SSCG – 19th February 2015 What are key drivers of

Transcript:SSCG – 19th February 2015 What are key drivers of:
SSCG – 19th February 2015 What are key drivers of SME’s in Africa? Africa is growing It is no longer the ‘ forgotten’ continent Investment is being attracted Africa’s trade is diversifying Africa is joining Global Supply Chains What attracts business to Africa Where might UK SME’s look for business in Africa? Mobile money and banking Mobile money platforms have made it possible for anyone with a mobile phone to send and receive money, as well as pay for goods and services. Kenya’s M-Pesa service, operated by Safaricom, has been a leader in this field. Kenya was the birthplace of mobile banking when M-Pesa was introduced in 2007 It transformed the way business is done. M-Pesa can be used for paying taxis, paying duties on import shipments or paying a friend. It also means people carry less cash, which can lead to a reduction in crime – as such it has boosted enterprise and allowed those with little capital base to enter markets The land line was not only service to be bye-passed Technology is also transforming the traditional banking in Africa. An example of this is in Uganda. Banks are now differentiating themselves through what they can do in terms of automation. They are constantly encouraging electronic banking and incentivising customers to do so. A similar trend is playing out in Mozambique where more and more people are banking online. The main game-changer in Mozambique has been the higher penetration of mobile and internet, which has been extended to rural areas over the past two years. Mobile is still the main source of connection to the internet and the world. There is more… Africa is beginning to like on line shopping. According to McKinsey & Company, e-commerce could account for 10% of retail sales in the continent’s largest economies by 2025. By comparison, online retail in the US already accounts for around 9% of total retail sales. The Uganda community is now more versed in online shopping - DHL we are getting numerous requests to transport goods that have been purchased online Education and Training Greater internet connectivity in Burkina Faso is transforming education – the emerging middle are now accessing online programmes offered by universities and business schools. Rwanda wants to offer similar levels of IT to all school children as that of France by 2017. The Gambia - the continuous growth of technology has changed the education