Growth demands more jobs and productivity

The increasing number of people in the workforce is creating a greater need for employment, while businesses are under pressure to boost their productivity. This dual challenge is particularly significant for African small and medium-sized enterprises (SMEs).

Digital transformation needs funding and skills

For African SMEs, the key obstacles to embracing digital technologies and artificial intelligence (AI) are the lack of financing, reliable infrastructure, and the necessary skills to use these tools effectively. These issues were highlighted during a regional forum held in Cotonou on October 16.

Forum focuses on five areas of action

The forum, organized by the Benin National Council of Employers (CNP Benin) and the International Organization of Employers (IOE) with support from the European Union, led to a report published on October 21. The report outlines recommendations across five key areas, including financing, skills development, and infrastructure improvements.

Few SMEs use digital tools

A 2023 study by the International Finance Corporation (IFC) and the World Bank found that less than 7% of micro-enterprises in seven African countries use smartphones and computers for their professional activities. Many of those who do not use these tools cite high costs and a lack of knowledge as barriers.

Digital tools boost productivity and revenue

The study also found that micro-enterprises using digital tools reported significantly higher productivity, revenue, and workforce sizes compared to those that do not. However, the report notes that these improvements are not solely due to digital technology.

Job creation remains a challenge

According to a 2026 World Bank analysis, companies in sub-Saharan Africa have grown their workforce by an average of twice the size of their founding teams over nearly thirty years. Despite this, the region needs to create about 15 million new jobs annually to keep up with the growing working-age population.

Digitalization may not directly create jobs

The World Bank emphasizes that while digital technologies can increase productivity and revenue, these gains do not automatically lead to job creation. African SMEs must find ways to translate productivity improvements into more and better-quality employment opportunities.