NAIROBI, Kenya, June 30 – A study conducted by Genesis Analytics in eight African countries – Senegal, Ivory Coast, Democratic Republic of the Congo, South Africa, Nigeria, Ghana, Mauritius and Kenya – shows that social media platforms are accelerating and helping economic growth Opportunity across the continent.
The African continent is heavily dependent on its small and medium-sized businesses, which form the backbone of the economy. As many countries across the continent have started their digital transformation, the research shows that digital platforms can play a key role in the development of the continent.
According to the results of the Genesis Analysis study, SMEs are the means to achieve youth employment, gender parity and intra-regional trade in Africa. The report shows that surveyed SMBs who use Facebook apps have younger employees, with an average of 45% of employees under 30. In addition, SMBs who use Facebook apps reported a higher frequency of being owned by women while SMEs in manufacturing are opening up new foreign markets as the apps’ greatest advantage.
Kojo Boakye, Director of Africa Public Policy at Facebook, commented on the report: “84% of the SMEs surveyed said that Facebook apps were important for their business growth. This reaffirms our commitment to provide the access and skills that help people use Facebook apps to improve job opportunities, income, gender equality and commerce. “
Ryan Short, Partner at Genesis Analytics, added: “The Genesis Analytics study sheds much-needed light on how small and medium-sized enterprises (SMEs) on the continent are using digital tools and platforms. It empirically shows that the use of digital tools can boost economic growth by bringing more women into the formal economy; Creating economic opportunities for young people; and promoting intra-African trade. We urge policymakers and digital platforms alike to understand these opportunities and create an optimal environment for SMEs to be successful with digital tools and social media. “
The report also identified the barriers that policymakers may need to focus on in order to increase uptake and achieve significant growth, with expensive internet and data costs and low confidence in privacy creating barriers to greater adoption.
Solving these challenges requires close collaboration between governments and private companies to foster a digital environment that enables small businesses to unlock the rich opportunities of Africa.