Indications have emerged that the 5G consumer market will grow to $31 trillion by 2030 especially at the rate e-commerce and other Internet of Things are growing. This was contained in a report from Ericsson ConsumerLab called Harnessing the 5G Consumer Potential. The report estimates that communications service providers (CSPs) could earn $3.7 trillion of that total – a figure that could increase further as new adjacent digital services opportunities arise.
5G Messages
The report also says that CSPs could generate up to $131 billion by 2030 from digital service revenues alone, by proactively bundling and marketing 5G use cases. About 40% of these revenue projections are attributed to consumer spending on enhanced video, augmented reality (AR), virtual reality (VR) and cloud gaming over 5G networks.
The report projects that AR is likely to drive more than half of all consumer spending on immersive media by 2030 – starting with gaming and extending to other areas like shopping, education and remote collaboration.
Key findings also highlight how the impact of the COVID-19 pandemic on personal finances and financial priorities may have affected consumers’ willingness to pay a premium for 5G subscriptions. In early 2019, the average consumer was willing to pay a 20%premium for 5G. As 2020 draws to an end, that figure has dropped to 10%.
However, one in three early adopters globally are still willing to pay a 20% premium. Such high levels of early adopter take-up could help drive economic recovery, according to the report.
The report also projects that by proactively driving 5G consumer adoption, CSPs could gain 34% higher 5G average revenue per user (ARPU) by 2030. This could boost consumer revenues at a compound annual growth rate (CAGR) of 2.7% compared to flat revenue growth of 0.03% by taking a passive approach across the decade.
“This is the first time that Ericsson has presented a revenue forecast for the 5G consumer market, which remains the core business of communications service providers. Through our research, we have highlighted the role of use case development, tariff innovation, quality 5G coverage and ecosystem partnerships to unlock the true potential of this market,” says Jasmeet Singh Sethi, Head of ConsumerLab at Ericsson Research.
“It is clear that 5G will drive enormous opportunities for CSPs in consumer business over the decade. As this journey is already underway, those CSPs that quickly and proactively evolve their consumer propositions are likely to be bigger winners.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Looking to launch your business in Africa as a female startup founder, there are countries to prefer over others. According to Mastercard Foundation’s latest annual Index of Women Entrepreneurs (MIWE), it is easier to succeed as a woman founder in South Africa than in 11 other African countries considered in the report. The report notes that this shows progress in access to finance and entrepreneurship education for women.
“Some of the highest proportion of women’s business ownership are observed in Uganda (39.1% female business owners out of total owners), Botswana (38.5%) and Angola (30.6%) despite extremely poor support for SMEs,” the report notes.
Here Is What You Need To Know
The Mastercard Women Entrepreneurs Index 2020 (MIWE) examined the business environment in 58 economies representing the global female workforce, an analysis using indicators on the progress made in the development of female entrepreneurship, and which classifies each economy according to its performance over the past year.
Success factors favorable to women entrepreneurs are due to achievements in institutional support for businesses, entrepreneurship education, and the high visibility of women leaders.
In addition, the cultural perceptions of women entrepreneurs as well as their willingness to take risks to start a business also improves the business environment for women.
Source: Mastercard Foundation
Female founder succeed African countries Female founder succeed African countries
Which African Countries Rank Highest In Their Support For Women Founders?
In this ranking, South Africa, which occupies 23rd place in the world, leads on the black continent, with a score of 64.42. Botswana, 31st in the world, occupies second place with 62.42. Ghana then comes in 3rd place (37th worldwide) with a score of 60.18. Uganda, Nigeria and Angola respectively occupy the next ranks, scoring over 50.
Malawi and Ethiopia have the average and occupy 7th and 8th positions respectively in the African ranking.
The bottom 3 places in Africa are occupied by Tunisia, Egypt and Algeria, which score below average and are ranked among the bottom countries globally.
The index, however, reveals that the economic contribution of women as business owners and entrepreneurs is significantly greater in weaker economies such as Uganda, Angola, Malawi, Ghana and Botswana. In these countries, women who own 30–40% of businesses challenge socio-cultural barriers and obstacles such as lack of education and access to capital.
