Unleashing The Power of Data: Transforming Africa’s potential
The digital landscape in Africa is evolving rapidly. It is fueled by expanding mobile networks, rising smartphone usage, and the proliferation of internet services. There are over 160 million Africans that gained broadband internet access between 2019 and 2022, with a 115% increase in internet users in sub-Saharan Africa from 2016 to 2021 (The World Bank, 2024). In fact, taking Nigeria for example, there are over 161.9 million internet subscribers in Nigeria with a broadband penetration rate of 42.3% (Nigeria Communications Commission, 2024). These numbers show how far Africa has come in terms of how the hunger and quest for data continues to drive growth across its economic marketplace especially as smartphones usage continues to grow.
According to Adeyi (2023), Nigeria has one of the largest smartphone markets in Africa, growing at a high speed, with market penetration estimated to reach 66% by 2025. This growth is also synonymous in South Africa, where MccRocklin (2021) reveals that phones are now in the pockets of 95% of South Africans, with 91% being smartphones. It is one of the highest percentages seen in most sub-Saharan African countries. The increasing use of smart phones and other mobile devices have increased the need for Data-driven initiatives in every aspect of our lives. It is evident that this digital transformation is accompanied by a surge in data production from diverse sources such as social media, mobile transactions, sensors, and satellites. Harnessing this data holds immense promise for gaining insights into consumer behaviour, trends in healthcare, communication patterns, agricultural advancements, environmental changes, and many more.
Nigeria has one of the largest smartphone markets in Africa, growing at a high speed, with market penetration estimated to reach 66% by 2025. This growth is also synonymous in South Africa, where MccRocklin (2021) reveals that phones are now in the pockets of 95% of South Africans, with 91% being smartphones
Data plays a very big role in Africa in the following ways:
- It provides opportunities for advancement: The effective utilisation of data can significantly bolster economic development across Africa. In fact, Mwaya (2022) stated that data is critical in achieving economic growth, increasing competition and bringing innovation. She reveals that according to a 2019 OECD report, public and private sector data sharing and access can contribute between 1- 2.5% to a nation’s GDP. Using data to make decisions and develop stragies in business can optimise revenue, reduce cost and advance growth in business. Through data analytics and artificial intelligence, businesses can optimise operations, devise targeted marketing strategies, and unearth new market opportunities. Moreover, data-driven decision-making has the potential to enhance productivity in sectors ranging from agriculture and manufacturing to healthcare and finance, driving sustainable growth and increasing talent pool.
- It helps to address challenges in the society: Powerfool tools like deploying data analytics, can address pressing societal challenges in Africa. It can help to provide insights into healthcare delivery, education quality, poverty reduction, and infrastructure development. By so doing, governments and organisations can improve healthcare outcomes, personalise educational approaches, target poverty alleviation efforts, and optimise infrastructure planning and management. Governments are coming to terms with the strategic relevance of big data in policy formulation, public service delivery and providing panaceas to issues affecting their polity. They are integrating data in smart city initiatives, managing public health and providing real-time data in disaster and emergency situations (Adeleye et al, 2024). This is helping in strategic decision making, encouraging efficiency and productivity and helping to societal challenges.
- It stands as a transformative force that can propel Africa towards sustainable development and prosperity. Investments in data infrastructure, skillsets, and supportive policies, can help African nations harness the full potential of data to drive innovation, economic growth, and societal progress. To pave way for a data-powered future in Africa, the public and private sector must collaborate with the academia to bring a balanced approach and help build a symbiotic value chain that will promote the growth of businesses, research and strong data policy frameworks to guide data governance in the continent.
Wole Abu is a Senior Fellow at the Sixteenth Council