October 24, 2024

Driving Kenya's Economic Growth Through Digitalization

In a press release announcing the publication of a report focusing on the drivers behind the digital transformation of Kenya's economy, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, said: "Kenya's digital economy will contribute KSH 662 billion to GDP by 2028. This growth, driven by strategic policy reforms, will accelerate digitalization in critical sectors such as agriculture, manufacturing, transport, and trade. In addition to these advancements, the report forecasts the creation of 300,000 new jobs and an increase in tax revenues by KSH 150 billion."

What is more, "To sustain its economic momentum, diversify the economy, boost productivity, and create high-quality jobs – particularly for young and rural populations – Kenya is focusing on digitalization as a key driver of economic growth, government revenue, and socio-economic development."

Below are the report's key messages:
  • "The digitalization of the economy is a key driver of economic growth and government revenue, as well as supporting socio-economic development and offering a path towards shared prosperity. By leveraging digitalization opportunities, the Government of Kenya can achieve sustainable economic growth and structural change."
  • "Adoption of digital technologies across both public and private sectors has been observed to positively impact economic growth. It increases productivity in agriculture, improves access to global value chains (GVCs) and improves the efficiency and transparency of government and public services. Moreover, access to emerging technologies such as mobile money, Artificial Intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development."
  • "This study identifies opportunities and quantifies the economic value of adopting digital technologies across selected sectors of Kenya's economy. It identifies how these opportunities can be unlocked through policy reforms, particularly focusing on the key role that the mobile telecoms sector plays in supporting the process of digitalization."
  • "Kenya is a regional leader in mobile connectivity and Mobile Financial Services (MFS). It pioneered the use of mobile money, making huge strides in financial inclusion of the unbanked, and has retained its position as a global leader in this area. Further extending its reach as the enabler of electronic payments across the digital economy, as well as traditional sectors, can propel digitalization and growth for many more Kenyans and achieve increased resilience and revenue for the Government."

The report also "identifies a series of policy recommendations that, if implemented, will close the internet usage gap from the current level of over 64% of the population to 51% in 2028. This would result in 49% of the population of Kenya being connected to the Internet, equivalent to over 10 million additional people." The four priority policy reforms are:

1. Tax restructuring in the telecommunication industry to purposefully drive usage.
2. Implementing policies and programs to improve device affordability.
3. Ensuring a sustainable and predictable investment environment. This includes:
  • Supporting financial sustainability through tax deductions against spectrum payments,
  • Reducing the cost of energy to power infrastructure,
  • Adopting a favorable spectrum pricing model, and
  • Accelerating the license renewal process.
4. Supporting productive use of digital technologies by businesses across economic sectors, with targeted policies to improve digital skills and human capital, support MSMEs and start-ups and prioritize context-appropriate technologies and local needs.

The report's authors importantly point out that "These policy reforms have the potential to make a significant contribution to Kenya's economic objectives, including economic transformation across important sectors such as agriculture and manufacturing." The potential macroeconomic impacts are summarized in the image below:


Kenya has firmly positioned itself as a leader in mobile financial services and digital innovation. Following the development of information and communications technology sector in Sub-Saharan Africa for over 30 years, I appreciate how GSMA's study outlines the economic benefits of expanding digital adoption and provides a roadmap for maximizing these gains through targeted policy actions.

What are your recommendations for how Kenya can drive economic growth through digitalization?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

October 15, 2024

With the Rise of genAI in North America, GSMA Says 'Ethical Concerns Around AI Also Need to Be Addressed'

The US and Canada continue to be among the global frontrunners in 5G adoption, a testament to the significant investments by operators and the strong demand from customers for enhanced connectivity," says the GSMA in its annual report on the state of North America's mobile economy. (North America in this report as the US, Canada and the Caribbean.) The UK-based organization adds that "The rollout of 5G across North America is occurring alongside a wave of mobile network innovations and technological advancements, including the rise of generative AI (genAI), the expansion of satellite capabilities and increased network API exposure. Operators and the wider mobile ecosystem see these trends as critical to unlocking innovation and generating new revenue opportunities.

