Youth-led Micro, Small, and Medium Enterprises (MSMEs) across Sub-Saharan Africa are facing what researchers describe as a growing digital maturity crisis, despite the rapid expansion of fintech services and internet access across the continent.
The warning emerged from a new multi-country study presented at the Arthur Mbanefo Digital Research Centre at the University of Lagos, where researchers said many young businesses are still operating below expected digital transformation standards.
The research, led by Dr Imoleayo Foyeke Obigbemi of the University of Lagos in collaboration with academics from the University of Nairobi and the University of the Witwatersrand, was conducted under the auspices of the AFRETEC Network by Carnegie Mellon-Africa.
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According to the findings, businesses operating in the health, sustainability, and energy sectors recorded particularly low levels of digital maturity.
Presenting the report, Obigbemi said the overall level of digital transformation among MSMEs in Sub-Saharan Africa remains below expectations, raising concerns about the region’s preparedness for an increasingly digital global economy.
“Overall, the level of digital transformation and maturity across Sub-Saharan Africa remains below expectations,” she noted, describing the stakeholder engagement as a deliberate convergence of different professional perspectives toward advancing a shared objective.
The event, themed “Digital Transformation and Maturity of MSMEs in Sub-Saharan Africa,” had Folashade Ogunsola, the vice chancellor of the University of Lagos, as chief host.
Delivering the keynote address, Chinonye Love Moses, professor of entrepreneurship at Covenant University and commissioner for entrepreneurship and skill acquisition in Imo State, said MSMEs remain the backbone of Africa’s economy.
She noted that MSMEs account for more than 80 per cent of businesses across Africa and contribute about 50 per cent of the continent’s Gross Domestic Product (GDP). However, she said youth-led businesses continue to struggle with poor access to finance, markets, technology, and digital skills.
According to her, digital tools can help small businesses compete at levels once reserved for large corporations if properly deployed. She identified four key areas that could improve business growth among young entrepreneurs: strategic use of social media, adoption of digital operational tools such as accounting and customer management systems, access to fintech platforms and grants, and the use of affordable online learning resources.
Moses urged governments across Africa to establish innovation hubs and support systems that would help bridge the digital maturity gap. She also encouraged young Africans to focus on acquiring practical digital skills and building businesses capable of creating jobs. “Nigeria’s greatest asset lies in its people rather than its natural resources,” she said.
During a panel discussion, experts argued that many young entrepreneurs misunderstand what digital transformation truly means.
Ayodotun Ibidunni of James Hope University explained that digitisation simply involves converting analogue processes into digital formats, while digitalisation refers to using technology to improve business performance and operations.
He warned that Nigeria’s low digital maturity is tied closely to wider economic problems, including poverty and weak infrastructure.
Also speaking, Akinyemi Ajibola of Bells University said many young entrepreneurs wrongly assume that owning social media accounts automatically means their businesses are digitally transformed.
He argued that true digitalisation requires deeper integration of technology into daily business processes.
Similarly, Collins Sanskay Oboh of UNILAG, criticised the growing focus on entertainment-driven online content, saying many digital creators prioritise quick profits over long-term economic value.
He stressed that MSMEs must focus on solving real problems and creating meaningful value for society rather than chasing temporary online popularity.
Taxation also emerged as a major issue during discussions.
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Addressing concerns from business owners, Olusesan Samuel Okunade, a taxation and power sector professional, explained that businesses earning below N100 million annually are currently exempt from tax liability under Nigeria’s tax framework.
He added that proper documentation of financial activities remains critical for transparency and regulatory compliance.
On his part, Oluwasogo Adediran of Covenant University, urged stakeholders to provide mentorship and support for young entrepreneurs while encouraging citizens to demand accountability from government institutions instead of resisting taxation entirely.
Closing the session, Obigbemi said Africa’s economic future depends heavily on whether young entrepreneurs can move beyond basic digital access toward full digital maturity.
She warned that unless deliberate investments are made in digital education, innovation support, and business transformation, many youth-led MSMEs across the region may struggle to compete in the evolving global economy.
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