Chartered Institute of Export & International Trade Africa lead, Eugene Waluvengo, recently talked us through some of the broad opportunities for UK traders in Africa.
But for those specifically exporting services – or those looking to export services to the UK from the continent – where are the areas for growth?
Waluvengo talks us through some of the major service sectors set for growth.
Finance opportunities
Finance – a sector where the UK is among the world’s most leaders – is a particular point of opportunity in Africa, where a majority remain without access to a bank account, Waluvengo says.
“Many people regard London as the finance capital of the world – so there are opportunities around fintech and financial services,” Waluvengo says.
“A very high percentage of the African population remains either unbanked or underbanked. Over 50% of the adult population don’t have bank accounts, and of those who do, many don’t qualify for many services that banks would be providing.”
Combined with increasing availability of smartphones, this is creating growth in fintech.
“The traditional banking model is dying off, and many banks are now providing fintech services – lending, microfinance on mobile platforms and so on,” he says, emphasising the opportunities for the UK’s considerable expertise in these services to be put to use in Africa.
“Across the continent, there are many financial products that are still not there. Opportunities for people to save and borrow, save for retirement. On credit scoring solutions, in Kenya, we have three dominant [solutions] but there’s room for more.”
Education
There are also needs across Africa in education, where the UK is also a major services exporter. Delivering online learning platforms is one way UK providers can offer affordable education across the continent, Waluvengo suggests.
On-the-ground education can also be offered through partnerships with African universities, he adds, while continuous professional development is also something that organisations like the Chartered Institute can provide for African professionals.
Digital
Support on digital infrastructure and IT is also needed in Africa, a sector where services exports from the UK could be critical:
“Things like cloud services, cybersecurity, AI, blockchain, IT consultancy, software and logistics – there are opportunities for UK firms to provide all these solutions.”
He highlights the export of software as a service for particular growth potential, including support for African governments to build e-government platforms or smart cities, as well as the provision of digital services to African SMEs.
African exporters
On the export of services from Africa to the UK, Waluvengo says the opportunities are varied – he highlights translation services, particularly from those in the Francophone countries, as well as education and training.
One sometimes overlooked service export is tourism, and Waluvengo explains that “tourism is a big one for Africa”.
“It’s still not well-exploited – African countries still don’t get as much revenue as they could if there was good advertising and quality of service.”
While there are “safety issues” in regions of Africa, there are major opportunities “if we are able to package tourism well, with good weather, wildlife and culture”, Waluvengo suggests.
“What we are increasingly seeing is that, if you involve local communities in tourism, you get better outcomes. You know, as opposed to leaving them out and having sanctuaries where tourists come and don’t engage with local communities.”
These communities can, in turn, benefit from the revenue of tourism to boost local healthcare, education and more. “Very well-thought-out, innovative solutions” to boost this engagement and tourism, while respecting the environment of touristed regions, could be a major boost for the continent’s service exports.
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