The digital sector in Africa is currently booming and it has helped in the provision of jobs for a lot of individuals in the region. I will say covid was a menace that ravaged almost every part of the world, albeit it benefitted a few individuals. Permit me to say that it was a “necessary evil”. Asides from the loss of jobs attributed to the covid pandemic, it also boosted the digital transformation of Africa by making people look for remote solutions during the time of lockdown. Although it has deepened inequalities with African societies by preventing equal sharing of the benefits.
According to the director-general of the community of Portuguese-speaking countries (CPLP). He stated that the booming digital sector is an opportunity for the government to help start a new growth cycle after the covid-19 crisis. Digital transformation can help improve youth employment in Africa which is very crucial for the future. The new digital era offers a whole lot of opportunities and holds great promise in the terms of the emergence of start-ups and local ecosystems. The African region seems not to be left behind in the area of tech, as there have been remarkable groundbreaking achievements in the region.
The advent of digital finance otherwise known as fintech has strongly stimulated entrepreneurship and self-employment in Africa. In West Africa alone, according to stats, the mobile ecosystem already employs 200,000 people formally and 800,000 informally, particularly in the sale and distribution of mobile services and devices, and also contributes 3.5% to gross domestic product (GDP). In addition to those directly employed in the sector, there are 600,000 indirect jobs. Although there are some shortcomings attributed to the full implementation of digital transformation to ensure that there is proper job creation for youths in Africa.
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This is where the government comes in. Seeing that the transformation of digital space in this region will actively create a lot of jobs for the unemployed, there are certain things I feel the government should do which are;
The installation of technology parts and start-up incubators: Technology business incubation is a public or private entrepreneurial economic and social development process designed to nurture technology-based business ideas and start-up firms through a comprehensive business support program to help them establish and accelerate their growth and success.
Investing in skills development and digital-related and vocational education and training initiatives for youths: Some people in this region might be interested in entering the digital world but then lack the resources needed to acquire the set skills. This is where the government comes in by setting up digital and vocational centers where youths can be trained before going ahead to acquire the jobs available.
Supporting SMEs and small producers to use digital technologies and strengthen their integration into local, regional, and global value chains
Strengthening regulatory frameworks and supportive measures to expand the adoption of fintech products: With global fintech adoption reaching 64%, fintech is becoming mainstream in all surveyed markets. It will be an ideal thing for the government to ensure that regulatory frameworks and supportive measures are adopted to expand fintech products in the region.
Digital transformation indeed will bring about lots of opportunities especially concerning the employment of youths. It will challenge the issue of unemployment. Beyond creating jobs, the digital ecosystem improves productivity in many sectors.
