Beyond the Hype: A Realistic Look at Tech's Promise for Ordinary African Lives
Unequal Access == Unequal Outcomes
🌟Good morning, entrepreneurs & tech enthusiasts!
Thank you for a 101 Subscribers!!In today’s article I want to focus on the Promise of tech to Ordinary Africans. The narrative of Africa's tech scene is often one of optimism. We hear of record funding rounds for startups in the "Big Four" countries—Kenya, Egypt, South Africa, and Nigeria—and social media buzzes with stories of innovation.
The last five years has seen a rise in the number of startups hitting unicorn status, which has led to conversations about how tech will soon transform the lives of Africans. But will it? And to what extent?
Walking the streets of Nairobi, a hub in Africa's vibrant and well-funded tech ecosystem, this supposed revolution feels distant. For the average Kenyan, life hasn't changed dramatically in the past decade. Poverty and unemployment rates continue to rise, while the digital divide widens the gap between the haves and have-nots. The tech boom, it seems, exists in a parallel universe. Today, approximately 7.8 percent of Kenyans live below 2.15 U.S. dollars per day, which means that atleast 8.9 million people in Kenya live in extreme poverty.
This raises a fundamental question: Can technology truly improve the lives of ordinary Africans? The promise is there—we have seen in West that technology has the potential to transform economies, education, healthcare, and more. But if technology is merely a tool, like those that fueled the Industrial Revolution, then access becomes the key issue.
When you take a closer look at the reasons why technology has not fully delivered on it’s promise there are three critical factors that seem to hinder this progress:
(1) pervasive corruption
(2) an over-reliance on the West for investments and product development and
(3) shortage of skilled tech workers.
Corruption: A Barrier to Progress
Corruption in Africa is a well-documented problem, with the continent consistently ranking poorly on global corruption indices. This deeply ingrained corruption creates an environment where innovation is stifled and the benefits of technological advancements are concentrated in the hands of a few.
In Zimbabwe, for example, the government's policies have created such a hostile environment for startups that many talented entrepreneurs are forced to seek opportunities elsewhere. The legacy of hyperinflation in 2008 has bred economic instability that deters investment and innovation. High taxes and constantly changing regulations makes for an unpredictable business environment.
Even in countries with more promising tech ecosystems, like Kenya and Nigeria, corruption remains a significant barrier to progress. Bribery and extortion are commonplace, creating additional costs for businesses and hindering their growth. In Nigeria, a 2020 survey by the Center for Democracy and Development found that 40% of citizens had paid a bribe in the previous year. This pervasive corruption not only discourages investment but also diverts resources away from essential public services and infrastructure development, which widens the gap between the rich and the poor.
Over-Reliance on the West: Stifling Local Innovation
Africa's dependence on the West for investment and product development means that the continent has no full control of the speed at which technological advancement occurs. While foreign investment can be beneficial, an over-reliance on it can stifle local innovation and entrepreneurship.
Microsoft's recent layoff of its engineering team in Nigeria highlights the problem of depending on foreign companies for job creation and technology development. As global economic conditions fluctuate, African countries can find themselves vulnerable to the decisions of foreign investors.
The products and services developed by Western companies for Africa often fail to address the unique challenges and needs of the continent. For instance, Facebook's Free Basics initiative, while providing free internet access to millions, has been criticized for prioritizing Western websites and services, potentially hindering the growth of local alternatives.
Shortage of Skilled Tech Workers
African Educational systems have not fully adapted to equip students with the skills needed for the digital age. Only a few countries like Kenya, Rwanda, and Nigeria have begun shifting their curricula to focus on digital skills. On the other hand, skilled workers often leave Africa for better opportunities. So the continent is ridden with brain drain.
In conclusion, while the narrative of Africa's tech boom is exciting, it's equally important to highlight the realistic view of tech's impact on the continent. For the wealthy with access, life has undoubtedly improved tenfold with the advent of technology. However, for the average African, the changes have not been as significant.
Love the insights! For new and upcoming entrepreneurs who are looking to leverage technology to address some of the key challenges facing Africans, how can we navigate the current landscape? What's your advice for leaders who study abroad and want to invest back home? How can they do that?
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