The youth of Africa represents 65% of the total population and is the continent’s backbone. With such a young population, only the sky’s the limit for Africa. However, simply having a young population is not enough. It is also equally crucial to harness the power by presenting the right opportunities to them. Soon a large section of this population will enter the job market. Therefore, job creation is necessary to ensure a low employment rate, and the solution lies in entrepreneurship. 

The Role Of Entrepreneurship In Economic Growth 

Entrepreneurship is vital for the economic growth of any country. With the help of innovative services, products and technologies, an entrepreneurial ecosystem ensure new jobs and livelihood. Other benefits include improved productivity for the firms and the country’s economy. Moreover, it helps bring structural transformation, which is not limited to economic development but includes societal development. 

Young Entrepreneurs In Africa

75% of the young African population wants to create a business in the next five years. Currently, every one in five working-age people is working on starting a business. Furthermore, most people who dream of entrepreneurship want to incorporate tech in their startups. Many young African entrepreneurs have already worked towards developing a wide variety of apps, a few similar to VLC in official app stores, AppGallery and other stores to show their talent. Therefore, the current entrepreneurial landscape is quite rich. 

Along with big businesses, even small businesses form the continent’s backbone. Economic growth, the young population and increased digital penetration drive the entrepreneurial landscape. Accelerators such as the pandemic and tech talent further supplement this growth. 

In Africa, the median age of entrepreneurs who have launched their startups is 29. Globally, this age is 34. Even though the age of entrepreneurs is comparatively younger than the global average, they are still rich in experience. Most of the founders have an average work experience of eight years. In the future, it is expected that Africa’s young population will venture into the entrepreneur ecosystem at a much younger age. 

The young entrepreneurs, through their startups, will further drive economic growth. Additionally, the entrepreneurs will increase the living standard of the citizens by providing employment and innovative services. Now is the right time for governments and investors to take African startups seriously to help them function better and harness the true potential of the youth. Policies should work towards fixing inadequate skills, digital infrastructure, and funding to remove the typical barriers of entrepreneurs in their journey. 

Which Startups Are Driving African Economic Growth?

Unsurprisingly, tech startups are driving the economic growth of the economy. By 2050, the digital economy will contribute $300 billion to the GDP of the continent. Furthermore, it will boost the employment rate through job creation. Many investors realise the African youth’s potential and entrepreneurial journey; hence, the continent is receiving funding like never before. For example, since 2015, the annual funding of the African startup has increased by 1056.5%. The deal size of the financing has doubled too. 

The African startups have generated many job opportunities, averaging 32 new jobs per company. Apart from Africa, the other popular niches of startups are fintech, e-commerce, e-health, logistics, ed-tech and energy. 

In counting the number of funded startups, Nigeria and Egypt top the list, followed by South Africa and Kenya. 

How To Promote Youth Entrepreneurship In Africa?

The policies of the government have a direct impact on youth entrepreneurship. Therefore, the youth need to be included in policy-making to help understand the barriers they face. Additionally, the government should implement the frameworks at multiple levels to ensure their working. Finally, it is also crucial to work towards building entrepreneurship skills amongst the youth to help them realise their full potential. 

Many startups, including African startups, face financial constraints. Therefore, the government should help ease the problem by supporting effective finance plans for startups. Lastly, the government should nourish an entrepreneurial ecosystem in their countries to level up the entrepreneurial spirit amongst the youth. To stand tall in the global entrepreneurship ecosystem, African companies require a supportive business environment, solid connections and funds. 

With emerging young entrepreneurs, there are a plethora of opportunities in Africa. The recent success stories of the startups have already made the globe investors curious.  

African progress towards meeting the different Sustainable Development Goals is commendable. The governments have predominantly worked towards efforts to ensure that the countries improve and then complete the Sustainable Development Goals (SDGs) by 2023. Recent Reports from the United Nations indicate that Africa is halfway through meeting the SDGs. The report considers five factors: partnerships, peace, planet, people and prosperity. Today’s article will analyze the status of sustainable development in Africa and give a comprehensive overview. 

Which SDG Goals Are On Track Of Achievement?

