Perspectives on disruptive innovations and africa’s services sector

Abstract

The growth in digital technologies is influencing and fast transforming societies all over, and Africa is no exception. Digitization and related growth in technological innovation are rapidly redefining the provisioning of services and wealth generation in Africa. Digitization is also reinforcing a trend of ‘servicification’ (increased trade in services), whereby there is an increase in the use, produce and sale of services. The growth in Nollywood movies and music is a good example. Relatedly, international production, trade and investments are increasingly becoming organized within global value chains (GVCs), where different production stages are located across different countries. In the emerging revised landscape, triggered by digital disruption, the relationship between trade in goods and trade in services has become more complex, with limitless threats, possibilities and opportunities to expand and deepen trade, investment and innovation. This chapter, drawing on the extant literature on disruptive innovation and the fourth industrial revolution, interrogates the essence of the growing disruption to Africa’s services sector, highlights current trends in services innovations, and suggests how the continent can, and should, leverage emerging disruptive innovations to enhance its services sector.