African nations are increasingly riding the wave of technological advancement, with business leaders expressing optimism about the transformative potential of technology on the continent.
At the SAP NOW conference held in Johannesburg on November 7, 2024, industry leaders gathered to discuss how technology can drive economic growth and innovation. The event was attended by around 300 executives from both African and European backgrounds, all eager to explore ways to leverage technology for enhancing business operations.
Mteto Nyati, chairman of Eskom, highlighted the gradual recovery of South Africa’s economy, noting improvements in political and infrastructural stability. Nyati stated, “Now is the time to look at where your businesses need to be three to five years down the line,” emphasizing the importance of preparing for future opportunities fueled by technological advancements.
Keynote speakers included notable figures such as Zeph Nhleko, Chief Economist at the Development Bank of Southern Africa, who pointed to the infrastructure deficit as both a challenge and opportunity for economic development. “Public-Private Partnerships are pivotal for growth,” Nhleko remarked, urging collaboration between private entities and governmental bodies.
Johannes Dressler, SAP’s Chief Business Officer for MEA South, addressed the growing complexity of business operations, noting the increasing pressure on leaders to meet stakeholder expectations. He emphasized the role of technologies like artificial intelligence (AI) in providing insights to improve decision-making and operational efficiency.
A survey conducted with 2,000 global customers revealed significant interest in AI. According to the survey, 96% of companies are mandated to explore or implement AI technologies, with 40% already adopting AI for specific use cases. Dressler underscored the integration of AI with core business processes as a game-changer for organizations striving for innovation and efficiency.
The Africa SAP User Group (AFSUG) and other SAP ecosystem partners, including Microsoft, played significant roles at the SAP NOW event. Kholiwe Makhohliso, Managing Director for Southern Africa at SAP, spoke about how AI adoption is transforming business outcomes across various sectors.
Meanwhile, the Pan-African Payments and Settlements System (PAPSS), launched under the African Continental Free Trade Area (AfCFTA), stands to significantly alter the financial dynamics of intra-African trade. According to Tunde Macaulay from Standard Bank Group, this system aims to reduce reliance on the dollar for cross-border transactions, potentially saving African businesses $5 billion annually in processing fees.
Currently, over 80% of cross-border payments processed by African banks are routed offshore. PAPSS intends to shift this paradigm by facilitating transactions in local currencies, encouraging the growth of intra-African trade. The initiative could potentially bring $50 billion of informal trade activity back to the formal economy.
According to recent reports from NETSCOUT, cybersecurity remains a pressing issue for many African nations, with South Africa leading the continent in frequency of Distributed Denial of Service (DDoS) attacks. Bryan Hamman from NETSCOUT expressed concerns about the rising number of cyber threats facing businesses, stating, “This sheer volume underscored the need for adaptive defenses.”
Research indicates various sectors, including telecommunications and monetary institutions, are targeted most frequently. Experts point out the necessity for businesses to invest in counter-cyber measures, especially as technology advances and more firms digitize their operations.
Nevertheless, there exists an undercurrent of optimism among stakeholders within the technology sector. With events like SAP NOW highlighting the advantageous use of AI, payment innovations via PAPSS, and the need for effective cybersecurity strategies, Africa finds itself at the intersection of technological possibility and economic growth.
Emphasizing resilience, partnership, and foresight, the discussions at SAP NOW suggest African businesses are collectively gearing up to not only face but also embrace the challenges and opportunities the future holds. This proactive approach could pave the way for sustainable growth and development well past the current decade.
This optimistic momentum reflects the continent's commitment to leveraging technology as a catalyst for economic transformation. From enhancing trade to fortifying cyber resilience, technology’s impact on African business seems poised to grow significantly, underscoring the need for continuous investment and collaboration within the sector.