#LongRead
In the early, heady days of the internet, a boundless frontier of digital innovation was promised—a digital utopia where anyone could make their mark. Fast-forward to April 2024 and this dream has been co-opted by a handful of tech behemoths, leaving Africa a mere spectator in the grand digital arena. It’s time to take decisive action and reclaim our digital destiny.
The Digital Oligarchy: A Reality Check
Let’s start with some cold, hard facts. Google and Apple control nearly 85% of the global browser market. Microsoft’s and Apple’s operating systems dominate over 80% of desktops worldwide. Google handles 84% of all searches globally. Apple and Samsung produce more than half of all smartphones, with nearly all mobile operating systems being Android or iOS. Amazon Web Services and Microsoft Azure command over half of the global cloud computing market. Even email is dominated by Apple and Google, which manage almost 90% of international traffic. Lastly, Google and Cloudflare handle around 50% of global DNS requests. This duopoly extends even to social media as Meta, X and TikTok have a chokehold on most social media accounts – with Meta being the real monopoly.
If this doesn’t sound alarm bells, nothing will. We’re witnessing a digital oligarchy where innovation is stifled, and competition is either bought out or squeezed out. Tech giants have the financial muscle to acquire any promising start-up that might pose a threat. This predatory strategy is clearly illustrated by Facebook’s acquisition of Instagram and WhatsApp.
The Meta Monster
When Facebook purchased Instagram in 2012 for approximately $1 billion, the photo-sharing app had already garnered a substantial user base and posed a potential threat to Facebook’s dominance in social media. By bringing Instagram into its fold, Facebook not only eliminated a competitor but also bolstered its offerings with Instagram’s unique features and user engagement strategies.
Similarly, Facebook’s 2014 acquisition of WhatsApp for a staggering $19 billion was another strategic move to consolidate power. WhatsApp’s vast user base and potential as a messaging platform could have easily rivalled Facebook’s Messenger. By buying WhatsApp, Facebook effectively neutralized a significant competitive threat while expanding its reach in the global messaging market.
Using the app store as a tool
Apple has also faced accusations of anti-competitive practices, particularly regarding its App Store. Developers have long complained that Apple uses its control over the App Store to stifle competition. The most notable case involves Epic Games, the creator of Fortnite, which sued Apple in 2020. Epic accused Apple of monopolistic behaviour by forcing developers to use Apple’s payment system and take a 30% commission on in-app purchases, thus hindering competitors from offering alternative payment methods and stifling innovation.
Moreover, Apple has been scrutinised for removing or limiting the functionality of apps that compete with its services. For example, Apple’s restrictions and eventual removal of parental control apps from the App Store raised significant concerns about using platform control to edge out competitors to its Screen Time feature.
Network Effects of Big Tech
Many big tech companies have built platforms that have become dominant due to network effects, significantly contributing to their market power. Network effects occur when the value of a product or service increases as more people use it, creating a self-reinforcing cycle of growth and dominance.
Amazon benefits from network effects, particularly in its e-commerce platform. As more sellers join Amazon, the variety of products increases, attracting more buyers. More buyers, in turn, attract more sellers who want access to the large customer base, creating a virtuous cycle that reinforces Amazon’s dominance in online retail.
These examples highlight how big tech companies leverage their dominant positions to engage in practices that inhibit competition, maintain market power, and limit consumer choices. Regulatory bodies worldwide continue to investigate and address these anti-competitive behaviours to ensure a fairer, more competitive marketplace.
African Governments: From Passivity to Proactivity
In the context of global innovation and dominance—from social media to data management, eCommerce, and core infrastructure—Africa remains a largely passive observer, content only to consume and not produce. This dynamic highlights significant digital diplomacy and international trade power imbalances that disadvantage the continent.
Digital Diplomacy and Data Sovereignty
Africa’s dependence on foreign technology for digital infrastructure has far-reaching implications for digital diplomacy. The continent’s data is predominantly hosted by global giants like Google, Amazon, and Microsoft, so data sovereignty is compromised. Policies and decisions made in Silicon Valley or Seattle can directly, sometimes adversely, impact African nations. For instance, data privacy regulations and user data management are often governed by the laws of the tech companies’ home countries, not those where the data originates. This lack of control over data management and security can undermine national sovereignty and threaten citizens’ privacy and national security.