This year in particular, women have been much more vulnerable to the general disruption caused by the Coronavirus pandemic. This is due to the over-representation of women in the most affected jobs and sectors (tourism, transport, retail, restaurant services, etc.), and the pre-existing gender disparity in companies (lower digital skills, financial marginalization, poor access to education, etc.).
The Global Top 3 shows Israel at the top of the rankings (score of 97.4), largely thanks to institutional support from SMEs, focused on funding and promoting networking opportunities. In 2nd position, the United States (score of 74), due to the cultural consideration favorable to entrepreneurship, high visibility and leadership. Switzerland ranks 3rd in the world (score of 71.5) for its significant progress in supporting SMEs.
Click here to access the full report from the Mastercard Foundation.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
A breakthrough in adapting to the new order of life as a result of the Covid-19 social distancing mandates, Kenya’s O-CITY is driving contactless payments across bus services in Nairobi, Kenya. The pilot initiative, designed to reduce the use of cash in response to the COVID-19 pandemic, was launched in partnership with transport savings and credit specialists, NikoDigi, and Kenyan payments firm, Tracom, to accelerate the deployment of cashless fare collection. Used by 70% of the population in Kenya, Matatu buses are a dominant transport mode across the country whereby passengers traditionally pay in cash. O-CITY’s automated fare collection platform leverages the M-Pesa mobile wallet, which is used by 90% of the population in Kenya.
O-CITY contactless payment system
Passengers enter a code on their phone and a debit is made on their wallet, which can be instantly seen by drivers to grant access to ride. The platform removes unnecessary tickets and cash payments, instead offering an accessible payment solution that consumers already use, via a device already in their hand.
“Having provided savings and credit management solutions for both the Matatu and Boda Boda (motorbike taxi) sectors, Nikodigi understands the needs of vehicle owners and drivers,” says Patrick Karera, MD at Nikodigi.
“Together with our partners, we have designed a product that automates fare collection without taking control away from the drivers and conductors or radically changing how they operate. We dubbed the solution “Lipafare” meaning ‘pay fare’.”
SVP of smart city and transport solutions at BPC, Tokhir Abdukadyrov says that the “mobile money revolution has been happening in Kenya with the ubiquity and success of M-Pesa. The move away from cash to contactless public transport is an important part of this movement.”
“At O-CITY, we know that innovation does not always require new technologies, but instead new ways of performing a task. By connecting our O-CITY platform to mobile wallet M-Pesa, we’re able to build a simple contactless fare solution that is familiar to the customer and likely to encourage adoption. Moreover, it enables us to scale fast to roll out the service at a time when cashless payments have newfound importance.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
There are indications that this is not the best of times for many resource rich African countries as the Afreximbank African Commodity Index (AACI) for Q3-2020 shows a marked decline. The AACI which iis a trade-weighted index designed to track the price performance of 13 different commodities of interest to Africa and the Bank on a quarterly basis. In its Q3-2020 reading, the composite index fell marginally by 1% quarter-on-quarter (q/q), mainly on account of a pull-back in the energy sub-index. In comparison, the agricultural commodities sub-index rose to become the top performer in the quarter, outstripping gains in base and precious metals.
Chief Economist at Afreximbank, Dr Hippolyte Fofack
The recurrence of adverse commodity terms of trade shocks has been the bane of African economies, and in tracking the movements in commodity prices the AACI highlights areas requiring pre-emptive measures by the Bank, its key stakeholders and policymakers in its member countries, as well as global institutions interested in the African market, to effectively mitigate risks associated with commodity price volatility.
An overview of the AACI for Q3-2020 indicates that on a quarterly basis shows that the energy sub-index fell by 8% due largely to a sharp drop in oil prices as Chinese demand waned and Saudi Arabia cut its pricing; The agricultural commodities sub-index rose 13% due in part to suboptimal weather conditions in major producing countries. But within that index, Sugar prices gained on expectations of firm import demand from China and fears that Thailand’s crop could shrink in 2021 following a drought; Cocoa futures enjoyed a pre-election premium in Ghana and Côte d’Ivoire, despite the looming risk of bumper harvests in the 2020/21 season and the decline in the price of cocoa butter; Cotton rose to its highest level since February 2020 due to the threat of storm Sally on the US cotton harvest, coupled with poor field conditions in the US; Coffee rose 10% as La Nina weather conditions in Vietnam, the world’s largest producer of Robusta coffee, raised the possibility of a shortage in exports.
