Africa Should Leverage on Technology and Innovation to Increase Productivity and Lower Production Costs

Everybody knows that technology is playing a significant role in the growth and development of various countries around the world. The emerging economies of Singapore, Malaysia, and China can attribute their emergence to global scale to technology. According to Isabel dos Santos, technology is the most significant missing puzzle that is preventing Africa from kicking off and dominating the world. As an experienced entrepreneur, Isabel notes that technology does not only help businesses but also play a vital role in assisting countries. One of the significant benefits of technology is increasing production capacity. Most of the companies that want to increase their production capacity have to incorporate technology. However, African countries have not incorporated technology in most of the companies.

This has resulted in a significant reduction in the range of goods produced. Low production capacity has two huge impacts on a country. Low production leads to over-dependence on other countries. This explains why African countries are always looking for products from China and the United States to bridge the existing gap. This means that a considerable amount of money is used in buying goods that could have been locally produced. It is essential to highlight that excessive importation of various goods and services leads to an imbalanced balance of payment. This explains why most of the African countries have an imbalance balance of trade when compared to western states. Isabel dos Santos highlights that technology is a useful tool for lowering the cost of producing goods and services.

There is documented information that shows technology incorporation lowers the cost of production by more than 50%. Instead of leveraging on the current technology to lower production costs, most of the companies in Africa continue to use obsolete technology. This has led to the increased cost of goods produced locally. Isabel dos says that expensive local goods don’t attract customers and can easily be substituted by imported products which are of high quality and affordable. Expensive local goods have allowed imported goods to thrive locally and displace locally produced goods from the stores. Isabel dos Santos continues to indicate that locally produced products are expensive and cannot trade in the international market. Click here.