With the exception of Kenya, Tanzania and Djibouti, , although all countries (with the exception of Sudan) are forecast to record positive growth this year.

Traditional foreign exchange revenue sectors such as international tourism has all but disappeared. Data from the UN indicate that tourism numbers declined by 91% in Kenya: in August 2019, the country received 162 000 tourist visitors. By August 2020, that number had dropped to a mere 14 000. In the Seychelles, tourist numbers dropped from 335 000 to 16 000 over the same period.

According to official data, the region has also been the worst-hit in Africa in terms of labour impact. A total of , and subsequent fiscal stimulus is estimated to have only generated 5% of jobs lost, compared to 33% in Southern Africa.

Facing the prospect of a rapidly growing youth population, countries in the region are in a race to equip their youth with the digital skills they need to drive economic growth and innovation.

Maximising the youth dividend

East Africa’s youth population is , creating a youth dividend that would be the envy of any developed country.

According to the UN’s Medium Variant prediction, Rwanda’s youth population (those aged 15-34) will increase from 4.2 million in 2015 to 7.1 million in 2050. Over the comparative period, Kenya’s youth population will grow from 17 million to 24 million; in Tanzania from 17.9 million to 47.4 million, and in Uganda from 23 million to 38 million.

The pandemic-forced closure of schools has however undermined efforts at empowering youth with 21st century digital skills.

Unesco estimates that the closure of schools and other education institutions in the region affected , of which 79% were in primary school or younger. While governments across the region introduced remote teaching to minimise the impact of school closures, UNICEF estimates that nearly half (49%) of students in East and Southern Africa were unable to access remote learning.

Public-private partnership -led education and digital skills development initiatives will play a vital role in augmenting governments’ education efforts in the region. The 2020 51·çÁ÷Africa Code Week (ACW), for example, switched to an all-virtual format which allowed learners from all African countries to participate.

In a survey conducted at the end of the 2020 ACW, 87% of respondents indicated that the initiative plays an influential role in advancing the adoption of coding curriculum. Nine African countries indicated that coding is already part of the national curriculum, and ten more are implementing plans to incorporate coding.

SMEs show the way with digital transformation

In 2017, SMEs accounted for 98% of all businesses in Kenya and created 30% of all jobs annually. According to the International Trade Centre, .

In Tanzania, an estimated three million SMEs contributed .

SMEs in the East Africa region are adopting the latest technologies to improve visibility over operations, gain granular insight into their finances and automate outdated manual processes to drive greater efficiency.

Mzuri Sweets, a Kenyan candy manufacturer, implemented a fully automated system that has replaced the business’ reliance on spreadsheets and manual reporting. Company decision-makers now have full visibility over the business and, in line with the demands of new hybrid work models, can make approvals from any location.

In Mauritius, engineering firm Sotramon Limitée replaced a reliance on manual processes with a system that supports effective stock-taking, improves financial analysis and delivers up-to-date insights about the performance of the business. The business now has improved versatility and greater independence, allowing it to more easily adapt to challenges and take advantage of emerging opportunities.

How governments and the private sector respond to the impact of the COVID-19 pandemic over the coming months will determine the mid- and long-term success of the region’s efforts at building back better. Many businesses still record their activities on paper, or in disconnected systems and applications that create data siloes and cause a lack of integration between business planning and execution systems. Organisations across East Africa need to invest in and adopt technology at a rapid rate to ensure they continue operating successfully.

Governments will also continue to feel the pressure to reduce the rate of infection and contain the spread of COVID-19. However, many of the technology systems that are being used for vaccine rollouts are not designed to provide the requisite traceability. Data sharing to public and private health facilities entails multiple stakeholders, not all of which have the benefit of automated systems and processes.

To alleviate some of the challenges, 51·çÁ÷is working with governments across the globe to drive a more resilient response to the pandemic. The accelerated uptake of SAP’s experience management platforms by governments help to inform policy and program design across all portfolios to enable greater responsiveness to the needs of citizens and businesses. By using such technologies, governments in East Africa can demonstrate an unprecedented level of responsiveness and so help build trust in the rollout of vaccines in the region.