Base metals sub-index however, rose 9% due to several factors including ongoing supply concerns for copper in Chile and Peru and strong demand in China, especially as the State Grid boosted spending to improve the power network; Precious metals sub-index, the best performer year-to-date, rose 7% in the quarter as the demand for haven bullion continued in the face of persistent economic challenges triggered by COVID-19 and heightening geopolitical tensions. In addition, Gold enjoyed record inflows into gold-backed exchange traded funds (ETFs) which offset major weaknesses in jewellery demand. Regarding the outlook for commodity prices, the AACI highlights the generally conservative market sentiment with consensus forecasts predicting prices to stay within a tight range in the near term with the exception of Crude oil, Coffee, Crude Palm Oil, Cobalt and Sugar.
Speaking on the development, the Chief Economist at Afreximbank, Dr Hippolyte Fofack said that “Commodity prices in Q3-2020 have largely been impacted by COVID-19. The pandemic has exposed global demand shifts that have seen the oil industry incur backlogs and agricultural commodity prices dwindle in the first half of the year. The outlook for 2021 is positive however conservative the markets still are. We hope to see an increase in global demand within Q1 and Q2 – 2021 buoyed by the relaxation of most COVID-19 disruptions and restrictions.’’
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The ban earlier placed on some European carriers such as Lufthansa German Airline, and Air France/KLM Group by the Nigerian government from operating international flights into the country has been lifted. This development follows a series of bilateral talks between the Nigerian government and representatives of the airlines and their diplomats. Making the decision public, the Nigerian Minister of Aviation, Hadi Sirika also added that Qatar Airways has been granted approval to resume flights to Abuja.
Minister of Aviation, Hadi Sirika
Sirika hinted at the possibility of the Mallam Aminu Kano International Airport, Port Harcourt International Airport and Enugu Airport accommodating foreign travellers before year end. It could be recalled that the ban came on the heels of the Covid-19 travel ban especially when Nigerians complained that European countries banned Nigerians from coming to their country while their airlines are allowed to fly into Nigeria daily, this prompted the government of Nigeria to retaliate by placing a ban on the airlines.
The Aviation Minister also noted that his ministry is working with the Ministry of Health, CACOVID & The PTF to open Kano, Port Harcourt & possibly Enugu airports before the end of the year. Also Lufthansa, Air France/KLM have been given go-ahead to resume.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Pan African energy firm driving energy transition across the continent, CrossBoundary Energy is currently operating or delivering $57M in assets, serving 20 customers across 8 countries in Africa, including more than 40MW of fully financed solar PV and 10 MWh of battery storage projects; transaction provides an exit for initial investors at 15% IRR and provides a powerful proof of concept for blended finance, returning a profit to the US Treasury on USAID’s catalytic first-loss contribution; $40M of new funding enables the scaling of CrossBoundary Energy’s commercial and industrial solar services to provide many more African businesses with access to cheaper, cleaner power ; support from institutional investors and ongoing adoption by leading corporates highlights the viability and attractiveness of distributed generation.
Pieter Joubert, Chief Investment Officer, CrossBoundary Energy
CrossBoundary Energy (CBE) has announced the exit of its first fund at a 15% net IRR to investors. ARCH Emerging Markets Partners’ Africa Renewable Power Fund (ARCH ARPF) is providing $40M in new equity funding to exit initial investors and support CrossBoundary Energy to continue to develop, construct and operate distributed commercial & industrial (C&I) solar projects that will provide businesses across Africa with access to cheaper, cleaner power. This exit and new investment is a powerful endorsement for the role of distributed renewables in Africa and the potential of blended finance in unlocking new asset classes.
