• Home
  • Radio
  • TV
  • Advertisement
  • Disclaimer
  • Public Notice
    • Opinion
  • New Africa Business News
  • Contact
  • Log In
facebook
    • News
    • Business
    • Video
    • Entertainment
    • Sport
    • Jobs
    • Government
    • Immigrants
    • Investment
    • Gallery
      • Animal
      • Africa Map
    • NGO
    BREAKING NEWS
    Zimbabwe‘s Strive Masiyiwa to capitalize in data centers in the African Landmass
    Vodacom Empowering Youths with Digital Skills in South Africa
    $90 Million inducted by the Algebra Ventures to enhance Business in Egyptian Tech Startups
    Solidaridad Liberia Reveals 1,500 Smallholder growers to gain from enriched Cocoa Seedlings under the Cocoa Value Chain Development Programme
    Egypt Set to Receive €145m from the Africa Development Bank to Bolster Railway Safety and Reliability
    Mining Company South32 to expend $250m to finish off South African Energy Coal Enterprise Trade Bargain
    Angola Rejoices 19 Years of Peace and the Stop of Armed Catastrophes
    Nestlé, Technoserve Unveils a Programme Targeting 5,000 Farmers in Four Value Chains in Nigeria
    Akon visited Uganda in Exploration of Investment Recourses by way of broadening career Smidgen in Africa
    $100 Million venture earned by Airtel Africa Mobile Money

    Digital Adoption and Infrastructure Buildout in Africa Supersedes other Regions Globally, Report

    Posted On 26 Mar 2021
    By : New Africa Business News, Staff Correspondent
    Comments: 12

    By Richard Adorsu-

    Photo Credit: OpenGov

    NEW AFRICA BUSINESS NEWS (NABN) Accra- Although Africa currently trails other regions in terms of digital adoption and maturity, the pace of adoption and infrastructure buildout is happening faster on the continent than any other region in the world. This creates the opportunity to unlock enormous economic potential, according to a new report by Boston Consulting Group (BCG) in partnership with Casablanca Finance City.

    “The COVID-19 crisis has also focused minds, accelerating digital adoption among consumers and digital transformation among companies,” says Jan Gildemeister, Managing Director and Partner at Boston Consulting Group, Johannesburg. “For success going forward, we believe that companies and governments need to coordinate on three fronts: creating scale, nurturing and attracting digital talent, and building ecosystems and innovation hubs to improve access to financing options, regulation and technology.”

    To get to the stage where companies and governments are able to fully coordinate on these fronts, it is going to be critical to close the digital gaps that persist; arising from limited digital service penetration, a lack of digital skills, little trust in digital service providers, weak connectivity coverage and the high cost of data.

    “For instance, only 40% of African consumers have 3G coverage compared to 72% worldwide and connection speeds and digital service quality in Africa are relatively inferior,” says Gildemeister.

    These challenges extend to African companies too. Organizations across the continent have the lowest average digital maturity globally; driven by management’s struggle to narrow digital priorities, cultural resistance to adopting digital, insufficient digital capabilities and a lack of organizational agility.

    However, there is a strong desire on the continent to bridge these gaps, and there is already some positive momentum. Infrastructure and demand are growing steadily and more rapidly than elsewhere in the world, and the lack of digital maturity actually offers an opportunity to leapfrog legacy technologies and business models – with the growth and popularity of mobile money a good example of the ability to leverage innovation. Companies are accelerating digital momentum as they recognize the correlation between digital maturity and performance, and the
    pandemic has accelerated digital adoption and transformation both for consumers and companies.

    “One industry where this shift is quite apparent is banking. Many African consumers have already adjusted their day-to-day banking behavior because of the pandemic. For example, 46% of surveyed South Africans said they are considering making a permanent shift to digital banking,” says Gildemeister.

    To build on this momentum, it will be necessary to achieve scale both at the individual operations level of companies and governments, as well as at the broader market level for economic viability, profitability and sustainability.

    It will also be important to attract and retain digital talent through specific employee value propositions (EVPs) for digital to address issues that really matter to digital talent, starting with learning and skills development programmes.

    This will need to be matched by the building of digital ecosystems that nurture entrepreneurship and startups: currently, for instance, there are only 2,000 startups in South Africa, a low number for one of Africa’s main economic hubs.

    Entrepreneurs and startups in the country are hampered by regulatory red tape, lack of access to funding and strategic partnerships, information inadequacy, complex intellectual property rights, and corporate governance limitations. Creating a strong ecosystem will require improving access to finance and markets, regulations that support innovation, the development of infrastructure and platforms at scale, and leveraging larger players that drive ongoing development.

    “The private and public sectors must begin to coordinate more regularly and strategically to help build the scale necessary for digital models to succeed. It is vital to nurture and hang on to homegrown talent, and build ecosystems and innovation hubs to aid entrepreneurs and startups by improving financing options, regulation and technology. The digital leaders in Africa are already working on all these fronts with success, and the future is promising,” says Gildemeister.

