The Africa SMME Tech Report
Issue No. 72. Africa-Middle East SME tech news and insights for 2 April 2024.
This edition of the Africa SMME Tech Report newsletter is presented by Realm Digital
Your Trusted Strategy and Technology Partner
Empowering industry leaders through innovative business solutions
The Africa-Middle East News Digest
SMME Tech News for 2nd April 2024
Editor’s note: We will devote the next several editions of this newsletter to sharing some of the best content from the recent BigFive Summit in Cape Town. In this edition of the newsletter, we share findings from the latest Africa 118/GeoPoll MSME Pulse Survey. The findings were presented by Ricardo Lopes, GeoPoll’s Regional Director for Sub-Saharan Africa.
Latest MSME Pulse Data Shows Wider Concerns Impacting African Small Business Sentiment
A highlight of recent BigFive Summits has been the unveiling of fresh small business survey data from Africa 118 and GeoPoll. The data always offers a snapshot of MSME sentiment in key African markets on a range of important factors. These include their feelings about the condition of their local economy and of their individual businesses. Also their plans to invest in people, technology adoption, and digital marketing.
At the recent Summit, GeoPoll’s Ricardo Lopes presented findings from the latest wave of MSME Pulse research. The latest wave of data was collected online between February 23 and March 13 2024 with a sample size of 418 MSME respondents in Ethiopia, Kenya, Nigeria, and South Africa.
The findings range from somewhat grim to somewhat hopeful.
In his presentation, Lopes led with some of the more challenging news from the survey.
The employment picture was fairly sour in this wave, the result of a combination of inflation, political uncertainty, unfavorable foreign exchange rates, and rising interest rates.
A significant 40% said they have had to lay off staff in the last two years, and 40 percent said they are unlikely to hire soon. This is particularly challenging news given that MSMEs create more than 80 percent of employment in Africa.
And the general business outlook fell for this wave of the survey. In fact, most businesses (65%) say that the business environment is worse now compared to a year ago. The top three reasons MSMEs cited in their pessimistic business outlook include inflation (68%), rising Forex rates (41%), and political uncertainty (39%). These varied by market, with Nigerians most concerned with forex, Ethiopians with political uncertainty, and Kenyans with inflation.
However, some sunlight breaks through when the survey turns to MSMEs’ use of technology and digital marketing,
For example, investment in advertising has held steady despite the corrosive impact of inflation. Notably, a solid majority of MSMEs agree that their businesses have grown more reliant on technology over the past year.
And the nature of the investment in technology is shifting. For example, 60 percent of the businesses surveyed said they are using mobile apps to run some aspect of their business. This is up from 46 percent last year.
And when the MSMEs were asked which technologies they will be investing in over the next 90 days, websites came in first. And AI placed a strong second.
Watch Ricardo’s presentation here:
Access Ricardo’s slides HERE.
Found on LinkedIn
We found the following chart on LinkedIn (courtesy of Hugo Rauch) that tells an important story about startups, citing Y Combinator to illustrate the point. it isn’t necessary to become a unicorn to have a great outcome. We never read about the $15 million exits, but these can be life-changing events for founders.
Recommended Reading
The following is a curation of content from around the world relevant to trends in big tech, digital marketing, small business, startup life, venture funding, M&A, and more. Vote with your clicks to tell us what we should curate for you moving forward.
Is it Time for Comprehensive AI Legislation in SA?
The AI Arms Race Moves to Creator Economy
SNAP Animates SMBs with Sponsored Filters
FOMO Drives AI Startup Investment from Big Tech Firms
Startup Failures Take a Toll in East Africa
Baobab Networks Acquires Reflector Marketing
Is Sandton an Emerging Tech Hub?
Kenyan Travel Tech Triply Joins YC Winter Batch
IFC Invests in Supporting African Startups
Nigerian Startup Thepeer Shutting Down
Partner Message
Thank you Realm Digital for presenting this edition of the Report
Your Trusted Strategy and Technology Partner
Empowering industry leaders through innovative business solutions
Build Your Brand with BigFive Digital
Those of you who attended our recent BigFive Summit in Cape Town know that BigFive Digital addresses an audience of high-powered leaders from corporates, startups, VCs, and other power centers in Africa’s tech ecosystem.
Do you want to speak directly to our high-powered audience? Write to info@bigfivedigital.org and let’s talk about sponsoring our newsletter and podcast. Or partnering to create original, high-impact content for your organization.