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Report Finds Africa’s SMEs Grapple with Tech Costs, Skills Dearth
Although small and medium enterprises (SMEs) 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.
This is the key findings of a research report, titled “Levelling the SME playing field”, jointly commissioned by Vodacom Group, Vodafone Group and Safaricom.
It is the sixth research paper under the Africa.connected initiative, which aims to drive sustainable development by closing the digital divide in Africa’s key economic sectors through strategic partnerships.
The research is based on conversations with 400 SMEs across eight African countries − South Africa, Kenya, Egypt, Ethiopia, Mozambique, Tanzania, the Democratic Republic of the Congo and Lesotho − ranging in size from one to 200 employees.
The survey is run in partnership with World Wide Worx, a local research firm that focuses on trends in information technology and telecommunication.
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.
Nearly 70% of surveyed SMEs invested in technology in the past 12 months to help boost growth and resilience – an indication that SMEs are embracing the positive impact of technology, reveals the survey.
While there are numerous opportunities that unlock the full potential of digitalisation for these businesses, addressing barriers − such as infrastructure, connectivity, the high cost of implementing technology, lack of adequate tech skills and developing best practice frameworks for better collaboration − remains key to business growth.
“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.
“In fact, the World Bank reports that SMEs are responsible for more than 80% of Africa’s employment and 50% of the GDP.
“But SMEs in Africa face a number of distinct challenges, which include access to finance and markets, regulatory barriers, inadequate technology adoption and limited management capabilities. To address these stumbling blocks, strides must be made to promote financial inclusion, simplify regulation, enhance technological infrastructure and encourage innovation. The technology pieces of this puzzle – as our research shows – are incredibly important.”
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.
In the study, 58% of respondents cited the high cost of technology upgrades and renewals as key hindrances (39% in SA), with 32% citing difficulty in integrating new technologies with existing systems and regulatory confinements.
Limited internet connectivity and access affects 30% of respondents (17% in SA), while 14% grapple with lack of support and training for employees to use technology (39% in SA).
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.
Unfortunately, the workforce is often resistant to digitisation, especially those working for SMEs with strong human relationships.
The lack of digital skills and knowledge, support and training for employees and executives around the values and use of specific tools and technologies compound this issue, states the survey.
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.
To reap the many benefits that technology brings, laying the right foundations is key.
“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.”
Regulatory and compliance issues can be a significant hurdle, so it’s vital that regulators develop effective policies rooted in a deep understanding of the myriad constraints SMEs face and implement targeted programmes that empower these small ventures to succeed.
“While these businesses might be ‘small’, their impact is significant, which is why it is essential that regulatory bodies are willing to engage in discussions with SMEs regarding compliance requirements.
“Regulators should also assist smaller firms in navigating different regulatory frameworks. This is crucial when it comes to data and its utilisation. For SMEs, much like any other business regardless of size or industry, the ability to access the right data can provide a critical competitive-edge and enable them to better fulfil customer needs,” notes the survey.
Glovo, a multi-category tech company, has announced its integration into the generative AI ecosystem with the launch of its “Shopping Assistant” for ChatGPT and Claude. Users can now discover retail products, compare prices, and seamlessly order any item using natural conversational language with the AI systems.
The Glovo experience inside such platforms introduces a conversational commerce model that shifts from a search-based web to an intent-based web. Rather than navigating traditional app menus and filters, users can express needs, such as asking for a “last-minute gift for a coffee lover under ₦50,000”, and the assistant handles semantic search, location validation, and product curation.
A Seamless, Concierge-Like Experience
Once both platforms have been connected through either ChatGPT or Claude apps, the user will be able to have a multi-turn dialogue where the assistant remembers context and constraints, such as budget caps. Users receive a visual carousel of up to five highly customised product options available at local stores. Each product displays its image, name, store details and ratings, and price. While the search and discovery experience takes place directly on the Generative AI platforms, selecting a product via the “view on Glovo” button takes the user to the Glovo mobile or web app, where the payment and final purchase are exclusively completed.
Strategic Focus on Retail and Growth
Glovo is prioritising the retail and grocery sectors for this initial launch, capturing the established habit of using AI for product research. Generative AI has driven a significant jump in retail traffic globally, so this first-mover advantage aims to meet customers where they are meeting Gen AI daily, and ensure it captures high-intent organic traffic as search behaviours evolve.
“We’re always looking for ways to meet our customers where they already are. Being available on Claude and ChatGPT means people can discover what Glovo has to offer as part of a natural conversation, with no friction. Glovo has always been about being the everyday app that provides choice and convenience, and this is another step in that direction”, said Shiro Theuri, Chief Technology Officer at Glovo.
