Across the African continent, technology is playing an increasingly important role in shaping economies and livelihoods: Mobile phones have transformed communication, education, finance and more for hundreds of millions, and higher adoption of existing technologies coupled with innovative uses for emerging ones could fundamentally reshape Africa.
So, how will these advances shape Africa in the coming years, and what are the challenges they face?
Where technology is poised for the greatest impact
To understand how technology could shape the continent, we’ve identified several thematic categories in which advances have been made and where they seem most likely to continue:
1. Connectivity
Africa has long struggled with connectivity, partly because of its vastness and partly because of a lack of prioritized investment in significant infrastructure projects. However, technology is providing new opportunities for businesses and entrepreneurs to connect digitally, from the widespread use of mobile phones to increased internet coverage; both are helping to create new markets and distribution channels for goods and services.
2. Financial inclusion
Fintech is and will continue to be a major growth industry on the continent. Already, services like mobile money have boosted financial inclusion by providing new ways for people to access banking and other services. On a continent where many people still do not have access to traditional banking services, this could have major social and economic implications.
3. Agriculture
Across the continent, agriculture is a major part of many countries’ economies. In fact, some experts have recommended that countries focus on developing the sector further to compensate for setbacks in infrastructure-led growth. Technology is already helping to increase productivity and efficiency within the sector: Among other developments, precision agriculture is helping farmers to optimize crop yields and reduce costs.
4. E-commerce
Enabling businesses to sell their products and services to a wider market, e-commerce on the continent is set to rise in the coming years. While challenges remain (including internet connectivity and ease of international payments), the sector will benefit from increasing adoption of mobile and smartphones as well as innovative fintech products.
5. Education
Online learning platforms, especially those with mobile apps, help to overcome the challenges of limited resources and poor infrastructure. They are helping make education and up-skilling accessible and more affordable to a wider audience and will continue to play a significant role in the coming years.
6. Healthcare
Technology is helping to increase access to healthcare in Africa, through telemedicine and other digital health solutions. With an estimated 400 million people in Sub-Saharan Africa lacking health coverage, advances in delivering healthcare to more people could have major social, economic, and political implications.
7. Energy
As countries like South Africa continue to struggle with energy security, there will be a push in coming years to further develop off-grid and mini-grid solutions, which can help to overcome the challenges of limited access to electricity. This could lead to a fragmentation of energy services, but without some kind of change, certain regions will be limited in their economic development potential.
8. Automation
Technology is already helping to increase automation in different sectors, such as manufacturing, construction, and agriculture, which can increase productivity and efficiency. Success of advances in automation, though, will heavily depend on how countries and regions deal with their energy needs and how they prioritize investment.
9. Artificial intelligence (AI) and big data
AI and big data have to potential to improve decision-making, target resources more effectively, and increase efficiency in various sectors, such as healthcare, finance, and transportation. One of several challenges, though, will be training and adapting these technologies to African needs; training datasets often include few, if any, African texts.
Challenges to overcome
While there is tremendous potential in many sectors, there persists a digital divide across the continent. Many people, especially in rural areas, simply do not have access to these technologies. Government and private sector will need to work together to bridge this gap to ensure that technological leaps do not exacerbate inequality and create winners and losers across the continent.
On that note, while there are many barriers to technology use in Africa, here we’ve outlined some of the most important to overcome:
1. Lack of access to infrastructure
Many parts of Africa lack reliable infrastructure such as electricity, internet connectivity, and transportation, which makes it difficult for people to access and use technology. As mentioned above, this is especially true in rural areas where access to technology is limited by geography, lack of transportation and communication networks.
2. Affordability
The cost of technology, including hardware, software, and internet access, can be prohibitively expensive for many people in Africa. This makes it difficult for people to access and use technology, particularly for low-income households and small businesses.
3. Lack of skills and education
Technology can only be harnesses and used effectively if people have the necessary skills and knowledge. Across the continent, there is a serious gap in tech savvy, partly due to a lack of access to quality education and training. This makes it difficult for people to take full advantage of the opportunities that technology provides.
4. Limited digital literacy
Even with access to technology and the internet, many people in Africa lack the digital literacy skills to effectively use the technology. This differs from the above in that digital literacy is more nuanced and includes the ability to use the internet safely, understanding the basics of internet security, and the ability to navigate the web and find the information they need.
5. Lack of local content
There is limited local content available in many African languages, and this hinders the ability of people to use technology to access information and communicate with others. At the same time, this represents an enormous opportunity cost and could spur private sector to invest more in local content.
Final note
There is no doubt that technology has the potential to remake industries and sectors across the continent in the coming years and provide opportunities for economic growth, education, and social development. But addressing barriers to technological access and adoption is essential for ensuring that everyone in Africa can fully participate in the digital economy and benefit from the opportunities that technology provides.
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