Digital Tech for Africa's Business Growth
What we discuss with our partners
Role of Small Businesses
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.
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).
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.
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.
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