
By Amb. Prof Bitange Ndemo and Liesbeth Bakker
The dilemma facing African economies is rooted in their foundational approach to value chains—prioritising employment over efficiency. This well-intentioned design has inadvertently tethered them to outdated practices that struggle to keep pace with the rapid technological advancements. Instead of fostering robust, scalable, and resilient systems, these value chains have become synonymous with labor-intensive processes.
The result is a landscape where human effort compensates for the absence of automation, and the sheer size of the workforce masks operational inefficiencies. While this model may superficially appear beneficial for job creation, it undermines long-term economic growth and competitiveness. Faced with the conundrum of balancing job creation with the necessity for modernisation, African value chains find themselves at a crossroad. The pressing need is not merely technological adoption but a paradigm shift towards optimisation—re-engineering processes to enhance productivity while gradually transitioning the workforce to more sustainable and innovative roles.
Now, even as AI and tech dominate the headlines, most of our value chains remain held together by manual workarounds, human heroics, and systems that resist automation. And ironically, our celebrated tech boom often bypasses the real operational problems — solving for payments instead of productivity.
African value chains are dominated by subsistent production, exploitative middlemen, and sometimes ineffective cooperatives. They are broken not because we lack technology but because the many non-governmental donor-driven organizations prioritised labour over logic. This deeply entrenched preference for employment over efficiency has led to a system where manual labour is the cornerstone of operations, and innovation is often stifled by the sheer volume of human involvement. The consequence of this approach is visible across various sectors, where long supply chains rely heavily on manual aggregation points, and scheduling tools remain underutilized.
Even in high-volume sectors, the uptake of automation is remarkably low, leading to operational fragility and increased costs. In the quest to boost employment, the core objective of productivity has been sidelined, resulting in value chains that are difficult to scale, slow to respond, fragile under pressure, and expensive to maintain. This employment trap has created a paradox where the very systems designed to support economic growth are the ones hindering it.
Moreover, the inherent vulnerability of these manual systems to corruption traps small-scale producers in a perpetual cycle of poverty. Despite coffee and tea fetching competitive prices on international markets, the small producers who cultivate these crops continue to live in abject poverty. This disparity is exacerbated by exploitative practices within the value chains, where middlemen and ineffective cooperatives often skim off the profits that should rightfully benefit the producers. Consequently, the wealth generated from these valuable commodities fails to trickle down, leaving the backbone of these industries struggling to make ends meet.
In Kenya, for instance, we’ve automated the money — but not the machinery. While the country boasts a tech-savvy image with innovations like mobile money, instant loans, and super apps, the reality is that most startups concentrate on fintech solutions rather than addressing the fundamental issues plaguing value chains. The absence of operational technology such as routing tools, planning engines, inventory systems, and scheduling optimizers is glaring. This has led to a reliance on outdated practices: heaps of handwritten ledgers, armies of accountants, delivery notes still printed in triplicate, and WhatsApp being used as the de facto ERP.
The consequence of prioritising employment over efficiency has not only slowed down processes but also stifled the potential for growth and responsiveness. The true cost extends beyond mere inefficiency; it encompasses missed opportunities, poor margins, and the inability to compete with faster-moving players who have embraced modernisation.
While there are isolated cases where optimisation has taken root—typically within well-supported pilot programmes or narrowly focused interventions—they remain exceptions rather than evidence of systemic change. These examples, though often cited, tend to operate on the margins of mainstream value chains and are rarely sustained without external support. Their scarcity is telling. It reveals not a deficit of innovation or capacity but the absence of enabling conditions.
In an environment where employment numbers are treated as success metrics, systems that prioritise flow, speed, and productivity struggle to gain traction. The inherent design logic opposes these systems. Ordinary becomes extraordinary—and progress remains difficult to replicate at scale.
We often say that tech kills jobs, but it doesn’t. Bad system design does. Nonetheless, we must constantly challenge the assumption that optimisation means fewer jobs. In reality, optimisation also means the possibility to scale, and scale means more employment. But employment is rooted in efficiency, not inefficiency.
Research has proven that reliable processes, stronger systems, and higher-value roles enable better jobs. Operational research and artificial intelligence, when used wisely, free people from firefighting and enable scale. We should not be optimising away people but rather optimising waste around them. To reset, we must first make the systems lean, resilient, and productive. Use the systems to scale and create good jobs at higher leverage points. Change how we fund, design, and measure value chain interventions, shifting from “jobs created” to “value unlocked,” from “digital tools” to “decision tools,” and from “more hands” to “smarter flows.”
By embracing this mindset, we can transition from a labour-intensive model to one that leverages technology and innovation to maximize productivity and economic impact. This approach will not only address the inefficiencies and vulnerabilities of the current system but also empower workers by creating opportunities for skill development and higher-value roles. As we optimize processes and integrate advanced technologies, we can build value chains that are more agile, responsive, and capable of competing on a global scale. Ultimately, the goal is to foster an environment where efficiency and employment are not mutually exclusive but rather mutually reinforcing. By doing so, we can unlock the true potential of African value chains, driving sustainable growth and prosperity for all stakeholders involved.
If we keep designing value chains around low-cost labour, we’ll never compete with those designed for speed, scale, and precision. The future isn’t anti-jobs. It’s pro-efficiency. And that’s where the real growth lies.
This article was co-authored with Liesbeth Bakker, Managing Director of CASBI—the Center for Applied Sciences and Business Innovation.