Empowering Africa’s SMEs through Technology Adoption

-



Nearly 70% of small and medium-sized enterprises (SMEs) in Africa invested in technology in the past 12 months to help boost growth and resilience - an indication that SMEs are embracing the positive impact of technology.

There are numerous opportunities that unlock the full potential of digitalisation for these businesses and the continent, which means addressing barriers, such as infrastructure, connectivity, and the high cost of implementing technology, and developing best practice frameworks for better collaboration.

These are findings from a new report, titled ‘Levelling the SME Playing Field’, jointly launched by Vodacom Group, Vodafone Group and Safaricom. The report is the sixth research paper under the Africa.connected campaign, which aims to drive sustainable development by closing the digital divides in Africa’s key economic sectors through strategic partnerships.

“This report explores the specific challenges SMEs face in Africa and unpacks what needs to be done to help these entrepreneurs overcome these obstacles. Our findings highlight the significant role that technology can play in helping small businesses tap into new opportunities, access finance, increase productivity, reduce costs and enhance their competitiveness,” says Shameel Joosub, Vodacom Group CEO.

The adoption of technology by Africa’s SMEs presents unique challenges. Going beyond inadequate infrastructure and access to connectivity, the findings reveal the greatest difficulty for SMEs is the high cost of technology upgrades and renewals (58,3%), which can prevent small businesses from keeping up with the latest technological advancements. Almost a third of SMEs (32%) are also concerned about a lack of digital skills and knowledge to take full advantage of technology solutions. In addition, the research points to regulatory and compliance issues as stumbling blocks in SMEs’ efforts to digitalise.

The research is based on conversations with 400 SMEs across eight African countries (South Africa, Kenya, Egypt, Ethiopia, Mozambique, Tanzania, the Democratic Republic of the Congo and Lesotho), ranging in size from one to 200 employees. These surveys were run in partnership with World Wide Worx, a South African market research business that focuses on trends in information technology and telecommunication.

In Africa, digitalisation has been a game-changer for SMEs, with the respondents highlighting the positive effect of technology on enhancing growth, efficiency, competitiveness and customer service. Furthermore, by using e-commerce platforms, social media, and digital payment solutions, such as M-Pesa, SMEs can expand their reach, access valuable data insights, and streamline operations.

To help drive technology adoption among the continent’s SMEs, the report outlines the importance of sharing best practices, to enable better decision-making and cost-effectiveness. From a knowledge-sharing perspective, these standards foster a learning culture by helping to identify gaps in understanding and making it easier to implement innovative ideas, while also providing an internal knowledge base and reducing the loss of know-how. Furthermore, adopting proven practices and technologies is faster and safer than testing new ones.

“Digital solutions and tools open possibilities for entrepreneurs and small business owners to connect and discuss best practices so that they can learn from each other's experiences, mitigate common hurdles and maximise their potential. We at Vodacom are keen to partner with small businesses and support them on their journey to success. As a purpose-driven business, our goal is to utilise our networks and our technical capabilities to help SMEs innovate so that together we can create a more resilient, inclusive, and sustainable future for Africa,” says Joosub.

Click here to download the paper.

Comments

Post a Comment

Popular posts from this blog

Empowering Business Connectivity and Innovation: Insights from HPE and Tarsus Leadership

-
In a recent conversation, leaders from HPE shared their strategic initiatives and technological advancements designed to empower businesses in the digital landscape. Here are some key insights from the discussion: Introducing the Panel • Mandy Duncan, South Africa Country Manager at HPE Aruba • Michael Langeveld, Head of Technology & Business Development, HPE South Africa • President Ntuli, Managing Director at HPE South Africa Connecting with the Channel Community HPE’s strategy emphasizes connecting with its channel community. Mandy Duncan highlighted the importance of leveraging ecosystems across various geographies to drive business outcomes. HPE aims to create long-term, sustainable partnerships beyond short-term revenue goals. Announcements and Innovations 1. Data Protection as a Service: HPE announced a partnership with distributor Tarsus to introduce data protection as a service, addressing cybersecurity concerns such as ransomware.  2. Hybrid Cloud ...
Read more

Vodacom Group enhances employee offerings to endorse inclusivity and promote well-being.

-
Image
Vodacom Group, recently ranked by the Top Employers Institute as the continent’s number one employer, has now enhanced some of its employee offerings as part of its commitment to creating an inclusive work environment across its markets. With an emphasis on Compassion, Acceptance, Respect and Empathy (C.A.R.E.), the company’s enhanced wellness initiatives include support for all stages of life, such as menopause, and a more encompassing family responsibility leave policy. “Our employees are the heart of Vodacom. We believe that their well-being contributes directly to our success as a company in fulfilling our purpose of connecting for a better future. By enhancing our employee value proposition through empathetic and inclusive policies and practices, we are creating a workplace culture where people feel empowered to thrive and make a positive impact on their career journey,” says Matimba Mbungela, Chief Human Resources Officer for Vodacom Group.  In a  recent research report ...
Read more

How can we grow young female entrepreneurship in South Africa?

-
Image
  How can we grow young female entrepreneurship in South Africa? By Linda McClure, Raizcorp COO South Africa, like many countries globally, grapples with the challenge of  youth unemployment . This is supported by statistics indicating a 45,5% unemployment rate among young individuals (aged 15-34 years), in contrast to the national average of 32,9% in the first quarter of 2024. It’s clear, though, that the struggle continues for many South African women – specifically in the area of small business and entrepreneurship. According to the World Bank, Africa boasts the highest growth rate of female-run businesses in the world. But down on the southernmost tip of the continent, women are still in the minority when it comes to entrepreneurship. While more than half of South Africa’s population is female, only 38% of SMEs are women owned and led. Despite these benefits and the potential of entrepreneurship to improve the socio-economic empowerment of  women in South Africa, ...
Read more