The next step in Africas digital boom
While the Covid-19 pandemic is occupying the news and our minds, many other global developments are worth researching and keep tracking; monitoring young people in Africa is one of these developments.
Africa is one of the continents that the general population knows the least about, that will likely change in the future. The young African demographic is changing the continent at a pace, that it hasn’t experienced before. Heightened connectivity has changed the possibilities and mindsets of young Africans. A changing narrative of African identity is cultivating a new optimism and pride. It has also impacted the demand for new consumer markets and accelerated the need for innovations. It is precisely those entrepreneurial opportunities that young Africans are seeking to take advantage of.
The world’s fastest-growing young population
Source: UN Population Division
The young demographic in Africa is one to pay attention to. The continent has the world’s fastest-growing young population, with an average age of 20, which is 11 years below the global average. There is power in numbers and especially when combined with a young demographic and a digital revolution. The importance of owning a mobile phone is crucial for young Africans, and it has also been the source of many innovations taking place on the continent. Technology has the potential to be the answer, for many challenges in Africa and the younger generation hopes to partake in that. The smartphone market, in particular, is expanding in a rate that is twice as fast as Asia’s, and it is predicted to surpass 500 million users by the end of 2025. This prediction is primarily dependent on the gen Z-ers of the continent.
Africa's Entrepreneurial Spirit
A growing middle-class, along with rapid urbanisation, has also impacted the power of the African consumer and African entrepreneurs seem to be well aware of that fact.
A recent survey by Ichikowitz Foundation revealed that 76 per cent of young Africans, between the ages of 18 - 24, across 16 different countries, planned on starting a business within the next five years. It also revealed that over 60 per cent have an idea for a company or a social enterprise that will benefit those living in their community.
The new generation of African designers such as fashion designer Thebe Magugu creates designs that are are a combination of their own experiences, preferences, cultures and values, that are authentic African but removed from stereotypes. These modern future-oriented designs with a cultural aspect can resonate anywhere in the world.
“I want to stay in South Africa, so I can try to contribute to its growth and join the many others who are trying to develop the industry. Places abroad such as Paris, Milan, New York and London have fully developed industries, so instead of feeding into that, I want to take the road less travelled and stay for a reward that I know will be bigger than me.”
- Thebe Magugu, fashion designer
Thebe Magugu, FW 2020 collection
Photos by Kristin-Lee Moolman
Technology is the rising industry in Africa
Mara Phones, the first-ever “Made in Africa” phones. Africas first manufacturing factory is based in Kigali, Rwanda. Photo by James Tasamba
2019 showed to be the best year yet for the technology industry in Africa. Overall funding increased from $1.16b to $1.3b, according to a recent report by WeeTracker. The number of startups also more than doubled. Nigeria and Kenya account for over 81.5 per cent of the funding, with Nigeria, receiving about half. Fin-tech is the most popular sector, receiving about half of the total financing, then followed by clean-tech, health-tech and agri-tech. Other industries such as transportation, logistics and e-commerce, also experienced an increase in funding. In July, African startups surpassed $500m in funding, putting it on a slight decline, compared to last year. Fin-tech investments take up the majority of funding. South Africa and Kenya, remain as the most funded countries on the continent. Due to the Covid-19 crisis, healthcare startups received some of the highest funding, making it interesting to see, if there will be a change in funding, across the different industries, once the year is over.
AI based diagnostic system, by IIara Health. The devices can be attached to a technology device, therefor making a scanning more accessible for africans living in rural areas. Photo by Villgro Kenya
E-LEARNING
Another sector that has the potential to grow, in light of the Covid-19 crisis is e-learning. One of the main challenges to overcome, for the gen Z-ers in Africa, to fully capitalise off of the entrepreneurial opportunities, is to improve the educational sector. E-learning could be a way to take the African digital revolution into its next face, especially when thinking about a post-COVID-19 world. There has been a steady increase in e-learning, of about 14 per cent between from the year 2011 to 2018 and the market is expected to reach $1.8b by 2024. This maybe a defining industry to invest in, to keep the entrepreneurial momentum going and keep young Africans excited about business opportunities.
Monitoring young people around the world is part of our ongoing research, please reach out if you would like to have more information.
Banner image by David Uzochukwu