It is time to ‘walk the talk’ on innovation

THE mother-city is buzzing as South Africa concluded hosting the G20 Digital Economy Ministerial Meeting and the Al for Africa Summit, drawing ministers from G20 member states, guest countries, and African Union dignitaries.

- SEATI MOLOI

As part of the South African delegation, I had the privilege of contributing to bilateral discussions that revealed an undeniable truth: Africa's economic future hinges on the growth of Small, Medium, and Micro Enterprises (SMMEs), the vibrancy of our innovation ecosystems, and the equitable deployment of digital technologies such as artificial intelligence (AI).

Economic backbone:

SMMEs are the lifeblood of our economies, though their contribution is often understated. In South Africa, they contribute close to 40% of GDP, and provide about a third of formal employment.

Across the African continent, they represent around 95% of all registered businesses and contribute roughly 50% of GDP. Simply put, without SMMEs, neither South Africa nor Africa has an economy. Yet, these enterprises face structural constraints: unreliable energy, high connectivity costs, red tape, and limited access to finance.

Supporting them is not charity, it is an economic necessity if we are serious about tackling unemployment and poverty.

Promise of technology and innovation

The e-Conomy Africa report estimates that Africa’s Internet economy has the potential to reach USD 180 billion by this year(2025), accounting for about5.2% of the continent’s GDP.

Additionally, Al and advanced technologies alone are deemed capable of adding up to USD 2.9 trillion to Africa’s economy by 2030.

This growth will not be driven by large incumbents alone but by startups and innovators who are closest to the problems and opportunities in their communities.

We already see how tech solutions are transforming sectors, from AI-powered precision farming in agriculture to health diagnostics, fintech, and climate resilience tools.