Here’s How Freelancing Can Be Beneficial To Africa’s Economy

Africa is a continent of 1.2 billion people and an area of approximately 30.2 million km². It is the second-largest continent in the world after Asia, comprising 63 territories with diverse populations, cultures, economies, and natural resources.

The vast majority of people in Africa work in the informal sector, which is defined as “economic activities by persons who are self-employed or work for small companies and usually at low wages, without employee benefits and often not officially registered.”

This makes it difficult to get accurate information about how many people in Africa work in the informal sector as a whole, but estimates show that more than 80% of Africans are employed informally.

But there’s a new type of informal employment that could be beneficial to Africa’s economy: freelancing.

The term freelancer covers self-employed workers who are not necessarily committed to a particular employer long-term. In other words, they don’t have permanent contracts with one company but instead, complete jobs for multiple clients simultaneously.

Takeaways
Freelancing provides opportunities for economic growth in Africa.
The gig economy in Africa is expanding, offering flexible work arrangements.
Freelancing enables African workers to leverage their skills and earn income.
Technology plays a crucial role in facilitating freelancing in Africa.
Freelancing can contribute to inclusive economic development in African communities.
African freelancers face unique challenges and opportunities in the marketplace.
Collaborative platforms and digital connectivity are empowering African freelancers.
Freelancing in Africa fosters entrepreneurship and drives innovation.
Governments and organizations can support and promote the growth of freelancing in Africa.
Africa has immense potential for freelancers to contribute to its economic transformation.

Why Freelancing In Africa?

Largely, freelancing is underrated in Africa. However, the success of some African freelance writers and entrepreneurs has brought this business into the spotlight. In fact, a recent study by Global Workplace Analytics showed that in the US alone, the number of people working as freelancers will reach 86.5 million by 2027. That represents 35% of the total workforce!

In Africa, it is estimated that there are 3.2 million people who work as freelancers. And this number is set to rise due to the digital revolution that has unleashed a new wave of entrepreneurs with an entrepreneurial spirit that is needed to take advantage of the gig economy.

Freelancing offers immense opportunities for personal growth and development. Discover how to unleash your potential and cultivate personal growth through freelancing in our comprehensive guide on how freelancing benefits your personal growth.

So What Does Freelancing Mean For Africa?

It means more jobs for Africans and increased income for African economies. It also means that more companies will embrace remote work and hire people living outside their home country. This will open doors for many Africans who will be able to work from their homes or from coworking spaces in their cities.

14 Ways Freelancing Can Be Beneficial To Africa’s Economy

Here’s how freelancing can be beneficial to Africa’s economy:

1. It Helps To Bring Money Into The Economy

Most freelancers earn foreign currency. They get paid using PayPal, Payoneer, and other online payment methods. If they are paid in dollars they can use that money to buy goods and services, thereby increasing demand for those goods and services and contributing positively to the country’s overall economic growth.

2. It Can Help To Reduce Unemployment In Africa

Some of the countries that are most affected by unemployment are Kenya, South Africa, and Nigeria. This is because most businesses prefer to hire people out of the country.

Freelancing can be beneficial to Africa’s economy because it can help to create jobs for everyone who is looking for employment. It will also help to reduce the cost of living in Africa.

For example, when someone is unemployed, they have no access to money to take care of their basic needs such as food and clothing. This can lead to poverty which is one of the major problems Africa is facing at the moment.

Therefore, if you have some skills that you can use to work from home, then freelancing would be a good way to earn an income without leaving home.

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3. Time Management Practices

The latest research suggests that freelancing can help Africans manage their time, so they can have time for other things and still earn money.

In a recent study of African freelancers, most agreed that freelancing gives them more time for family, recreation, and other activities.

In addition to being able to spend more time on personal pursuits, freelancers also reported that they earned more money than employees doing the same kind of work.

4. Increased Creativity

Freelancing gives workers a chance to be more creative. With full-time jobs, there is not much room for creativity, as workers are limited to their given tasks. With freelancing, however, they can take on as many projects as they like and come up with new ideas that may benefit other clients and even themselves. This will give them the opportunity to thrive and grow creatively, which could lead to a boost in Africa’s economy.

5. Self Independence

Freelance works teach people how to be independent and self-employed, thereby adding to Africa’s GDP annually through taxes paid by freelance workers on their earnings each year. Thereby, boosting the economy of the country/continent at large.

6. It Provides More Opportunities For Women In Africa

Freelancing has allowed more women to work from home and/or work flexible schedules. This is important because it allows them to earn an income while also attending to their families. Additionally, the rise of online platforms such as Fiverr and Upwork has made it easier than ever before for individuals in Africa to find work and make money online.

With this increase in jobs comes an increase in economic growth as well as opportunities for African women who might otherwise not have had them. ‘I think we can all agree that this is something we want to see happen,’ said one woman who works as a freelance writer on Fiverr,“

7. It Helps Reduce Brain Drain

Brain drain is a phenomenon in which skilled workers leave their country, often for better opportunities elsewhere. This is a problem because the people who leave are often highly educated, and they take their education (and therefore money-making potential) with them when they go.

Brain drain is a huge issue in Africa. The continent has lost over $4 billion dollars to brain drain in the past decade alone, according to the World Bank.

But freelancing may help reverse this trend. A UN report showed that 60% of African freelancers were able to access better projects and opportunities than they would have had if they stayed in their home country. This means that freelancers are more likely to stay in Africa and continue contributing to the economy there—instead of leaving for greener pastures abroad.

