The expense of tech upgrades, lack of digital skills and regulatory hurdles are key hindrances to African SMEs’ growth.
Although small and medium enterprises in Africa are increasingly investing in digital technologies, their innovation journey is hindered by the high cost of technology upgrades, the lack of digital skills, and regulatory and compliance issues., titled “Levelling the SME playing field”, jointly commissioned by Vodacom Group, Vodafone Group and Safaricom.
According to the findings, digitalisation has been a game-changer for African SMEs, with the respondents highlighting the positive effect of technology on enhancing growth, efficiency, competitiveness and customer service. “SMEs play a pivotal role in both the global and African economy, contributing to job creation, innovation, economic growth and regional development,” says Shameel Joosub, Vodacom Group CEO.
When it comes to technology use and adoption, the research shows SMEs work relentlessly to secure finance to address the high costs of technology and the associated implementation. But the initial start-up costs are only the beginning of what will be required throughout their digital journey. SMEs that have integrated technology into their business are increasingly making use of e-commerce platforms, social media and digital payment solutions, such as e-wallets and micro-financing services. Innovative use of data analytics tools can further help SMEs to expand their reach, access valuable data insights and streamline operations, according to the report.
Added to this, SMEs can no longer ignore the threat of cyber security concerns, as criminal attacks or breaches do not discriminate against business size, it points out.“This starts with investing in training for employees, either through online resources, hiring IT consultants, or partnering with local technology firms to equip teams with the skills and knowledge needed to manage the challenges of the digital landscape.
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