Africa is on its way to achieving gender equality and responsible consumption and production. Women’s representation which plays a massive role in gender empowerment and equality, saw an enormous improvement. The same is visible from an increased women’s representation in the national parliaments of African countries except for Northern Africa. Another critical factor that contributes to gender equality includes account ownership by women. African countries managed to increase that,  even though the growth has been slower. 

The ratio of the female-to-male participation rate in labor has also increased. The challenges yet to be achieved include family planning with modern methods and improving the gender ratio of the mean years of education received. Africa has already significantly reduced maternal and child death in the countries. Furthermore, the incidence rates of diseases like tuberculosis, HIV and malaria are also decreasing. 

It is also on its way to achieving the goal of responsible consumption and production. It is doing exceptionally well in managing municipal solid waste, production-based nitrogen emissions and exports of plastic waste. Africa is also implementing Integrated Water Resources Management fairly. It also ensures its environmental health through low-level consumption, which results in low pollution in the continent. 

Which SDGs Need Only A Little Improvement?

The SDGs goals, which only need a tad bit of improvement for achievement, include good health and well-being, clean water and sanitization, industry, innovation and infrastructure, sustainable cities and communities, climate action and partnerships for the goals. 

Mobile broadband subscriptions witnessed an increase in Africa along with improved infrastructure related to transport and trade quality. With improved internet penetration, cybersecurity knowledge also saw a minor improvement in the country. For instance, most young urban African dwellers know they can use What Is My IP to find their IP addresses. To improve the education sector, the African government needs to increase the government budget and expenditure towards development and research. 

According to the latest report, Africa needs to work harder towards the following goals: Zero hunger, quality education, affordable and clean energy, decent work and economic growth, libel below water, life on land and peace, justice and strong institutions. 

How Can Africa Improve To Achieve The Remaining SDGs?

The key to achieving the SDGs lies in strategic planning, budgeting, and implementation. Policymakers are crucial for the same who need to focus on short- and long-term budgeting of the policies according to the priorities of the goals. Furthermore, the government must implement a proper framework to develop these policies. The governance frameworks should stay proactive and consistent. Moreover, the policies should remain flexible to meet the changing needs of society. 

The third recommendation is to identify the blockage so that the policies are articulated and implemented. Also, the government should work on digitizing financial and social services as much as possible. Many countries realized the importance of digitization during the pandemic. As a result, many companies went through digital transformation during this period. Africa also realized the same, visible from the fact that fintech startups are booming in the country. The internet and mobile penetration rate have also improved. Even though digitization is taking place in Africa, there is a need to accelerate this growth. 

In addition, Africa is a young continent, which is a massive advantage for the continent. Therefore, the government should work to absorb the continent’s youth in the economy. For the same, job creation and skill training is a must, with a focus on gender equality regarding educational access and employment. 

The pandemic significantly disrupted many countries to meet the SDG, including Africa. However, it has many accelerators available to accelerate the SDGs’ completion. Even though the accelerators will vary regionally, focusing on their vitality for proper policy design and implementation. With the functional approach utilization of the accelerators, the growth impact on multiple sectors can be considerable. Therefore, it will help benefit both medium and long-term sustainable development goals. 

Over the past few years, African financial services have gone through a massive structural shift. 10% of all the financial transactions in Africa are digital. Additionally, with increased fintech penetration in the continent, the fintech industry managed to create a revenue of over six billion. This number is expected to grow eightfold and generate a revenue of $30 billion by 2025. In the coming years, Africa is in for a massive revolution because of the fintech sector. 

The Growth Of Fintech In Africa 

The number of tech industries in Africa boomed during the pandemic, with over 5,2000 tech startups and companies. Half of these companies offer financial services and now play a crucial role in the African economy. Ghana (15%), Francophone West Africa (13%) and Nigeria and Egypt (12%) have witnessed the highest fintech growth. However, even though fintech will grow across all 54 countries of Africa, it will not be consistent growth in the continent. 

Industry leaders believe that the fintech startups are not causing a financial disruption but an evolution in Africa. Both local and international investors now willing to invest more in fintech startups acknowledge this. The same is visible with increased fintech funding in Africa and larger deals. 

What Is Driving Fintech Growth In Africa?