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8. Freelance Can Help In Digitalizing Africa’s Economy

It is true that many African countries have been left behind in terms of technological advancement. However, due to the internet and other technological developments, more people are now able to work remotely. This means that a freelancing business can thrive in any part of the world including Africa.

We know how it is with clients and how they are usually hesitant to give people they’ve never met before thousands and thousands of dollars to do a job for them. Freelancers from Africa can use their money to buy equipment and services from these clients, which will help their economies grow. Freelancers can also use the money they earn to invest back into their communities. This will help improve infrastructure, education, and healthcare.

9. More Freedom From Corruption

Freelancing provides independence from corrupt government control, allowing workers to earn more money and create their own opportunities. Freelancers don’t have to worry about getting laid off or losing their jobs because there is too much competition within their industry; they can simply move on to something new!

10. Psychological Benefits

In a survey conducted by the World Health Organization (WHO) in April 2017, three out of every four Africans reported that they have suffered at least one type of mental illness such as anxiety or depression within their lifetime.

Freelancing can help reduce these figures because it offers the opportunity to work anywhere at any time. You no longer have to wake up at 5 am just to beat the traffic or stay late at the office just because your boss asked you to do so. You also get to choose your working hours which may include working only during weekends or evenings when you are not stressed out. Additionally, as a freelancer, you can decide on how much work you want per day depending on your energy levels. This freedom prevents stress from accumulating and helps manage work-related anxiety and depression.

11. More Flexibility And Freedom

Freelancing provides flexibility not just to the individuals but also to businesses that need help completing their projects. It presents a fantastic opportunity for Africans to gain exposure to new skills, earn money, and have control over their schedules. As more people begin to embrace freelancing as a viable means of earning income, we are likely going to see more African businesses tapping into new markets and gaining greater recognition globally.

12. A Higher Standard Of Living

The first benefit of freelancing is the high standard of living. In the current world where job opportunities are scarce, one can make a decent income from freelancing. Hence, freelancers have better standards of living compared to employed people.

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13. Increased Savings Rates For Individuals And Households

The average annual income for an online worker in Africa is quite high compared to the average wages on the continent. In countries like Nigeria, Kenya, and Ghana, it’s common for people to earn as much as $3000 annually through freelance work. This means that freelancers in these countries are likely to save more money than their counterparts in other industries because they earn higher incomes.

14. Encourages Lifelong Learning

In freelancing, you have the chance to develop new skills, which allow you to diversify your offerings and increase your earnings. You also get the chance to continue learning at every stage of your career.

To be able to get clients on freelancing sites, you must have a useful skill that will attract customers to hire you. Many people have gained useful skills by learning online through platforms such as YouTube and Udemy, where they can get tutorials on various topics such as digital marketing, graphic design, web development, programming languages, and more.

Looking to boost your Upwork portfolio and attract more clients? Discover the best strategies and techniques to effectively market your Upwork portfolio in our comprehensive guide on the best ways to market your Upwork portfolio.

Final Thoughts

The freelance economy has the potential to become one of the most powerful economic engines. Freelancing stretches across borders, so any African country that’s able to adopt this new way of working will reap significant rewards. I saw freelancing online as an opportunity to set my own schedule and work from home.

Freelancing allows you to work wherever you are and it also gives you financial freedom. It’s so much better than a regular 9-5 job and once you’re freelancing on a regular basis, it can change your life completely for the better.

Further Reading

Here are some additional resources to further explore the topic of freelancing and its impact on Africa’s economy:

Freelancing in Africa: A Growing Trend on the Continent: Discover the rising trend of freelancing in Africa and how it is shaping the economy of the continent.

Can Workers Win in Africa’s Gig Economy?: Explore the dynamics of Africa’s gig economy and its implications for workers, discussing the challenges and potential opportunities.

Freelancing for Inclusive Economic Development: Learn about the role of freelancing in promoting inclusive economic development and its potential to empower individuals in African communities.

FAQs

What Is Freelancing?

Freelancing is a type of work where you are not committed to any particular company or client but instead work independently without any contract or obligation. This means there is no employer telling you what hours they expect from day-to-day, so your schedule can be flexible depending on your needs at any given time.

What Are The Advantages Of Freelancing?

It has been found that freelancers tend to have higher job satisfaction than employees who work full time because they have more freedom and control over their own lives. This means when people are happier at their jobs, they tend to produce better quality work which leads us to our next point about increased productivity within companies.

How Can Freelancing Benefit Africa’s Economy?

Freelancers contribute to the economy by offering their services to clients, who pay these freelancers for their work. The money that clients spend on these services is an important financial contribution to the African economy since it boosts income levels and can help grow businesses and increase spending in local communities.

How Many People Are Freelancing in Africa?

The number of Africans freelancing is rising; there are currently more than one million African freelancers online. The growing number of Africans working online is expected to continue increasing as more people discover how they can make money from home while still having time for other activities – such as taking care of their families.

Why Should I Become A Freelancer?

There are many benefits of being self-employed, from having a flexible schedule to being your own boss. The most important thing is that you get to do what want with your life!

What Are The Common Freelancing Platforms In Africa?

Fiverr, Peopleperhour, Upwork, Freelancer are some of the most common platforms in Africa where you can make money if you have skills.

What Skills Are Demanded By Companies Looking For Freelancers In Africa?

Virtual assistance is highly demanded then writing, designing and web development are some of the common skills that are highly demanded by companies looking for freelancers in Africa.

What Is The Average Amount Of Money Made By Part-Time Freelancers Per Month?

The amount of money a freelancer makes depends on the type of skill they have and how they market themselves online but an average amount of money made by part-time freelancers per month is $100-$350.