Going Digital in Africa

I was sat on a flight to Sweden when I came across an interesting article that put into perspective the journey Africa and its people must take become sustainable int he digital language. Some points struck me and the figures were very interesting considering the growth patterns that the continent is showing. I've managed to track some points and migrate it into one that best reflect my thoughts at the time.

What the ordinary joe must be aware of when looking Africa and comparing it to the rest of the world. Here are 7 points! 7 to mirror the number of continents in the world.

1.     On average, 8 in 10 people in the developing world own a mobile phone, and the number is steadily rising. Even among the poorest fifth of the population, nearly 70% own a mobile phone. The lowest mobile penetration rate in sub-Saharan Africa is 73%, in many countries, mobile network coverage is universal or near-universal.

2.     Still, internet adoption lags behind considerably: only 31% of the population in developing countries had access in 2014, compared to 80% in high income countries.

3.     In Africa, the digital divide across demographic groups remains considerable. There’s a 12-percentage point difference in access between youth (20%) and those more than 45 years old (8%). Women, and rural people are also less likely to have access.

4.     Governments are increasingly going digital, and a greater share of government jobs in developing countries is ICT-intensive than in the private sector. By 2014, all 193 UN member states had national websites: 101 enabled citizens to create personal online accounts, 73 to file income taxes, and 60 to register a business. But so far, developing countries have invested more in automating back-office functions (such as financial management and customs processing) than in services directed at citizens and business.

5.     The number of direct jobs created by digital technologies is fairly modest, but the number enabled by it can be very large. In developing countries, the ICT sector accounts for only about 1% of the workforce on average: less than 0.5% in Ghana, for example; and in high income countries, it’s just about 3-5%. 

Instagram, the phenomenally successful photo sharing app with over 400 million users at the end of 2015, had just 13 employees in 2012 when it was bought by Facebook for $1 billion. 

But indirect job creation by digital technologies can be huge. In Kenya, the M-Pesa mobile money system creates employment for more than 80,000 agents.

6.  When the internet automates routine tasks but workers do not possess higher-order skills (such as creativity and interpersonal skills) that technology enhances, the outcome is greater inequality as many workers compete for low-paying jobs.

7. Firms’ use of the internet in Africa can vary widely among countries, even in the same sector. A 2014 study showed that among manufacturing firms in Kenya, 41% used it to manage their inventories, compared to 27% in Zambia and 6% in Uganda. Of service firms in Kenya, 41% used it to manage their inventories, compared to 15% in Zambia, 12% in Uganda, and 8% in Tanzania and the Democratic Republic of Congo.