Africa's Platform and the Sharing Economy

Abstract

Platforms are altering business processes and value creation mechanisms as previously witnessed across traditional pipe businesses. Africa has over 300 active digital platforms that serve millions of consumers across every sector of the economy – health, education, commerce, tourism and hospitality, government, information technology, and others. The rise of the platform economy has also popularised the concept of sharing, which has been with Africans for centuries. Through platforms, economic models have also evolved, allowing asset owners to monetize idle assets by offering these assets to those in need of them for a commercial fee using pay-as-you-use (PAYU) pricing models. This chapter serves as an introduction to the concept of platforms and the sharing economy while highlighting industry trends and opportunities that have been triggered by this innovative and disruptive business model.