Moreover, the concentration of digital infrastructure in the hands of a few global players exacerbates power imbalances in international trade. African nations often find themselves at a negotiating disadvantage, unable to effectively dictate terms or protect their digital interests.
Economic Impact and Trade Power Imbalances
The eCommerce sector is another area where Africa’s role as a consumer rather than a producer perpetuates economic dependencies. Global eCommerce giants like Amazon and Alibaba dominate the market, often out-competing local platforms such as Jumia due to their vast financial resources, sophisticated logistics networks, and advanced technological infrastructure. This dominance limits the growth of local eCommerce ecosystems and stifles innovation tailored to African consumers’ specific needs and buying behaviours.
Brain drain is a major issue
Our governments have been sitting on the sidelines for too long, watching as our best minds are poached by global giants. It’s akin to sending your star players to the rival team while you wait for a miracle. The result? Local innovation and scalable product development are stifled. Venture capital remains a distant dream, firmly rooted in European and American markets. Policymakers often echo a defeatist sentiment: “We can’t fight them and win. We should join them.” This attitude ensures perpetual dependency.
“We must harness our youthful population’s potential to create and not just consume technology.”
Prof Bitange Ndemo
The Pathology of Command and Control
In the 18th century, Prussia decided to transform its forests into monocultures to maximise timber production. This involved replacing diverse woodlands with single-species plantations, primarily spruce and pine. Initially, this strategy paid off economically, with timber yields increasing significantly, supporting construction and industry. However, the focus on short-term gains neglected the importance of biodiversity in maintaining healthy forest ecosystems.
Over time, the consequences of this approach became evident. The monoculture forests were vulnerable to pests, diseases, and environmental stresses that the natural, diverse forests could have withstood. The lack of species variety weakened the ecosystem, leading to widespread forest decline, known as Waldsterben, or “forest death.” This ecological disaster damaged the environment and highlighted the risks of ignoring ecological balance for economic benefit.
Maria Farrell and Robin Berjon, in their article “We Need to Rewild the Internet,” describe these digital plantations as “highly concentrated and controlled environments, akin to industrial farming that maddens the creatures trapped within.” The once-rich web of human interactions has been corralled into data extraction engines, making fortunes for a select few.
We must resist this “pathology of command and control” and embrace the principles of rewilding the internet—restoring complexity, diversity, and resilience to our digital ecosystems. As Ursula K. Le Guin wisely noted, “The word for world is forest.” Just as natural ecosystems thrive through biodiversity, so must our technological ecosystems.
Strategic Government Investment
African governments must adopt a proactive stance, investing in sectors where we can build strength. Bold (even mad) leaders must imagine a future that does not exist in Africa. A great example lies in Mohammed bin Rashid al Maktoum and how he imagined Dubai from a scruffy deserted desert town to the bounding metropolis it is today.
In the early 1990s, Dubai was a modest city in the desert with an economy largely dependent on oil. However, Al Maktoum envisioned a future where Dubai would become a global metropolis known for its tourism, finance, and trade.
To realise this vision, he implemented a series of bold strategies. Massive investments were made in world-class infrastructure, such as the construction of the Burj Khalifa, the tallest building in the world, and the development of Palm Jumeirah, an iconic man-made island. Additionally, Al Maktoum focused on creating a business-friendly environment with free trade zones and minimal taxation, attracting international companies and investors. His proactive approach transformed Dubai into a diversified, resilient economy, significantly reducing its dependence on oil.
Picture of downtown Dubai in 2003 and today
Imagining a future for our countries that does not yet exist holds immense value. It encourages innovation, strategic planning, and long-term investment, driving progress and development. African governments must adopt a similar proactive stance, focusing on sectors where we can build strength and resilience. By imagining and working towards a future of diversified economies and sustainable development, we can avoid the pitfalls of relying on short-term gains. Investing in education, technology, renewable energy, and other critical sectors will enable us to create lasting prosperity and improve the quality of life for our citizens.
Bold, Mad decisions needed
To lead in the next 20 years, African governments must decide that we should lead the global economy and take super-aggressive steps in education and ecosystem development. We must invest heavily in education and digital literacy from an early age. By integrating coding, robotics, and AI into the school curriculum, we can cultivate a generation of tech-savvy innovators. Initiatives like mobile learning platforms can ensure that even students in remote areas have access to quality education. At this point, young people are discovering emerging technologies in the job market – post-university. Worse, girls are not being socialised to work in this industry, and so they aren’t.
