What Africa’s Digital Transformation Means for Its Future
Digital transformation has reshaped the way businesses operate around the world. This is especially true in Africa, where technologies like artificial intelligence and data analytics support, as well as broader digital-focused initiatives across the continent, have increased trade opportunities and created a more competitive marketplace.
Hiedberg Consult is proud to play a part in this transformation through our global projects. Here, we explore how digital transformation is shaping Africa’s future and how the continent can overcome current barriers to technological progress.
What Digital Transformation Can Achieve in Africa
Africa’s expanding digital infrastructure is opening the door for new markets, increased connectivity, and stronger partnerships. The African Union’s Agenda 2063 strategic framework and the recent adoption of the Digital Trade Protocol for the African Continental Free Trade Area (AfCFTA) are setting the stage for this region to become a global business leader.
Here are several major things digital transformation can accomplish across African nations:
- Boost economic growth and competitiveness. Digital transformation will increase productivity and competitiveness across various sectors and improve Africa’s overall economic growth. A report by SBA Communications indicates that passive infrastructure-sharing policies could lead to a 4.82% per capita increase in GDP over the next eight years.
- Promote greater digital access and inclusive development. Investments in digital infrastructure and access will significantly reduce the digital divide across Africa and encourage broader participation in the digital economy. The continent must continue to increase its number of mobile broadband users and improve access to digital services if it hopes to achieve inclusive socio-economic development.
- Drive innovation and strengthen local and global partnerships. The tower industry will play an important role in rolling out 3G, 4G, and future 5G networks in Africa, which have the potential to drive greater innovation across the continent. These technological advancements will continue to deepen partnerships, particularly among African governments, the global private sector, educational institutions, and the African diaspora.
The Path to Digital Transformation: Obstacles to Overcome
While Africa has made significant strides in its digital transformation, several challenges still stand in the way of further progress. Here are some key barriers that currently exist and how they can be addressed.
The Digital Divide and Skills Gap Need to Be Closed
While digital infrastructure has improved across Africa, its populations still struggle with data affordability, limited rural access, and low digital literacy, according to the World Bank Group.
The 2024 Ghana National Data Strategy Workshop highlighted the pressing need to build data interpretation and mining skills among all interested citizens — not just industry professionals. Increasing technological education across the continent will better support African communities in creating a digitally literate population capable of furthering digital transformation.
The African Union’s recent AI strategy and Digital Compact will play a major role in bridging this digital divide. Its goal is to guide African countries in embracing AI technologies for socio-economic development while preserving their cultural identity.
[Related: 3 International Tech Development Initiatives Bridging the Digital Divide]
Women Founders Need More Funding
Speakers at the 2024 3i Africa Summit discussed the fact that African women founders currently receive only 1% of total investments in the region, despite the fact that this demographic could drive innovation and economic growth across Africa. While women founders can proactively boost their visibility and grow networks through mentorship and training programs, these strategies place the onus of growth and success on a traditionally underserved population.
To better support African women founders, systemic bias against them needs to be addressed. Additionally, more profitable business opportunities, including venture funding and sponsorship programs, must be made available to female entrepreneurs to give them the financial backing and professional guidance they need to succeed.
Africa Needs More Sustainable Data Infrastructure
African nations are actively planning ways to leverage data for economic growth, but the continent needs more sustainable data infrastructure before these benefits can be realized. It must be powerful enough to handle these data strategies while minimizing greenhouse gas emissions and water usage.
Once this type of infrastructure is developed, Africa can achieve goals like establishing credit ratings for financial institutions, improving patient care in health institutions, and reducing traffic congestion. Greater data collection, storage, and analytics capabilities will also enable the creation of new products and services in the African market, which will spur further growth and innovation.
Jumpstart Your Digital Transformation With Hiedberg Consult
At Hiedberg Consult, we are proud to help global businesses in Africa and beyond execute and implement digital transformation strategies. Contact us today to learn about our services and how we can help you drive innovation through data-driven solutions.
