In an era where digital connectivity is reshaping global landscapes, Africa finds itself on the brink of profound transformation. To navigate this dynamic terrain, Telecom Review conducted an exclusive interview with Yoftahe Yohannes, a seasoned Digital Strategy consultant. With his expertise, Yohannes delves into the intricate interplay between digital connectivity and Africa's future, uncovering the myriad ways it unlocks economic potential and addresses socio-cultural dynamics.
As a Digital Strategy consultant, how do you foresee digital connectivity unlocking specific economic, social, and cultural opportunities for Africa, given its potential to revolutionize various sectors?
I think we need to first recognize the tremendous work done by both private and government organizations on the network coverage and digital connectivity. That is the basis of all the advantages we can think of from digital technologies. We have seen tremendous growth throughout the continent to provide broadband connectivity. Having said that, I would like to mention how economies in Africa were, and in some places still now, facing challenges of growth. You know, the digital divide is one of the contributors for the low GDP. Many innovators and entrepreneurs lag behind their peers in other places because of this digital divide. So, we need to recognize the impact it has if we don't intentionally invest in digital connectivity. That may be the reason why we see now many nations in Africa investing and opening this space to private players.
Let's see how digital connectivity unlocks economies. We have a classic example in relation to financial inclusion. Financial inclusion plays a major role in any kind of economic development. I feel proud to see how M-PESA created the mobile financial solution revolution. If I have phone and can get bank access or financial services on my phone, look what it means for many Africans. The idea is to build a contextualized solution on top of a technology that is accessible to many and easily scalable. Going forward, I see many opportunities that will unlock economic development in the area of mobile health, mobile education and so on. Recently I was observing how the youth in my country try to provide virtual training on specific skills. This is one example of e-learning which unlocks new economy. Not everyone has the luxury of opening an office, or setting up schools for specific skills which can be provided virtually over the internet. Low investment and high return economies will be the next trend in Africa.
On the social and cultural opportunities, we are witnessing how influencers in all sorts of social media are able to create indigenous African content. This is also providing them the opportunity to monetize their creative arts. For example, a cultural music artist may not need to go on time consuming and expensive paths to be heard. The more Africa is connected, the more cultural and social opportunities will open up.
What are the primary obstacles Africa encounters in harnessing digital connectivity for development?
The obvious one is the connectivity itself and coverage. Some areas still suffer from the issue of connectivity mainly driven from human-made problems like elongated wars. These may be exceptions. But for the major part of the continent, I observed two main obstacles. First, the policy in relation to encouraging and backing local content creators and providers. It is a common practice in any developed nation to provide the necessary conditions for local content to thrive, especially in the era of globalization. I see low traction in this area. Much attention is given to the multinational corporations rather. The second one is digital literacy. The overall digital literacy rate of the continent is not in good shape compared to the global average. In fact, we have to remember this is a big continent both in geography and population. There are some countries which are high on the measure but the average still needs a lot of work. This means, both for the digital content providers and consumers, it poses an obstacle to growth.
What specific strategies do you propose for African stakeholders to fully leverage digital connectivity's transformative potential?
I think we all agree that there is no one-fits-all strategy when it comes to digital connectivity and solutions revolving around it. But there are common building blocks that can be shared and reused. When discussing strategy, we need to keep in mind the primary obstacles I mentioned earlier. Afterall if strategy doesn’t address the effective approach on addressing issues, it doesn’t make sense. The first strategy should be to address the gap in competence and readiness of policy makers to allow new models of digital businesses to thrive. This is an experimental approach, so it is not a guaranteed model like the traditional businesses. We see how the digitally developed world is trying to catch up with the entrepreneurs in this area. This is to say we need to build agile thinking in our government institutes so they become part of the experiment. We need to make it easy to build businesses that optimize digital connectivity to harness its potential. The second strategy I propose is to use digital solutions to increase digital literacy. This may sound paradoxical, but what better solution do we have to address this monster? The easy and scalable way of reaching many people is mainly through digital connectivity. Let me give you an example.
Many people don’t know how to use their smartphone for multiple purposes, mainly because there is no guidance in their native language to educate them on how to use it. They use it to listen to music and watch videos produced in their native language. Can we produce educational materials to address digital literacy in native languages? That is a strategy to working in many countries. The third strategy may be more feasible for some countries in Africa, that is the taking advantage of digital businesses offshoring. Africa is hosting the young population. There is a huge competence in digital areas which is still untapped, from programmers to AI and data scientists. Considering the reliable fiber connectivity circling the continent and big telecom providers, I can confidently say we have all the underlying technological and human capital to host many offshores. In some countries, even the tax holidays and government incentives are interesting. As you know many African countries use green energy. All these combined should be strategically used to attract offshoring of businesses. In these ways, we can leverage digital technologies to transform businesses and communities. I know there are many specific strategies that can be discussed but as I said earlier, it depends on the context.
How do businesses in Africa strategically integrate digital connectivity into their operations to address market demands, enhance customer experiences, and drive competitive advantage?
The need to integrate digital connectivity into businesses is no longer a choice, but rather a drive both from business profitability and efficiency perspective. In recent years, I have witnessed how the financial industry has been rocked by the innovation and introduction of mobile financial services in many parts of Africa. How did these institutions respond? They start to integrate digital connectivity. There is no other way to, or a skip button. Businesses need to consider the investment costs, market maturity or timing and context of operation when they plan to integrate digital connectivity in their operations. Digital efficiencies can be secured through utilizing existing connectivity and digital solutions. It is not always necessary to make expensive investments. I see some organizations unnecessarily investing in high end data centers and the like, with the idea of becoming digital. Not a good option always. Cost, customer readiness and operational efficiencies should be always on balance.
What are the key upcoming plans and objectives shaping the trajectory of the telecommunications sector in Africa?
In general, I can say whatever plans shaping the rest of the world will impact Africa’s telecom market. Some of them are already in full swing. I think some of the ongoing trends will continue to shape the trajectory of the telecom market for the foreseeable future. Consider the plan to expand digital access, which is addressing the digital divide, telecom infrastructure investments, internet connectivity and fintech advancements. These obviously will continue in full momentum, because there are countries which need to catch up with the rest of the continent.
Additionally, there will be future trends shaping the African digital space. I assume mobile broadband fueled by 5G revolution will take the lead. The potential for mobile broadband and IoT will be the main drivers of this technology. The vastness of the continent may even fuel the need for this kind of technology. On top of mobile broadband, the local contents and innovative solutions will follow to lead the trajectory. Already we are seeing the emergence of local mobile health, mobile education, e-commerce and the like providing a catered solution to the communities. With the increase of connectivity, they will continue to shape the sector. Finally, the telecom industry will be impacted hugely by AI and automation that comes with it. This is not uniquely African, but a trend impacting the worldwide telecom industry. I am very optimistic that Africa will take advantage of these trends and move the trajectory to benefit its people.
