Davos, Africa and the ‘Intelligent Age’

From new administrations in Ghana and Senegal to South Africa’s first coalitio government, 2024 has been a year of important political changes across the continent. In this period of political renewal there is a fresh sense of optimism, and Africa is bursting with possibilities for international businesses willing to innovate and to deal with new governments that are keen to kickstart business growth.

While Africa’s challenges are obvious – Nigeria and Ethiopia are examples of major nations whose economies have misfired this year – the opportunities for engaged businesses remain compelling.

Focus on technology

This year’s World Economic Forum in Davos provides an opportunity for leaders from diverse sectors, including government, academia, business and civil society, to think about how best to cultivate these enormous opportunities. And no area is more crucial than technology.

It is thus appropriate that this year’s Forum will focus on how the world can integrate AI to foster economic growth and innovation – a theme which WEF founder Klaus Schwab has dubbed the “Intelligent Age”.

“Rapid advancements in artificial intelligence, quantum computing and blockchain have propelled us into the Intelligent Age…an era far beyond technology alone,” Schwab writes.

“This is a societal revolution, one that has the power to elevate humanity – or indeed to fracture it…With the advent of the Intelligent Age, we are confronted both with unprecedented opportunities and unprecedented risks.”

Avoiding the fractures

With 429m individuals in Africa living on less than $2.15 per day in the informal economy, roughly a third of Africa’s population, there are major challenges to Africa avoiding the fractures of which Schwab speaks.

Despite improvements in technology access, particularly in mobile, in 2022 only 36% of Africa’s population had broadband internet access, according to the World Bank. Furthermore, Africa has one of the widest digital gender gaps worldwide, with the greatest disparity between men and women using the internet – 35% versus 24% in 2020, according to the International Telecommunication Union.

As African Business has reported, from AI to cloud technology, African entrepreneurs are making impressive strides, buoyed by a winning combination of global capital and local market insight. But without improved internet access, infrastructure, literacy, and attempts to close the gender gap, the existing massive global digital divide could grow worse, excluding millions of Africans.

Consequently, the need to strategically rethink business models and Africa’s approach to innovation is more crucial than ever, as Schwab writes.

Rapid regulation

“To navigate this new era responsibly, we need co- ordinated global efforts across all sectors of society. Policymakers must work quickly to establish regulations that ensure AI, quantum computing and blockchain are used ethically and for the benefit of all.

“Education systems must evolve to prepare future generations for a world of work where many tradi- tional jobs no longer exist and new roles are emerging that require entirely different skill sets. Businesses must rethink their models, ensuring that they adapt to the dynamism of the Intelligent Age while fostering an environment that does not leave workers and entire sections of society behind.”

For Africa’s sake, there has never been a better time to start the discussion than at this year’s Davos meeting.

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