UNILAG secures Afretec seed grant to explore digital transformation in youth-led MSMEs

Business a.m.

The University of Lagos has been awarded a prestigious African Engineering and Technology Network (Afretec) seed grant under the “Building Research Capacity to Advance the Inclusive Digital Transformation of Africa” programme. 

This one-year study, “Evaluating Digital Transformation and Maturity in Youth-Led Micro, Small, and Medium Enterprises (MSMEs) Across Sub-Saharan Africa,” will involve extensive research in Kenya, Nigeria, and South Africa. Partnering with the University of Nairobi in Kenya and the University of the Witwatersrand in South Africa, Unilag will investigate digital maturity across the health, energy, environment, and sustainability sectors, addressing critical challenges and opportunities in Africa’s MSME ecosystem.

Africa’s MSMEs are pivotal to economic growth, providing employment and tackling pressing global development challenges. However, these enterprises face high failure rates, often lacking the digital maturity needed to compete and grow sustainably. Recognizing the transformative potential of digital technology, particularly for youth-led businesses, the study aims to assess the state of digital transformation in these sectors. The goal is to create a clear understanding of MSMEs’ digital capacities and offer solutions to boost resilience and sustainability.

The structured research will proceed through distinct phases over the coming year. In the initial months, the research team led by Obigbemi Imoleayo of the Faculty of Management Sciences will set objectives, refine methodologies, and build partnerships.  

A comprehensive literature review and framework development are planned for months three and four, setting the groundwork for a digital maturity assessment survey and qualitative interviews. These surveys and interviews will gauge digital capabilities and capture the lived experiences of MSMEs in adapting to new technologies. In the final stages, findings will be analyzed and disseminated through workshops, conferences, and academic publications, ultimately informing policies that will accelerate MSMEs’ digital transformation.

Despite the advantages digital transformation offers, MSMEs often struggle to adopt necessary technologies due to resource constraints, including limited budgets, knowledge gaps, and time constraints. This research will investigate several key questions, including:

• The current level of digital maturity in MSMEs across sectors.
• The challenges and opportunities MSMEs encounter when adopting digital technologies.
• The impact of digital maturity on MSMEs’ business performance, innovation, and sustainability.
• Strategies and interventions to enhance MSMEs’ digital maturity.

Outcomes will be shared with industry stakeholders, policymakers, and academia, aiming to foster a supportive environment for African MSMEs in the digital era. As part of this commitment, findings will also appear in policy briefs, book chapters, and journal articles. The engagement of Unilag with Afretec through this grant underlines the University’s commitment to advancing Africa’s digital transformation, ensuring that MSMEs can thrive in a rapidly evolving global landscape.