The report's key findings include:
  • 5G enters its next phase: "North America continues to be a global leader in 5G. By the middle of 2024, 5G accounted for over 55% of connections in the region. 5G fixed wireless access (FWA) services have also gained significant traction, with the US reaching nearly 10 million FWA subscribers at the end of Q2 2024."
  • A new chapter begins for private wireless networks: "Private wireless networks have existed for some time, but adoption had been relatively low. Thanks to evolving 4G and 5G networks, however, mobile technologies and networks can now more tightly link with enterprise needs. An improved ability to customize networks for specific enterprise use cases, facilitate greater security and enable connected machines and processes are among the many operational benefits conferred by private wireless networks. These opportunities are being explored in a range of enterprise sectors."
  • Momentum builds behind aerial connectivity: "Telecoms networks remain the primary form of connectivity, supported by the wide area coverage of wireless networks and the mass production and adoption of mobile devices. In recent years, however, technological advances in various satellite and other non-terrestrial networks (NTNs) have helped to overcome several limitations associated with aerial connectivity. This has resulted in significant performance improvements, lower deployment costs and more commercially viable business models for satellite and NTN-based connectivity solutions."
  • Operators take steps to fulfil generative AI's potential: "Operators in North America are adopting genAI across various domains, supporting both internal transformation and new business opportunities. Much of the focus is on deploying genAI in customer service departments to enhance employee productivity and deliver more personalized customer offers. GenAI is also being used in network management, aligning with operators' focus on improving user experience and network security. Many strategic collaborations are underway to help operators maximize the value of this new technology. However, challenges such as data privacy concerns and the shortage of skilled AI professionals remain key barriers to AI adoption."
  • GSMA Open Gateway gains traction: "By June 2024, 53 operator groups had signed up to the GSMA Open Gateway, representing 240 mobile networks and accounting for 67% of mobile connections globally. Between the participating operators, all regions are covered; AT&T, Dish, Rogers, T-Mobile US and Verizon are among the operators in North America that have signed up to the initiative. Many of the early API launches around the world have focused on fraud prevention and security, using SIM Swap and Number Verification. These represent easy wins, given the ever-present risks from fraudsters and breaches for operators and their customers. Other parts of the API library are also being deployed, as evidenced by the work done by US operators and drone manufacturers to test the Device Status API."
  • Policies for success: "Continued mobile evolution depends on the expansion of operators' mobile spectrum holdings across low, mid- and high bands to deliver speed, capacity and geographical coverage. Additional spectrum can boost the provision of cost-efficient investment and enhance network quality in North America, which can support mobile to grow its role in regional economic development strategies."

Infographic: GSMA Intelligence

The report importantly points out that "Ethical concerns around AI also need to be addressed." The GSMA asserts that "The mobile industry is committed to the ethical use of AI in its operations and customer interactions to protect customers and employees, remove any entrenched inequality and ensure that AI operates reliably and fairly for all stakeholders." Moreover, "The GSMA's AI Ethics Playbook serves as a practical tool to help organizations consider how to ethically design, develop and deploy AI systems. Increased collaboration between policymakers can also help private sector organizations establish appropriate AI guidelines. To support this outcome, the EU AI Office and the US AI Safety Institute recently announced they will work together on tools to evaluate AI models."

As for the mobile industry's impact on the UN Sustainable Development Goals, the report says its "most recent analysis shows that the mobile industry continues to achieve its highest impact on SDG 9: Industry, Innovation and Infrastructure, driven by the increased reach of mobile networks and growing take-up of mobile internet services." What is more, "Progress has also been made in reducing disparities in mobile internet adoption between different user segments, supporting the industry's contribution to SDG 5: Gender Equality and SDG 10: Reduced Inequalities."

What do you think of the report's findings? What are your recommendations for how to ethically design, develop and deploy AI systems?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

October 9, 2024

Toolkit Designed to Help Deliver Digital Skills Training for Impact in Sierra Leone

In my experience working in emerging and developing countries, many people mistakenly assume that if an individual is connected to the mobile internet, then they are able to utilize various life-enhancing applications. However, there is a stark difference between having access to the applications and the knowledge to make full use of these digital tools.

