Mohamed Touré (M12): "African Tech Is Recording the Fastest Growth in the World"

Mohamed Touré (M12), a graduate of ESIGELEC computer engineering school and former EY employee, is currently Chief Executive of Sqorus West Africa, based in the Ivory Coast. His job is to support the digital transformation of companies and public bodies in Africa. He tells us about the challenges of the digital revolution sweeping the continent. 

ESSEC Alumni: What specific challenges does digital transformation raise in Africa? 

Mohamed Touré: The situation differs from country to country, but we can mention four key challenges. The first is the lack of training, for individuals and businesses alike. While mobile internet penetration is estimated at around 42% in West Africa, only a small proportion of the population has had access to formal training in using the available digital tools and taking full advantage of the opportunities they offer.

EA: What is the second major challenge? 

M. Touré: The lack of funding. African States are obviously aware of the need to invest in preventing the digital divide or in boosting digital start-ups. However, the development of the ecosystem still relies mainly on private funding, in particular from the telecommunications sector, as is the case in the Ivory Coast. Yet according to a report by the IFC and Google, the digital economy could represent 5.2% of the continent’s GDP by 2025.

EA: And the third challenge? 

M. Touré: The lack of ‘maturity’. While digital use is omnipresent in consumer habits, it is still struggling to find its place in the economic sphere. Actors in the informal economy (small-scale retailers, workers, etc.) still make insufficient use of digital technology in their activities. In more formalised businesses, IT departments are often perceived as cost centres rather than legitimate partners that could enable the company to stand out by innovating. Even worse, they can arouse distrust, as digitalisation also implies new risks; 64% of African companies were victims of a cyber-attack in 2021.

EA: What about the fourth challenge?

M. Touré: The lack of infrastructures and the high cost of equipment. Access for populations to high-speed internet remains slow and patchy. Certain areas of the Ivory Coast still lacked access to 3G and 4G networks in 2022. Local telecommunications players are nevertheless rallying round to bring fibre-optic connections to new areas nationwide. A roll-out project by Orange Côte d’Ivoire and Huawei should provide basic connectivity to more than 100 remote rural communities in the near future.

EA: On the other hand, what assets does Africa boast for its digital transformation? 

M. Touré: The African population is mostly young and digitally aware. Social networks and mobile applications are an integral part of consumer habits, which boosts the development of digital entrepreneurship, and the growth of e-commerce in particular. In addition, the switch to 5G, which began in 2018, is speeding up in West Africa, bringing with it new opportunities.

EA: What issues specific to Africa does digital technology help to resolve? 

M. Touré: There are plenty of examples! Digital transformation helps Africa to open up rural areas, improves the penetration of banking systems and financial inclusion among populations, facilitates access to news through the Internet and healthcare through e-health, strengthens public services, increases the transparency of public spending, and integrates local businesses into the international economy.

EA: Are these widespread issues in Africa? Or do they vary according to regions and countries? 

M. Touré: While West Africa is leading the roll-out of digital technology, the issues remain mostly similar from one region to another. Uneven network coverage is common everywhere, for instance.

EA: How does Africa compare to the rest of the world in terms of digital transformation? 

M. Touré: In 2021, African tech recorded the fastest growth in the world, reaching a total valuation of $5.2 billion. Contrary to certain beliefs, it cannot be said that Africa is lagging behind, especially given that the starting point differs for every continent! Sure, certain activities are developing at a slower pace than elsewhere, due to the need to adapt to local contexts. Such is the case for e-commerce, which, despite its popularity among consumers, suffers from inadequate geo-tracking and road infrastructures in many regions. Much progress has been made in other sectors in recent years, however.

EA: Who are the main players of digital transformation in Africa? 

M. Touré: The States obviously play a central role. They define ambitious national strategies, create technology research centres and data centres, raise awareness among populations and combat the digital divide. They are often supported in these actions by technical and financial partners, whether from the European Union, the GIZ, or companies based in the USA, India, Japan or China.

EA: That said, African companies are also key players...

M. Touré: True, in particular banks, insurance and telecommunication companies, which act as genuine sponsors of digital transformation in Africa. The telephone operator Orange Côte d’Ivoire recently signed a partnership deal with the leading rice producer to promote digitalisation in the country’s rice sector. We can also mention consultancy firms such as Sqorus. Their employees include numerous young people from the diaspora who play a key role in raising awareness among company leaders and supporting organisations. Lastly, certain NGOs, non-profit groups and specialist foundations deserve to be commended for their efforts to create invaluable databases which can be used as a support and a springboard for various national programmes.

EA: What is the outlook for digital transformation in Africa in the coming years? 

M. Touré: The sectors with the greatest demand for digital solutions will undoubtedly be agriculture (monitoring climate impacts and optimising yields), industry (automating processes and increasing productivity), the public sector (shortening the time frames for administrative formalities), services (optimising procedures and boosting e-commerce) and FinTech (supplementing the sector’s traditional financial offerings).

Interview by Louis Armengaud Wurmser (E10), Content Manager at ESSEC Alumni.

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