Technological Innovation lies in Africa
In countries such as Nigeria and Egypt, small business entrepreneurs account for 38% of the gross domestic product and according to the World Bank micro businesses generate new ideas, new business models, and new ways of selling products.
There is no denying the impact that technology has; assist people to communicate with one another, access market information, sell products across geographic areas, reach new consumers, enter mobile payment systems, reduce fraud and crime, and empower women and the disadvantaged.
The Ethiopia Commodity Exchange Program (ECEP)
This initiative has helped entrepreneurs increase their markets. Before 2008, 95% of farmers sold their products in local markets and were not able to access other areas. With the activation of the ECEP, agricultural producers gained access to external buyers and were able to sell items at better prices. This resulted in a boost of incomes and enhanced the quality of food products.
The Farmers Helpful Network (FHN)
In Kenya, the Farmers Helpful Network (FHN) gives agricultural producers access to the latest research through their mobile phones. Farmers can ask questions of experts regarding agricultural know-hows. This resulted in vast agricultural improvements in production and marketing, and therefore increased their overall income.
Reducing “friction” is very important in African financial markets because barriers to financial transactions remain quite high. Only 30% of those who live in developing African nations have bank accounts. In short, mobile technology offers extensive help on various forms of social and economic development.