Three tech trends to propel Africa in 2020

Africa today is a very different place than it was even just a decade ago. While the continent faces its own unique set of challenges governments, organisations, and citizens from all over Africa are increasingly turning to tech to solve these problems.

I am encouraged by the progress Africa is making towards a digital future. When we think about tech hubs we usually think immediately of Silicone Valley in America, some may even think of India, or China. Not many people think of Africa.

But Africa is home to over 600 tech hubs, with Nigeria and Kenya having 85 and 48 respectively. This is a positive sign for the continent, and one that shows that innovative and forward-thinking individuals are already hard at work to make sure that their communities and countries are ready for the opportunities the Fourth Industrial Revolution will present.

As we enter a new year, and indeed a new decade, I have chosen three key tech trends that I think will drive better economic performance, improve people’s lives, and address some of the key challenges the continent faces.

Automation

Hyper automation is included in Gartner’s Top 10 Strategic Technology Trends for 2020, and I think this is something we will see more of in Africa next year as businesses look to be more efficient and agile.

Automation can have big benefits for companies. While efficiency and speed can be improved, it also frees up employees from routine tasks, giving them time to focus on other important aspects of their work such as team leadership or problem solving.

A concern with automation has always been that it will replace the need for human workers. But this may not be the case in Africa.

The World Bank’s Future of Work in Africa report explains that Africa’s future work environment will be determined by the automation of old sectors and the innovation in new sectors. But interestingly, it says that Sub-Saharan African countries can create new jobs from tech adoption across skills categories and sectors, because adopting digital technologies that enhance performance can increase the productivity of low-skilled workers.

AI

Hyperautomation will be facilitated by increasing levels of AI deployment throughout African businesses.

A recent EY report looking into the levels of AI maturity in Africa and the Middle East shows that while only 7% are using AI for many business functions and 20% are using it for one or more function, 55% of companies are busy planning for AI or are in the early stages of pilot projects.

While AI has been a buzzword for a few years now, I think starting in 2020 and for the next few years African businesses will reach higher levels of AI adoption and maturity.

AI can also help address some of Africa’s unique challenges. Earlier this year Kenyan technology firm Upepo was awarded a Microsoft AI for Earth grant to further development of its water management solutions.

Financial Services Tech

Driven by advances in technology and increasing demands for personalisation, retail banking is undergoing radical change the world over. According to PWC, the banks that will win in 2020 will be those that acquire, integrate, and analyse multiple sources of internal and external data to develop a more holistic understanding of their customers.

African banks still face many challenges such as low-income levels and high use of cash for transactions.

For African banks to overcome these challenges they are embracing a digital-first approach and leveraging modern technology to provide solutions for their unique operating conditions.

A 2018 report from McKinsey looking at retail banking on the continent shows that African banks were nearly twice as profitable as the global average, despite having the lowest branch coverage in the world. This is partly because African consumers are more ‘online’ than other developing markets, with a majority using mobile devices to access the web. And also because they have embraced digital banking. 38% prefer digital channels for transactions, and two to three times as many customers prefer mobile to other Internet channels, for example.

In 2020 and the following years I expect African banks to continue to drive banking sector innovation, deploy advanced technology, and enable more customer-centric solutions with mobile and internet offerings.

African banks are also transforming their internal processes with new technology, something that will continue across the continent.

The GHL Bank in Ghana is a good example of this. They have made use of Office 365 and Microsoft Azure to integrate information between branches, remove data silos, synchronise its workspaces, and improve productivity by enabling employees to access emails even during Ghana’s regular internet outages.

Looking to the future

 Africa is a continent of incredible potential, where innovative people are finding solutions to some of the most pressing challenges they face. Microsoft believes that by making technology accessible to all people, the possibilities and opportunities for success are unlimited.

While I’ve only touched on three trends for the next year, I believe firmly that Africa’s success will rely on its ability to implement new and advanced technologies at scale, and educate and reskill its population for the future, digital world.