Digital transformation in emerging markets through geospatial innovation

Introduction Digital transformation is rapidly reshaping industries, economies, and societies worldwide. In emerging markets, where infrastructure and resources are often limited, the shift towards digital solutions has proven to be particularly impactful. One of the most promising areas of this transformation is the use of geospatial technology.

Tools such as Geographic Information Systems (GIS), satellite imagery, and remote sensing are helping businesses and governments in developing regions, particularly in Africa, to unlock new efficiencies, improve decision-making, and drive sustainable growth (Mponela et al., 2023).

This article examines how geospatial technologies are accelerating digital transformation in emerging markets, with a particular focus on Africa, and explores how these innovations create a lasting impact.

The Role of Digital Transformation in Emerging Markets

Digital transformation refers to the integration of digital technologies into all areas of business, fundamentally changing how they operate and deliver value to customers (World Bank, 2021). In emerging markets, this transformation offers an opportunity to leapfrog traditional stages of development, bypassing the need for legacy infrastructure and transitioning directly to digital solutions (UNCTAD, 2020).

The adoption of digital technologies in these regions is driven by several key factors:

• Mobile Connectivity: Mobile phones are more widespread than personal computers in many developing regions, making mobile-based digital solutions more accessible. In Sub-Saharan Africa, for instance, there were 747 million mobile connections in 2021, far outnumbering internet users (GSMA, 2022).

• Innovative Business Models: Companies are leveraging local contexts, such as mobile money platforms like M-Pesa in East Africa, which have given millions of unbanked individuals access to financial services (Jack & Suri, 2014).

• Government Initiatives: Governments across Africa are embracing digital strategies to foster economic growth. For example, Rwanda's National ICT Policy has been instrumental in supporting its digital economy (Republic of Rwanda, 2020).

Digital transformation has been shown to boost economic growth, job creation, and sustainable development, with geospatial technology playing a pivotal role (World Economic Forum, 2022).

Geospatial Technology: A Catalyst for Growth

Geospatial technology refers to the collection, analysis, and use of data associated with specific locations. This includes satellite imagery, drones, GPS data, and GIS software that visualizes and analyzes spatial data. In emerging markets, geospatial technologies are helping to address development challenges by providing data-driven insights for a wide range of applications.

1. Improving Agricultural Productivity

Agriculture accounts for over 60% of employment in Africa and contributes roughly 23% to the continent’s GDP (World Bank, 2021). However, traditional farming methods often lack precision, limiting productivity and efficiency. Geospatial technology enables the adoption of precision agriculture practices, which optimize the use of resources like water, fertilizers, and seeds.

In Kenya, UjuziKilimo, a precision agriculture startup, uses sensors and geospatial data to analyze soil conditions, providing farmers with insights into soil health and recommending optimal planting strategies. This has led to yield improvements of up to 40% in some regions (CGIAR, 2023).

2. Urban Planning and Infrastructure Development

Urbanization in Africa is expected to reach 60% by 2050 (United Nations, 2018). Managing the rapid expansion of cities and infrastructure requires efficient planning, and geospatial technologies offer critical tools for urban planners. GIS is used to map city expansions, plan transportation networks, and monitor land use, contributing to sustainable urban development.

For instance, Kigali, Rwanda has implemented GIS to improve land management, reduce environmental degradation, and streamline public services such as waste management. As a result, Kigali has become one of Africa’s cleanest cities, setting an example for urban development across the continent (Republic of Rwanda, 2020).

3. Environmental Monitoring and Disaster Management

Emerging markets, particularly in Africa, are highly vulnerable to environmental risks such as floods, droughts, and deforestation. Geospatial technologies are helping governments and organizations monitor environmental changes and respond to natural disasters more effectively.

In the Congo Basin, the second-largest tropical rainforest in the world, satellite imagery is used to track deforestation in real-time. This region plays a crucial role in global carbon sequestration, and geospatial tools have been instrumental in curbing illegal logging activities, thus preserving biodiversity (Global Forest Watch, 2023).

Additionally, in flood-prone regions like Mozambique, geospatial data helps predict flood patterns, improving disaster preparedness and reducing fatalities (UNDRR, 2021).

4. Healthcare Delivery and Disease Monitoring

Access to healthcare in emerging markets is often hampered by logistical challenges, including poor infrastructure and remote populations. Geospatial technologies are helping bridge this gap by optimizing resource allocation and improving disease surveillance.

During the Ebola outbreak in West Africa, geospatial mapping tools were used to track the spread of the disease and allocate medical resources more efficiently, leading to more effective interventions (CDC, 2016). Additionally, GIS is increasingly used to map healthcare facilities and identify underserved areas, improving the distribution of medical supplies in routine healthcare (WHO, 2022).

Challenges and the Way Forward

While geospatial technologies offer immense potential in emerging markets, several challenges need to be addressed to fully realize their benefits:

• Data Availability: The quality and availability of geospatial data in many regions remain limited. Investments in data collection infrastructure are essential to expand coverage and accuracy (Mponela et al., 2023).

• Capacity Building: There is a shortage of professionals with expertise in geospatial technologies. Training programs and educational initiatives are needed to build local capacity in geospatial sciences (World Bank, 2021).

• Policy Frameworks: Governments need to establish clear policies and regulations for the ethical and responsible use of geospatial data, especially regarding privacy concerns (UNESCO, 2021).

Despite these challenges, the future of geospatial technology in emerging markets looks promising. With improvements in mobile connectivity and digital literacy, the adoption of geospatial innovations is likely to accelerate, unlocking new opportunities for innovation and growth (World Economic Forum, 2022).

Conclusion

Geospatial technology is proving to be a powerful driver of digital transformation in emerging markets, particularly in Africa. By improving agricultural productivity, supporting urban planning, enabling environmental monitoring, and enhancing healthcare delivery, geospatial tools are helping address pressing development challenges.

Continued investment in data infrastructure, capacity building, and supportive policy frameworks will be key to unlocking the full potential of these technologies in the developing world.