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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.
China has announced the full implementation of a zero-tariff scheme for 53 African countries, including Nigeria, under the Changsha Declaration, further strengthening economic ties within the Forum on China-Africa Cooperation (FOCAC).
The announcement, made by China’s Ministry of Foreign Affairs, followed a high-level meeting between Chinese officials and African foreign ministers in Changsha. The initiative stems from commitments made during the 2024 Beijing Summit of FOCAC, which focused on building a stronger China-Africa partnership in a rapidly evolving global landscape.
According to a statement released after the meeting, the representatives of China, 53 African nations, and the African Union Commission affirmed their commitment to creating an “all-weather China-Africa community with a shared future for the new era.”
The declaration highlighted the rising influence of the Global South and underscored the importance of collaboration in advancing development, multilateralism, and equitable global governance. It also criticized growing unilateralism, protectionism, and economic coercion, calling on countries, particularly the United States, to resolve trade disputes through mutual respect and dialogue.
The ministry stressed that African nations face pressing economic and developmental challenges that demand urgent international attention. It urged for increased development assistance, rather than cuts, to support poverty reduction and infrastructure growth across the continent.
In a significant move, China committed to expanding zero-tariff treatment to 100 percent of tariff lines for all 53 African countries with diplomatic relations with Beijing, excluding Eswatini, which has no official diplomatic ties. This will allow greater access for African goods to the Chinese market.
For Africa’s least developed countries, the plan includes enhanced market access measures, streamlined inspection and customs procedures, and increased technical training and trade facilitation.
Additionally, China pledged support for the African Union’s Agenda 2063, with a focus on modernization and sustainable development.
The Chinese government also announced plans to implement the China-Africa Economic Partnership for Shared Development, deepen cooperation in green industries, e-commerce, science and technology, artificial intelligence, finance, and legal frameworks.
The statement also reaffirmed plans to strengthen people-to-people ties, including initiatives like the “2026 Year of People-to-People Exchanges.”
In September 2024, President Bola Tinubu signed five memoranda of understanding during a meeting with Chinese President Xi Jinping.
Speaking at the Beijing summit, Tinubu described the China-Africa relationship as a “true testament” to the strength of mutual respect and cooperation.
Foreign Affairs Minister Yusuf Tuggar later confirmed that the agreements signed with China are in various stages of implementation.
In a major leadership transition, Dangote Sugar Refinery Plc (DSR) has announced the retirement of Aliko Dangote, its founder and chairman, from the Board, effective June 16, 2025.
Aliko Dangote
The announcement was made in a regulatory filing with the Nigerian Exchange Ltd on June 11, highlighting the company’s commitment to sound corporate governance and structured succession planning.
In a statement signed by Mrs. Temitope Hassan (FCIS), company secretary and legal adviser, the Board praised Dangote’s extraordinary leadership and lasting contributions to the company.
“Alhaji Aliko Dangote is one of the founding Directors of the Company and has served with exceptional leadership, integrity, and vision since 2005,” the statement read.
“Under his stewardship, Dangote Sugar Refinery transformed significantly, navigated industry changes, consistently delivered value to shareholders, and upheld strong governance principles.”
Widely regarded as Africa’s most influential industrialist, Dangote led DSR’s evolution into a dominant player in Nigeria’s sugar value chain.
His strategic initiatives, particularly the Backward Integration Projects (BIPs) across Adamawa, Taraba, and Nasarawa States, advanced the company’s self-sufficiency goals and aligned with the federal government’s national sugar master plan.
While stepping down from DSR, Dangote will continue as President of Dangote Industries Limited.
His legacy at DSR is marked by industrial innovation, strategic foresight, and sustained operational excellence.
To ensure a seamless transition, the Board has appointed Mr. Arnold Ekpe, a seasoned independent non-executive director, as the new chairman, effective June 16.
Ekpe is renowned for his tenure as Group CEO of Ecobank Transnational Incorporated, where he championed pan-African financial inclusion and institutional growth.
His extensive experience in banking and corporate governance is expected to strengthen DSR’s next phase of development.
The leadership change signals continuity of vision, with DSR reaffirming its focus on operational efficiency and long-term value creation in a dynamic market.
For shareholders and industry observers, Dangote’s exit from the Board marks the end of a transformational era—one defined by bold ambition and strategic execution—while opening a new chapter under Ekpe’s leadership.
Kaspersky Global Research & Analysis Team researchers have discovered a new malicious campaign which is distributing a Trojan through a fake DeepSeek-R1 Large Language Model (LLM) app for PCs.
The previously unknown malware is delivered via a phishing site pretending to be the official DeepSeek homepage that is promoted via Google Ads.
The goal of the attacks is to install BrowserVenom, a malware that configures web browsers on the victim’s device to channel web traffic through the attackers servers, thus allowing to collect user data – credentials and other sensitive information. Multiple infections have been detected in Brazil, Cuba, Mexico, India, Nepal, South Africa and Egypt.
DeepSeek-R1 is one of the most popular LLMs right now, and Kaspersky has previously reported attacks with malware mimicking it to attract victims. DeepSeek can also be run offline on PCs using tools like Ollama or LM Studio, and attackers used this in their campaign.
Users were directed to a phishing site mimicking the address of the original DeepSeek platform via Google Ads, with the link showing up in the ad when a user searched for “deepseek r1”.
Once the user reached the fake DeepSeek site, a check was performed to identify the victim’s operating system. If it was Windows, the user was presented with a button to download the tools for working with the LLM offline. Other operating systems were not targeted at the time of research.
After clicking on the button and passing the CAPTCHA test, a malicious installer file was downloaded and the user was presented with options to download and install Ollama or LM Studio.
If either option was chosen, along with legitimate Ollama or LM Studio installers, malware got installed in the system bypassing Windows Defender’s protection with a special algorithm.
This procedure also required administrator privileges for the user profile on Windows; if the user profile on Windows did not have these privileges, the infection would not take place.
After the malware was installed, it configured all web browsers in the system to forcefully use a proxy controlled by the attackers, enabling them to spy on sensitive browsing data and monitor the victim’s browsing activity.
Because of its enforcing nature and malicious intent, Kaspersky researchers have dubbed this malware BrowserVenom.
“While running large language models offline offers privacy benefits and reduces reliance on cloud services, it can also come with substantial risks if proper precautions aren’t taken.
Cybercriminals are increasingly exploiting the popularity of open-source AI tools by distributing malicious packages and fake installers that can covertly install keyloggers, cryptominers, or infostealers.
These fake tools compromise a user’s sensitive data and pose a threat, particularly when users have downloaded them from unverified sources,” comments Lisandro Ubiedo, Security Researcher with Kaspersky’s Global Research & Analysis Team.
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