Harnessing Africa’s Digital Potential Could Help Tackle Closing The Digital Divide

LAGOS (Capital Markets in Africa) – Today’s digital divide is very much a reflection of existing global and societal divides. Often, existing inequalities are exacerbated by a lack of internet access. This is particularly reflected in emerging economies like Africa, where people may not always have the means to access the best that technology has to offer.

I strongly believe closing the digital divide, between those who have access to the Internet and those who do not, is not just a way of connecting people, it’s a way of transforming the world by providing life-changing economic, educational and societal opportunities.

Currently, nearly half the world’s population does not have access to the Internet, which is increasingly being facilitated through digital technology, specifically mobile phones.

As innovations continue to materialize increasingly faster and advanced markets contemplate 5G technology, many emerging markets remain far behind. This is particularly true in Africa, where only 22% of homes have internet access and only 24% of people use it.

According to the GSMA “The Mobile Economy 2019” report, at the end of 2018, 45% of sub-Saharan Africa subscribed to mobile services, still well below the global average of 66%. Subscribers in SSA are expected to increase to just 51% by 2025, so, despite the rapid progress of mobile technology in SSA we still have a long way to go.

What this shows is that emerging markets in Africa are still not harnessing the full potential of the mobile ecosystem.

Challenges to accessibility
If the digital economy is such an opportunity, the challenges to accessibility need to be addressed. Firstly, bridging the digital divide involves overcoming the challenges to accessibility and how to make sure people can enjoy the benefits of the digital landscape. 41% of SSA’s population is chronically poor according to The World Bank. For many, owning a mobile phone is still a secondary concern. The 40% of SSA population who earn less than $2 a day have first to figure out how to pay rent, provide food, health care and education to their families. Owning a mobile phone is a luxury for most, and if they do own one, they tend to use it for the minimum necessary.

Secondly, with mobile phones, aspiring students have access to countless educational materials and funding opportunities, investors can research business opportunities, businesses can access credit, improve liquidity, and accelerate economic growth.

Africa is incredibly young. Each year, eleven million young adults enter the labour market, with a majority of them ending up working in the informal sector. There is an opportunity to catch-up on the digital divide and reduce poverty.

When provided with access to technology and skills, more and more Africans venture into entrepreneurship. A significant number of successful start-ups addressing common challenges in health, education or agriculture are launched every year. Tech hubs are sprouting across Africa’s largest cities and this trend will not slow down. More capital is now flowing to African tech entrepreneurship.

I do believe that innovations which starts from within are the ones that will best address the Africa’s development challenges.

On the other hand, failing to connect and educate that growing pool of talents will lead Africa to miss on the benefits promised by the fourth industrial revolution. Without access, it is nearly impossible for Africans to participate and appreciate the true scope of their countries’ economies. This is not just another missed opportunity for economic growth, but it hinders social development.

An extract from the INTO AFRICA April 2019 Edition: Envision Africa’s Digital Revolution. The article is written by Mohamed Dabbour (CEO Africa & Executive Vice President, Millicom) and to read the full article, please download by clicking: INTO AFRICA PUBLICATION: APRIL 2019 EDITION.