Feature/OPED
What Tech Takeoff Could Mean for Industries Across Board
It’s no secret that technology across the continent is burgeoning at unprecedented rates. Homegrown innovations that speak to socio-economic bottlenecks are plenty due to increased access to resources, training and development, and investment. This can largely be attributed in part to the growing number of ‘technology hubs’ being established on the continent that are fostering innovation for startups and helping to bridge the gap to a more developed and economically sustainable continent.
According to the World Economic Forum (WEF), 92% of Africa’s investment in technology is won by Nigeria, Egypt, Kenya, and South Africa, which account for a third of the continent’s start-up incubators and accelerators. While these four regions lead the way in terms of technology hubs, regions such as Zanzibar, Tanzania, through its new initiative ‘Silicon Zanzibar’ are joining the race to attract and relocate technology companies and workers from across Africa and beyond to the island.
The continent has a long way to go if it is to reach the record figures raised by US startups. As we continue to bear witness to the continued rise of innovative solutions from the continent, here’s what an increase in local tech hubs could mean for industries and what to take into consideration:
Increased partnerships and collaboration
Africa has been at the forefront of world-class innovation for a long time, especially when it comes to homegrown technology solutions that speak to and solve socio-economic problems in communities across the continent. Countries such as Kenya and Nigeria have been at the forefront, but the likes of Tanzania, Uganda and Ghana are establishing intentional tech ecosystems that foster entrepreneurship and skills development, which will open up endless possibilities, particularly for fintech, an industry that is rapidly growing, evolving and one that has often relied on foreign investment.
“At MFS Africa, we have always believed that the only currency is access, and while we continue to, through our own efforts, create, advocate for, and partner to enable borderless transactions across the continent, the growing ‘tech hub’ culture in Africa will, in the long run, allow us to identify talent and collaborate with and partner with more start-ups. It also has the potential to increase dialogue with governments in regions like Tanzania, where we have partners, as we continue to transform the lives and realities of Africa and the diaspora,” says Cynthia Ponera, Regional Sales Director for East Africa at MFS Africa, a leading digital payments hub in Africa that works continuously with trusted global partners across Africa to connect African consumers to each other and to the global digital economy.
Sufficient power for the necessary infrastructure
“When we talk about Africa’s quest to be a global tech hub, we need to ensure that we’re also considering the tech needed to power the foundational infrastructure that supports this ambition,” says Matthew Cruise, Head of Business Intelligence at Hohm Energy.
According to the United Nations, some 570 million people in Africa have no access to electricity, which drastically hampers socio-economic development or poverty alleviation for those without this basic human right. Renewable energy in the form of solar energy is the most viable option for addressing this challenge, as the continent holds some of the highest solar radiation numbers in the world.
The inability of Eskom to meet the energy needs of Africa’s most industrialised country is widely known. But surprisingly, South Africa’s energy crisis has created opportunities for companies and investors to meet the demand for renewable energy alternatives. We see considerable innovation in solar solutions locally and throughout Africa for addressing power outages, and many of these will be replicated in Europe and other first-world countries as they, too, start to grapple with rising fuel costs and power outages.
As the technology to harness this renewable resource becomes both more sophisticated and more cost-effective, governments and businesses alike need to embrace this as the solution to one of the continent’s most fundamental infrastructure challenges.
Attracting more investment through unique solutions
Tony Mallam, Managing Director of bitcoin micro-saving and investing fintech platform, upnup advises that “entrepreneurs wanting to leverage the potential opportunities of a global Africa tech hub wave should think about building solutions that are unique to Africa, such as the huge unbanked and the ‘Know Your Customer’ KYC’ed population, estimated to be at least 57% of the continent’s population.
“”The Opportunity provided by Africa’s high mobile internet penetration will allow investors to leapfrog last generation infrastructure into cutting-edge solutions. Governments would need to support this opportunity by providing the right infrastructure, a safe regulatory environment, minimal red tape and tax incentives,”explains Mallam.
Training, developing and upskilling will be crucial
Building the continent’s tech and digital capability needs to run parallel with skill development. The World Bank estimates that by 2050, half of Africa’s population of 1 billion people will be under the age of 25, suggesting that the workforce of the future is based here. But in order to effectively harness the potential of this workforce, we need to ensure we’re training, developing, and upskilling people in a relevant and sustainable way.
Salesforce’s Authorised Training Partner and Workforce Development Partners in South Africa are committed to bringing fit-for-purpose skills into the ecosystem to meet the demands of the future workplace and to also ensure we’re leveraging technology for the greater good. And partnerships are central to reaching these objectives.
“Indeed, if Africa is to realise its ambitions of being a global tech hub, it is imperative that all the various stakeholders—government, business, civic organisations and educational institutions – work collaboratively. At Salesforce, we believe business is a platform for change and thus has a central role to play in Africa’s tech future’” says Zuko Mdwaba, Country Leader and Area Vice President, Salesforce South Africa.
Access is key and healthtech is central to that
It is imperative that any reference to tech on the continent makes special mention of health tech, where the room for growth is exponential. In fact, the African healthcare market is expected to be worth US$259 billion by 2030, pointing to an opportunity that cannot be ignored.
“Three thoughts come to mind of how healthtech can significantly impact the continent’s different markets for the better: It can provide access to cheaper healthcare, provide access to healthcare in your pocket (such as telehealth), and technology can play a role in bridging the skills gap and helping medical practitioners do more with less resources,” says Bongani Sithole, CEO of Founders Factory Africa.
He adds that based on their own experience at Founders Factory Africa, these are problems healthtech can solve, with its ability to improve the lives of users. “In our portfolio alone, Viebeg is enabling hospitals to order medical equipment without paying for it upfront. Neopenda has developed a product – the neoGuard – that is a clinical vital signs monitor for infants and other patients in resource-constrained areas. Healthtech can be successful, especially when innovation is applied in ways that solve pain points of health users on a daily basis.”
Improved connectivity will improve competition in business
Africa’s internet penetration is currently half the global average of 62.5 per cent.This affects not only consumers but also small businesses across the continent.
This, along with findings that revealed that South Africa saw a 66% growth in e-commerce in 2020 indicates that in order to compete and even scale, SMEs need affordable access to the internet. Currently, SMEs that have limited or no access to the internet are stunted in their ability to increase market share and reach new audiences. Head of Marketing and Communication at online booking platform Jurni, Tshepo Matlou says, “With more tech hubs in Africa, will automatically come increased connectivity. This will in turn lead to more SMEs being able to embrace and leverage online opportunities ultimately allowing them to hold their own in a competitive market.”.
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN