scalable solutions that are designed to grow with the needs of the population and the evolving digital ecosystem.

MOSIP’s alignment with Ethiopia’s vision, combined with the Gates Foundation’s backing and World Bank funding, demonstrates the power of public-private collaboration in driving impactful GovTech initiatives. This partnership can serve as a model for other emerging markets seeking to establish DPI that is both inclusive and sustainable.

The Role of Private Entities in Accelerating DPI

Organizations like the Gates Foundation play a pivotal role in accelerating DPI innovation. Their involvement in MOSIP ensures that even the most vulnerable populations benefit from scalable and inclusive solutions. In Ethiopia’s case, this collaboration between public and private entities is a critical enabler of success, bridging the gap between open data and actionable systems.

By combining Ethiopia’s commitment to adopting MOSIP, the Gates Foundation’s expertise, and the World Bank’s financial support, the country is positioning itself as a leader in DPI adoption in Africa. This partnership-driven approach highlights the transformative potential of collective investment in GovTech systems, ensuring that innovation is matched by impact.

A Shared Vision for Collaboration

One of the most striking themes in the WEF report is the role of collaboration. Public-private partnerships are not just helpful - they are essential. Projects like Denmarks MitID or Azerbaijan’s ASAN services are proof that when governments and private entities work together, the results can be transformative. These examples show how shared resources and expertise can lead to innovative solutions that reduce costs and improve service delivery.

This message aligns closely with the OECD’s emphasis on avoiding “flying solo” in public digital transformation projects. The challenges of scalability, vendor lock-ins, and the ongoing costs of development are too significant for any single entity to shoulder alone.

Different Paths, Shared Goals

While the vision for GovTech is universal, the pathways to implementation vary widely. The WEF report provides inspiring case studies of how countries are tailoring their approaches to fit local contexts. From Ukraine’s “state in a smartphone” with the Diia vision to Rwanda’s #IremboGov platform, these initiatives reflect the importance of understanding cultural, legal, and governance differences.

This point resonates with what the OECD highlighted: that solutions successful in one context may not automatically succeed elsewhere. Estonia’s digital identity framework, while impressive, may require significant adaptation for use in other jurisdictions. This nuance is key to ensuring digital solutions meet the needs of the communities they serve.

Thinking Beyond Technology

GovTech is about more than digitizing services; it’s about reimagining the relationship between governments and citizens. The WEF report emphasizes that GovTech can rebuild trust, foster transparency, and drive sustainability. It’s a powerful reminder that technology is just a tool - what truly matters is how we use it to create meaningful change.

Both the WEF and OECD reports serve as calls to action for those of us working in this space. They remind us to focus on collaboration, adaptability, and scalability to ensure the solutions we build today can thrive in the complex realities of tomorrow.

But as we look toward the future, the opportunities for GovTech are boundless. Whether it’s through improving citizen engagement, enhancing efficiency, or addressing global challenges like climate change, the potential is transformative. But this journey requires not just innovation, but also cooperation and a deep understanding of local contexts.

Personally, I’m excited about the direction GovTech is heading and look forward to continuing this conversation.

Feel free to read the report from World Economic Forum here https://reports.weforum.org/docs/WEF_The_Global_Public_Impact_of_GovTech_2025.pdf

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