Dr. Oluseye Jegede
NigeriaLics Activity Committee
Webinar’s highlights
About the speaker: The second Edition of NigeriaLics Network Webinar was held on 16th July 2020. The speaker was Prof. Edward Lorenz who is affiliated with University Côte d’Azur, Nice, France and College of Business and Economics, University of Johannesburg, South Africa. He has a keen interest in the challenges of building African innovation systems. He serves in the Globelics Scientific Board.
Introduction
The lecture placed emphasis on the recent technological developments in the digital economy. The recent technological breakthroughs represent the basic building block of the fourth industrial revolution which have promise for promoting development in lower-income countries in Sub Saharan Africa. Prof Lorenz argued strongly that the current digital transformation is providing a ‘window of opportunity’ for accelerated economic growth and catch-up in low-income countries. Late come economies could take advantage of the disruption that the digital transformation represents, but this will require conscious interventions from government and other stakeholders.
From the presentation, Prof Lorenz exposed that digital technologies can transform value chain relations supporting both finance and technology development. For instance, the installation and maintenance of stand-alone off-grid solar contributing to electricity provision on a decentralized basis (e.g M-Kopa in Kenya). He explained further that digital technologies and analytics can be applied to mini grids being powered by intermittent renewable resources to balance electricity demand and supply and to ensure an efficient system operation. Another important lesson learnt was that digitization can be applied in microelectronics. Prof Lorenz explained how digitization clearly builds on the information communication and technology (ICT) revolution or paradigm based on microelectronics, which was the hallmark of the 3rd industrial revolution.
Prof Lorenz identified some key features of digitization in lower income countries:
- the development of high-speed or broadband wireless mobile telephone communication networks as an alternative to investment in fixed land line communication systems;
- the development of digital service platforms that can be easily accessed over the internet with mobile phone-based applications thus providing increased and more inclusive access to a range of new services in finance, logistics, health care, and agriculture; and
- the increasing use of the internet and social media not only as a means of transmitting information but also for cooperation and knowledge exchange supporting product and process innovation.
KEY HIGHLIGHT FROM THE WEBINAR: Digitalization creates a ‘window of opportunity’ for accelerated growth and catch-up in lower income countries such as Africa.
Prof Lorenz’s Remarks
The potential and benefits of digitization is high in Nigeria and Africa. See for instance, the rapid growth in mobile phone subscriptions. Mobile phone penetration has been central to providing access to telecommunication for the population at large and for linking to digital platform-based services such as internet banking, mobile banking, online shopping, transportation such as Uber, Bolts, access to information and Internet. Statistics show that Mobile phone subscriptions Nigeria grew from about 7% in 2001 to over 85% by 2018 and continue to be on the rise. Similar patterns have been recorded in other African countries like Kenya and Rwanda.
Key milestones to be reached to enjoy the full benefits of digitization in Nigeria as well as other developing countries:
- Increase access to electricity for the rural population in rural areas engaged in agriculture and agro-processing.
- Increase broadband access in rural areas.
- Increase the digital capabilities and the adoption of digital technologies by smallholders and by small and medium enterprises (SMES) In agro-processing.
- Expand the use of digital financial platforms for providing credit to farmers and small scale ago-industry.
Government interventions through policy should target:
- Public investments to increase access to high-speed digital infrastructure.
- Need for a supportive regulatory framework.
- Education and e-skills.
- Support for entrepreneurship: incubators and accelerators.
Closing Remarks Prof Lorenz ended his lecture by expressing his opinion that extending mobile money services in Nigeria will be essential to realizing the potential benefits from digitalization. He gathered the government is actively supporting this now and that the central bank has issued new rules making it easier for mobile network operators (MNOs) to issue mobile money accounts.
Acknowledgement
Prof. Lorenz prepared the lecture drawing on material for a forthcoming publication on evolutionary economics and economic development being prepared with Jan Fagerberg and Erika Kraemer-Mbula.
About NigeriaLics:
NigeriaLics Network is AfricaLics Hub in Nigeria and the acronym for the Nigerian Network for Economics of Learning, Innovation, and Competence Building Systems. The Network is an emerging group designed to bring together scholars, researchers and policy analysts who study development, innovation, learning and competence building Systems in a Nigerian context, drawing on African and global context. Carefully designed to be in tandem with AfricaLics objectives and vision, NigeriaLics’s perspective is systemic, socio-economic, institutional, evolutionary, and policy oriented. The overall vision of NigeriaLics is to facilitate the production and use of high-quality research in the field of innovation and development with a view to promote inclusive and sustainable development in Nigeria.