African countries are witnessing a growth of 10% in a year in fintech companies. Currently, South Africa tops the list of fintech companies in terms of maturity. Numerous factors are contributing to the growth of fintech in the region. However, the most crucial factors are increased smartphone penetration, improved network coverage and reduced internet cost. For example, in one African country, it might be possible to buy Lottery Sambad tickets online; however, in another country, it might not be. These factors are then clubbed with Africa’s young and urban population, which is increasing. 

Additionally, the users also realize the value that the fintech companies are bringing with them. With digital transaction solutions, the cost is cut by 80%, and the savings increase by three folds. In such a scenario, events like Dhankesari can offer complimentary benefits instead of being a primary financial source. Furthermore, regulatory frameworks of the government, which are supportive of the industry resulting in increased funding in the sector, are ensuring the growth of fintech. 

The Disparity Of Fintech Across Africa 

As discussed above, not all the countries of Africa will witness equal growth in the sector. For example, South Africa will drive most of the revenue of the fintech industry. Therefore, it will see a mature banking system. On the other hand, the highest growth will occur in Ghana, francophone West Africa, Nigeria and Egypt. Furthermore, reports indicate that most fintech opportunities in Africa will stay concentrated in 11 key market areas. Therefore, different markets will support different opportunities for fintech startups. 

The Challenges Of Fintechs In Africa 

Even though fintech has a huge opportunity to grow in Africa, it will face its share of challenges, especially in its next growth stage. Currently, most of the companies in the ecosystem are still at the early stage, and this stage needs to be expanded. The expansion of the same is possible only through overcoming the challenges. The first challenge includes infrastructure constraints because of low and weak internet and mobile penetration in Africa. The infrastructural limitation varies geographically, and fintech needs to consider this variability when scaling. Moreover, the disposable income of the continent is still low, which can risk the profitability of the fintech’s business model. 

The second constraint for the fintech companies is the need for more resources in contexts of slow funding. The investment was high in Africa in the sector in 2021, after which it slowed down. It is especially valid for later-stage fintech startups. The problem is at a later stage; fintech needs to grow faster to become a disruptor. The same is not possible with slow finding. Therefore, resource management is an issue for the fintech with limited and slow funding. 

How To Overcome The Challenges For Growth? 

The priority of most fintech is to raise funding by matching the value proposition of the startup to the market. Secondly, the fintech companies should identify all the active users and work on acquiring them quickly. Also, a clear monetization strategy should be worked on and effectively implemented. Finally, another way to overcome the challenge includes identifying the needs of the offline market of the continent and solving the financial problems for them. It is only through these strategies African fintech can manage its growth. 

Digital adoption refers to incorporating new digital tools, modern-day technology, and innovative systems in your operations to improve work processes. In the past few years, digital adoption has been rapid in Africa but still, there is a long ride for many countries on the continent. The major role in promoting digital adoption is of governments and it is time that governments realize their role and play their part in accelerating digital adoption and bridging the digital divide. For this reason, we will be discussing a few ways by which governments can promote and accelerate digital adoption in Africa:

Invest In Infrastructure

One of the major barriers to digital adoption in Africa is poor infrastructure. The lack of reliable and affordable internet access is a major barrier that is preventing African citizens from embracing modern technology. Governments can play their role by investing in infrastructure and ensuring the development and maintenance of required infrastructure such as high-speed internet, broadband networks and data centers.

This will increase the internet penetration in the region and will improve the quality and reliability of the internet which is crucial for the promotion and adoption of modern-day technologies.

Promote Digital Literacy

Another barrier to digital adoption in Africa is the lack of digital literacy and digital skills. Although Africa has some very tech-savvy people who are constantly aware of what’s happening in the tech world, there are still many people who lack the necessary knowledge and skills to participate in the digital ecosystem. 

This issue can be addressed by investing in digital training programs and initiatives that will promote digital literacy throughout the region and help people acquire the necessary skills required for the digital economy. Additionally, training and education on the use of modern-day digital technology can also be included in the curriculum so that children get to know about all of this from a very young age so that when they grow up, they can contribute to the digital economy in different ways such as developing programs like Scrabble Word Finder.

Promote Public-Private Partnerships

Digital adoption can also be accelerated by promoting public-private partnerships. In many countries around the world, public-private partnerships have played a major role in digital adoption. Through public-private partnerships, government organizations can work together with private businesses, organizations, and civil society organizations on various digital initiatives including providing training and education on the use of digital technologies, development, and implementation of digital services, promoting the startup culture, etc.

