Digitalisation could add $300 billion to African economy by 2026


Digitalisation could add $300 billion to African economy by 2026

Digitialisation in African countries could see $300 billion added to the continents economy by 2026 according to a report released on Monday by global technology firm Siemans. The assessment was sent to Siemens’ existing and potential clients in the countries.

Focusing on South Africa, Nigeria, Kenya and Ethiopia, The inagural 2017 African Digitalisation Maturity Report report was conducted by the company to standardised levels of digitalisation.

The report carried out a Digital Maturity Assessment on the 4 countries, using 4 different categories. The first category was economic maturity, which is the assesment of the size, growth and sophistication of the economy. The second category, environment, deals with which country has a business, legal and regulatory environment that supports and protects the development of the digital economy. Infrastructure, is the extent to which the country has invested in the ICT infrastructure to support the digital economy. The last category is digital literacy, which focuses on the human capital endowment of a country.

The analysis showed South Africa coming in at first, Kenya second, Nigeria third and Ethiopia fourth.

Sabine Dall’Omo, chief executive of Siemens Southern and Eastern Africa, said, A shift in traditional thinking is needed for Africa to compete in the digital age, collaboration between governments, implementation of policy and the creation an environment conducive for knowledge sharing.
“One need only look at the impact of cellphone technology and smart phones in Africa to see how innovation can leapfrog older technologies at an almost breathtaking speed,” Dall’Omo said.
South Africa emerged as the country with the highest potential to realise digital maturity, followed by Kenya, Nigeria and Ethiopia.