As many countries across the continent have embarked on their digital transformation, the research shows that digital platforms can play a key role in the continent's development, adds Genesis Analytics.

The study was conducted in:

  • Senegal
  • Côte d’Ivoire
  • the DRC
  • South Africa
  • Nigeria
  • Ghana
  • Mauritius, and
  • Kenya. 
According to the results of the study, SMBs are the vehicle to achieve youth employment, gender parity and intra-regional trade in Africa. The report shows that surveyed SMBs that use the Facebook apps have younger employees with an average share of 45% of employees under 30.

Additionally, SMBs using Facebook apps reported a higher frequency of being owned by women, while SMBs in the manufacturing sector ranked the ability to access new foreign markets as the most beneficial advantage of the apps.

Kojo Boakye, director of Africa Public Policy at Facebook, says, "84% of surveyed SMBs reported that Facebook apps have been important for their business growth. This reinforces our commitment to providing the access and skills that help people use Facebook apps to increase employment opportunities, incomes, gender equity and trade."

Ryan Short, partner at Genesis Analytics, says, "The Genesis Analytics study shines a much-needed light on how small and medium-sized businesses (SMBs) on the continent are embracing digital tools and platforms. It shows empirically that the use of digital tools can drive economic growth by bringing more women into the formal economy, creating economic opportunity for young people, and boosting intra-African trade."

"We urge policymakers and digital platforms alike to understand these opportunities and to create an optimal environment for SMBs to thrive using digital tools and social media," adds Short.

The report also identified the barriers that policymakers may need to further focus on to increase the adoption and drive significant growth, with expensive Internet and data costs and low levels of trust in data privacy being barriers to greater uptake.

Resolving these challenges will take close cooperation between governments and private companies to foster a digital environment that can power small businesses to unlock Africa's rich opportunities.

The full report is available for view here

For more information, visit www.genesis-analytics.com.