To become more globally competitive, Africa’s technology industry will benefit from specific solutions designed to strengthen the industry and attract investors.
As Africa’s technology sector competes for foreign direct investment with other emerging markets such as Asia, South America and the Caribbean, it is important that players and stakeholders in the sector address issues that have direct bearing on how competitive they can be on a global scale.
There are many improvements that can be made to support technology ecosystems across the continent, from standard youth entrepreneurship development to infrastructure development that creates jobs and attracts investment.
Here are 10 solutions that will make Africa’s tech scene more globally competitive.
Implement entrepreneurship training in schools
Entrepreneurship is not a subject that is widely taught as standard within schools and this needs to change. Introducing the concept of entrepreneurship and providing African youth with the tools to pursue careers as businessmen and businesswomen will be a catalyst for a new generation of technology startup founders. In addition to training in entrepreneurship, schools need to leverage technology to help learners reach their full potential and become familiar with technology at an early age, according to ITNewsAfrica.
embrace innovation
African countries need to embrace innovation to remain competitive, and as an example of how to apply innovation to current technology, consider how things like mobile are being embraced across the continent. Africa leads the world in mobile technology due to its widespread adoption, which in turn boosts mobile-related industries. According to Techmoran, Africa’s mobile banking sector is expected to be worth $1.4 billion by 2020. Understanding the appetite for innovation and how to effectively leverage it should enable and encourage technology start-ups to solve Africa’s problems through innovative solutions.
infrastructure improvements
Africa needs to focus on improving infrastructure, among a number of core issues that require special attention, to increase competitiveness and create more job opportunities for its growing youth population. According to the KPMG report, the right approach in building infrastructure will definitely create jobs and attract investors.
Encourage training that focuses on in-demand technical skills
Unemployment is a problem in many African countries, but the technology industry offers plenty of opportunities for those with the right skills. By encouraging teenagers and career-seekers to learn to code, learn robotics, and acquire skills related to new technologies such as machine learning, we are preparing Africa’s future technology workforce.
increase internet access
According to a McKinsey report, internet connectivity has a clear impact on economic growth and prosperity. Considering the fact that Africa’s internet penetration rate is 35.2% and the global average is around 54.4%, improving internet access across Africa will only benefit the technology sector and increase the market size for online products and services.
improve access to capital
We need to improve access to affordable capital so that businesses in Africa’s technology industry have the finance they need to start up, survive and thrive. We need to make funding available to those who currently have the least access to it. According to LinkedIn, Kenya is an example of a country that is trying to make capital more accessible to young people and marginalized groups such as women and people with disabilities by setting up a fund specifically for these groups.
Ensuring technical readiness across the industry
Technology and development are increasingly driving innovation, and in emerging markets like Africa, this is even more important. Industry-wide technology readiness will be a success factor for African sectors, which are well-positioned to embrace and adopt new technologies. According to Bbrief, this will enable companies in these industries to compete globally and build Africa’s technology capabilities in response to widespread adoption of technology.
Building partnerships between multiple African countries
African governments need to foster intra-African cooperation to reduce the high degree of fragmentation among businesses. By building partnerships and working together, countries can learn from each other and enrich their respective technological fields through cooperation. According to Bizcommunity, the technology can also be used to enable cross-border trade and partnerships within Africa.
Avoid overregulation and inconsistent policymaking
Emerging economies in Africa and elsewhere need to introduce a comprehensive, consistent and collaborative approach to policy-making, ensuring that over-regulation is a thing of the past, in order to foster investment and make it as easy as possible for high-tech start-ups to establish and grow.
development of financial markets
Financial market development requires significant efforts in most African countries, as it relates to the performance of financing through local stock markets, regulation of stock exchanges, availability of financial services, and the soundness of banks. According to WeForum, having a solid financial market in place will improve funding models and make more capital available for investment in the technology sector.
