A Golden Opportunity for European Tech Companies.
Africa is at the vanguard of a future where talent knows no borders and is poised to revolutionize the global workforce with its untapped potential. It's well-positioned to influence future innovation, entrepreneurship, and technical developments thanks to its young population and abundance of talent. It's time to acknowledge and harness the enormous power that Africa's youthful and brilliant workforce possesses.
? Acknowledging the tremendous potential it offers to European tech businesses. Africa offers an unrivalled chance to spark innovation, propel growth, and inspire collaboration like never before because of its young, skilled workforce and synchronised timezone. Let's look at some of the strong arguments that any forward-looking European organisation should be paying attention to about Africa:
1?? Youthful Talent Pool:
With more than 60% of its population under 25, Africa has the youngest population in the world. This demographic dividend creates a talent pool that is vibrant and highly skilled. The World Economic Forum predicts that by 2030, Africa will have a greater labor force than either China or India. Putting money into this budding talent now will pay off in the long run.
2?? Tech-Savvy Generation:
Young people in Africa are naturally tech savvy and deeply fascinated by digital technologies. In Africa, the mobile revolution has outpaced traditional infrastructure, giving rise to a generation that is not only accustomed to technology but also skilled at adjusting and coming up with creative solutions to local problems. Tech businesses in Europe can take advantage of this tech proficiency as a significant resource to support their attempts for digital transformation.
3?? Booming Tech Ecosystem:
The continent's tech startups are receiving a lot of funding, and the ecosystem as a whole is booming. In 2021, venture capital funding for African startups hit a record $2 billion, according to Partech, with rapid expansion in industries like fintech, e-commerce, and health-tech. For European digital businesses, the opportunity to work together, invest, and access the unique ideas of Africa's growing entrepreneurs is enormous.
4?? Synchronised Timezone:
Africa's coordinated timezone with Europe is a benefit that is sometimes disregarded. For European businesses, this close proximity to one another facilitates easy communication, real-time collaboration, and fewer operational obstacles. By taking use of this advantage, businesses may create agile remote teams, quicken product development cycles, and provide European customers greater customer care.
5?? Cost-Effectiveness and Scalability:
African countries has relatively lower labor expenses which gives European businesses a cost-effective way to expand their businesses. Businesses may use the talent pool in Africa to create committed teams, increase productivity, and lower operating costs with the correct investment and assistance. European businesses may broaden their market reach and compete more successfully on a global level by taking advantage of Africa's scalability.
?? Source: McKinsey & Company - "Lions on the Move II: Realizing the Potential of Africa's Economies" report
While all the above points partly represent the perks of working with the African continent, we also do have some challenges that revolve around market fragmentation, skill gaps, and talent retention coming on top. By acknowledging these challenges, working with other advanced economies and organisations, to develop more tailored strategies can sustainably alleviate all these problems progressively.