Lusaka, 1 April 2023 – Sanari Capital founder and CEO, Samantha Pokroy, was invited to participate in a roundtable hosted by US Vice President Kamala Harris aimed at promoting digital inclusion across Africa. The event was part of Vice President Harris’ visit to several African countries and brought together business and philanthropic leaders to discuss the potential of digital solutions in Africa and the challenges that need to be addressed to achieve digital transformation on the continent.

During the roundtable, Vice President Harris called for action from the private sector and philanthropic community to support the Digital Transformation with Africa (DTA) Initiative launched by President Biden in December 2022. She pointed out that the African continent leads the world in certain digital solutions but that there are areas where the continent lags. She emphasized the need to work alongside the US and local governments to achieve the initiative’s goals and close the gaps and challenges facing the African continent.

As the only representative of private equity and venture capital in the room, Pokroy emphasized the need to include medium-sized and mid-market businesses (and not just large corporates or micro enterprises) in any initiative aimed at addressing the digital divide on the African continent. She pointed out that whilst there are c.350 businesses larger than $1bn and c.580 listed companies on the continent, the vast majority of Africa’s businesses and economy are made up of medium-sized businesses, some of which are young scale-up businesses, and many of which have been around for generations and are family-owned or owner-managed. These businesses will play a crucial role in bridging the digital divide on the continent.

Pokroy added, “With the growing business complexity linked to technology advancements, climate change, geopolitical shifts, and high interest rate and inflationary conditions, it is important to have active capital partners with shared ownership, shared responsibility, expertise and experience to partner these businesses in navigating the challenges of the times. Private equity and venture capital should be engaged to play an active role in support of the DTA initiative.”

Pokroy however stressed the need for equal digital access to avoid the risk of falling behind, saying: “We know that AI and other digital technologies present both an opportunity and a threat. They offer the potential to leapfrog and get ahead, but without full digital access and literacy, falling behind is a real risk. Therefore, the role of governments, DFIs, foundations, and large corporates in creating equal digital access, through digital infrastructure and digital literacy, is foundational.”

In response to the call for action from Vice President Harris, we recommend engaging the broader industry through industry bodies such as AVCA and SAVCA but also see this as a unique opportunity to tie in with another key initiative launched by Vice President Harris on this occasion, being the Global Initiatives on the Economic Empowerment of Women with  investments totalling over $1 Billion to promote gender equity and equality (see announcement here). The digital gender gap exacerbates inequality undermining women’s full participation in the 21st-century economy.

To bring these two initiatives together, Pokroy recommends engaging women capital movers on the African continent to lead the rollout of investments through their existing investment capacity, infrastructure, and networks. Women investors are twice as likely to invest in women entrepreneurs and women-led companies, making them a critical implementation partner. Women capital movers can be engaged through member organisations WAI Group, AWI Group, and 2X Global. Vice President Harris concluded, “The investments that we make today have the potential to turn the challenges we face into great opportunities that will have generational and global impact. That is the moment that we are in right now.” She expressed her optimism about the future of the African continent and the impact it will have on the rest of the world. Pokroy shares Vice President Harris’ view and looks forward to being part of a solution that will ensure Africa is not left behind in the digital age.