As East Africa faces a challenging period ahead, businesses and governments should continue to invest in their digital transformation to build the resilience, agility and adaptability needed to survive and thrive in a post-pandemic world.

The post The Pandemic’s Impact in East Africa Demands Accelerated Digital Transformation appeared first on 51·çÁ÷Africa News Center.

SMEs in the East African region are using digital transformation initiatives to increase their competitiveness and ensure they are set for growth despite challenging trading conditions.

According to Pedro Guerreiro, Managing Director: Central Africa at SAP, investments into new technologies will greatly assist SMEs in the region as they adapt to a very different operating environment. “As one of the most important drivers for job creation and economic growth, the SME sector is vital to the region’s economic recovery. Technology will continue to play a determining role in how well the sector recovers from this year’s events, while also digitally-tooling organisations to out-perform their competitors in this new economy and enabling them to execute the business, operate, and thrive in the market.”

In 2017, SMEs accounted for 98% of all businesses in Kenya and created 30% of all jobs annually. According to the International Trade Centre, . However, the impact of the coronavirus pandemic should not be underestimated:  found a 50% reduction in household and business spending, with direct consequences for the country’s SME sector.

“SMEs will need to reduce inefficiencies and improve decision-making to ensure they continue to survive – and thrive – despite our current challenges,” says Guerreiro. “In an encouraging sign, a growing number of East African SMEs are leveraging technology to improve business decision-making and drive greater efficiency across their operations.”

Gaining insight into total business performance

Guerreiro says gaining granular insight into the financial and overall performance of the business is essential to the growth and survival of SMEs. “Business leaders can no longer make educated guesses about the performance of the business. You need certainty over the total performance of the business at all times, not weeks or months after the fact.”

For Kenyan candy manufacturer Mzuri Sweets, an over-reliance on spreadsheets and manual processing for reporting hampered the company’s growth efforts. The company employs 800 people and provides a range of confectionary goods to the Kenyan market.

After choosing 51·çÁ÷Business One and working with 51·çÁ÷implementation partner ACEteK, Mzuri Sweets now have a fully automated system that is accessible from web and mobile, enabling directors to make approvals from any location.

Ashika Modasia, Senior Accountant at Mzuri Sweets Ltd, says: “51·çÁ÷Business One has united our company into one platform, bringing visibility to our management and allowing us to focus on growth.”

Stationery manufacturer Safari Stationers faced a similar issue. Its previous accounting system could not support the growth of a low margin, high volume business. Company management knew it needed a new system that could provide accurate monitoring and synchronise its operations.

Following the implementation of 51·çÁ÷Business One, Safari Stationers can monitor credit more easily, set up sales parameters to ensure only the correct number of orders are taken, while accessing richly detailed reports that have improved decision-making across the business. General Manager Deepti Vara says: “It’s been a smart and efficient journey with 51·çÁ÷Business One, and we are excited for the future.”

Automation pays off for Mauritian engineering firm

Guerreiro adds: “Having systems and processes in place that automate back-office operations can also free up valuable internal resources, which can be deployed to high-value areas to support the SME’s growth.”

This was certainly the case for Mauritian engineering services firm Sotramon Limitée. With access to only basic accounting information and relying on manual processes, the company could not rely on its existing systems to support adequate stock taking, analysis or up to date information about the business.

ACEteK supported the company’s digital transformation with an 51·çÁ÷Business One implementation that sought to replace manual operations with automated processes that enabled easy access to up-to-date reports. Sotramon Chief Executive Officer Barbara Ah-Sue says: “51·çÁ÷Business One has changed my life. It has given my business independence, accessibility and versatility.”

Guerreiro believes there is great potential for further investment into new technologies that could help SMEs unlock new market opportunities. “Ultimately SMEs should strive to become Intelligent Enterprises that apply advanced technologies within integrated, agile business processes to turn insight into action. As the sector expands its capabilities, SMEs will be better placed to sense opportunities, risks and trends, and take advantage of market opportunities.”

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