This archive report was first published on 30 June 2021.
June 30, 2021, marked a significant milestone in Africa's digital transformation, as a study by Genesis Analytics shed light on the continent's growing reliance on social media platforms. Conducted in eight African countries – Senegal, Côte d'Ivoire, the Democratic Republic of Congo, South Africa, Nigeria, Ghana, Mauritius, and Kenya – the study found that social media platforms are helping to accelerate economic growth and opportunity across the continent.
Small and medium-sized enterprises (SMBs) are the backbone of Africa's economy, and the study highlights their crucial role in driving youth employment, gender parity, and intra-regional trade. The research shows that surveyed SMBs using Facebook apps have younger employees, with an average of 45% of employees under 30. Additionally, SMBs using Facebook apps reported a higher frequency of being owned by women, while those in the manufacturing sector ranked the ability to access new foreign markets as the most beneficial advantage of the apps.
According to Kojo Boakye, Director of Africa Public Policy at Facebook, 84% of surveyed SMBs reported that Facebook apps have been important for their business growth. This reinforces Facebook's commitment to providing access and skills that help people use its apps to increase employment opportunities, incomes, gender equity, and trade.
Ryan Short, Partner at Genesis Analytics, added that the study shines a light on how SMBs on the continent are embracing digital tools and platforms. He emphasized that the use of digital tools can drive economic growth by bringing more women into the formal economy, creating economic opportunity for young people, and boosting intra-African trade.
However, the report also identified barriers that policymakers may need to focus on to increase the adoption and drive significant growth, including expensive internet and data costs, as well as low levels of trust in data privacy.
