5 Key trends to look out for in Africa’s growing digital economy
Millions of people’s lives are being improved by the growth of an African digital economy, which is rapidly reshaping societies. Instead of relying on antiquated technologies that consume fossil fuels, Africa has a unique potential to become more sustainable and generate economic growth by better utilizing data.
- Invest in Mobile-First Experiences: Mobile devices are the most prevalent way for people in Africa to access the Internet to consume information or to purchase products and services. It’s been said that an up-to-date UX (user-experience) & enabled offline working is the future as stats show internet users in Africa will grow by 11% within the next 10 years.
- Make your services available to the informal sector: The informal sector accounts for a large amount of economic activity. The vast majority of workers in the informal sector, which is neither taxed or regulated by the government, own a cellphone, which they frequently use for both personal and professional purposes.The widespread adoption of mobile money in various African countries, including Kenya, the Ivory Coast, Mali, and Dakar, is one example of why such an investment would be beneficial for a company.
- Africa is rapidly urbanizing; Position your company smartly: We generally know that urbanization can help a country’s economy grow. In Africa’s major cities, spending on consumer goods and services is typically 79% higher than the national average. Due to enhanced connectivity in urban areas, those who aspire to relocate to cities will have more access to breakthrough technology. This may expand work opportunities and marketplaces, allowing more people to benefit from financial and social inclusion.
- Consumption is fueled by Africa’s demographic surge — be socially conscious: Young African consumers are becoming more wealthy and globalized as they age into family decision-makers. The proportion of the population in working age is set to rise much further. This boosts the continent’s competitiveness in both skilled and unskilled labor, allowing consumers to spend more money. It’s not just the right thing to do as customer demand grows, but it’s also good business, as people respect a company’s environmental and social stance.
- The tech-talent population in Africa is young and rising: It’s time to reconsider your hiring practices. The continent’s tech talent is at an all-time high, and it’s just going to get better. The rise of Africa’s technology ecosystem, talent pool, and innovation clusters coincides with the emergence of indigenous developer skills.
Software development and information technology are rising exponentially and impacting the way businesses are run all around the world, especially in Africa. Because of the rise of informal education channels, increasing gender diversity, and more proactive government support, software development is becoming more accessible to a wider audience.
As a result, we believe that brands should adopt digital-first business strategies to reach the hundreds of customers who were previously unattainable owing to their geographies or affordability. Africa has the potential to use the digital economy as a growth-and-innovation engine. The time is now!