Study Finds Youth-Run MSMEs in Sub-Saharan Africa Lag in Digital Maturity

A new multi‑country study has shown that youth‑led micro, small and medium enterprises (MSMEs) across sub‑Saharan Africa are operating below the expected levels of digital maturity, raising concerns about the region’s ability to compete in an increasingly technology‑driven global economy.

The findings were presented during a stakeholder engagement held at the Arthur Mbanefo Digital Research Centre of the University of Lagos, where researchers, policymakers, academics, accountants, students and government officials gathered to discuss the future of digital transformation among African businesses.

The research, led by Dr. Imoleayo Foyeke Obigbemi of the University of Lagos in collaboration with scholars from the University of Nairobi and the University of the Witwatersrand, examined youth‑led MSMEs in Nigeria, Kenya and South Africa under the auspices of the AFRETEC Network by Carnegie Mellon University Africa.

Presenting the findings, Dr. Obigbemi said digital transformation and maturity levels among MSMEs in the health, energy and sustainability sectors remained “relatively lower” than expected.

“Overall, the level of digital transformation and maturity across sub‑Saharan Africa remains below expectations,” she said, noting that the engagement was designed to bring together diverse professional perspectives toward addressing the challenge.

The event, themed “Digital Transformation and Maturity of MSMEs in sub‑Saharan Africa,” had the Vice‑Chancellor of the University of Lagos, Folashade Ogunsola, as Chief Host.

Delivering the keynote address, Chinonye Love Moses, Professor of Entrepreneurship at Covenant University and Commissioner for Entrepreneurship and Skill Acquisition in Imo State, underscored the strategic importance of MSMEs to Africa’s economy.

According to her, MSMEs account for more than 80 per cent of businesses across Africa and contribute about 50 per cent of the continent’s Gross Domestic Product, despite facing major constraints such as limited access to finance, markets and technology.

She identified four key forms of digital leverage capable of transforming small businesses: media leverage through strategic social media engagement; operational leverage using accounting systems and customer relationship management software; financial leverage through fintech platforms and grants; and knowledge leverage through accessible digital learning resources.

Prof. Moses urged governments to establish innovation hubs, stressing the need for researchers to help bridge the digital maturity gap. She also encouraged young people to acquire skills capable of creating jobs and driving economic growth, saying that Nigeria’s greatest resource is its people rather than its natural resources.

A panel discussion featuring experts from academia and industry further explored the challenges surrounding digital transformation among small businesses.

Ayodotun Ibidunni of James Hope University distinguished between digitisation and digitalisation, explaining that while digitisation refers to converting analogue processes into digital formats, digitalisation involves the application of technology to improve business operations.

He warned that low digital maturity across Nigeria is closely tied to broader economic issues, including poverty.

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