Start up and innovation have become almost a cliché in the developed world and in some emerging economies. The good news is that it is also catching up in Africa. According to some estimates, tech hubs across Africa has grown over 50% over the past year. These hubs are going to change how Africa does business, communicate, innovate and what have you.
The interesting fact is that the technology firms in Africa are upbeat about their future operations. Some of them are going international and intercontinental either setting up tech hubs and platforms in other parts of the continent or even acquiring firms beyond the continental band width. Co-Creation Hub (CcHUB), one of Nigeria’s pioneer innovation hubs, has set up a design outfit in Kigali. Later, the firm acquired a tech firm in Kenya. International IT giants like Microsoft has set eyes on Africa. As a prelude to activate their participation in the IT revolution sweeping across the continent, Microsoft is keen to train the engineering talents in Africa in software. It will set up development centers at a cost of US$ 100 million in different parts of the continent, which can train over 500 IT professionals in 3 to 4-year time period.
That does not mean things are hunky dory. There are start-ups, which have bitten the dust without even completing one year of existence. There are also multinational companies, which were engaged in training and absorbing African boys and girls, suddenly wound up their operations citing one reason or the other. Some of the home spun e-commerce companies are closing down without any prior notice to their employees.
It is also necessary to introspect on the policies being followed by respective governments in the continent. Are they promoting a tech revolution? Dictatorial regimes shun faster communication of news, views and perceptions. They can impose severe restrictions on the internet and other digital platforms on one pretext or the other. Countries like Gabon, Sudan, Zimbabwe, Chad, and DR Congo all blocked internet connectivity this year. As someone pointed out very cryptically, the only country in the continent, where somewhat unfettered communication is possible is South Africa. They predict that such liberal policies on internet would hold South Africa in good stead in grooming up more tech savvy people to give a critical push to the digital revolution.
The other hampering factor is the high pricing of internet access. On an average, a gigabyte of mobile internet data would cost 8% of average income of people across the continent. It is more than anywhere else globally. The basic reason for the high cost is the lack of competition between internet providers in markets across the continent. Internet speeds also pose a problem since the networks are of lower generations. Let us hope that the efforts of Google and Facebook, to cover the continent with high capacity underwater fibre optic cables will become a reality soon.
Africa has the potential to move in value chain in the IT segment since the present landscape is primitive to say the least as compared to the systems that are at work in the developed world. To catch up with the rest of the world, what Africa should do is to focus on two things: one attracting investments from outside and two, spread computer literacy to all sections of people.
While Africa is continuing its tryst with IT revolution, it has to grapple with various peripheral issues to welcome foreign investments. Foremost is the data protection and privacy. While countries like Kenya passed new data protection laws, which comply with the European Union’s General Data Protection Regulation, Nigeria is notoriously known for eavesdropping into others privacy especially that of political rivals.
