Connectivity is the key to Africa’s growth
I am fascinated by Africa: enormous, rich in resources, historically subjected to disastrous governance that has resulted in widespread poverty, it is also one of the most diverse areas of the planet and is changing before our eyes.
In my capacity as a professor at IE Business School, over the last two decades I have seen a steady increase in the number of young men and women coming from Africa to study here in Spain: first South Africa, then Morocco, Tunisia, and Egypt, and most recently, Kenya and, above all, Nigeria. This year I have had eight students from Nigeria in my classes, who have shared their experiences of their country’s development, how technology is developing and creating other industries, along with issues related to connectivity and the quality of university education.
As a professor, I try to understand the class dynamics that my students are used to: I have my own approach to teaching, but I also appreciate and take into account when leading class discussions that Spaniards respond differently to my methods than do most Japanese, or Americans for that matter.
In the case of Nigeria, a growing number of students have told me this year that universities there are slowly beginning to change the way they teach, moving away from the traditional lecture theater method whereby the teacher speaks and the pupils listen, to other, more modern approaches based on interaction, a process in large part driven by a generational shift that has created a student body eager to discuss new ideas. My Nigerian students this year were the living embodiment of this changing reality: involved, quick thinking, and fascinated by everything to do with the internet and innovation. For a teacher like myself, who has had no direct contact with their country, I can say that I learned a great deal from them.
Last weekend I came across an article that provided some numbers on the growth of venture capital in Africa: in 2014, it amounted to some $27 million, which although tiny compared to other areas (more than $3 billion in the case of Spain), is nevertheless twice the amount for 2013, and represents a record.
Some investment funds are beginning to take a closer look at African countries, which although they have difficult pasts and challenging presents, have been enjoying sustained periods of relative stability, thanks in part to technological leapfrogging, particularly in the areas of telecommunications and financial infrastructure (M-Pesa is among the best examples): processes that are creating a new middle class and connecting more and more people to the internet.
It is now estimated that around 19 percent of Africans are now connected to the internet: in Morocco the figure is 56 percent of the population, followed by Egypt and South Africa at 49 percent, Tunisia 44 percent, Kenya 39 percent, Cape Verde 37.5 percent, and Nigeria 37 percent. It’s still early days, and broadband is still patchy and limited largely to the big cities, but it isn’t hard to see the potential for generating new business ideas.
Africa is still a patchwork in development terms, with huge differences between countries and regions. Even in those countries enjoying sustained growth many challenges remain, but the time has come to look beyond the stereotypes to the opportunities that the continent so richly deserves.
(En español, aquí)