Promote Innovation And Entrepreneurship

If you were to do research on digital adoption in any country, there are two elements that you will find everywhere, innovation and entrepreneurship. Innovation and entrepreneurship are the key drivers of digital adoption and African governments can accelerate this by providing support to startups and small businesses, and promoting the startup culture.

Africa has a large, young population that is well-educated and tech-savvy so there isn’t a lack of innovative minds in the region but they lack funding due to which they have been able to make much progress. With support from governments in the form of funding, grants, and mentoring programs, young African entrepreneurs can accelerate digital adoption by introducing all sorts of new products and services in the market.

Promote The Use Of Local & Regional Languages

Another hurdle to digital adoption could be the fact that the use of regional and local languages is not so much when it comes to digital technology. Many individuals in Africa are not able to fully participate in the digital economy because they don’t know the dominant languages that are being used on the internet such as English, Spanish, French, etc.

This issue can be addressed by promoting the use of local languages in digital services, platforms, applications, programs, and even in games like Words With Friends. The availability of digital services, platforms, and tools in local languages would really help the locals get accustomed to them.

Review Laws And Regulations

Having a poor legal and regulatory environment is also a major barrier to digital adoption. A conducive legal and regulatory environment is the “sine qua non” for digital adoption. African governments can play their role in this regard by reviewing their laws and regulation and molding them according to digital processes. There could be many laws and regulations that could be inhibiting the growth of digital businesses or a hurdle in the way of digital adoption. This can include laws related to online data protection, digital intellectual property theft, e-commerce, online payments, etc.

Technology has played a vital role in every industry around the world and the education sector is no different than others. Technology has played a major role in promoting education around the world and in Africa, it has the potential to promote education on a wide scale by providing new ways for students to learn and teachers to teach.

With the right investments, right policies, and the right technology, the gap between rural and urban areas can be bridged easily and education of the same quality will be accessible to everyone regardless of their socioeconomic status. Below we have discussed some of the ways in which technology can help in promoting education in Africa:

Online Learning Platforms

The most significant way in which technology can help to promote education in Africa is through online learning platforms. Online learning platforms have changed education for good and these platforms provide a way through which students can access high-quality educational content on the go regardless of their location or socioeconomic status. All they need is a working internet connection and that is pretty much it.

Online learning platforms are especially beneficial for students in rural areas and in low-income communities who cannot get access to the same educational material and resources as their urban counterparts. Moreover, these platforms provide an easy way for students to connect with their teachers and mentors, enabling them to receive personalized instruction and guidance.

Online Learning Apps

Another way in which technology can play a significant role in promoting education in the continent is through digital textbooks and educational apps. These tools are being used all over the world and provide students access to a wide range of educational materials such as lecture videos, interactive tutorials, personalized quizzes, etc that can be very helpful and supplement classroom instructions.

Learning apps have taken over the world by storm, especially after COVID. These apps have proven to be of so much benefit to students as they can access the study materials and resources when they want to, making it convenient for students with different learning styles. Moreover, there are also specialized mobile games developed for young children such as Splash Learn, CBeebies, Spider Solitaire, etc that make it easier for children to learn from a very young age in a fun and interactive way.

Educational Software To Aid Teachers

Technology can also help teachers in the classrooms through various helpful educational software such as learning management systems that can help teachers plan lessons, track student progress, and communicate with parents and other stakeholders. These educational software can help make teaching more efficient and effective than it used to be and also make the parents aware of the performance of their children in studies.

Keeping The Students Engaged And Motivated

Technology is also helping to keep students motivated and engaged in their studies. This is really important because education is not possible without motivation. With modern-day technology such as interactive multimedia tools and real-time feedback systems, students can be more involved in the learning process which makes education enjoyable for them, and as a result, their educational performance improves over time.

Additionally, games like Solitaire which are really helpful to improve the concentration span of children are easily playable through the internet for everyone, which further helps children with their studies.