According to a report published by GSMA, "Mobile networks are the primary – and often only – channel for people to connect to the internet, especially in low-and-middle income countries (LMICs)." What is more, "Despite the rapid growth in mobile internet adoption in recent years, there remains a significant usage gap in LMICs: 48% of the population across LMICs still do not use the mobile internet. Of this group, 42% live within the footprint of a mobile broadband network but are not using the internet – this is known as the 'usage gap.' In Sierra Leone, the usage gap is significantly higher at 77%. Among people in this group, a lack of digital skills is one of the most significant barriers preventing them from adopting the mobile internet."

To address the digital skills barrier, the UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, says it "developed the Mobile Internet Skills Training Toolkit (MISTT), a free-to-use set of resources covering the fundamentals of the mobile internet, popular apps and use cases." The report also points out that "In order to gather evidence on the efficacy of the MISTT and identify potential areas for further improvements, the GSMA evaluated a digital skills training campaign conducted by Orange Sierra Leone, using MISTT. Specifically, the evaluation aimed to understand how effectively the MISTT delivers improved digital skills, what the socioeconomic impact is on trainees, and what improvements are needed to better reach the underserved."

Below are the report's key findings:
  • "MISTT improved digital skills for the majority of trainees interviewed in Sierra Leone, by reducing the functional barriers to mobile internet use, boosting learners' self-confidence and sense of independence and increasing the frequency of internet use by the trainees."
  • "There are indications that MISTT has had a positive socio-economic impact in Sierra Leone. This was visible in two main ways: enhancing trainees' potential to conduct business online has improved their prospects and income; and trainees have acquired greater knowledge and education across diverse topics."
  • "The impact of MISTT training on business was most observable for women, as they experienced the greatest changes to their digital skills confidence levels, as well as day-to-day life benefits, including being able to do business online while at home. Women were also more likely to enjoy the spill-over effects of the training, as their spouses passed on what they had learned."
  • "Incentives are a critical part of digital skills training – both for potential customers and trainers. The effectiveness of digital skills training can be greatly enhanced by providing appropriate incentives to potential trainees and their trainers. For trainers, this might involve providing financial incentives for the delivery of training that drives digital inclusion. For customers, this involves emphasizing how the mobile internet can be valuable to their lives and making them aware of any incentives, such as free mobile data and lunch, that are available to reward participation at in-person training events."
  • "Face-to-face training provides numerous advantages for the underserved. Face-to-face or in-person training allows a more tailored learning experience with opportunities for practical application by learners. For example, in-person training enabled trainers to spend time answering trainees' questions and providing tailored support on some of the challenges that they encounter. This is most important for learners with lower literacy and education levels, as well as those in rural areas. However, while effective, in-person training may be more costly for implementers and more difficult to scale."
  • "Digital skills training needs to consider the specific barriers that underserved users face. Issues, such as lower levels of education and a lack of basic digital skills and confidence, can impact on people's ability to access and participate in training activities. The evaluation also highlights the importance of adopting a gender lens to the delivery and expansion of digital skills training to ensure it is reaching women. There is a need to consider who might be excluded or disadvantaged from the proposed delivery approach, as well as ensuring the location, timing and content of the training, for instance, will meet their needs."
  • "To enhance the scalability and viability of MISTT digital skills training, implementers can explore other approaches to delivering digital skills beyond in-person channels to understand their effectiveness. Remote channels, for example videos, voice messaging and radio broadcasts, may provide an effective way for delivering digital skills training and/or improving training awareness in a cost-effective manner. Both in-person and remote channels have relative advantages and disadvantages. While in-person channels may be more effective at reaching certain population segments, remote channels provide unique benefits to implementers as they are easier to scale and can be iterated or updated more easily than face-to-face channels. Depending on the training objectives, both digital and in-person channels can be used simultaneously to complement the other."
  • "Combining digital skills training with other events or product pitches can extend the reach of digital skills training for the underserved and offer benefits to implementers. Delivering digital skills training alongside other activities, such as entertainment events or with the sale of a product or service, can encourage wider participation by reaching people who may be reluctant to attend a formal training event, for example, or linking it to something that is seen as relevant to them. Nonetheless, it's important to bear in mind the needs of underserved groups while designing these activities. For example, for women, the idea of 'standing in the street watching entertainment' may not feel culturally appropriate, as many are worried about theft or appearing to be lazy people who have nothing important to do."

