Original Story Published by: Stephan Manning, The Conversation, www.theconversation.com
Photo Source: Tony Karumba/AFP
(Above) Telemarketers at an international outsourcing call centre in Nairobi
The World Bank is warning of the real danger of a massive economic downturn across the world. In a recent analysis it warned that many countries – including those in sub-Saharan Africa – will be facing economic challenges due to rising food and fuel prices.
At the same time, however, there is unshakeable optimism around the growth potential of African economies as a whole and specifically the digital economy. The rapid rise of tech hubs and startups in urban areas in sub-Saharan Africa in recent years seems to support that.
Many observers have, therefore, identified the digital economy as an important driver of long-term growth in Africa despite current global challenges.
The reality is that experiences with promoting the digital economy in sub-Saharan Africa have been mixed. Following great hopes in the promise of “digital connectivity” in the early 2000s, many scholars have observed that the ability of African businesses to turn connectivity into success in global markets has been limited.
The future of Africa’s tech scene is equally uncertain. Despite great potential, the tech startup scene is underfunded, and several tech hubs have had to shut down due to bankruptcy.
How can we explain this gap between promise and reality with digital economy investments in sub-Saharan Africa? And how can investments lead to more sustainable growth?
To read the full article, visit www.theconversation.com.
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