Africa needs digital leap for economic transformation

As the world increasingly moves towards a digital-first paradigm, African countries stand at a pivotal crossroads. The choice is clear: continue down the path of traditional economic models or seize the opportunity to harness the creativity, innovation, and technological savvy of its young people to drive unprecedented growth and prosperity.

President William Ruto recognised the significant strides the continent has made through the transformative power of technology in improving lives and driving economic growth. He emphasized the vital role of African youth in driving the continent’s digital transformation and lauded their creativity and entrepreneurial spirit, highlighting their significant contributions to sectors such as fintech, agri-tech, renewable energy, and digital services. From mobile banking in Kenya to e-commerce platforms in Nigeria, Africa is embracing innovation like never before.

The digital economy offers numerous avenues for African youth to thrive and contribute meaningfully to their societies. Globally, the digital economy is projected to reach USD 712 billion by 2050, according to the International Finance Corporation and Google e-Conomy Africa 2020 report. The digital economy, encompassing software development, digital marketing, e-commerce, and fintech, has the potential to unlock opportunities that will transform Africa. National Digital Economy Strategies provide the framework to promote digital infrastructures, skills development, innovation, and entrepreneurship. With rising access to the internet and mobile technology across the continent, the barriers to entry have never been lower. Indeed, the possibilities are limitless.

One of the most compelling reasons for African countries to prioritise the empowerment of youth in the digital economy is the potential for job creation. According to the World Bank, Africa needs to create 20 million new jobs annually to absorb its growing workforce. With Africa’s population expected to double and reach 2.5 billion people by 2050, jobless youth risk casting a shadow over its economic growth. Recent figures from the African Development Bank Group show that while 10 to 12 million youth enter the workforce each year, only 3 million formal jobs are created, leaving more than half of the new entrants into the labor market unemployed. The digital economy presents a golden opportunity to not only meet this demand but also to provide sustainable and fulfilling employment opportunities for millions of young Africans.

Moreover, fostering a culture of innovation and entrepreneurship among youth can lead to the emergence of homegrown solutions to local challenges. Whether it's developing mobile apps to improve access to healthcare, creating e-learning platforms to democratise education and financial inclusion, or leveraging blockchain technology to enhance transparency and accountability, African youth have the ingenuity and energy to drive transformative change.

Furthermore, embracing the digital economy can help African countries leapfrog traditional development hurdles. With the right investments in infrastructure, education, and supportive policies, Africa can position itself as a global leader in emerging technologies such as artificial intelligence, blockchain, and the Internet of Things.

However, realising this vision requires a concerted effort from all stakeholders. Governments must create an enabling environment that fosters innovation, protects intellectual property rights, ensures accessibility to infrastructure, and promotes digital literacy. Private sector players, including tech companies and investors, have a crucial role to play in providing mentorship, funding, and access to markets for aspiring entrepreneurs. Additionally, educational institutions must adapt their curricula to equip students with the skills and knowledge needed to thrive in the digital age. 

Ultimately, the success of Africa's digital revolution hinges on its ability to harness the enormous potential of its young people.  Africa's youth are not just the leaders of tomorrow; they are the drivers of today's digital revolution. 

-The writer is co-founder and managing director, eMobilis Technology Training Institute