The 2023 Forbes Top Creator List has highlighted the immense earning potential of social media creators, influencers, vloggers, and entrepreneurs, with the 50 honorees generating a staggering USD $700 million in earnings. This figure is close to 30% of the Central African Republic’s GDP, showcasing the significant economic impact of the digital economy. Not only are the creators themselves benefitting from this boom, but their countries are also reaping the rewards, with the digital economy contributing substantially to GDP, compensation, and job creation.
Africa’s youth population has been witness to the global takeover of the internet by creators and influencers, instilling a sense of optimism about the continent’s rising potential. However, the reality on the ground paints a different picture, with high rates of unemployment and underemployment among young Africans. The situation is particularly challenging for young women in sub-Saharan Africa, who face the largest gender digital divide globally, limiting their access to digital technology and its economic benefits.
In response to these challenges, global tech companies launched skills development programs in Africa in the early 2010s to empower young entrepreneurs to leverage digital platforms for alternative income streams. Programs like Grow with Google and Meta’s She Means Business initiative spread across the continent, enabling millions of Africans to establish online businesses. For example, in South Africa, Airbnb catalyzed the creation of thousands of jobs and injected billions of dollars into the economy, with women playing a significant role in the sector.
Despite the progress made, African entrepreneurs still face formidable challenges in the global digital economy. Platforms like PayPal restrict transactions in certain African countries, hindering entrepreneurs’ ability to participate fully. In Ghana, entrepreneurs are even barred from opening accounts, further limiting their engagement in the digital economy.
To overcome these challenges and capture greater value in the digital economy, African entrepreneurs are encouraged to focus on three key recommendations. Firstly, they should double down on exporting African culture through content and ecommerce, providing employment opportunities across various sectors. Secondly, leveraging homegrown platforms can help entrepreneurs grow and scale their businesses effectively. Finally, outsourcing digital talent presents an opportunity for job creation and development in politically low-risk countries.
In conclusion, Africa’s digital entrepreneurship future holds immense potential, with young Africans poised to ascend the digital value chain. By focusing on exporting African culture, leveraging local platforms, and outsourcing digital talent, entrepreneurs can thrive, capture global value, and drive economic growth. The continent’s digital destiny hinges on a commitment to innovation, resilience, and inclusive growth, shaping a brighter future for African entrepreneurs.
