Digitalization and labor in Africa: A regional snapshot for relevant social interventions

Abstract

The digitalization of labor is increasingly becoming a potential pathway to bridging socioeconomic development deficits, particularly unemployment gaps in Africa. This pathway is even more imperative for the region, considering its relatively young population with a  high unemployment rate. This report appraised the impact of increasing digitalization on labor across economic sectors in Africa,  highlighting the current issues and challenges faced by workers in the region and the state of policy evolution in relation to labor and the  digital economy with respect to Africa. The report elucidates structural inequalities in relation to digital skills and labor supply, which  shifts bargaining power inequitably in favor of digital companies in their ability to drive down workers' wages and the plausibility for  collective bargaining. This precarious working condition for digital labor is exacerbated by workers' algorithmic management, which  further constrains their agency for bargaining and autonomy. Another important challenge within the gig space in the region is the high  dependence on technology devices (such as computers and mobile phones) and internet access. In this respect, the affordability of those  and erratic power supply systems are limiting participation barriers for the labor force in Africa within the global digital economy. Sadly,  in addressing these challenges across the region, there are yet clear legal mandates or regulatory policies by countries explicitly dealing  with the emerging labor issues related to the increasing digitalization on the continent. In the context of the above regulatory and policy  lacuna, African gig workers demonstrate resilience over the emerging constraints in the digital economy concerning working conditions  and rights. They rely on often subtler and less aggressive mechanisms than traditional worker union approaches. The report concludes  with recommendations and intervention areas for stimulating digital labor in Africa to accelerate its contribution to the inclusive socio- economic development of the region.