Africa’s Digitalization and Digital Skills Gap

By: Freda Gray


Africa’s contribution, in comparison to the rest of the world where digitization and digital skills are becoming core to economic growth and prosperity, is unclear. The overall sentiment is that Africa is behind and only when we measure this, can we start managing the different elements to ensure attention and progress in the right areas.

This is important because: “As the world’s youngest continent, Africa will make up one-fifth of the total workforce and one-third of the total youth workforce in the world by 2030, adding 10 to 12 million young people to the workforce each year.” (Munyati, 2020)

The thought-provoking report “Digitalization and Digital skills gaps in Africa – an empirical profile” authored by Bhorat, Signe, Asmal, Monnakgotla, and Rooney was launched towards the end of May 2023 and deserves detailed study. The Digitalization Gap Index was particularly interesting with specific results for Africa, and the country-based measuring of skills supply vs demand (with the gap measured as a result) was piloted in South Africa.


Digitalization Index:

The index is based on the World Bank’s definition of the Digital Economy’s foundational pillars including:

 

Accurate data is a challenge for Africa and the authors warn that in some cases the results may be upwardly biased. In addition, 2017 data was used, that doesn’t account for developments in the last 5 years. To give context to African results, they were compared to those of the G20 countries.

Africa Digitalization Index Gap, by country, 2017 

High-level results:


The Digital Skills Gap in South Africa

The report states that the results could be driven by either a higher requirement for digital skills in occupations or a larger market demand for digital skills. It notes that in the US the first cause is more dominant which is likely to be the case in SA as well. In addition, the mean digital intensity scores increased in all industries included in the study between 2010 and 2020 with the highest increases recorded in Manufacturing (7.5), Construction (7.0) and Transport Services (7.0).

Employment shares by digital skills intensity, South Africa, 2010 - 2020 
Industry mean digital skills intensity scores, 2010 - 2020 

One of the panellists, Lesly Goh, Senior Technology Advisor at the World Bank, shared the positive impact of digitization measured in an agricultural project in Kenya, illustrating that even previously low-tech industries benefit significantly from digitization.

The report makes various policy recommendations including digital skills development and notes that this is intrinsically linked to improving access to digital infrastructure, digital platforms and interventions to stimulate demand for the skills developed. It was noted that primary schools are least likely to have digital infrastructure to develop digital skills.


Other fascinating statistics from the webinar panelists:


You can access the full report here: https://www.brookings.edu/research/digitalization-and-digital-skills-gaps-in-africa-an-empirical-profile/


Freda Gray is co-founder of Waloyo.org, a Non-Profit Company equipping youth 6 – 18 years old with future workplace skills. Waloyo’s Coding 4 Youth programme delivers computers, computer programming training material and guidance to underprivileged youth in Africa via NPOs and After-school centres.