Africa Focus

Growth

MSMEs are important drivers of Africa’s economic growth, accounting for up to 90 per cent of all businesses in these markets.

Informal

36% of SMEs have an informal credit model; with the retail merchants giving goods and services on short-term credit.

Employment

Sector employs the highest population

Digital Tech for Africa's Business Growth

What we discuss with our partners

Role of Small Businesses

Small businesses in Africa play a vital role in driving economic growth and providing employment opportunities. They account for a large proportion of the continent’s Gross Domestic Product (GDP) and are instrumental in reducing poverty and promoting inclusive economic growth.

The use of digital technology in supply chains has the potential to revolutionize the way small businesses in Africa operate and grow. The integration of technology in supply chains can improve efficiency, reduce costs, increase transparency, and provide access to new markets. This can help small businesses in Africa to compete more effectively, both locally and globally.

The Why

For example, by using digital platforms to connect with suppliers, customers and distributors, small businesses can streamline their operations and improve their ability to reach new markets.

This can lead to increased sales, increased profits and increased economic growth. Additionally, the use of digital tools to manage inventory and financial transactions can improve the reliability and accuracy of these processes, which can reduce the risk of fraud and other financial crimes.

Our Thought, therefore;

small businesses in Africa play a crucial role in driving economic growth, and the integration of digital technology in supply chains has the potential to provide a significant boost to the continent’s economy. By providing small businesses with the tools they need to compete and succeed, Africa can continue to build a thriving and inclusive economy.

Manufacturing GDP Decline

Domestic manufacturers in Africa are experiencing reduced demand for their goods versus imported goods. The share of local manufacturing as a % of GDP has been declining over the last 15 years, despite rising middle class that demand more of manufactured goods. Case of Kenya in the graph.
: Manufacturers are struggling to find the necessary tools to understand value chain connections and operate their businesses competitively, in both price and quality.

Average 18

420M youth between ages 15 and 35yrs, giving Africa a median age of 18. Education provided lacks the necessary skill set required by the formal job market. Most youth rely on opportunities in the informal sector (which is 83% of all employment opportunities).

About Numbers

85M MSMEs in Africa, employing 346M people 98% of all businesses, and 40% of GDP 70% of all jobs 70% of MSMEs are informal (=opportunity), with smartphone adoption @40% (67% by 2025). Growing informal economy vs. relatively stagnant formal, as here with Kenya an example.

Value-chain Inneffiencies

Lack of Capital 40% of MSMEs (65M) have unmet financing needs up to $5.2T annually Lack of skills in deploying capital well High Costs of inputs and logistics to market Inadequate access to technology. In the global charts, Africa doesn't light up in how capital is efficiently distributed in the value chain.

Our Belief

Impact Frontier

Target SME’s and you target women because that is where they access the business sector. – Linah K. Mohohlo, Governor and Chairman of the Board of the Bank of Botswana

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