North Macedonia sets a benchmark for digital readiness in the region

August 14, 2024

a group of people sitting at a desk in a room

Authors: Ardita Zekiri and Darinka Vasquez

North Macedonia is making significant strides in its digital transformation journey. Skopje, the capital, is at the heart of the startup ecosystem and technological innovation. From enhancing digital infrastructure to fostering a vibrant digital economy, North Macedonia is setting a benchmark for digital readiness in the region. This blog unpacks insights from UNDP’s Digital Readiness Assessment (DRA) that was conducted in the country and their importance for driving inclusion.

In 2023, the Ministry of Information Society and Administration of North Macedonia and the Office of the Deputy Prime Minister in charge of good governance policies with UNDP’s support underwent the DRA process to understand the country’s progress in its digital journey and to further identify opportunities to realize safe and inclusive digital transformation.

The DRA process is designed using a whole-of-society approach, which involves bringing together perspectives from different stakeholders across a country’s digital ecosystem. Besides government, the process includes the private sector, civil society, non-government organizations, among others.

The DRA puts into practice UNDP’s Digital Transformation Framework, which sets out the most important areas and topics that actors must collaborate on to achieve inclusive digital transformation that leaves no one behind. UNDP’s Framework (see graph below) places the Principles of Digital Inclusion at its centre: access, trust and protection of human rights in the digital realm. It also incorporates digital public infrastructure (DPI) as a key enabler for digital transformation. The Framework consists of five pillars, namely: (1) People, (2) Connectivity, (3) Government, (4) Regulation, and (5) Economy.

Below we look on some of the emerging insight from North Macedonia across the five pillars:

1. Investing in meaningful connectivity

North Macedonia has laid a solid foundation through consistent investments in its digital infrastructure, achieving widespread 3G and 4G coverage and introducing 5G in major cities. This accomplishment is backed by the National Operational Broadband Plan (NOBP) and regulatory reforms that align with European Union (EU) standards. Notably, the country ranks 30th globally for mobile broadband speeds, reflecting its commitment to meaningful connectivity and country’s commitment of leaving no one behind. Despite these achievements, challenges such as affordability persist. Stakeholders are calling for a review of pricing structures to ensure digital services are accessible to everyone, everywhere.

2. Building the foundations for a smart and digital government

The government has prioritized digital governance reforms, aligning frameworks with EU standards and boosting initiatives, such as the Public Administration Reform (PAR) Strategy. Key legislative milestones include the Law on Electronic Documents, Electronic Identification, and Confidential Services, which have bolstered the e-Government Index. However, uptake among civil servants and digital skill gaps remain areas of focus. To address this, North Macedonia is implementing a robust monitoring and evaluation framework and targeted digital literacy programmes.

3. Improving the regulatory landscape

Efforts to enhance regulatory transparency and compliance with international standards are evident in North Macedonia's approach to data protection, cybersecurity, and e-commerce. Laws promoting free access to public information and data protection are in place, although awareness among the public remains a challenge. The country ranks 52nd globally out of 195 on the Open Data Inventory (ODIN), underscoring the need for improved data accessibility through awareness campaigns and regulatory reviews.

4. Working to unlock the benefits of a Digital Economy

The business sector, particularly startups, plays a pivotal role in North Macedonia's digital economy. Skopje has emerged as a hub for innovation, supported by organizations such as MASIT and Startup Macedonia. Financial assistance and partnerships, such as the Green Economy Financing Facility, bolster entrepreneurial activities. Despite this support, challenges in the form of talent scarcity and regulatory barriers persist. Recommendations include establishing support mechanisms, for instance dedicated help desks and partnerships with tech giants, to enhance digital capabilities across businesses.

5. Creating Societal impact and digital inclusion

Efforts to bridge the digital divide focus on increasing internet connectivity and digital literacy. While 80 percent of the population is connected, only 32 percent possess basic digital skills, highlighting disparities. The National ICT Strategy aims to improve digital literacy, with a focus on marginalized communities. Progress in gender equality within the IT sector is notable, with women comprising 33percent of the workforce. Recommendation has been put forward for a digital skills development strategy towards ensuring inclusive digital transformation.

6. Ensuring digital well-being

North Macedonia addresses digital well-being through partnerships and educational initiatives, particularly combating cybercrime and online violence. Collaboration with organizations with a digital mandate like UNDP underscores efforts to ensure that safeguards are in place to protect the rights of everyone in the digital space. Concerns about online harassment, especially against women, are being tackled through awareness campaigns and stakeholder coordination.

Look ahead, North Macedonia's digital readiness assessment reflects a dynamic landscape poised for further growth. With strategic reforms in infrastructure, governance, regulation, business support, inclusion, and well-being, the country is paving the way for a digitally empowered future. As challenges evolve, ongoing collaboration and innovation will be crucial in realizing the full potential of North Macedonia's digital journey.

7. Implementing safe and inclusive digital public infrastructure

The development of digital public infrastructure in North Macedonia has seen notable advancements, particularly in digital payments, which scores the highest among digital services. The digital payments ecosystem has flourished, driven by the 2022 Law on Payment Services and Payment Systems, aligning with EU directives and modernizing the national payment system. This growth in digital and e-money usage is a significant achievement, facilitating e-commerce and financial inclusion across various population segments.

a group of people sitting at a desk with a computer in an office

With various practices of using digital tools and solutions both in public and private sector, the country has emerged in UNDP’s Digital Development Compass that puts North Macedonia’s current digital readiness at a systematic stage. This means the country is making progress and thinking strategically towards a digital future, while making sure to invest in key areas of digital transformation based on identified priority areas, such as skills, digital public services, and others.

To view the full DRA report see here: https://www.undp.org/sites/g/files/zskgke326/files/2024-01/dra_mk_06.pdf

To view additional UNDP Digital resources:

Open-source ecosystem: https://www.undp.org/digital/osee
DPI Safeguards: Collaboration with organizations with a digital mandate like UNDP underscores efforts to ensure that Safeguards are in place to protect the rights of everyone in the digital space.
Data to Policy Navigator: Underscoring the need for improved data accessibility through awareness campaigns and regulatory reviews (see Data to Policy Navigator)
Digital ID Governance: https://www.governance4id.org

About the DRA methodology

The Digital Readiness Assessment, developed by the UNDP Chief Digital Office, is a survey-based tool designed to provide rapid, high-level insights into a country's digital strengths and opportunities. It encompasses over 140 questions, including single-choice, multiple-choice, and free-text responses, and is structured into seven sections: perspectives on digital foundational catalysts, infrastructure, government, regulation, business, people, and socio-demographic questions. The survey targets a diverse range of stakeholders from government (both national and local), the private sector, civil society organizations, and private citizens. In North Macedonia, the assessment was conducted in May 2023, with invitations sent to 722 stakeholders, resulting in 497 completed surveys.

Distribution was facilitated through emails and social media posts by the UNDP, the Ministry of Information Society and Administration (MISA), and the Office of the Deputy Prime Minister, with the survey available in Macedonian and Albanian. The analysis, conducted by the UNDP Chief Digital Office in July and August 2023, aimed to offer real-time, actionable insights aligned with the 2030 Agenda for Sustainable Development, emphasizing inclusivity and a whole-of-government and whole-of-society approach to digital transformation.

We would like to extend our gratitude to the larger team working on Digital Readiness Assessment for North Macedonia, including Sebastian Hurtado, Emili Lokvenec, Ljupco Mantev, Blazen Maleski, Lazar Pop Ivanov, Igor Izotov, Biljana Cvetanovska Gugoska, and Sami Bushi.