Lagos, Nigeria; Johannesburg, South Africa – July 20, 2023
With more targeted investments, Africa could transform into a global exporter for the fashion and creative sector and serve as a model of inclusive growth. This is according to a new study into the transformative role of digital innovation in driving the growth of the African fashion industry. The study was co-authored by Ananse.com, an innovative startup e-commerce platform that serves as a vital link connecting African designers with local and international consumers, in collaboration with the research firm Botho Emerging Markets Group, the Mastercard Foundation, and the African Development Bank’s Fashionomics initiative.
The White Paper entitled “Unleashing the Commercial Potential of African Creatives Through Digital Technology” was launched today on the international fashion business intelligence platform The Business of Fashion Live, providing valuable insights into the state of the African creative sector, and the transformative role played by digital innovation in driving the growth of the African fashion industry. The report underscores the importance of user-friendly digital platforms tailored to micro, small, and medium-sized enterprises, facilitating their access to global markets. It highlights the need for digital and marketing training, as well as assistance in securing and delivering large orders, to enhance the success of African fashion creatives.
Key findings from the report include:
“The purpose of this research was to understand and define the African fashion sector and the profile of the African fashion entrepreneur, and in so doing, support public, private and development sector actors to build solutions that enable small and micro fashion enterprises in Africa to scale. It calls upon stakeholders to harness the immense potential of digital innovation and invest in the necessary infrastructure and policies to support the success of fashion creatives on the continent,” commented Ananse.com founder Sam Mensah, a Ghanaian ex-Silicon Valley executive and fashion entrepreneur.
The study employed a mixed research approach, involving both primary and secondary research. The primary research entailed a comprehensive 43-question survey that included a mix of qualitative and quantitative questions, from respondents in 46 countries, with Nigeria, Kenya, and South Africa ranking among the top three countries.
The White Paper also draws attention to the gender disparity within the creative entrepreneurship space in Africa. The study found that although women dominate the creative sector, they are disproportionately affected by low earnings – only 32% of women entrepreneurs generate more than USD $500 in monthly sales compared to 42% of men. Women are also less skilled in the use of digital technologies and make less use of e-commerce and digital payments – women were 31% less likely than men to have an e-commerce website. It emphasizes the importance of targeted policies and strategies that support women-led small and medium-sized businesses, addressing the specific challenges faced by female-owned creative enterprises. Policymakers are urged to expand vocational training programs that address the inadequate business, digital, and marketing skills among fashion entrepreneurs in Africa, especially women. Such interventions will better prepare creative small and micro enterprises to benefit from the African Continental Free Trade Agreement. Improved policy coordination accompanied by collaborative investments by public, private and development sector organizations has the potential to catalyze new value chains to the benefit of the creative economy in Africa and around the world.
Download your free copy of the White Paper here.
Ananse is a startup ecommerce platform that enables consumers from around the world to shop online from fashion designers’ artists and artisans from across the African continent. The company’s training, end-to-end payments and logistics solution provides a valuable plug-and-play ecommerce service to creative entrepreneurs in Africa, enabling them to trade globally and grow their businesses.
Experience the platform at www.ananse.com.
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About the Mastercard Foundation
The Mastercard Foundation is a Canadian Foundation and one of the world’s largest foundations, with a mission to advance education and financial inclusion. It works with visionary organizations to enable young people in Africa and in Indigenous communities in Canada to access dignified and fulfilling work. The Foundation was established in 2006 through the generosity of Mastercard when it became a public company. The Foundation is an independent organization and separate from the company. Its policies, operations and programs are determined by the Foundation’s Board of Directors and leadership.
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