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THE INTERNET How digital can transform the continent’s future The transformative e ect of the Internet is visible worldwide, yet it has still to truly reach Africa. Fortunately, according to a new research report, the continent is now standing on the brink of a digital revolution. FRICA’S ONLINE in Africa’, a report published by the economies that, together, account for achievements may appear McKinsey Global Institute, by 2015 the 90% of the continent’s GDP: Algeria, A modest at present, with only Internet’s GDP contribution may stand at Angola, Cameroon, Ivory Coast, Egypt, 167-million Internet users out of a a far healthier US$300-billion. The report Ethiopia, Ghana, Kenya, Morocco, population of one billion – a penetration of further forecasts that Internet penetration Mozambique, Nigeria, Senegal, South 16%. Less than 50% of urban residents will rise to 50% by this time, totalling Africa and Tanzania. are online and the Internet contributes 600-million users. E-commerce will around US$18-billion to GDP. That’s less generate US$75-billion in annual sales, than 1,1%, compared to the 3,7% average and key sectors will enjoy productivity INDUSTRIES THAT in developed economies. gains to the tune of US$300-billion. But according to ‘Lions go digital: The report bases these findings on STAND TO GAIN The Internet’s transformative potential an examination of Internet take-up in 14 McKinsey’s report notes that there are six sectors that stand to gain the most from Internet development in Africa. These are financial services, where it is estimated that revenue could increase from less than US$1-billion today to US$19-billion; education, where technology-related productivity gains could increase by between US$30-billion and US$70-billion; health, with technology-related benefits reaching between US$84-billion and US$188- billion; and retail, where gains could be in the region of US$16- billion to US$23-billion. Agriculture will also receive a boost, with the Internet driving productivity gains worth US$3- billion. So will government, with productivity gains potentially standing at between US$10- billion and US$25-billion. 32 strategicmarketingafrica Third quarter 2014 32-33 The Internet v2.indd 38 2014/06/26 12:17 PM