First, the substantial raise of new capital highlights the exciting potential of distributed solar to provide more reliable and affordable power to African businesses. Over the last five years, CBE has pioneered the creation of a C&I solar sector in Africa. CBE’s solar-as-a-service model allows corporate customers to avoid the upfront capital expenditure and technical risk that can be a barrier to solar adoption. Instead, customers enter into long-term solar service agreements under which CBE (in partnership with local developers and solar contractors) finances, installs and operates solar assets to provide customers with cleaner and cheaper power. CBE signed the first distributed solar power purchase agreements with corporate customers in Kenya, Rwanda, Ghana, Madagascar, Uganda, Sierra Leone, Zambia and Nigeria, and has built a strong client base with both multinational companies, including Unilever, Diageo, Coca-Cola distributors, Rio Tinto, Heineken, AB InBev, Actis, and leading local companies including Kasapreko and Xflora Group. CBE is now operating or delivering $57M in assets, serving 20 customers across 8 countries in Africa, including more than 40MW of fully financed solar PV and 10 MWh of battery storage projects.
Second, the exit of CrossBoundary Energy I (CBE1) is also a powerful demonstration of the potential of blended finance to unlock new and impactful asset classes. CBE1 was closed in November 2015 as Africa’s first dedicated fund for C&I solar. It was also a prototype for a new blended finance approach to renewables in Africa. USAID’s Power Africa initiative contributed $1.3M in the form of a repayable grant to catalyse private investors into the fund. USAID’s subordinated equity contribution attracted additional equity investors, effectively resulting in leverage of matching private capital of more than 6.0x. At the close of this transaction, this leverage increased to more than 30x and USAID’s blended finance contribution of $1.3M has now been repaid to the US Treasury with a return of 5%. CBE1 also benefited from grant support from OPIC (now the US International Development Finance Corporation) and the Shell Foundation, in partnership with the UK’s Foreign, Commonwealth & Development Office, which allowed the fund to scale its operations.
Pieter Joubert, Chief Investment Officer, CrossBoundary Energy says, “We are incredibly grateful for the early stage backing we received from our partners and investors such as Blue Haven Initiative, Ceniarth, Slocum Investments, Treehouse Investments and others, who trusted in our vision to bring cheap, clean energy to businesses across the continent and continued to support and work with us to realise that vision. In terms of what comes next, partnering with an industry-leading investor like ARCH ARPF highlights the proven viability of captive commercial and industrial solar projects in Africa. We’re very excited to work with ARCH ARPF to continue providing Africa’s leading businesses with cheaper, cleaner, more reliable power at no upfront cost. This commitment by ARCH ARPF represents the next phase of a larger $100M transaction which will allow us to take the C&I sector to scale across Africa, and in doing so, further reduce energy costs for our customers, create additional jobs within the solar sector, and significantly reduce carbon emissions.”
William Barry, Managing Director, ARCH ARPF, says, “We believe that distributed renewables will be an important part of the energy future in Africa. The lower cost for solar and storage means that companies like CrossBoundary Energy can offer retail consumers reliable, cost-effective solutions to their electricity needs. At ARCH ARPF, we aim to partner with strong management teams and invest in scalable business models that offer compelling alternatives to their customers, including in the C&I space. CBE has been able to grow a portfolio of high-quality assets and their growth continues to rapidly accelerate. We are excited to support them to scale.”
Mark Carrato, Coordinator of the U.S. Government-led Power Africa initiative, says, “Power Africa supports enterprise-led market innovations to address Africa’s energy challenges. CrossBoundary Energy’s model of distributed renewables to accelerate access to cheaper and cleaner power is an excellent example of this. In 2015, Power Africa made a repayable $1.3 million first-loss grant contribution to catalyze the creation of the CrossBoundary Energy I Fund. While the grant initially unlocked six times that amount in matching private capital, it has now leveraged 30 times our contribution from private investors. Moreover, the initial $1.3 million plus 5% interest has been returned to the U.S. Treasury. This success is a validation of Power Africa’s emphasis on helping catalyze the private sector to provide life-changing access to electricity across sub-Saharan Africa.”
