08.01.2025

The future of work in Africa: lessons from Ghana’s digital transformation

by Evans Awuni, Research Fellow, University of Erfurt, Germany

5 min read

Using new survey data from Ghana, this post discusses a web of challenges that could shape or shatter this transformation. It looks at how digital technologies are both empowering individuals and exacerbating inequalities.

While many Ghanaians are hopeful/remain optimistic about their own prospects in the digital economy, systemic barriers such as unequal access to education, income disparities and gender gaps threaten to widen the divide between those who can harness the benefits of digitalisation and those who are left behind. In this short piece, I also highlight the risks of job precarity, exploitation and data colonisation, all of which raise urgent questions about the future of work in Africa.

Optimism in the digital era

Amidst the ongoing global discussion about technological unemployment and the future of work, something strikingly unique is happening in Africa. Focusing on research conducted in Ghana, evidence shows that contrary to the anxieties seen in many regions, many people in Africa are optimistic about their future job prospects in the digital age. Survey data from over 1,200 economically active Ghanaians support this optimism, with over 70% of respondents expressing confidence that digitalisation will enhance their livelihoods rather than diminish them. Respondents pointed to the time-saving and efficiency benefits of digital platforms in overcoming everyday challenges such as long queues for public services. Awuni and Kemmerling, for instance, show how exposure to digital technologies has allowed many to overcome everyday challenges historically exacerbated by government inefficiencies and market failures in Ghana. However, this optimism is largely individual. While people are hopeful about their ability to succeed in a digital economy, further analysis of the survey data shows that they are much less confident in the broader prospects for Ghana.

This “individual-collective optimism gap” may stem from systemic issues such as weak (or low levels of trust in) institutions, governance challenges and growing inequality, which temper expectations for national progress, even if personal opportunities appear promising. In Ghana, where nationally, systemic issues such as corruption and inefficiency persist, people may believe that digitalisation benefits them personally, but are unsure if it can uplift the entire country. Many also fear that the digital divide, manifested in differential access, skills and use of digital technologies, may deepen or perpetuate existing inequalities in education, income, gender and infrastructure, among others, and ultimately hinder national progress. In rural areas, for example, digital infrastructure remains underdeveloped. Apart from the digital divide, issues about employment precarity, regulatory challenges and weak social protection, among others, may altogether explain this dichotomy between personal empowerment through digital technologies and scepticism about national prospects.

The digital divide and growing inequality

Ghana is a particularly interesting case because since 2018, the government has pursued an ambitious “digitalisation agenda”. This agenda has included initiatives such as biometric identification systems, mobile money interoperability and a digital addressing system, all of which are shaping public services and economic transactions. Despite these successes, the benefits of digitalisation remain unevenly distributed.

Our survey data show that individuals with higher educational attainment and those in urban areas have greater digital access and skills, which may translate into better labour market outcomes, such as higher chances of securing formal employment and receiving pensions. However, those with lower educational levels or in rural areas experience significant gaps in both digital access and skills. This mirrors broader trends in many parts of Africa, where access to digital tools and their beneficial use is often skewed towards wealthier, more educated urban populations, as illustrated in Figure 1 below.

Interestingly, the survey data suggest that the gender gap in digital access may be narrowing in Ghana, with women’s internet use now comparable to or even slightly exceeding that of men in some activities, as shown in the graph. However, age and income inequality remain significant factors; younger individuals tend to engage more broadly with digital platforms, while older demographics show more limited usage. Higher-income individuals are generally more likely to be able to afford digital devices and consistent internet access, enabling their broader engagement with online activities. In contrast, lower-income individuals are often excluded from many economic opportunities brought about by digitalisation. These divides carry serious implications for the future of work; without targeted efforts to improve digital skills and access across all demographics, socioeconomic inequalities are likely to deepen.

Precarity and regulatory challenges

In addition to the digital divide, another issue that emerges from Ghana’s digital transformation is precarity, particularly in the gig economy or informal digital work. Digitalisation has created new job opportunities, such as ride-hailing, delivery services and freelance digital work, but these roles often come without formal contracts, job security or social protections. For example, ride-hailing drivers on platforms such as Uber and Bolt operate under flexible conditions, yet they lack stable income guarantees and benefits such as health insurance or pensions. This employment precarity reflects a broader challenge across many African countries, where labour markets are adjusting to the rapid rise of the gig economy. Without security, gig workers are vulnerable to exploitation, as multinational platforms set the terms, often imposing high commissions, cutting wages or limiting workers’ rights without oversight. Thus, while these platforms provide income streams, they also create conditions ripe for exploitation, keeping workers locked in precarious positions.

The connection between precarity and regulation becomes more visible as the gig economy grows. The absence of protective labour regulations allows platforms to exploit gig workers, making their precarious status more pronounced. In Ghana and much of Africa, regulatory frameworks have not kept pace with this digital economy shift, leaving gig workers in a legal grey area. Without strong labour protections, these workers fall outside national labour laws, with no access to social benefits. This regulatory gap not only leaves workers exposed, but also enables the phenomenon of data colonisation, where multinational tech companies profit from local users and workers without reinvesting in local economies. African workers on global platforms generate valuable data that are commodified by large corporations, reaping profits for companies outside Africa, while the continent itself sees little return in terms of infrastructure investment or digital sovereignty. Thus, weak regulations both perpetuate precarity and allow for further exploitation, creating a cycle that leaves gig workers with little recourse. Arguably, stronger regulatory frameworks that protect digital workers and address the power imbalance with tech platforms are essential to breaking this cycle and ensuring fairer, more equitable outcomes.

More questions than answers

As Ghana and much of Africa undergo rapid digital transformation, the path ahead is filled with both opportunities and significant uncertainties. Digital technologies are reshaping how people work, live and interact, but they are also raising key questions. Will these new digital jobs provide workers with security and protections, or will they trap them in cycles of precarious employment? How can we ensure that the benefits of digitalisation reach not only the well-connected urban elites, but also marginalised populations, including rural communities, women and those with less education? In the race to build thriving digital economies, policymakers face the challenge of crafting labour laws that address the complexities of gig work, remote freelancing and platform-based economies. What innovative regulatory models can ensure that workers in these sectors are afforded fair remuneration and protections, comparable to more traditional forms of employment, without losing the flexibility that makes these jobs attractive? As African workers and users generate valuable data that drive the profits of global tech giants, how can African countries assert greater control over their own digital futures? The answers to these questions are not immediately clear, but they are key to shaping policies on the future of work in Africa. As digital technologies transform economies, the real test will be whether they can be harnessed to create a future of work that is inclusive, equitable and sustainable for all.

 

Evans Awuni is a Research Fellow at the German Institute of Global and Area Studies (GIGA) and a Research Associate at the Willy Brandt School of Public Policy. His broader research interests include socioeconomic development, technological change, social policy, sustainability and poverty alleviation. His current research focuses on the labour market and social policy implications of technological change in Africa. Before joining the Willy Brandt School, Evans conducted research at prestigious institutions including the German Institute of Development and Sustainability (IDOS) and the German Institute of Global and Area Studies (GIGA), which he is still affiliated to. At the Willy Brandt School, he is part of the research project “PolDigWork”, which studies how hopes and fears about digitalisation shape opinions on social and labour policies in middle-income countries. Evans obtained his MA degree in Public Economics, Law and Politics from the Leuphana University of Lüneburg and his doctorate from the University of Erfurt in Germany.

Technology, Employment and Wellbeing is an FES blog that offers original insights on the ways new technologies impact the world of work. The blog focuses on bringing different views from tech practitioners, academic researchers, trade union representatives and policy makers.


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