{"id":1002,"date":"2019-12-13T02:11:26","date_gmt":"2019-12-13T02:11:26","guid":{"rendered":"https:\/\/www.danielparente.net\/en\/2019\/12\/13\/africas-future-is-innovation-rather-than-industrialization\/"},"modified":"2019-12-13T02:11:26","modified_gmt":"2019-12-13T02:11:26","slug":"africas-future-is-innovation-rather-than-industrialization","status":"publish","type":"post","link":"https:\/\/www.danielparente.net\/en\/2019\/12\/13\/africas-future-is-innovation-rather-than-industrialization\/","title":{"rendered":"Africa’s future is innovation rather than industrialization\u00a0"},"content":{"rendered":"

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Africa has taken three significant steps in recent months on its journey to a stronger economic future.<\/p>\n<\/div>\n

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In March, the African Union launched the African Continental Free Trade Area (AfCFTA)<\/a>. This landmark agreement aims to create a single market expected to generate a combined GDP of more than $3.4 trillion and benefit over 1 billion people.<\/p>\n<\/div>\n

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In April, the South African government announced the launch of a new Affiliate Centre of the World Economic Forum\u2019s Centre for the Fourth Industrial Revolution (C4IR)<\/a>.<\/p>\n<\/div>\n

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The Centre will act as a focal point for dialogue and co-operation on the challenges and opportunities presented by advanced technologies, which are merging our physical, digital and biological worlds. These include a number of tools that, combined, will disrupt Africa\u2019s dominant agricultural, extractive and manufacturing industries, offering the continent an unparalleled opportunity to transform and thrive.<\/p>\n<\/div>\n

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And the World Economic Forum has just launched the Africa Growth Platform<\/a>, an initiative aimed at helping startup enterprises grow and compete internationally. With early-stage entrepreneurial activity 13% higher than the global average, Africa is well placed to get startups off the ground, but it also has a higher-than-average failure rate due to insufficient support and infrastructure. The Africa Growth Platform will bring together governments, investors and businesses to help startups thrive and become sustainable.<\/p>\n<\/div>\n

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\n Advanced technologies predicted to disrupt industry in Africa\n <\/p>\n

\n Image: A.T. Kearney, 2019\n <\/p>\n<\/figcaption><\/figure>\n

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These are important steps forward. Because despite recent economic growth, Africa remains subject to lingering challenges\u2013including inequality, relatively poor agricultural productivity and significant youth unemployment. It is also about to witness a population explosion, with 2.4 billion people expected to call the continent home by 2050<\/a>. Job creation is essential, and the 4IR – underpinned by forward-looking trade agreements and support systems for entrepreneurs – has the potential to supply much of that demand.<\/p>\n<\/div>\n

\n Africa\u2019s digital revolution
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Africa has definitely grasped the promise of the 4IR. More than 400 tech hubs have sprung up across the continent, with Lagos, Nairobi and Cape Town emerging as internationally recognized technology centers. These cities now host thousands of startups, along with the incubators, accelerators, innovation hubs, maker spaces, technology parks and co-working spaces that support them.<\/p>\n<\/div>\n

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\n Image: GSMA Ecosystem Accelerator Tech Hubs Landscape Report 2018\n <\/p>\n<\/figcaption><\/figure>\n

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Notable successes include the mobile lending app Branch International<\/a>, which recently raised $170 million<\/a> in one of the largest funding rounds achieved by an Africa-focused startup, and a billion-dollar IPO<\/a> for Jumia<\/a>, the largest e-commerce company on the continent and the first African tech startup to be listed on the New York Stock Exchange. Elsewhere, pockets of proactive government policy, like Tunisia\u2019s Startup Act<\/a>, are helping foster this culture of innovation.<\/p>\n<\/div>\n

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Efforts like these will become increasingly important to help a hyper-connected and entrepreneurial youth population on its way to a digital future. However, with one or two exceptions, these initiatives are largely being driven at a city or enterprise level, rather than an integrated national level, to Africa\u2019s detriment overall.<\/p>\n<\/div>\n

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One illustration of this can be found in the World Economic Forum\u2019s Readiness for the Future of Production Report 2018<\/a>, which analyzed countries\u2019 preparedness to capitalize on emerging technologies. Of the 25 African countries assessed, 22 were classified as having a low level of readiness for the future, due to lack of the necessary enabling conditions. Beyond tech platforms and innovation capacity, these include a robust institutional framework, the right skills and talent, the ability to attract global trade and investment, availability of sustainable resources and a thriving demand environment.<\/p>\n<\/div>\n

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With elections taking place in more than 20 African countries in 2019, the world\u2019s youngest continent is facing a new era.<\/p>\n<\/div>\n

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Held under the theme ‘Shaping Inclusive Growth and Shared Futures in the Fourth Industrial Revolution’ the 28th World Economic Forum on Africa will convene more than 1,000 regional and global leaders from government, business, civil society and academia.<\/p>\n<\/div>\n

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The event (held 4-6 September 2019) will explore new regional partnerships and entrepreneurial and agile leadership to create pathways for shared prosperity and drive a sustainable future.<\/p>\n<\/div>\n

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