The expansion of the digital economy on the African continent is contributing to sustainable economic development and providing opportunities for the young, skilled workforce to prosper.
A decade ago, one of the biggest barriers to participation in the digital economy was the lack of suitable infrastructure to support it. However, since the roll out of 5G in the early 2020s, the majority of citizens in sub-Saharan nations are now online. While Western governments at the time tackled political hurdles with the adoption of 5G – including the banning of Huawei from 5G infrastructure projects by the United States, the United Kingdom and Australia – telecommunications providers on the African continent readily partnered with Chinese tech-giants, and invested in world-class infrastructure to bring the population online and close the digital divide.
After Nigerian firm Jumia became the first African tech-start up to be listed on the New York Stock Exchange in 2019, numerous tech start-ups from across the continent began staking their claim in the market. Now more countries in the sub-Sahara – Ethiopia, Kenya, Rwanda and South Africa – all boast impressive digital hubs, while many other nations are following in their footsteps.
Many of the issues experienced by digital workers on global platforms like Amazon Mechanical Turk, Upwork and Fiverr, including issues with Western clients holding negative stereotypes or capitalising on lower wage expectations, are now being overcome with the growth of domestic platforms that ensure fair wages and protections for the local workforce.
The potential of the digital economy to aid development has long been cited by governments, NGOs and international institutions, as it allows workers to find paid digital labour and knowledge work with clients based anywhere in the world – ‘delocalising’ work by removing geographical and market-based barriers to employment. Now with increased connectivity, the digital economy is providing the means for employment and entrepreneurship in the service sector, tourism, e-commerce and knowledge work, with the growth of platforms leading to the creation of opportunities for the young workforce. It’s also helping to solve problems previously faced in existing industries, such as improved market access for tourism through platforms like Airbnb. Consumers are also benefitting with access to a broader choice of competitively priced goods and services in these vibrant economies.
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