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Africa is a vital continent with some of the fastest growing economies in the world, and it is home to a diverse group of entrepreneurial and corporate innovators who are creating successful businesses on the continent. In recent years, improvements in Africa’s information technology and communication sector, driven in part by the expansion of mobile digital financial services, have contributed to the growth of hundreds of companies in Africa that earn annual revenues of $1 billion or more. These companies are, on average, faster growing and more profitable than their global peers.
In addition to being a hub of business growth and innovation, Africa is also a test lab for global innovation. If a product or service is cost-effective and robust enough to succeed in Africa, it is likely to be competitive in other markets around the world. Africa’s challenges, while significant, are also present to a surprising degree in other regions, making the innovations developed in the African test lab critically important for the rest of the world.
In the coming years, the adoption of 4G in Sub-Saharan Africa is expected to double to 32%, while the adoption of 5G will reach 5% of total mobile connections on the continent. These advancements in technology will continue to drive business growth and innovation in Africa and beyond.
Number of online surveys conducted by multiple institutions also observed that successful African innovators, far from being starry-eyed, are more aware than anyone else of the barriers to success and that they build long-term resilience into their business models. 
Improvements in Africa’s information technology and communication sector have been largely driven by expanding mobile digital financial services: The region had nearly half of global mobile money accounts in 2019 and will see the fastest growth in mobile money through 2030 leading the world.
How many companies in Africa earn annual revenues of $1 billion or more? Most global executives guess there are fewer than a hundred; many answer “zero.” The reality? Four hundred such companies exist in Africa today—and they are, on average, faster growing and more profitable than their global peers. There’s an unexpected side effect of this growth burst: Africa has become a test lab for global innovation. If your offering is cost-effective and robust enough to succeed on the continent, chances are it will be competitive elsewhere.
Humankind has never had such resources, knowledge, and technology at its disposal—yet it is a long way from translating those advances into decent livelihoods and dignified lives for all the world’s people. We believe that innovation by businesses large and small can play a central role in solving the world’s greatest challenges and ushering in an era of shared abundance especially in Africa.
Addressing the deprivation that is still widespread in Africa will be an important step toward that goal. But the challenges Africa is known for are present to a surprising degree in every other region of the globe. That makes the innovations born in the African test lab critically important for the rest of the world.
Over the period to 2025, 4G adoption in Sub-Saharan Africa will double to 32%, compared to a global average of 57%. It is still early stages in the journey to 5G in Sub-Saharan Africa; as of June 2020, there were seven commercial 5G networks in five markets across the region. By the end of 2025, 5G will account for 5% of total mobile connections on the continent.
Most research shows that digital technologies are essential to addressing socioeconomic challenges. They are often described as the single ingredient Africa needs to leapfrog to sustainable and inclusive economic development. From an economic standpoint, better information and communication technology democratizes information crucial to production and market agents, which makes for more efficient value chains and more affordable products and services. And the most vulnerable people will benefit.
However, the massive adoption of digital technologies also means that policymakers must be aware of and address the complex legal and ethical impact of technology in society, including privacy, data, and tax evasion. This is especially true in Africa, where weak institutions might not be strong enough to uphold the rights and interests of their people against those of the market.