Home Editors' Pick IFC Report Highlights Digital Opportunities and Challenges for African Businesses

IFC Report Highlights Digital Opportunities and Challenges for African Businesses

0
IFC
IFC

The International Finance Corporation (IFC) of the World Bank unveiled a new report on Friday at the 11th Africa CEO Forum in Kigali, Rwanda, emphasizing the potential digital opportunities for African businesses.

The report reveals significant disparities in digital adoption across Africa, influenced by factors such as firm size and economic status. In middle-income countries like Kenya, Senegal, and Ghana, 57 percent of firms with five or more employees use computers and the Internet. This contrasts with low-income countries such as Burkina Faso, Ethiopia, and Malawi, where only 44 percent of similar-sized firms have adopted these technologies.

Larger firms are generally more inclined to embrace digital technologies, while smaller and informal businesses, particularly in low-income regions, face significant barriers. These barriers include limited access to digital tools and infrastructure. Despite these challenges, mobile phones and digital payments have become key entry points for many businesses, with 86 percent of firms using mobile phones and 61 percent adopting digital payment systems.

The report identifies several obstacles to full digitalization, including inadequate digital and electricity infrastructure, high technology costs, low levels of human capital, and limited access to finance. Digital equipment and software are more expensive in Africa compared to other regions, further hindering widespread adoption.

To address these challenges, the report calls for increased private sector investment to promote digital infrastructure, support technology start-ups, and improve access to finance. Additionally, regulatory reforms and investments in digital infrastructure, such as new submarine cables, could help reduce internet costs and enhance connectivity.

The report also stresses the need for policies aimed at reducing tariffs on digital goods and promoting market integration to foster a more conducive environment for digital transformation in Africa.

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP Radio
WP Radio
OFFLINE LIVE
Exit mobile version