The COVID-19 pandemic has seen the integration of some notable technology into different industries in the world, and African businesses are not left behind. This, to an extent, reflects how digital transformation influences companies and the fact that the African business scene is continually changing, and organisations that do not adapt will become defunct.
As a potential growth market, Africa has piqued international interest as last year, private equity investment increased tremendously. According to a prediction by Report Linker, the digital transformation industry would grow at a Compound Annual Growth Rate (CAGR) of 19.1% by 2026.
Here are some noteworthy technology used in industries that will change African businesses this year.
The health-tech industry in Africa is booming, and the number of new businesses in this field has increased as well as investment. Traditional healthcare providers have been compelled to adapt their business models and use new technology due to the pandemic, which has resulted in new opportunities in the field.
According to a survey by Salient Advisory, the most prevalent form of service supplied by health innovators in the previous five years is telemedicine paired with the direct-to-consumer distribution. Companies are now integrating tech-enabled solutions to revolutionise how health items are distributed. For example, MYDAWA, a Kenyan online pharmacy, now offers telemedicine services through SASAdoctor. E-commerce behemoths like Jumia, Konga, and Copia have also begun to sell over-the-counter health items.
Real estate is one of the world’s oldest commercial sectors that is yet to alter the ways of doing things. In this regard, Proptech businesses are developing to challenge the traditional property way of thinking. According to The Africa’s report, “What started as a trickle through the introduction of online search platforms has become a wave of disruptive and cutting-edge technologies that continue to improve both transparency and efficiency”.
African Proptech businesses gained traction last year and the Rent Small Small, a Nigerian proptech business, became the first African startup to be accepted into the Techstars Accelerator in Canada. Seso Global also secured $600,000 in pre-seed funding last year. This indicates that investors are optimistic about the area.
Blockchain technology is gradually changing the global arts and music industries through NFTs. African artists joined the NFT wave to tell their stories about the continent. South African NFT startup, NFTfi, garnered $5 million.
This event is slowly making its way into the African music scene. Don Jazzy, a well-known figure in the Nigerian music business, has also keyed into NFTs. Last year, top musicians like M.I. and Falz expressed interest in music NFTs.
Increased Internet Usage
Africa’s internet economy generated $115 billion in 2020 and is projected to bring in $180 billion by 2025. Urbanisation is one of the internet economy’s driving forces. According to an OECD estimate, Africa will have the world’s fastest urban growth rate, and by 2025 the cities will be home to 45% of Africa’s population.
Also, cyber behemoths like Facebook and Google are constructing massive cable networks across Africa to boost internet access. As the number of internet users grows, so does the visibility of businesses on the internet. But it also implies that the internet culture, which prioritises speed and ease, will expand even further.
Agritech businesses are on the rise in Africa, with tremendous development. Agriculture is a significant business in Africa, accounting for 14% of GDP in Sub-Saharan Africa. However, due to the vast number of small scale farmers, farm product production has been constricted.
Last year, innovative businesses such as Releaf and Hello Tractor received funding and changed the agriculture industry. In 2020 and 2021, agritech businesses received the second-largest venture capital financing.