Africa, the world’s second-largest continent by population, with around 1.40 billion people, or 16.72% of the world’s population, has a promising future. Its predominantly youthful population is changing the course of history in many facets.
Internationally, young Africans are cutting their teeth and putting smiles on the faces of people back home with their dexterity in the booming entertainment industry and the recognition that comes with it. The same can be said of sports and fashion; Africans are taking the lead.
Africa is home to many natural resources like oil, gold, diamonds, and ores; such that many technology giants like Apple Inc. rely on Congo’s supply of tantalum, tin, tungsten, and gold; the metals that are used in smartphones, batteries, and laptops.
Even though this implies that Africa has enough resources to supply the world, a new order is fast taking the place of natural resources – DIGITAL TECHNOLOGY.
The digital tech ecosystem in Africa is on an onward movement; it is a moving train that cannot be stopped because, despite the odds that Africa has been faced with, youths, comprising 70% of the continent’s population, are changing the face of several sectors, including banking and finance, health, education, agriculture, hospitality, and so on, with innovations that were not available about a decade ago.
This new order is changing the way we approach life and, gradually, digital technology is becoming the new gold, diamond, and even oil that we, as a people, have relied on all these years to generate revenue and drive our economies. We hear and believe data is the new oil.
According to Techspace Africa, Disrupt Africa, and Rwanda’s The New Times, African startups passed the US$2 billion mark in investment for the first time, up from US$701,460,565 achieved the previous year. The number of funded startups grew by 42.1 percent in 2021 despite the terrible effect of the COVID-19 pandemic on the global economy in 2020.
This result indicates the many positives that the industry is set to achieve in the near future, just as the industry is projected to record significant growth, estimated at $712 billion by the year 2050.
Despite the interest of young Africans in the digital tech startup ecosystem, there are factors posing threats to existing and emerging startups in Africa. But as we say, even in our most challenging times, WE MOVE.
The Nigerian Angle
Nigeria has one of the continent’s fastest-growing startup ecosystems, according to StartupBlink‘s ranking of Africa’s top tech ecosystems in its Global Startup Ecosystem Index, 2021.
Like in music, sports, and many other sectors, Nigerian youths are dominating the digital tech space, ranking Nigeria as one of the countries that are tackling problems in these sectors through innovative solutions made possible by the adoption of technology.
With the success stories of Andela, Autochek, Kuda Bank, ULesson, Bloc, and several others already written on the pages of history, the Nigerian digital tech startups are faced with myriads of challenges from electricity to funding, internet penetration to regulation. But each time our resolve is tested, we always find a way to surmount the challenge; that is the hallmark of being a Nigerian.
Roadmap to Glory
No doubt, Nigeria has the potential to be a world leader in the digital tech ecosystem. But to achieve this, we must lay a solid foundation, and this begins by having not just a peripheral but deeper knowledge of what digitization is, the benefits thereof, and the infrastructure needed to achieve digital transformation.
Simply put, digitalization is the utilization of technology to enhance our daily activities such that difficult operations across various sectors are much more simplified. The transformation in the Nigerian banking system is an example of the importance of digitalization and the advantages that come with it. Today, you can perform banking transactions from the comfort of your home or on the street.
Infrastructure, on the other hand, is the technology hardware, network resources, and services that are required for us to achieve the objective of a digital society. They include network equipment like routers, computing hardware such as servers and basic software, facilities like data centers, computing and application platforms, and more.
Having stated the above, a digital economy is important, but having the infrastructure to power this is much more important.
The application of Artificial Intelligence (AI), accelerated wireless connectivity, and the spread of relatively inexpensive computing systems mean that the tech ecosystem can offer a faster and more efficient world for businesses and other activities that will improve the Nigerian business environment as many companies have adopted the use of digital technology.
At this point, it is crucial to note that while startups see their innovations as disruptions, policymakers in the system may see these innovations as displacements. This implies that the innovations of startups are here to enhance productivity, provide further solutions, and make life generally easier; which adds and should not subtract.
But policymakers may perceive the strides of these startups as displacing already existing structures and functioning paradigms.
The key to ensuring that these paradigm shifts do not lead to a dysfunctional ecosystem or adversely impact the economy is that both practitioners and policymakers within the ecosystem engage and collaborate to develop dynamic policies and regulations that will increase innovation whilst managing the potential displacement.
The above is why founders and other tech enthusiasts should play an active part in governance. This is because the Nigerian digital tech space must get true representation at the highest level of governance and make room for the passage of laws that will cause it to continually thrive.
An example is the Nigeria Startup Bill (NSB) that was recently passed by the National Assembly.
The Bill will ensure that Nigeria’s laws and regulations are clear, well-planned, and beneficial to the tech industry. It will also help create an enabling environment for growth and attract and protect investment in the tech space. Key to its success would be the quality of implementation and complete sub-national adoption.
A digital economy is driven by a technologically exposed society where every man, woman, and child is tech-savvy. We need to review our school syllabuses at the elementary, secondary, and tertiary levels and even in the mandatory one-year youth service corps (NYSC).
We need to ensure that at the elementary level, which is the foundation of all learning, computer science is integrated because if we succeed at creating computer whizzes at the foundation level, then we will have succeeded in birthing a generation of people that will transform our entire existence and redefine life through technology.
Therefore, the foregoing guarantees that every Nigerian, even those in our villages, will adopt technology and technology-driven teachings that will make Nigeria an advanced nation in the near future.
Every step we take to fix the deficiencies in the ecosystem pushes us to a world of possibilities, where the next big global tech solutions will come from a Nigerian village in Edo, Ekiti, Imo, Benue, or Katsina State. We will not just have smart cities but rather smart villages where integrated technology will create smart schools that will foster quality teaching and learning.
Local markets will be open to the international market because the world is now a global village due to technology integration into our villages.
This will improve the economy of our people and eradicate poverty, which has been a longstanding issue in our society. The level of societal digitization will become the new global poverty line.
The African digital tech ecosystem will spark the continent’s transformation and build giants among our nations such that our villages and critical sectors will be powered by technology. From Karu village in Nigeria to Akrofu village in Ghana; Doumga, Senegal; Kayonza, Rwanda; Massai, Kenya; Megdaz, Morocco; and Shakaland Zulu village, South Africa; the world is not ready for what Africa is about to unleash on the global tech ecosystem.
Africa is the future the world is waiting for. You have a part to play!