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Report Reveals Some 7% of African SMEs are Adopting Tech

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Despite the vast opportunities for success that access to the internet and technology provides for small businesses in Africa, less than seven per cent of microenterprises use technology for business, a new International Finance Corporation-World Bank research has shown.

The report, which was released on Thursday, indicated that economists at the World Bank and IFC analysed data from a survey of 3,325 microenterprises in seven countries — Ghana, Kenya, Mozambique, Nigeria, Senegal, South Africa, and Tanzania. According to the survey, microenterprises that used smartphones and computers “reported 2.8 times higher rates of productivity, six times higher sales levels, and 1.9 times the number of employees than non-users”.

The survey also showed that less than seven per cent of microenterprises said they used digital technologies for business.”

“71 per cent of respondents reported ‘no need’ for digital technologies. For instance, 35 per cent said these technologies were too expensive for them, especially after factoring in the cost of purchasing the products with monthly usage fees and related electricity costs. About the same share, 34 per cent, said that they did not know how to use the technologies, pointing to a digital skills gap to be bridged,” it stated.

Elaborating on the factors responsible for the small share of businesses utilising smartphones and digital technology, the IFC noted that 20 per cent of respondents cited lack of access to high-speed internet as a reason for not using digital technologies.

“This suggests that while access remains a problem, it may not be the overriding cause of the low use rates. For instance, the mobile and high-speed internet use rate among the general population, at 22 per cent of country populations averaged across Sub-Saharan Africa, is more than three times that of microenterprise,” it further stated.

According to the report, the availability of high-speed internet has steadily risen in Sub-Saharan Africa, from an average of 25 per cent in 2010 to 84 per cent by 2021.

It added that the increase in coverage had not yet resulted in a comparable uptick in connectivity.

“As of 2021, 74 per cent of Africans living in areas where high-speed mobile internet was available were still not connected.

It noted poor access to microfinancing was another hindrance to the small share of users leveraging technology for business success.

“Just three per cent of firms surveyed had previously received a loan. Tellingly, those firms who had received a loan were 18 percentage points more likely to use a smartphone.”

The report also stated that the lack of proper infrastructure was another area where improvement was needed.

“44 per cent of the firms surveyed—and 69 per cent of agribusinesses—had no access to electricity. Microenterprises were, for the most part, disconnected from international supply chains, with only 16 per cent having a large company as a main supplier and less than two per cent having large, foreign-based suppliers.

“These links can be beneficial to small enterprises by creating digital learning opportunities and drawing them into large supply chains,” the IFC-World Bank report further stated.

 


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E-Business

NITDA Takes Over National Digital Architecture System

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Nigeria has taken a major step toward strengthening its digital governance framework as the National Information Technology Development Agency (NITDA) officially assumes control of the Nigeria Government Enterprise Architecture (NGEA) infrastructure.

NITDA Takes Over National Digital Architecture System

The handover ceremony held in Abuja, marks the culmination of a high-level partnership with the Korea International Cooperation Agency (KOICA).

This transition signals a shift from fragmented IT projects to a unified, disciplined approach to national digital investment.

The NGEA initiative forms a core part of the e-Government Masterplan 2.0 (Ne-GMP 2.0), aimed at establishing a unified and structured approach to managing government IT investments and digital resources.

The framework is designed to ensure that technology deployment across public institutions aligns with national priorities while improving efficiency and accountability.

With the system now operational, government agencies are expected to adopt more integrated digital processes, allowing seamless data sharing and interoperability.

This is anticipated to reduce duplication, strengthen risk management, and translate policy objectives into measurable digital outcomes.

Over the past two and a half years, Nigerian technical experts worked closely with their Korean counterparts to develop the architecture framework, create reference models, and execute pilot programmes in key institutions.

These include the National Identity Management Commission, Nigeria Customs Service, Nigeria Immigration Service, and NITDA.

Officials say the NGEA represents a shift from fragmented digital efforts to a more coordinated, citizen-focused system.

The infrastructure is hosted by Galaxy Backbone Limited, providing a secure and reliable platform for nationwide deployment.

Looking ahead, NITDA is expected to work with government stakeholders to expand and sustain the system, while the Federal Ministry of Communications, Innovation and Digital Economy will provide policy guidance to ensure its adoption across the country.

 

 


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FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  – Minister

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Bosun Tijani, minister of Communications, Innovation and Digital Economy, has said the government is shifting focus from expanding access to ensuring “meaningful connectivity” that drives economic growth and inclusion.

FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  - Minister

Bosun Tijani, minister of Communications, Innovation and Digital Economy

The minister made the statement on Friday while addressing stakeholders at the inauguration of board members of the Universal Service Provision Fund (USPF) in Abuja.

He said that although Nigeria had made significant progress since the introduction of GSM services, millions of people, particularly in rural and underserved communities, remain either unconnected or unable to fully benefit from digital services.

Dr Tijani highlighted ongoing investments in digital infrastructure, including plans to deploy 90,000 kilometres of fibre optic network and nearly 4,000 telecom towers nationwide.

He said initiatives under the USPF had improved access through projects such as rural connectivity and digital facilities in schools but stressed that the next phase must prioritise effective usage.

“It is not enough to connect a community. We must ensure that schools can teach with digital tools and that small businesses can access market opportunities,” he said, citing a pilot project in the Kura community where connectivity has enhanced access to communication, education and healthcare.

Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC) also called for a shift towards meaningful connectivity, noting that while data usage had grown significantly, it remained concentrated in urban areas.

According to him, recent data shows that telecom usage has increased by about 160% over the past two years, largely driven by urban demand.

“When we drill down, we see that a lot of that growth is actually in urban centres. So, the gap between those who are not connected or not meaningfully connected is growing,” he said.

Dr Maida added that the trend underscored the need for the USPF board to intensify efforts to bridge both access and usage gaps across the country.

Both officials emphasised the importance of collaboration, sustainable investment models and improved digital literacy to ensure that connectivity translates into real economic benefits for Nigerians.

 

 


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Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

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A jury in Los Angeles has found technology companies, Meta and Google liable for contributing to a young woman’s social media addiction, in a case being described as a landmark ruling.

Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

The 20-year-old woman, identified only as Kaley, argued that she became addicted to Google’s YouTube and Meta’s Instagram from an early age due to their attention-driven design features.

According to her testimony, she began using YouTube at the age of six after downloading the app on her iPod Touch to watch videos about lip gloss and online games.

Kaley told the court that she joined Instagram at nine, bypassing parental restrictions put in place by her mother, and spent extended periods on social media.

The trial, which lasted about a month, with arguments and evidence from both sides.

Jurors also heard testimony from Mark Zuckerberg, chief executive, Meta and Adam Mosseri, Instagram head.

However, Neal Mohan, YouTube chief executive, did not testify.

The jury found that the companies were negligent in the design of their platforms and failed to adequately warn users about potential harms. Meta and Google were ordered to pay the woman $3 million in damages.

Jurors also recommended additional punitive damages, including $900,000 against YouTube and $2.1 million against Meta, according to company spokespersons.

The jury apportioned 70 per cent of the responsibility to Meta and 30 per cent to YouTube.

Kaley was present in the courtroom when the verdict was delivered, alongside parents of other teenagers who say they were harmed by social media use. Both companies said they plan to appeal the decision.

“We respectfully disagree with the verdict and will appeal. Teen mental health is profoundly complex and cannot be linked to a single app. We will continue to defend ourselves vigorously as every case is different, and we remain confident in our record of protecting teens online”, a Meta spokesperson said.

José Castañeda, Google spokesperson, said the case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site.


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