Rise of Digital Commerce in Africa to Benefit up to 80 Million Youth

A new research by the Mastercard Foundation in partnership with BFA has revealed that the rise of digital commerce in Africa will see 80 million young people by 2030.

The study dubbed ‘Digital Commerce and Youth Employment in Africa’ indicated that the digital commerce sector had the potential of disrupting the future of work on the continent.

These workers will participate in digital commerce as consumers and, with a supportive policy environment, may also become a new group of workers called iWorkers.

These digitally connected young people who are entering the workforce will generate income in the ‘gig economy’, through direct employment with large platforms such as Amazon and Alibaba, and through small enterprises, eventually leading to more formalized work.

Digital commerce, or e-commerce, is an emerging sector across Africa. By 2030, more than 10 percent of its largely informal workforce will be using digital platforms.

Tricia Williams, Senior Manager, Strategy and Learning at the Mastercard Foundation noted that a substantial number of young people could benefit from the rise of digital commerce in Africa, lifting themselves and families out of poverty.

“Policymakers have a distinct opportunity to shape the future of work for African youth by designing growth-enabling policies. These policies need to unlock the potential of digital commerce while addressing its risks,” said Tricia Williams.

Digital Commerce and Youth Employment in Africa goes on to say that governments in Africa can immediately adopt three approaches to future-proof themselves and African youth for the various scenarios associated with the undeniable emergence of digital commerce.

Key among them gathering better data on digital commerce and employment monitoring evolving trends and promoting a wider understanding by policymakers of the issues of digital commerce and prioritizing the development of digital commerce skills in digital customer relationship management and marketing.

David Porteous, Founder and Chair of BFA, recommends policymakers to take a test-and-learn approach – targeted experimentation to formulate more comprehensive strategies and policies over time, such as a digital version of the public works program targeting youth or testing the exemption of certain labour and tax laws to encourage an active iWorker policy.

“It is inadvisable to do nothing as the next few years provide a window of opportunity for shaping a more productive labour structure,” added David Porteous.