Digital economy blueprint

1.3 INVESTING IN THE DIGITAL ECONOMY

In 2017, mobile technologies and services generat-

ed 7.1% of GDP or US$110 billion in Sub-Saharan 

Africa.

2

 According to the Kenya National Economic 

Survey report of 2019 the value of the ICT sector ex-

panded by 12.9% from Ksh. 345.6 billion in 2017 to 

17

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DIGITAL ECONOMY BLUEPRINT

Ksh 390.2 billion in 2018, driven by growth in the 

digital economy.

The rapid adoption of new and emerging technolo-

gies in emerging markets and economies in transition 

is evident in global mobility trends. Statistics from 

the International Telecommunication Union (ITU) 

estimate that there are about 5.3 billion mobile sub-

scribers globally with about 73% (3.8 billion) located 

in the developing world. In Kenya, the penetration 

rates of the mobile telephony services as measured by 

subscriptions per 100 inhabitants surpassed the 100 

percent mark to stand at 106.2 percent as at Decem-

ber 2018

3

. The penetration level of more than 100 per 

cent is attributed to the multiple SIM cards ownership 

in the country.

Firms use digital platforms to offer commercial prod-

ucts and services such as e-commerce (e.g. Amazon, 

Alibaba, Jumia), search engines (e.g. Jumia, Masoko 

by Safaricom), content platforms (e.g. Mdundo, 

irokotv, Waabeh) or ride-sharing applications (e.g. 

Mondo Ride, SafeBoda, Little Cab). A digital market-

place helps create economies of scale and capitalises 

on the network effects of digital products or services 

to strengthen a country’s competitive edge. This is 

particularly relevant in context of a digital economy, 

where tech start-ups have the potential to scale up and 

capture market share.

Mobile money platforms and infrastructure continue 

to  drive  financial  inclusion  in  developing  countries 

and was able to double the number of accounts to 

3 CA 2019: Sector Statistics Report Q2 2018

4 Global Findex 2017

21% between the years 2014-2017 in  Sub-Saharan 

Africa

4

.

The digital revolution has spurred the development of 

a small but rapidly growing digital sector, with inno-

vative entrepreneurs launching new digitally-enabled 

services while creating 21st century jobs. More sig-

nificantly,  digital technologies are  gradually  driving 

productivity gains in traditional industries through 

value addition in business processes.