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.