     

    For New Africa Business News Richard Adorsu Reports,  Africa Correspondent

    Facebook: newafricabusinessnews.com

    Email: Info@newafricabusinessnews.com

    AFRICA’S MOST READ AND FASTEST GROWING GLOBAL NEWSPAPER – www.newafricabusinessnews.com

    About the Author
    New Africa Business News Staff Correspondent
    • google-share
    Previous Story

    Botswana excavates 11 Diamonds at Thorny River Project

    Next Story

    The African Continental Free Trade Area anticipated Port Reformation

    12 Comments

    1. Seth March 26, 2021 at 1:55 am Reply

      Thank you for the report, Journalist Richard. Very true infrastructure buildout is happening faster on the continent than any other region in the world. Excellent. Ghanzi in Botswana. Seth

      • New Africa Business News, Staff Correspondent March 26, 2021 at 1:55 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    2. Ryan March 26, 2021 at 2:00 am Reply

      We have a long way to go, however progress is on. Thank you for the report. Ryan in Johannesburg, South Africa

      • New Africa Business News, Staff Correspondent March 26, 2021 at 2:01 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    3. Alex March 26, 2021 at 2:05 am Reply

      Digital transformation in Africa, would help greatly, lift millions out of poverty. Alex in Kampala Uganda

      • New Africa Business News, Staff Correspondent March 26, 2021 at 2:06 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    4. Francis March 26, 2021 at 2:09 am Reply

      Thank you for the newsletters. Edinburg, Scotland. Francis

      • New Africa Business News, Staff Correspondent March 26, 2021 at 2:09 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    5. Amoa March 26, 2021 at 2:13 am Reply

      This infrastructure buildout will greatly help our businesses all over the Continent. Amoa in Kumasi GHANA

      • New Africa Business News, Staff Correspondent March 26, 2021 at 2:14 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    6. Amanda March 26, 2021 at 2:16 am Reply

      Love the daily newsletters. Thank you. Amanda in Oxford, England

      • New Africa Business News, Staff Correspondent March 26, 2021 at 2:17 am Reply

        Thanks for reading, Africa’s fastest growing online newspaper. Please forward http://www.newafricabusinessnews.com

    Leave a Reply Cancel reply

    *
    *

    Members Area

    • Members Log In

    RECENT

    POPULAR

    COMMENTS

    Zimbabwe‘s Strive Masiyiwa to capitalize in data centers in the African Landmass

    Posted On 12 Apr 2021

    Vodacom Empowering Youths with Digital Skills in South Africa

    Posted On 11 Apr 2021

    $90 Million inducted by the Algebra Ventures to enhance Business in Egyptian Tech Startups

    Posted On 10 Apr 2021

    New Africa Business News Award Medalist of Excellence as Africa's President of the Year 2020-2021 meets the Heads of his Ancestors on March 17th, 2021 Samia Suluhu Hassan divulged

    Posted On 20 Mar 2021

    New Africa Business News, Person of the Year 2020-2021, Goes to Dr. Arikana Chihombori Quao

    Posted On 01 Jan 2021

    New Africa Business News, Africa President of the Year 2020-2021 Goes to Tanzania's John Pombe Joseph Magufuli

    Posted On 01 Jan 2021

    Thanks for reading, Africa’s fastest...

    Posted On 11 Apr 2021

    Thank you for the report. Vodacom...

    Posted On 11 Apr 2021

    Thanks for reading, Africa’s fastest...

    Posted On 11 Apr 2021

    Facebook

    Latest Posts

    Zimbabwe‘s Strive Masiyiwa to capitalize in data centers in the African Landmass

    Vodacom Empowering Youths with Digital Skills in South Africa

    $90 Million inducted by the Algebra Ventures to enhance Business in Egyptian Tech Startups

    Recent Posts

    • Zimbabwe‘s Strive Masiyiwa to capitalize in data centers in the African Landmass
    • Vodacom Empowering Youths with Digital Skills in South Africa
    • $90 Million inducted by the Algebra Ventures to enhance Business in Egyptian Tech Startups
    • Solidaridad Liberia Reveals 1,500 Smallholder growers to gain from enriched Cocoa Seedlings under the Cocoa Value Chain Development Programme
    • Egypt Set to Receive €145m from the Africa Development Bank to Bolster Railway Safety and Reliability

    Categories

    • Business
    • Education
    • Entertainment
    • Featured
    • Government
    • Immigrants
    • Investment
    • News
    • NGO
    • Obituary
    • Opinion
    • Public Notice
    • Sport
    • Video

    Tag Cloud

    african economy business africa

    Contact Form

    1. Name *
      * Please enter your name
    2. Email *
      * Please enter a valid email address
    3. Message *
      * Please enter message
    Copyright 2019 New Africa Business News, Inc. A Global International Company, Inc. All Rights Reserved.