No Geographical Restrictions

Geographical restrictions have also been eliminated thanks to technology. There is no longer the need to be physically present in a particular region of the world to access certain material. Through the internet, students living in Africa or any other part of the world can access all kinds of educational material, resources, online libraries, educational videos, and interactive learning tools without any geographical restrictions. The internet has bridged these geographical restrictions due to which geographical restrictions are no longer an issue.

E-Learning

Along with all of the aforementioned ways, online communication tools such as video conferencing can also play a significant role in promoting education in Africa. These tools make it easy for students as well as teachers to learn and teach with real-time collaboration. With these tools, physical presence is no longer required and people living in any part of the continent can enroll in online courses without having to travel anywhere. This makes education much more convenient and attractive than it used to be.

To conclude all of this, technology has the potential to revolutionize the way education is delivered in Africa. It makes learning much easier, more convenient, and more fun than it used to be and also helps bridge the education that used to exist between various communities in society.

Africa is a continent that has a lot of potential to achieve big things, however, the continent has struggled to make much progress economically. In spite of having a wealth of natural resources and a rapidly growing population, the African continent is struggling to keep up with the economy of other parts of the world. Many countries in Africa continue to struggle economically and have to consistently face problems like poverty, unemployment, poor infrastructure, and underdevelopment.

Even after struggling for a long period, the future looks bright for African nations if they play their cards right. There are so many factors that can help African nations compete with the economy of developed nations across the world. Here in this article, we will be having a look at a few emerging sectors and industries that can give a boost to the African economy. These sectors have proven themselves to make a significant impact all over the world and they would certainly do so in Africa too. Let’s have a look at some of those emerging sectors:

Technology

On top of the list, we have the technology. Technology has proven itself to be a major game changer and countries that have employed technology the right way in their operations have certainly benefited from it. Africa is already home to some of the most promising and innovative startups and entrepreneurs who are deploying new products and services into the market to help the people and the economy.

There are so many ways in which technology is helping people around the world by creating new opportunities for economic growth. All the big tech companies around the world such as Google, Amazon, Omegle, Facebook, etc started as startups and now they are considered a dominating force in the tech world.

The continent has a large, young population that is well-educated and tech-savvy, making it an ideal place for technology companies to invest and it won’t be long before we will see African youngsters come up with online startups like Chatroulette. It is expected that the technology sector will play a huge role in uplifting the economy of many African nations by providing various job opportunities and improving the standards of living in Africa. It is only a matter of time that African nations come to realize the true potential of technology and use it in their favor to drive their economic growth.

Renewable & Sustainable Energy

As mentioned, Africa is rich in natural resources and if African nations commit to it, they can make huge strides economically. Africa has been blessed with natural resources like Sun and Wind and they can use these resources to generate clean and sustainable energy that will not only eliminate the energy crisis but also help the African nations to become economically stable.

The trend all across the world has changed and we are now seeing more and more countries making a shift to renewable energy development. In Africa, renewable energy projects are being deployed across the continent such as wind farms in South Africa and solar power plants in Morocco. These projects are not only helping in the generation of energy but also creating various employment opportunities and reducing the usage of fossil fuels. If these projects can be deployed all across the continent, every African nation would benefit from them. 

Agriculture

The continent of Africa also has vast stretches of fertile land, however, agriculture hasn’t been a major sector for many countries on the continent. Agriculture has been neglected by many nations and because of poor infrastructure, limited access to modern technology, and lack of financial resources, this sector has been badly hampered but this sector holds a lot of potential. For many countries on the continent, agriculture could be the key to gaining economic stability.

In recent years, we have seen increased investments in modern agriculture technology, irrigation, and research which shows that this sector is poised for growth. It is only a matter of time before this sector will help boost the economy of many nations on the continent.

Tourism

Tourism is another sector that could be a major contributor to the continent’s economy. Africa has a lot of natural and cultural attractions to attract tourists from around the world. From spectacular landscapes and wildlife to vibrant cultures across the continent, African nations have so much to offer with which they can attract tourists from across the globe. However, historically, we haven’t seen much development in this sector and countries have also been poor in promoting tourism.

With increasing investment, proper tourism infrastructure, tourism marketing, and promotion, tourism can be the key sector for many nations across the continent.

To conclude all of this, these sectors have the potential to boost the African economy and take it to new heights but only if the governments and private sectors work together to create a supportive environment for these emerging sectors.