Finance Psyche

The challenge of mass unemployment in Africa is only compounded by the burgeoning talent in its labour market. A University of Cape Town study shows that 30 million youths are entering the African labour market every year. Yet, only 3 million official jobs are available each year. Experts have identified this massive unemployment as one of the primary causes of the high crime rates, poverty and economic decline across the continent’s nations. However, the advent of digital technologies has redefined the world of work and provided novel opportunities to employers and potential employees in Africa.

The confluence of digital technologies and innovation in the labour market have birthed digital labour platforms which facilitate online work and connect service providers with interested customers. The impact of these digital labour platforms on various aspects of the labour market and economies cannot be understated, particularly in Africa. 

The International Labour Organisation states that digital labour platforms are mostly used by the working population in developing countries, as platform work is the primary source of income for a large number of individuals in these countries. As helpful as these platforms are to workers, they pose much higher advantages to organisations based in Africa. 

Digital labour platforms have optimised the talent recruitment process in Africa.

• Talent recruitment in Africa is often hampered by locating competent individuals with the values of professionalism and excellence, according to the Society for Human Resource Management.
• However, these digital labour platforms help businesses locate the right individuals required for the position and facilitate the recruitment process. Potential employees from any region can access company vacancy ads, increasing the pool of individuals that companies can choose from.
• In light of this, virtual or multinational companies seeking to find uber-talented and competent employees can do so at minimal cost.
• These platforms require little to no cost to join and announce the need for talent, which 

These platforms also enhance productivity and minimize operations’ cost

• Digital labour platforms are primarily used by organisations to outsource tasks and retail services.
• For companies aiming to enter the African market, outsourcing tasks like logistical operations can prove cost-efficient and advantageous since the local businesses already understand the efficient routes, procedures, and market trends, thus saving the company from initial marketing, operations, and logistics blunders and cost consequences.
• Moreover, outsourcing tasks to local or international freelancers can give companies access to insights that the creatives have while reducing labour costs since the labour is gig-based. 
• Also, these freelancers could propose innovative ideas that can improve productivity and standard procedures in the workplace.

They enhance the development of SMEs and start-ups

• Businesses that specialise in consumer goods and services now have access to a broader range of customers as the marketing process is faster, cheaper, and more effective.
• These platforms also help start-ups grow as founders can reduce the cost of operations while retaining or increasing productivity by outsourcing trivial tasks without the trappings of conventional talent recruitment and retention.
• Product efficiency can be easily attained as numerous digital labour platforms provide features that facilitate customer feedback. 

Digital labour platforms are creating novel investment opportunities

• Since the primary aim of digital labour platforms is to connect employers with competent works and customers with reliable businesses, the by-product is a host of opportunities that arise from facilitating the transactions between these individuals.
• To illustrate, it is pertinent to note that most fintech companies in Africa were created to facilitate seamless payments for goods and services while establishing trust and reducing risks for both parties. 
• Fields such as e-commerce, digital marketing, and brand management owe their explosive growth to the emergence of digital labour platforms. 
• The emergence of these platforms in Africa has also catalysed the increase of logistics companies, SMEs, entrepreneurs, and innovative industries such as social media influencers and content creators or developers.

Final Thoughts

Despite its potential in developing the African economy, digital labour platforms, and the gig economy are often criticised for robbing workers of other workplace benefits apart from the basic salary. However, the fault in this line of thought is the refusal to acknowledge the African economic landscape as dynamic and volatile. As such, unconventional approaches are required to beat the challenges and boost the progress of economic development. Therefore, the existence of digital labour platforms in Africa addresses unemployment and alleviates the significant problems of doing business in Africa.