From Nigeria to Kenya and Rwanda to Ghana, technology innovation is influencing multiple sectors from energy to agriculture, banking, healthcare, entertainment, transport, and fashion. This has resulted in the growth of innovative tech start-ups, which are playing a major role in solving developmental challenges in Sub-Saharan Africa.
During the first CEO Dialogue roundtable forum; a joint initiative of Strathmore University Business School and Shared Value Africa Initiative, the discussions focused on the future of work and the impact of the digital economy on the continent’s growth. There were discussions on the changing ecosystems as far as the impact of the digital economy on companies. The African economy plays a focal role in enabling organizations to strategize and to create new digitally enabled business models for the new normal that is purpose-driven, transformative, inclusive, and sustainable.
According to the Africa Development Bank (AfDB), Africa’s digital economy is poised to explode as regional integration opens new markets. As Africa’s digital economy takes off exponentially, the continent must ready to embrace the digital economy and create an ecosystem for Africa to fully benefit from it.
Speaking during the roundtable, Alan Stoga, Chairman of the Talberg Foundation said that while organizations are now forced to carefully re-think their business models and embrace technology as a driver of their innovation, Africa as a continent should understand the changing ecosystem in line with the digital economy. According to Stoga, 50 percent of the current work activities to be automated soon, while six out of 10 current occupations have more than 30 percent of activities that can be automated.
Skills gaps have always been seen as a leading social issue in Africa and are linked to the poor economic performance of the continent. Professor Bitange Ndemo, Associate Professor of Entrepreneurship at the University of Nairobi Business School, argued that Africa can not leapfrog to development since it does not have the technology infrastructure in place. “If Africa can invest heavily in education, the region will be able to see the potential we have and also how we can make an impact in the 4th Industrial Revolution,” he said.
Prof. Bitange stressed that, for the digital economy to work in Africa, the region must have a common interest, enabling conditions, and policies that can truly deliver transparency, interoperability, secure storage, open accessibility, and user-generated source data. He pointed out that there is also a need for skills training, apprenticeships, and lifelong learning which are key in the digital economy. “This is linked to knowledge of how to best utilize the many different digital technologies such as the Internet of Things, Big Data, Artificial Intelligence, Machine Learning, Automation, Robotics, and blockchain,” he added.
Using Uber as an example, Cezanne Maherali, Head of Policy for Uber East Africa, highlighted instances of how the future of work is removing barriers and ensuring flexibility. She highlighted the Global Analysis on the future of work which shows that 54 percent of employees will need to be reskilled while 35 percent will require significant reskilling by 2022. In Sub-Saharan Africa, new jobs created in the past decade stood at 37 million with 28 percent being in the formal sector. However, the job market is projected to have received 122 million new entrants between 2010-2020.
From entrepreneurial aide, we need to scale-up SMEs and this calls for African governments to seriously re-think education and investment in the training of new technologists.
How then can the digital economy help Africa to reposition itself in the global market?
Dr. Vincent Ogutu, the Vice-Chancellor Designate, Strathmore University, said that education is a key role to play in shaping people and creating a new perspective and new understanding for Africa to become globally competitive. “In a continent where the demographic is dominated by young people, training will be key in reshaping the future of work,” he said.
The digital economy is taking shape and undermining conventional notions of how businesses are structured. To achieve the full potential of the digital economy, potential, African governments need to ensure they have the five foundations of a digital economy in place. These are digital infrastructure, literacy and skills, financial services, platforms, and digital entrepreneurship and innovation.
Article by: Rosemary Okello-Orlale is the Director of Africa Media Hub- Strathmore University Business School
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