Our countries must create tech hubs and innovation centres across the continent. These centres would serve as startup incubators, providing resources, funding, and networking opportunities. They could also focus on solving uniquely African challenges, such as developing agricultural technologies to enhance food security or creating fintech solutions tailored to the unbanked population. Embracing emerging technologies like blockchain for transparent governance and renewable energy solutions for sustainable development can position Africa at the forefront of the global tech landscape. By leveraging our diverse cultures and experiences, we can drive inclusive growth and showcase African ingenuity on the world stage.
This is the one area in which Africa as a whole should be protectionist and a bit xenophobic. Governments should prefer technology products built on the continent by Africans to develop local companies’ financial and skill capacity. Building our technologies, infrastructures, and systems is really the only way we can start to compete on the global stage.
Fostering a Wild Ecosystem
Innovation thrives in environments that encourage experimentation. We must build a tech ecosystem supporting diverse projects, especially those catering to our unique linguistic and cultural contexts. Imagine internet services that speak our languages and address our specific needs. Such an ecosystem would bolster local innovation and make our tech landscape more inclusive.
In the context of tech ecosystems, Africa’s true strength lies in its diversity and complexity. Unlike the homogenized tech landscapes dominated by Silicon Valley, Africa’s vast array of cultures, languages, and unique local challenges present an unparalleled opportunity for innovation. By embracing our multifaceted identities, we can create tech solutions that are globally competitive and deeply relevant to our own contexts. This diversity drives creativity and fosters a vibrant ecosystem where many ideas can flourish, leading to more resilient and adaptable technologies. The rich tapestry of African experiences and perspectives can give rise to innovations that address the nuanced needs of our societies, from fintech solutions tailored for unbanked populations to agricultural tech that understands local farming practices.
Moreover, the complexity of our tech ecosystems encourages robust problem-solving and sustainable development. A diverse tech landscape means multiple approaches to similar problems, increasing the likelihood of breakthrough innovations and reducing systemic risks associated with technological monocultures. Just as natural ecosystems thrive on biodiversity, a diverse tech ecosystem can better withstand external shocks and adapt to changing environments. By leveraging our complexity, African tech ecosystems can pioneer advancements that cater to local markets and offer fresh perspectives and solutions to global challenges. Investing in and nurturing this diversity and complexity is crucial for Africa to participate in and lead the next wave of technological evolution, ensuring that our innovations are both inclusive and groundbreaking.
Robust Trade Negotiations
Africa must renegotiate its trade protocols with a focus on technology. Our aim should be to secure terms that promote our tech industry rather than allowing external powers to dictate the rules. We need policies that protect our budding sectors and encourage the growth of local tech giants. Negotiating trade protocols isn’t just about protectionism; it’s about fostering an environment where African tech companies can thrive. The current global trade landscape is like a rigged casino where the house always wins. To tip the scales, African governments need policies acting as springboards for our homegrown tech innovators. Protective tariffs, local content requirements, and incentives for research and development are not just good ideas—they’re essential.
AFCFTA as an opportunity
The African Continental Free Trade Area (AfCFTA) provides a unique opportunity to establish a unified market that supports the growth of local tech giants and fosters innovation. We need policies that protect our budding sectors and encourage the development of homegrown tech enterprises.
Leveraging the AfCFTA to renegotiate trade protocols with a tech focus involves several key strategies. First, we should implement protective tariffs on imported technology products to give local manufacturers a competitive edge within the continental market. We can stimulate domestic production growth by making it less attractive to import foreign tech. Additionally, local content requirements under AfCFTA should mandate that a significant percentage of technology components be sourced from within Africa, ensuring local suppliers benefit from the industry’s expansion. Furthermore, providing tax incentives and grants for research and development will encourage innovation and attract investments into the tech sector. These measures will protect our nascent tech industry and create a conducive environment for it to flourish. By securing favourable trade terms and implementing supportive policies within the AfCFTA framework, we can build a robust tech ecosystem that propels Africa to the forefront of the global technology landscape.
It’s time for Africa to reclaim its narrative in the digital age. We have the talent, creativity, and resilience. With the right bold, aggressive investments and policies, we can transform from passive consumers into active producers. The next 20 years could mark Africa’s rise as a technological powerhouse, leading innovation and digital development. The future is ours to shape—let’s seize it.