Unleashing digital transformation in Africa

In a recent interview with Martins Udotai, Co-founder and CEO of Dinesurf, CNBC Africa's Flora Limukii delved into the topic of digital transformation in Africa, focusing on key sectors and emerging technologies fueling the growth in Nigeria. Kenya, Egypt, Nigeria, and South Africa have been at the forefront of the continent's digital revolution, collectively accounting for a dominant share of the investment influx in 2023. The surge in digitization has been remarkable, with mobile network access playing a pivotal role in driving this transformation. Udotai highlighted the challenges and opportunities in various sectors, emphasizing the need for better infrastructure, access to internet, and digital skills development. One of the significant points raised during the interview was the impact of digitization on the food and beverage industry in Nigeria. Udotai pointed out that while it is one of the largest industries in the country, it remains one of the least digitalized. Many restaurants and food businesses still rely on traditional methods, such as paper and pen, to manage their operations, leading to inefficiencies in customer attraction, data analysis, and retention strategies. However, there has been a noticeable shift in the past few years, with more businesses adopting digital solutions like Dinesurf, Order.Africa, and Venice to enhance their operations. Udotai also discussed the challenges of ensuring a skilled workforce in a country as large as Nigeria. He highlighted the importance of infrastructure and internet access in enabling seamless adoption of digital tools, particularly in sectors like hospitality and retail. Despite the existing learning gap, Udotai expressed optimism about the willingness of individuals and organizations to embrace digital transformation and adapt to new technologies. Looking ahead to 2024, Udotai emphasized the role of emerging technologies like AI, big data, and machine learning in accelerating digital transformation. He shared an example of how AI has revolutionized menu digitization at Dinesurf, reducing manual labor and switching costs. By automating analog-to-digital processes, these technologies have the potential to drive efficiencies across various industries and facilitate a smoother transition to digital systems. Addressing the key sectors leading the digital transformation in Nigeria, Udotai highlighted the financial sector as a standout performer. With the emergence of fintech unicorns like FlutterWave and Paystack, Nigeria has witnessed significant growth in digital payments and financial infrastructure. The success of these companies has paved the way for a thriving ecosystem of startups and tech companies leveraging their platforms. In addition to finance, Udotai identified delivery, logistics, food tech, edtech, and health tech as sectors experiencing rapid digitization and innovation in Nigeria. In conclusion, Udotai underscored the importance of continued investment in infrastructure, digital skills training, and emerging technologies to drive Nigeria towards a more digitally inclusive future. As the country navigates the challenges of transitioning to a fully digital economy, stakeholder collaboration and strategic planning will be essential in realizing the vast potential of digital transformation across key sectors.