FINAL WORD
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Addressing African problems
ith an estimated population
of 1.2 billion people and 54
unique markets, Africa offers
significant opportunities. More than
just an investment destination, the
continent is rapidly becoming a leader
in innovation. Increasing connectivity,
a young population and the impact of
global trends that are favourable
to emerging markets are all driving
this momentum.
Connectivity
Telecoms is one example. In Africa, it
is not cost-effective to roll-out physical
infrastructure to remote communities;
instead many countries are embracing
mobile to provide ICT access to more
citizens. The rapid growth of mobile
communications since the early 90s has
seen several countries surpass many
developed markets when it comes to
coverage, accessibility and speed.
Mobile is considered an enabling
technology used to push innovation in
both traditional sectors like agriculture
and resources, as well as in education
and healthcare.
This mobile push has resulted in the
number of Internet users in Africa
growing to almost 400 million as of
June this year. Add to this a mobile
subscription penetration rate of
80% and you have an environment
where you’ve allowed millions of
new entrants to join the global
“Addressing
the needs and
requirements of
citizens across
the continent
has become
fundamental
in an Africa 4.0
environment.”
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INTELLIGENTCIO
Saidah Nash-Carter, Head of
Innovation, Thomson Reuters Africa
marketplace. One example of this
is how mobile technology has
impacted small farmers throughout
the continent. Databases that allow
farmers to input their data like crop
yields and acreage, have enabled
global banks to provide microloans
and other capital for investments.
This was a population that without
connectivity was largely cut off from
the rest of the world.
Partnering for growth
Africa puts people at the centre of
all product development. Adapting
technology and solutions with the end
user in mind has allowed for collective
co-development which is one of the
most effective ways to innovate.
These partnerships are focused on
creating conversations around what
the customer needs are and how best
to work together to develop solutions
around that. The continent has really
been embracing an entrepreneurial
flair to its innovation programmes
that see organisations continuously
test new partnerships or investment
opportunities to transform value
propositions. In fact, there are over
300 innovation technology hubs and
incubators on the continent which are
fuelling entrepreneurs and bringing
start-ups and big corporates together
to drive and harness disruptions and
innovation. It is estimated that by
improving entrepreneurial conditions
by 10%, $176 billion could be added to
the economy.
New transformative technology is at
our fingertips. The challenge is that
just as we somewhat wrap our heads
around one thing, the landscape
shifts again. In fact, it has been said
that we are on the brink of the fourth
Industrial Revolution, a technological
revolution that will fundamentally
alter the way we live, work and relate
to one another. In its scale, scope and
complexity, the transformation will be
unlike anything we have experienced
before and for those not paying
attention, it will be very disruptive.
However, for those with their fingers
on the pulse, embracing this evolution
is a remarkable chance to connect
business with innovation, to improve
efficiency and to drive social change.
In fact, the arrival of the fourth
Industrial Revolution has resulted in an
increasing global awareness of how
technology will directly change people’s
lives. Its potential for disruption is clear,
forcing companies to re-evaluate how
they solve difficult problems, grow the
bottom line, and do so cost-effectively.
Africa has not been immune to this,
but it has embraced the complexities
of this new environment by going back
to its roots of people-centricity. Look
at GE for example – a company that
has been at the forefront of power
innovation in Africa for decades – and
its recent Bridge Power Project in
Ghana, which will not only address
the long-term energy requirements of
Ghana by providing more than 17%
of the country’s reliable generating
capacity, but will also create hundreds
of jobs during both the construction
and operation phases. This project
also brings much-needed reliable and
affordable electricity to Ghana, and will
have an immediate positive impact on
the running of schools, factories, offices,
hospitals and households.
Another case in point is one of Africa’s
perpetual problems: transport. It is also
a very solvable problem. Potholed roads
and missing rail links get in the way of
economic growth and intra-regional
trade. Just consider the implication
when transport costs can make up
50–75% of the retail price of goods in
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