Sam Parker, CEO of Shell Foundation, says “The mission of the Shell Foundation is to build investable businesses that enhance access to energy for low-income communities across Africa and Asia. CrossBoundary Energy is having a major impact through the provision of lower cost, cleaner and more reliable power to African enterprises. We are proud that our early stage support helped them reach commercial viability and scale.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Cigna Foundation has partnered with Cup of Uji Kenya, a school feeding program founded by Hope Alive Campaign, a community based organization, to reduce food insecurity among primary school children in Kenya. In line with the partnership, the Cigna Foundation has contributed US$200,000 to fund nutritious meals for children and nurture their health and well-being.
Jerome Droesch, CEO of Cigna in Middle East, Africa and South East Asia
The contribution is supported by Cigna’s Healthier Kids for Our Future®, a five-year global initiative launched in 2019 to improve the health and well-being of children – and to help build healthier, more vibrant communities for the next generation. Healthier Kids for Our Future is aligned with three of the 17 leading global objectives identified by the United Nations Sustainable Development Goals: No Poverty, Zero Hunger, and Good Health and Well-Being.
The partnership with Cup of Uji Kenya supports local NGOs with the funds with an aim to purchase and distribute 500,000 meals comprising rice and beans across local schools. Through this initiative, Cigna Foundation will empower local NGOs, who understand the requirements of schools, with resources to fulfil the needs of the community. The humanitarian project is set to incentivize primary school children in Kenya to attend school.
Speaking on Cigna Foundation’s efforts to combat global hunger, Jerome Droesch, CEO of Cigna in Middle East, Africa and South East Asia, said: “It is disturbing to witness this growing challenge of global hunger and to do nothing about it. If not addressed, we will see 840 million people facing hunger by 2030, as per the predictions of the World Food Programme. Children who go hungry are likely to suffer from severe nutritional issues that can impact both their long-term physical and mental health.”
He added: “In our efforts to offer hope for a healthier life to the children of Kenya, we are committed to this partnership with the Cup of Uji Kenya for the long haul. This effort has enabled Cigna and its employees to actively contribute towards the purchase, packaging and distribution of meals on ground. It was a deeply moving experience for Cigna’s employees to work alongside the Cup of Uji Kenya team to make this initiative come alive.”
Cup of Uji Kenya is a school feeding program founded by the Hope Alive Campaign that seeks to tackle food insecurity by providing meals to over 3,000 less fortunate school children in primary schools in Kenya. The program addresses the UN’s Sustainable Development Goals of No Poverty, Zero Hunger and Good Health and Well-Being through fighting hunger, driving education and eliminating poverty in the long term.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The South African economy is expected to contract by up to 7.2%, reports Finance Minister Tito Mboweni. He says this will be “the largest contraction in 90 years”. And it’s no secret that the COVID-19 pandemic has played a massive role in exacerbating the issue. According to the World Bank Blog, now is the time to prepare for public-private partnerships (PPPs) as these could play an increasingly important role in reshaping South Africa’s post-pandemic economy.
South Africa’s Finance Minister Tito Mboweni
Tumi Moleke, Head of the PPP Unit at Treasury, believes “the timing is perfect to mobilise the utilisation of the PPP model, and it is now paramount to deliver economic growth for the public interest.”
What exactly are PPPs?
“[PPPs] are by nature large-scale projects that draw on a multitude of resources,” says Vino Govender, Executive of Strategy, Mergers and Acquisitions, and Innovation at Dark Fibre Africa. “While these projects have a public-service-delivery component to them, they also deliver value to private industry partners, and hence there are the business- and operating-model components to them too.”
These collaborative components are necessary to building an inclusive economy that fosters job creation and delivers essential services – something so critical in times like these. Here are five ways in which technology could enhance PPP projects:
Technology drives innovation
Innovation is key when it comes to exploring new solutions and ideas, and in this case, new ways to ensure that PPP projects are effectively boosting the South African economy. It’s crucial in a rapidly advancing world that innovation is driven by technology that fosters communication, collaboration, and creative problem-solving.
