Why is it difficult to commercialize digital Africa?

Tech hubs are springing up all over Africa. In Rwanda, the government has made efforts to boost access to information and communication technologies, with a view to harnessing the information age for its 11 million people. Apart from Rwanda, there are centers in Nairobi, and some are taking shape in Uganda and many other countries. For example, at Makerere University, students in the computer science and information technology department develop apps and sell them on the Samsung and Google app stores. However, these apps are mostly downloaded and used by people outside of Africa. I’ve detailed a number of reasons why this is the case below and also suggested some possible solutions;

Smartphone Penetration

According to bizcommunity.com, global smartphone adoption has surpassed one billion phones. And, in at least 30 countries, at least half of all mobile users use smartphones, with Japan topping the list with 82% penetration, followed by Switzerland and Kuwait, both at 80%. In Africa, however, Egypt tops the list at 37%, with two East African players Tanzania and Kenya at 13% and 12% respectively in the top 5. Uptake of smartphones has been low so far, this is due to high costs. of these devices. Access to smartphones would make it easier for people to access online content, such as digital products and news, from the comfort of their homes. After this, it would be easier to convert these people into buyers and sellers.

However, this is beginning to change as lower-cost devices hit the market. For example, in Uganda, you can get a Techno smartphone for less than $50, and prices are expected to drop further.

digital divide

The digital divide actually refers to the lack of skills to use the powerful information and communication tools that someone may possess. As an example, I might have a smartphone, but when I’m only using it for voice calls. If I can’t use it to send a text message or access the web because I don’t know how to do it, that’s what’s known as the digital divide. This is a common scenario in Africa, where multiple people have access to very powerful tools, but lack the necessary skills to fully harness the potential of these tools. The main cause of this is high illiteracy rates, as many people still cannot read or write. Language is also another big barrier here. Those whose reading skills are limited to their local languages ​​are effectively excluded.

However, with the advent of mobile banking, telecom operators have invested heavily in advertising to help people take advantage of these tools. They have also provided free data packets to get people interested in using the web, as in the example of Airtel Uganda and MTN Uganda. I think this will go a long way in addressing the digital divide problem, but more needs to be done.

Internet costs

South Africa is one of the most technologically advanced countries in Africa; however, two-thirds of its adults have never used the Internet, according to voanews.com. A recent survey study by the South African Network Society, a research organization that analyzes the social impact of new telecommunications networks and technologies in Africa, found that only 34% of South African adults use the Internet. That’s about 12 million people. What is happening in South Africa is only a microcosm of what is happening in many parts of the continent. Reasons for the dismal internet statistics in Africa include; expensive Internet access at home due to lack of infrastructure, high mobile data prices, among others. Therefore, it is difficult to assess the viability of the digital market in the continent, because only a fraction of the people in the continent have access to the web. The only hope here is that the global internet giants Facebook and Google have put it on their agenda. to make Internet access a reality, and Google has already started experiments in Africa.

local applications

According to Nicholas Rixon of Bizcommunity, “There is a need for local app developers to develop apps specific to the African market that solve local problems and provide utility to the local market. The rise of mobile technology spawned a gold rush for businesses mobile phone company looking to create the next best app for consumers and businesses The market is full of international apps, many of which do not add value in the African context Local consumers are looking for apps to help them in their daily activities to solve problems and increase their effectiveness” This statement concludes it, there is a need for Africans to develop applications to solve purely local African problems. This will help drive mass adaptation, just as m-pesa was able to do in Kenya, and as a result, many people who were previously unbanked now have access to mobile banking.

Easiest money exchange platform

I firmly believe that nothing accelerated the growth of e-commerce in Europe and North America more than the advent of PayPal. In Africa today, the story is still different. People in North Africa and the Middle East use an online payment system called cashu. In sub-Saharan Africa, many people are still unbanked and there is no alternative option for digital transactions. When you read forums from developers across the region, many of them complain that it is too difficult for them to profit from their efforts. A money exchange platform should be developed that is cheap enough and easy to use.

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