How to look for products in the Glovo app through ChatGPT or Claude
- The user must sync ChatGPT or Claude with the Glovo app with the plug-in.
- Once synced, the user must type in @glovo followed by their request.
- The AI platform displays a carousel with 5 available options for the user.
- If the user wants to purchase any of the products or continue searching within the Glovo app, they must click “View on Glovo”, which will redirect the user to the Glovo app or website.
- After the order is confirmed, the store will prepare the item(s) and the courier will head up to the pick-up location. The user will receive the order in minutes.
Southeast Asia cybercrime networks are expanding operations into Africa as crackdowns intensify in the subregion, according to a recent report from the United Nations Office on Drugs and Crime (UNODC).
The massive, unintended geographic shift triggered by intense pressure from international task forces in Myanmar and Cambodia,have seen highly sophisticated criminal networks now establishing footholds in major tech hubs across Kenya and Nigeria, transforming local technical talent into accomplices for industrial-scale digital theft as reported by https://streamlinefeed.co.ke/
This strategic migration represents a critical evolution in the $17 billion crypto scam economy.
Transnational scam syndicates are organized criminal networks that run industrial-scale online fraud using trapped or trafficked labor.
The UNODC has documented this diversification, noting that African nations are increasingly targeted as operational bases due to robust internet infrastructure and a surplus of unemployed tech workers.
In response, local authorities are engaged in a frantic game of catch-up against well-funded foreign cartels.
Recall that in 2025, UNODC, described the shift as part of a broader trend in which crime “spreads like a cancer,” into regions with weaker enforcement and limited digital safeguards.
The report pointed to the rapid proliferation of online fraud operations, including cryptocurrency scams and phishing schemes, moving from countries like Myanmar and Cambodia into new footholds in Africa—particularly Nigeria.
A recent case publicized June 12, 2025 by the WeChat public account West Africa Chinese Voice illustrates the trend: Nigeria’s Economic and Financial Crimes Commission (EFCC) arrested 177 Chinese nationals in Lagos and Abuja between December 2024 and January 2025.
The suspects were allegedly running scam centers under the guise of corporate offices, where local Nigerians were trained to carry out online investment frauds—many following the “pig-butchering” model, which builds trust with victims before luring them into fraudulent crypto investments.
Authorities seized hundreds of SIM cards, high-performance computers, and prewritten scam scripts during the raids
Ugochukwu Eze, a 47 year-old man, was on Thursday arraigned before a Federal High Court in Lagos for allegedly hacking into the server of SunTrust Bank to steal a total of N800m.
Ugochukwu also known as Amazon, was arraigned before the court by the operatives of the Department of State Security (DSS).
DSS accused Ugochukwu of fraudulently hacking into the server of SunTrust Bank to remove and divert the sum of N800 million into several accounts in other financial institutions.
M. Bajela,prosecuting counsel, DSS, in the charges filed before the court alleged that the defendant and others now at large, between 2023 and 2026, conspired among themselves and unlawfully and seriously hindered the function of Suntrust Bank Plc’s computer system server and in the process fraudulently diverted over N800 million belonging to the bank.
Ugochukwu was also accused of concealing and transferring various sums of money traced to the unlawful cyber-attacks to some account in some financial institutions.
The offences alleged to have been committed by the defendant according to the prosecutor contravened sections 5; 6(1) and 8 of Cybercrimes (Prohibition, Prevention etc) Act, 2024. And Sections 10, 20 and 18(2)(D) of the Money Laundering (Prevention and Prohibition) Act, 2022.
The defendant pleaded not guilty to the allegations.
Based on his plea of not guilty, the prosecutor asked the court for a trial date, and prayed the court to remand the defendant in the facility of the correctional services pending the time trial will commence.
However, E. Afrogha, defendant’s lawyer, told the court that she has filed her client’s bail application. adding that her client has been in the DSS custody for over a month.
But the prosecution counsel told the court that he has not been served with the bail application, not withstanding that his witnesses are available.
Based on the counsels’ submissions, Justice Friday Ogazi, presiding judge, adjourned the matter to August 24,2026 for hearing of the bail application.
The judge also ordered that the defendant be remanded in the custody of the Nigerian Correctional Services (NCS) pending the hearing of the bail application.
One of the counts against the defendant reads: “That you UGOCHUKWU EZE (AKA AMAZON) (M) (47 YEARS) sometime between 2023 and 2026 in Lagos, and other places within the jurisdiction of this honourable court, unlawfully seriously hindered the function of SunTrust Bank Plc’s computer system, and in the process fraudulently diverted over N800, 000,000.00 (Eight Hundred Million Naira) belonging to the said SunTrust Bank thereby committed an offence contrary to and punishable under Section 8 of the cybercrime (prohibition, prevention etc.) Act, 2024.”
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