Why the Digital Economy is Key to Formalizing Africa's Informal Sector

[Nefertiti]

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14 SEPTEMBER 2017
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African Expert Network (Washington, DC)

Why the Digital Economy is Key to Formalizing Africa's Informal Sector


Etop Ikpe is CEO of Cars45.Etop Ikpe is CEO of Cars45.

[Nefertiti]

While bluechips will easily settle on reliable big boys like Amazon, IBM, etc, I imagine local players like Safaricom would snag the SME segment - for what is termed "digital transformation" - with cloud, mobile, apps and other offerings. From SME it's easier, no doubt, and natural, to proceed with packages for SOHOs and micro enterprises - the jua kali - with "Paybill", "Lipa na M-pesa". If I am a musician and folks buy my music as ringtones, or a vendor and people buy stuff using Paybill - even online - I suppose Safaricom could offer me a "portal" where payment and some analytics of my customers is available. Now I can review my transactions & revenues... perhaps even talk business with a bank manager without needing a guarantor or logbook upfront. Boom! am formal.

[Nefertiti]

Pundit harps on education as the big driver of enterprise - the creation of solutions into successful commercial ventures. I find that education beyond high school has a diminishing return inasfar as entrepreneurship goes. Although it's great for building manpower, most entrepreneurs have basic education - undergrad max - while paper tigers are reliable employees.

[Georgesoros]

Pundit harps on education as the big driver of enterprise - the creation of solutions into successful commercial ventures. I find that education beyond high school has a diminishing return inasfar as entrepreneurship goes. Although it's great for building manpower, most entrepreneurs have basic education - undergrad max - while paper tigers are reliable employees.

To me basic education means eight grade level. Undergrad is higher education.
Most Africans are ending up with 8th grade education due to lack of money. You can't expect these people to have critical thinking skills necessary for a productive economy!!! Even university education is useless without critical thinking skills.

[RV Pundit]

Robina I am for 12yrs of education...that high school as minimum...and 2yrs plus for any vocational or professional training..so 14yrs excluding preschool work.Otherwise informal nonfarming activities are exciting...however we know the bulk of ours is on low tech low productivity farming.

[Nefertiti]

Amb Amina Mohamed (CS International Trade) on upgrading jua kali to mainstream SME

THE WORLD POST  A partnership of HuffPost and the   


By Ambassador Amina Mohamed


Photo Credit: ITC via wikimedia

http://www.huffingtonpost.com/entry/africas-entrepreneurs-str_b_13876004.html

[Nefertiti]

Pundit harps on education as the big driver of enterprise - the creation of solutions into successful commercial ventures. I find that education beyond high school has a diminishing return inasfar as entrepreneurship goes. Although it's great for building manpower, most entrepreneurs have basic education - undergrad max - while paper tigers are reliable employees.

To me basic education means eight grade level. Undergrad is higher education.
Most Africans are ending up with 8th grade education due to lack of money. You can't expect these people to have critical thinking skills necessary for a productive economy!!! Even university education is useless without critical thinking skills.

How do they acquire critical thinking skills?