A brand new report from Vodacom Group, Vodafone Group and Safaricom has revealed that SMEs in Africa are embracing the optimistic affect of know-how. Actually, 70 per cent of companies within the area have invested in tech to spice up progress and resilience. 

The report titled Levelling the SME Taking part in Discipline, is the sixth analysis paper below the Africa.linked marketing campaign. The aim of the marketing campaign is to drive sustainable growth by closing the digital divide in Africa’s key financial sectors. That is particularly carried out by means of strategic partnerships.

There are quite a few alternatives that unlock the complete potential of digitalisation for these companies and the continent, which implies addressing boundaries, corresponding to infrastructure, connectivity, and the excessive price of implementing know-how, and creating finest apply frameworks for higher collaboration.

“This report explores the precise challenges SMEs face in Africa and unpacks what must be carried out to assist these entrepreneurs overcome these obstacles. Our findings spotlight the numerous function that know-how can play in serving to small companies faucet into new alternatives, entry finance, improve productiveness, cut back prices and improve their competitiveness,” says Shameel Joosub, Vodacom Group CEO.

Hurdles for mainstream adoption stay

The adoption of know-how by Africa’s SMEs presents distinctive challenges. Going past insufficient infrastructure and entry to connectivity, the findings reveal the best issue for SMEs is the excessive price of know-how upgrades and renewals (58.3 per cent). This may forestall small companies from maintaining with the most recent technological developments.

Virtually a 3rd of SMEs (32 per cent) are additionally involved a couple of lack of digital expertise and data to take full benefit of know-how options. As well as, the analysis factors to regulatory and compliance points as hindrances in SMEs’ efforts to digitalise.

The analysis relies on conversations with 400 SMEs throughout eight African nations (South Africa, Kenya, Egypt, Ethiopia, Mozambique, Tanzania, the Democratic Republic of the Congo and Lesotho), ranging in measurement from one to 200 staff. These surveys have been run in partnership with World Vast Worx, a South African market analysis enterprise that focuses on traits in info know-how and telecommunication.

In Africa, digitalisation has been a game-changer for SMEs, with the respondents highlighting the optimistic impact of know-how on enhancing progress, effectivity, competitiveness and customer support. Moreover, through the use of e-commerce platforms, social media, and digital cost options, corresponding to M-Pesa, SMEs can develop their attain, entry precious information insights, and streamline operations.

Unlocking the important thing to digital progress

To assist drive know-how adoption among the many continent’s SMEs, the report outlines the significance of sharing finest practices, to allow higher decision-making and cost-effectiveness. From a knowledge-sharing perspective, these requirements foster a studying tradition by serving to to determine gaps in understanding and making it simpler to implement revolutionary concepts, whereas additionally offering an inner data base and lowering the lack of know-how.

Moreover, adopting confirmed practices and applied sciences is quicker and safer than testing new ones.

“Digital options and instruments open prospects for entrepreneurs and small enterprise house owners to attach and focus on finest practices in order that they will be taught from one another’s experiences, mitigate frequent hurdles and maximise their potential,” says Joosub.

“We at Vodacom are eager to accomplice with small companies and assist them on their journey to success. As a purpose-driven enterprise, our objective is to utilise our networks and our technical capabilities to assist SMEs innovate in order that collectively we will create a extra resilient, inclusive, and sustainable future for Africa.”