Young business owners across Sub-Saharan Africa aren't keeping pace with digital trends. A new study has revealed a worrying gap between fintech growth and actual tech readiness among youth-led MSMEs.
Researchers presented their findings at the University of Lagos on Thursday. The warning comes despite rapid expansion of internet services and financial technology across the region.
Dr Imoleayo Foyeke Obigbemi led the research with colleagues from Kenya and South Africa. They worked under AFRETEC Network, which operates through Carnegie Mellon-Africa.
Businesses in health, sustainability, and energy sectors showed particularly weak digital maturity scores. The overall transformation levels fell short of what experts expected.
"Digital transformation across Sub-Saharan Africa remains below expectations," Obigbemi told attendees at the event. She described the gathering as a deliberate effort to unite different professional viewpoints.
Folashade Ogunsola, the University of Lagos vice chancellor, hosted the conference. It focused specifically on digital transformation and MSME maturity across the continent.
Chinonye Love Moses delivered the keynote address as a Covenant University professor. She also serves as Imo State's commissioner for entrepreneurship and skills.
Moses noted that MSMEs represent the economic backbone of Africa. They account for over 80 percent of businesses continent-wide and generate roughly 50 percent of GDP.
Young entrepreneurs still struggle badly, however. Poor access to finance, markets, technology, and digital skills continue to hold them back.
Digital tools could level the playing field significantly, Moses argued. Small businesses could compete with large corporations if they used technology properly.
She identified four critical areas for improvement. These included strategic social media use, digital operational tools like accounting software, fintech platform access, and affordable online learning resources.
Moses called on African governments to establish innovation hubs immediately. Support systems must help young business owners bridge the maturity gap.
She urged young Africans to develop practical digital skills. "Nigeria's greatest asset lies in its people rather than natural resources," Moses stated.
Panel experts raised concerns about entrepreneur confusion during discussions. Many young business owners misunderstand what digital transformation truly involves.
Ayodotun Ibidunni from James Hope University explained the distinction clearly. Digitisation means converting analogue processes to digital, while digitalisation improves business performance through technology.
Nigeria's low digital maturity connects directly to broader economic challenges. Ibidunni warned that this gap poses serious risks for competitiveness.
