A booming market, but lacking data: Africa's challenge [Business Africa]
This week on Business Africa:
The lack of reliable data: a major obstacle to investment and growth on the continent, the efforts of Congo-Brazzaville to strengthen its food sovereignty with Protected Agricultural Zones, and the economic crisis in the DRC, exacerbated by business closures and ongoing violence.
Without reliable data, is Africa missing out on its potential?
Africa, despite its economic dynamism and the rapid growth of its middle class, faces a significant challenge: the lack of reliable data. This is a considerable barrier for investors and local businesses that struggle to make informed decisions.
Bernard Laurendeau, founder of Enkopa Lab, highlights the importance of this data for decision-making in sectors such as banking, technology, and retail. According to him:
"For consumer-related sectors, you need more detailed data. The macroeconomic indicators from the World Bank or IMF can help, but it's not enough."
The lack of adequate data hinders strategic decision-making, particularly when it comes to investments. This situation prevents businesses from seizing opportunities, limiting their growth and innovation potential.
For Laurendeau, Africa is at a turning point. The absence of reliable data limits economic opportunities, particularly those linked to the rise of the middle class. He believes that access to real-time data could transform the continent:
"Africa is missing a big opportunity for growth, knowledge transfer, and technology because of this lack of detailed data. The key here is timely access to data."
It’s clear that effective data management could change the game. However, he reminds us that while AI is useful, it is only a partial solution. It must be fed with accurate, up-to-date data. In partnership with Cassie Inside, Enkopa Lab is working on creating data pipelines that provide real-time insights, helping businesses make informed decisions at the right moment.
"AI is definitely not a silver bullet. It needs to be fed with data. Our partners provide data pipelines that allow real-time insights, which is crucial for fast decision-making."
In this context, investors are becoming more demanding. Laurendeau is clear: to capture these investments, it’s not enough to provide superficial data:
"Investors want depth. They are looking for actionable information, not just general data. You can no longer ask them to be patient."
Africa is at a decisive turning point, and collecting accurate data is becoming a strategic lever for its economic future.
Congo-Brazzaville: Protected Agricultural Zones, a response to agricultural challenges?
In Congo-Brazzaville, agriculture is crucial for diversifying the economy and reducing dependence on imports, which cost up to $1.17 billion annually. To address this, the government has launched Protected Agricultural Zones (ZAP). President Denis Sassou Nguesso stated that these zones are key to boosting local production.
In Mouindi, the ZAP brings together 500 producers across 200 hectares, while in Bouanza, 200 tons of maize were harvested on 59 hectares. Despite the abundance of arable land, only a small portion is used. If well implemented, the ZAP could reverse this trend and reduce the food import bill.
DRC: East devastated by insecurity, local businesses in crisis
Eastern DRC, particularly in the North and South Kivu provinces, is experiencing a severe economic crisis exacerbated by the violence of the M23 armed group, supported by Rwanda. The rise in violence has led to the closure of many businesses, including Bralima Brewery, a major player in the local economy, threatening thousands of jobs and worsening the shortage of essential goods. The prices of goods like rice, sugar, and oil have doubled, pushing populations into an even more precarious situation.
Economists are calling for urgent solutions, including the reopening of banks, to revive the economy. But with the ongoing attacks and deadlock in peace negotiations, the demand for concrete measures is intensifying.