South Africa, Kenya, Nigeria Lead In Africa’s Business Digitalization Environment
South Africa, Kenya and Nigeria have been named top three among 115 countries providing the environment for businesses to thrive in the digitalization era.
Euler Hermes in its report Enabling Digitalization Index (EDI) 2018, illustrates each country’s ability to provide the necessary environment for business to succeed in an increasingly digitalized global economy. The index measured corporations’ ability to transform and thrive digitally.
Five successful strategies to EDI ranking includes ability to develop digital regulation, build human capital, use pivot sectors and territories, bank on smart logistics, and reduce digital inequalities.
According to the report, weak connectivity, trade infrastructure and knowledge ecosystem have proved to be the main shortcomings in Africa.
The continent has attracted substantial amounts of foreign direct investment but businesses have not really thrived because of inadequate infrastructure and a small population of techno-savvy citizens.
South Africa leads the African pack by occupying the 46th position, Kenya is in 70th position and Nigeria is ranked 100th out of 115 countries in the world.
South Africa focuses on digital technology
Being the leading business hub on the continent, South Africa, occupies the first position. The country is endowed with economic development and infrastructural sophistication but has a below average connectivity quality.
Coming second after South Africa and 70th on the world ranking is kenya.
Kenya is showing a steady increase in infrastructural development. Kenya is the business leader in East Africa with an economy estimated to be slightly over US$70 billion. The country also has an impressive trade infrastructure and a supportive business environment. Like South Africa, Kenya also has a below average connectivity quality.
Third on the continent and 100th on the world ranking is Nigeria. The country has alternated between the first and second position in terms of economic size in Africa. Nigeria is Africa’s most populous country and that gives it the largest number of technology users. According to the report, Nigeria scored 100th out of 115 despite a substantial market score.