In the last few decades, the economy of Africa has been in a horrendous situation. Most investors fled and opted to invest in other foreign countries. Today, this is no longer the case! Africa is becoming a center for technology innovation, transforming how firms conduct business throughout the continent. In addition, the rise of technological tools in business has played a paramount role in easing how business is done here.
Being a central pillar in the economy of Africa, technology affects business in numerous ways. Without incorporating technology into business, Africa would still be raging behind economic-wise. Therefore, to stick to the main topic, we will discuss and clarify how tech impacts Africa’s business environment.
Reasons why technology is vital in business?
Does technology have any benefits for businesses? Let’s find out some of the reasons why businesses need technology. Here are some of the reasons:
1. Saving on Cost
To succeed in the market, businesses require a thorough understanding of technology. Without a doubt, technology enables organizations to accomplish more in less time without compromising the quality of their goods or services. In recent times, monotonous jobs that were formerly completed by people are now handled by technology. This helps by reducing the cost of hiring employees or placing them where they are most needed.
Communication is key to any business environment. Technology can now do it more quickly, widely, and effectively. Interactions with your team members, clients, prospective clients, investors, and the general public will fall under this category. Social media, newsletters, and other technological tools are all equally important tools for communication.
3. Global Connectivity
Businesses need to engage with a worldwide audience. Businessmen can interact with clients, partners, and suppliers worldwide by using online platforms and communication tools, which promotes global cooperation and increases market penetration.
4. Customer Engagement
Customers are the main players in any economy. Social media and internet platforms give firms real-time client engagement. This strengthens connections, permits more individualized interactions, and offers a venue for evaluations and comments.
5. Business Research
Through social listening, analytics software, and online surveys, technology makes market research easier. This enables companies to remain aware of market developments, comprehend client preferences, and modify their tactics as necessary.
Areas Technology Impacts Business in Africa
Look around around you. Your business environment is not the same as the one you were born in. Many areas have evolved. Technology has changed how things are done, how we conduct business, and how we work. Thus, we cannot underrate the importance of tech in the business world. However, which areas have experienced technological advancements in the business world? Let’s discuss these areas in depth.
Agriculture is the backbone of Africa’s economy. Many businesses in Africa revolve around agriculture, and thus, altering it alters Africa’s economy. The use of technology in agriculture has resulted in an improved business environment. The use of data analytics techniques and farm-based mobile applications has enhanced productivity. Farmers can now check weather forecasts, market prices, outbreaks of diseases, and best practices of farming in real time. In addition, African farmers and business people are receiving seed capital from different sources, such as the Seed Capital Assistance Facility, which allows them to run their activities smoothly. Therefore, by improving agriculture, technology indirectly and directly improves how the agriculture business runs.
2. Financial Business
Secondly, technology has a huge impact on the financial industry. Today, there are several modes of payment and receiving money from different sources. Unlike in the old days, today, business people can easily transact with their mobile phones without visiting the business premises. This technology allows even those in rural areas to transact, thus saving time that could be wasted while visiting banks. In addition, banks and other money-lending companies have mobile-based apps and websites that lend money to business people at a low-interest rate. Technological services like M-Pesa, MTN mobile money, and Airtel money are some of the mobile money services that are slowly replacing the need to visit bank premises. Thus, we can all concur that technological advancement has been on the frontline in impacting Africa’s business environment.
3. Transport Business
In ancient days, moving from one region to another wasn’t a walk in the park. The modes of transport used in ancient days proved to be slow and time-consuming. Thankfully, technology saved Africans from ancient downsides. Today, new modes of transport, such as trains, airplanes, vehicles, etc., are faster and more comfortable. For instance, some African airlines, like Ethiopian Airlines, have greatly improved business in Africa. Most of its frequent travelers always rate it at 8/10, which is an indication of how technology has improved transport. Next, technology has led to the adoption of mobile phones, which are used to book and pay ticket prices. Studies reveal that the use of mobile tickets has increased significantly, with over 45% of passengers using public transportation indicating that they would rather use a mobile ticket. Therefore, technology in transport enables producers to reach consumers easily.
4. Bridging Geographical Gaps
What would happen to the global market if technology didn’t exist? Technological advancements in Africa have bridged the geographical gaps between local and international markets. With technological tools like online marketplaces, Africans can easily buy or sell their goods or services in real-time. With 64% internet penetration in countries like Kenya and South Africa, many businesses have improved leading to increase in GDP to 3.6%. Above all, technology has changed how businesses operate and carry out their day-to-day activities.
5. Skill Development
Technology is a game-changer in skill development and education in Africa. The introduction of e-learning is central to promoting education and skill development in Africans. Recently, even those in remote areas have access to educational materials and classes that equip business people with skills to tackle problems easily. Africa has seen an improvement in skill development of about 4.3% as compared to the previous year. Therefore, by developing the skills, technology underpins business in Africa.
Never again wonder why technology is important in the business world. You’ve got all the answers. Technology has become vital to Africa’s economic recovery, boosting transportation, bridging regional divides, and transforming financial transactions and agriculture. Using digital technologies improves productivity and communication and allows companies to navigate international marketplaces and interact with clients successfully. Additionally, technology is essential for skill development because it promotes learning and creativity. Therefore, technology should be the priority for any continent or country to thrive.