DIGITALIZATION: THE FUTURE OF WORK IN NIGERIA/ AFRICA.
INTRODUCTION
The world is dramatically shifting because of technology. As an accelerator of development, it is also highly disruptive. It has redefined jobs and skills and reshaped industries. As technology has evolved, so have we. The way we live, work, and connect has changed dramatically and this fusion of technologies means that over the next decade, every successful business will need to be digital at heart.
Given the reach of digital technology and the change it promises, organizations across Nigeria and Africa are in a race to become digital businesses. Some companies are building into the future while some are running the risk of being left behind.
Today, digital transformation is no longer a luxury or nice-to-have. It has become a necessity, spurred by those who set its development agendas. Specifically, digitalization has become the pillar that is driving business growth and shaping the future success and growth of economies in the continent.
Digitalization also spurs the development of new industries as in the case of e-commerce, mobile financial services, IoT, and cloud computing. These contribute to national GDP in multiple ways while also promoting the growth of allied industries such as logistics, infrastructure, and payments. These opportunities are not only limited to the ICT industry, but also disrupts traditional industries to unlock speed, lower costs, and ensure higher quality. As an example, the banking and finance sector across Africa continues to evolve and transform with the introduction of several digital banking initiatives to increase the level of financial inclusion. BlackBox is an example of one such initiatives. Initiatives like this will lead to an increase in a country’s productivity and competitiveness, reduce unemployment rates, increase access to technology-enabled services for citizens, and create higher-wage and higher-impact jobs.
While the importance of digitalization and the development of digital economies cannot be overstated, it is also important to recognize that this transformation cannot happen unless the barriers to growth are reduced or even fully removed. These challenges include regulatory policies, lack of infrastructure, basic access to electricity, phones, and the internet. There are still cities in Nigeria and countries in Africa that are not technology savvy.
For instance, access to reliable and high-quality bandwidth is a critical factor in bringing the benefits of technology to businesses. As a result, investment in telecommunications infrastructure is key to becoming a digitally enabled economy. According to the International Monetary Fund, the digital economy already accounts for more than 5% of gross domestic product (GDP) in some African nations. This could increase to 12–20% if countries harness the economic potential of digital technology.
What organizations and governments need to understand is that digital transformation is not a destination, but a never-ending journey. With the right infrastructure, policies, and connectivity in place, businesses can expand, jobs can be created, and economic diversification will accelerate promoting growth, inclusion and improving citizen experiences.
OPPORTUNITIES IN DIGITALISATION FOR SMEs
The basic idea of digitalization is to make efficient and complete use of technology facilities for accessing worldwide resources and making it beneficial for society at large. Digitalization is a pertinent need for the business environment to remain healthy and safe. However, the main purpose of digitalisation is to enhance access to improve preservation. Most organisations incorporate digitalization in their business activities and resources and by this, they remain influenced by the enduring value of such activities and resources for learning. Digitalization also increases the reputation and image of the organization that adopts it fully as global users can access information on the organization collection and fully utilise its resources from distant locations.
By digitalizing their business processes, SMEs will ensure that business transactions will be cost-effective, time-saving, and less stressful. There will be high-quality digital images of the firm’s products online. Sales and payments will be made online as well. This will help to reduce wear and tear on brittle and fragile documents.
Despite the undeniable need for digitalisation of SMEs, there are also significant opportunities that this phenomenon can bring about to the growth of an economy. These opportunities may include:
· High revenue generation
· Increased customer reach
· Improved operational efficiency
· Enriched customer engagement
CHALLENGES FACING SMEs IN DIGITALIZATION
· Lack of knowledge on new technology: One of the greatest challenges facing SMEs today is lack of knowledge and updating of new technologies in their business process. There are new technologies offered by tech-enabled services like BlackBox, e-commerce and social networking platforms; However, most SMEs are not aware of them. The ignorance of people about new technologies limits enterprises from engaging in digital initiatives.
· Lack of Capital and poor Infrastructure: For most SMEs in Nigeria, poor funds and a lack of infrastructure serve as obstacles that prevent them from performing their operations effectively. Most SMEs depend on government loans and grants. It is tough accessing these funds and even when the loans are granted, the SME owners tend to pay a high-interest rate, and this ends up affecting their return on investment. The poor state of infrastructure in Nigeria and Africa poses a massive challenge to SMEs because it ensures that they do business in an inconducive environment.
· Lack of competent ICT skills: The growth and development of an organization can be constrained by management with insufficient managerial and ICT skills. Firms that are better-managed and fully adopt ICT skills tend to be greater and are more likely to survive for a longer period. Lawrence Price and company is a tech-based firm that is competent and provides automation for businesses to enable them to run seamlessly and stand the test of time.
· Governance Challenges: The operations of SMEs tend to be more effective, efficient & responsive when they have control over finances and access to accurate data. But in most cases, they are denied these opportunities. These changes, however, come through strong governance, better communication, efficient coordination, and the vision of the organization.
CONCLUSION:
The digital sector in Nigeria and emerging African countries will only continue to grow, especially because there is a tremendous push for digital transformation coming from governments. The end goal of this digitalization drive is to improve citizen experiences and fuel economic growth. You will agree with us when we say the future of work in healthcare, banking, business, education, public services, and other sectors is digitalisation. But to win in the digital economy, the public and private sector must come together and have critical thinking because critical thinking begets innovation (Sean T , 2021).
There is no doubt that technology is changing how we work, live, and play. This will only get more evident in the future. We should be excited by the power and potential of technology to change lives for the better and help us move beyond inefficiencies towards inclusive prosperity. A new chapter in technology-led human progress is within our grasp. It is just waiting to be unlocked. Technology is the future of work and Blackbox is the future of Business.
To learn more about the Blackbox platform click HERE
Citations:
World Bank- The Future of Work in Africa: Harnessing the Potential of Digital Technologies for All
The Guardian-Digitization: Key to shaping Africa’s future success.
Tech-point Africa-Nigeria Digital Economy Summit hosts “Future of Work in Industry 4.0”
Research-gate-Impact of digitization on a small and medium scale
Sean T- Critical thinking
