Disrupting Africa: implications of the digital revolution for mainstream businesses

In my last article I talked about how technological disruption is transforming markets and societies across Africa. This opens up huge and still largely untapped commercial potential for domestic and international businesses. So how can mainstream businesses capitalise on the potential of the digital revolution? 

Disruption isn’t just a tech opportunity

Connectivity is breaking down barriers between business sectors and opening up new markets for industrial and consumer goods. Further commercial potential comes from developing the physical, financial and telecoms infrastructure along which this commerce flows.

Create ecosystems of innovation

Africa has a growing array of tech hubs and ‘technopreneurs’. Partnerships provide access to innovation. They in turn can use the market presence to trial products and gain the scale bring innovations into the mainstream.

Broaden your outlook

By making products and services cheaper, more accessible and easier to use, disruption is greatly enlarging Africa’s consumer class. While companies have traditionally focused most attention on the ‘upper’ and ‘middle +’, what we at PwC call the ‘global emerging middle’ offers an even bigger prize a US$6 trillion global market by 20214. With more than two billion consumers (including a large proportion of Africa’s population), the global emerging middle (annual income US$996- US$3,945) sits just below the conventional middle class in income terms. But its aspirations for the quality and performance of its products are in sync with higher segments. And our research shows that once a company has established itself in the emerging middle, customers will carry their loyalty with them as they continue to increase their income.

Be prepared to experiment

Innovations that would have needed years to take hold can now become expectations in a matter of months. As a result, long drawn-out business planning is now too slow – by the time you’ve got to market, it’s already moved on. Success requires a disruptive mindset – quick to market, quick to gain feedback, learn and adapt and, if you fail, fail fast and move on.

Think differently about your workforce

A disrupted economy demands people who are creative, collaborative and ready to embrace change. The innovators won’t just be tech specialists and data scientists, but also people with the engagement skills to get closer to customers and understand their needs. It’s also important to think about how people will work alongside artificial intelligence within new hybrid workforces.

In my next article, I’ll consider the implications for disruptors of Africa’s digital revolution. In the meantime, why not read PwC’s full report on these exciting issues, Disrupting Africa.