Bimbo Ashiru, Director, O’dua Investment Company Limited, has requested African leaders, investors and business owners to initiate policy solutions that address series of challenges that hinder continental move towards digitalized market and ecosystem, saying that the much-talked-about African Continental Free Trade Area (AfCFTA) may not record much success if digitization is not taken seriously.
Ashiru, who identified policy somersault, lack of funding, education and technology exposure as well as right infrastructure as main obstacles of the continental’s desire to attain greater heights in digitization, said that new business opportunities could only be attracted to Africa through massive and dedicated investments in digitization and digitised marketing and brands positioning.
Speaking virtually at Legacy Global Summit 2020 on a topic – “A Sustainable Ecosystem of African Businesses”, Ashiru, a former Commissioner for Commerce and Industry in a Nigerian state classified as emerging investment hub of the federation – Ogun state, declared that the way to go if there must be more investments and businesses is to embrace digitization and everybody, including African financial houses should support the move.
“According to the International Monetary Fund (IMF), Africa’s growth prospects will be among the highest in the world by 2023. At the moment, six of the world’s 12 fastest growing economies are from Africa. Africa is also the world’s most profitable region, where digitalization will enhance the continent’s capacity to generate more economic optimism that the next five years will be better than today.
“For instance, Rwanda is making frantic efforts to attract investors to its $1 billion innovation hub, the Kigali Innovation City, which will be co-financed by the Rwandan Government and Africa50, and which is aimed at making Rwanda an innovative, digital and expanding economy.
“As Africa endeavours to adopt innovative tools in making its businesses relations with other countries more flourishing in this digital era, increasing number of African countries are establishing innovation hubs or Silicon Valleys. Thus, attracting national, regional and global talents and resources which are needed to transform these countries into digitally prepared and globally competitive knowledge-driven economies.
“In addition to initiatives by the African Union Commission, African Development Bank (AfDB), African Export–Import Bank (Afreximbank), NEPAD Planning and Development Agency (NPDA) and other relevant platforms, there is increasing need for a global framework for the promotion of African digital capacity enhancement agenda, bringing together a wide range of stakeholders.
“This will contribute to improving its business ecosystems through innovation and private-sector engagements, as well as economic diversification and industrialization, investments in quality infrastructure and the blue economy, thereby accelerating economic transformation on the continent.
“In relating with its business partners, Africa is increasingly interested in trade and investments, and not aid, especially with the establishment of the $3.3 trillion African Continental Free Trade Area (AfCFTA), thereby providing a 1.2 billion people marketplace for foreign investors in search of more cutting-edge technological solutions.
“However, there is a need for Africa to diversify its range of trade partners beyond the handful of countries that currently dominate its trade relations with other foreign countries, other than its traditional trading partners. AfCFTA will further enhance US–Africa trade and investment relations.
“Thus, the role of improving the ease of doing business and the enforcement of contracts cannot be overemphasized. The USA shares Africa’s desire to jointly deepen dialogue and cooperation on strengthened trade and investment relations, thereby leveraging AfCFTA to promote a sound trade policy ecosystem, regional economies of scale and increased flow of trade and investment between the USA and Africa.
“This further requires pursuance of deeper business ties beyond the African Growth Opportunity Act (AGOA), which is scheduled to expire in 2025, eventually leading to a continental trade partnership between the USA and Africa.
“Africa’s anticipated infrastructural investments posit huge potentials for advancing its digital opportunities. For instance, the USTDA’s feasibility study recommends ten investment plans in core ICT infrastructure and intelligent transportation systems, as well as digital security, inclusion and literacy.
“According to the World Economic Forum (WEF), Africa’s e-commerce is rapidly booming, with an estimated 264 e-commerce start-ups operational on the continent (in 23 countries) and projected annual sales of $75 billion and 3 million jobs by 2025.
“My final word which will come as food for thought is that Africa is the future, but their innovation ecosystems need help. We all know of the unavoidability of Africa in the 21st century”, but to build local ecosystems and make them grow regionally and globally, many obstacles will have to be solved”, he said.
