The sixth research paper in the Africa.connected series is titled Levelling the SME Playing Field. The campaign's objective is to close the digital divide in Africa's major economic sectors in order to promote sustainable development. Specifically, strategic relationships are used to accomplish this.

Unlocking the full potential of digitalization for these businesses and the continent involves a number of opportunities, including the development of best practice frameworks for improved collaboration and the resolution of obstacles like infrastructure, connectivity, and the high cost of implementing technology.

The specific difficulties that SMEs in Africa encounter are examined in this paper, along with the steps that should be taken to assist these business owners in overcoming these difficulties. According to CEO of Vodacom Group Shameel Joosub, "Our results demonstrate the important role that technology can play in helping small businesses tap into new opportunities, access finance, increase productivity, reduce costs, and enhance their competitiveness."

Barriers to widespread adoption still exist.

The SMEs in Africa face particular difficulties when it comes to technology adoption. Beyond poor connectivity and infrastructure, the results show that the biggest challenge facing SMEs is the high expense of technology renewal and upgrades (58.3%). Small firms may find it difficult to stay up to date with the newest technology developments as a result.

The inability of SMEs to fully utilize technology solutions due to a lack of digital skills and knowledge is another worry, affecting 32% of them. Furthermore, the study highlights legal and compliance concerns as obstacles in SMEs' digitalization endeavors.

Based on interviews with 400 SMEs, ranging in size from one to 200 employees, in eight African nations (South Africa, Kenya, Egypt, Ethiopia, Mozambique, Tanzania, the Democratic Republic of the Congo, and Lesotho), the study was conducted. World Wide Worx, a South African market research company that specializes in telecommunication and information technology trends, collaborated with us to conduct these surveys.

Digitalization has changed the game for SMEs in Africa; respondents noted that technology has improved growth, efficiency, competitiveness, and customer service. Furthermore, SMEs can increase their reach, gain access to insightful data, and simplify operations by utilizing social media, e-commerce platforms, and digital payment systems like M-Pesa.

Cracking the code to digital expansion

The paper highlights the significance of sharing best practices to facilitate improved decision-making and cost-effectiveness, hence accelerating the adoption of technology among SMEs in the continent. From the standpoint of knowledge-sharing, these standards facilitate a culture of learning by aiding in the identification of knowledge gaps, simplifying the implementation of creative ideas, offering an internal knowledge foundation, and minimizing the loss of expertise.

Moreover, implementing tried-and-true methods and technology is safer and quicker than experimenting with novel ones.

According to Joosub, "digital solutions and tools open possibilities for entrepreneurs and small business owners to connect and discuss best practices so they can mitigate common hurdles, maximize their potential, and learn from each other's experiences."

"At Vodacom, we're excited to collaborate with small companies and help them achieve success. Our mission as a purpose-driven company is to use our networks and technological know-how to support SMEs in their innovation so that we can all work together to build an increasingly resilient, inclusive, and sustainable future for Africa.