The 11th Africa CEO Forum in Kigali, Rwanda, was the stage for the unveiling of a report by the International Finance Corporation (IFC) of the World Bank. The report focuses on digital opportunities for African businesses and sheds light on the disparities in digital adoption across the continent.
In countries like Ghana, Kenya, and Senegal, 57 percent of firms with five or more employees utilize computers and the internet, while in low-income countries such as Burkina Faso, Ethiopia, and Malawi, the percentage drops to 44. Larger firms are more inclined to embrace digital technologies, whereas smaller and informal businesses in low-income areas encounter obstacles due to limited access to digital tools and infrastructure.
The report emphasizes the importance of mobile phones and digital payment systems as crucial entry points, with 86 percent of firms using mobile phones and 61 percent adopting digital payment systems.
The report highlights various obstacles hindering full digitalization, such as insufficient digital and electricity infrastructure, costly technology, inadequate human capital, and limited financial access. In Africa, digital equipment and software are pricier compared to other regions, which further impedes their widespread adoption.
The report advocates for greater private sector investments to boost digital infrastructure, assist technology start-ups, and enhance financial accessibility. Implementing regulatory changes and investing in digital infrastructure, particularly through new submarine cables, could lower internet expenses and improve connectivity. Furthermore, it stresses the importance of implementing policies to decrease tariffs on digital products and encourage market integration.