It can promote efficiency
Technology can allow PPP projects to work in a more streamlined and functional manner. This is because today it’s easier than ever to bring together multidisciplinary teams to collaborate on projects, implement automation, and reduce troubleshooting. Tech can help organisations deliver projects faster and increase delivery capacity
Large PPP projects are usually linked to public services, which are key to the livelihood of South Africans, so timing is crucial. Technologies like IoT, analytics, and AI can come together to shorten delivery time of projects and lead to higher services availability.
It transforms business models
Technology has fundamentally changed the way that businesses produce, while altering the way that consumers purchase and consume. The same is true when it comes to PPP projects, which now have to follow consumption-based models.
Technology can encourage skill augmentation
PPP projects need to rapidly equip teams with the necessary skills and resources they need to support digital transformation. Technology makes this easier than ever as it can help foster a culture of connection whilst investing in skills for the future.
“PPPs offer a solution that brings investment and skills to the table. Where the government brings the mandate and regulation, the private sector can contribute skills and finance,” says Govender. “This is also how I see the industry supporting the local economy in terms of GDP growth and job creation.”
With this in mind, it’s clear that PPPs are critical to the restructuring and recovery of the South African economy – and access to sustainable technology solutions are key to rapidly deploying these projects.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Global market card payment leader, Mastercard has entered into a partnership agreement with South Africa’s Payment24 aimed at offering a payment solution that will help fleet management companies streamline payments, create efficiencies and prevent fraud. Payment24’s platform will use Mastercard’s payment technology which is expected to enable drivers to quickly and seamlessly make fuel payments anywhere Mastercard is accepted, without requiring additional approvals at the pump.
Suzanne Morel, Country Manager at Mastercard South Africa.
Commercial fleet management companies will have more control and visibility into driver’s spend, with the option to add purchasing controls to eliminate fraud. For instance, a company could opt to enable the driver to pay digitally for border post charges or for accommodation and meals, removing the need for costly and unsafe cash advances.
The fuel solution is flexible and adaptable to customer needs, with various payment mechanisms available including fleet cards, tokenised tags, e-wallets and vouchers that can be allocated to a driver or a vehicle. Each transaction is protected by Mastercard’s multiple security layers, and fraud and dispute processes.
“The fleet management industry in South Africa is comprised of fleets of every size and description. While a variety of payment programmes have emerged over the last few years, most of these allow drivers to only pay only at selected fuel stations in the country,” says Suzanne Morel, Country Manager at Mastercard South Africa. “Through this collaboration with Payment24, we can solve these pain points and enable seamless and secure payments anywhere Mastercard is accepted, without authorisation delays or troublesome cash. This is especially critical in today’s current environment, where fleet operators are increasingly digitising their businesses to save costs, reduce fraud and improve the visibility of payments.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Yesterday, Google and the International Finance Corporation published a report entitled e-Conomy Africa 2020. It estimates that the economy of the African continent could gain 180 billion dollars by 2025 thanks to two things: greater access to a fast and quality Internet connection, as well as the realization of the African Continental Free Trade Area project.
Nitin Gajria, Google Director for Sub-Saharan Africa
“Google and IFC have created this report to highlight the role that the digital startup industry plays and other factors driving the continent’s growth, in order to showcase and support the opportunities that the continent presents,” Nitin Gajria, Google Director for Sub-Saharan Africa said. “For Africa, continuing this momentum requires investment in infrastructure, consumption of digital services, public and private investment, and new government policies and regulations.”
Google E-conomy report Africa Google E-conomy report Africa
Here Is What You Need To Know
The report indicates that the internet economy has the potential to reach 5.2% of Africa’s GDP. When the projection is extended to 2050, its contribution exceeds the $ 700 billion mark. In the short term, i.e. by the end of the year, Accenture (study contributor) expects i-GDP to be worth $ 115 billion, or 4.5% of total GDP ($ 2,544 billion). In 2019, it represented 3.9% of the economy with $ 99.7 billion.
Among other factors behind this growth, the report cites the rapidity of urbanization, the growing pool of technological talent, and the dynamism of the startup ecosystem.
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