I appreciate how GSMA's report "highlights the key learnings from the evaluation of the MISTT digital skills training initiative implemented by Orange Sierra Leone. It provides key insights on the effectiveness of MISTT in improving digital skills acquisition among different underserved groups, as well as the socio-economic impact of the training." There is also value in how the report "identifies considerations for improving the effectiveness of digital skills training in reaching underserved groups." Importantly, however, the GSMA notes that "the insights and recommendations in this report do not represent our comprehensive view of how to implement MISTT. Rather, they are recommendations specifically arising from this evaluation, and can be a basis for further research and trial. This complements our existing research on digital skills and evaluation of MISTT implementations."

What are your recommendations on how to promote digital literacy and reduce the digital usage gap in LMICs?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

October 3, 2024

A Roadmap to Ensure That Every Citizen in Zambia Benefits From the Digital Revolution

My colleague, Aze Malawo, who leads the operations in Sub-Saharan Africa for Global Tactics, an multinational advisory firm that helps clients understand how the world is changing, and how that creates opportunities to be seized and risks to be managed, splits her time between Washington, DC and her native Zambia. Since my first meeting Aze in the mid-2000s, I have heard about the beauty of the southern African nation and the business opportunities that exist in several sectors including the information and communications technology sector.

It was, therefore, with great interest to read a report published by the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, highlights how "the digitalization of the economy is a key driver of social and economic growth in Zambia." According to the report, "By taking advantage of the opportunities offered by digitalization, the Government of Zambia can deliver on the development objectives that it has defined and achieve sustainable economic growth."

The report's key findings include:
  • Adoption of digital technologies across both public and private sectors accelerates economic growth by promoting innovation and investment. It increases productivity across all sectors of the economy, improves access to global value chains (GVCs) and improves the efficiency and transparency of government and public services. Moreover, access to emerging technologies such as mobile money, artificial intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development.
  • This study identifies opportunities and quantifies the economic value of adopting digital technologies across selected sectors of Zambia's economy. Accelerated development of the digital economy would benefit both the Government of Zambia and the country's citizens in multiple ways. Economic growth would raise incomes, create jobs and raise tax revenues. Digital technologies would also provide direct benefits through enhanced access to information, productivity-enhancing technologies and improved educational outcomes.
  • Mobile connectivity and mobile money both play a key role in digitalization. Mobile broadband connectivity provides the foundation for the digitalization process. Mobile money is also critically important, providing individuals and businesses an accessible and efficient route to financial inclusion.
  • The mobile telecoms sector in Zambia has made steady progress in recent years but there remain significant challenges. These challenges include expanding access and increasing adoption of digital services, particularly among low-income households and in rural areas. This will require further network rollout and upgrades, support to ensure that devices and services are affordable for everyone and boosting adoption through stimulating demand for digital services.

The report importantly points out that "[p]olicy plays a critical role in the future development of the digital economy in Zambia. The growth and development of the digital economy is strongly influenced by policy and regulatory decisions taken by the government." The GSMA says its "study identifies how opportunities for economic growth and development can be unlocked through policy reforms. Overcoming the challenges facing the sector will require bold policy initiatives on the part of government to stimulate demand, reduce the cost of supply and promote investment in mobile telecoms networks and in mobile money services."

GSMA's report also "identifies a series of specific policy recommendations that, if implemented, would increase the number of internet users in Zambia by 2.1 million by 2028. This would reduce the internet usage gap by 9 percent points."

The priority policy reforms include:
  • Reducing sector-specific taxes and fees on mobile telecoms services
  • Reducing operating costs and improving the financial sustainability of the mobile business
  • Modernizing the tariff regulation regime, to provide more certainty for operators
  • Lifting restrictions on mobile money charges and removing the mobile money levy
  • Stimulating additional demand for mobile telecoms services

If adopted, these policy reforms "will help Zambia to achieve its economic development objectives, including economic transformation across important sectors such as agriculture and manufacturing. The potential macroeconomic impacts are summarized below in Figure 1."

Image: GSMA

In a press release issued by the GSMA, Angela Wamola, Head of Sub-Saharan Africa for the UK-based organization, said: "The Zambian government has demonstrated strong commitment to digitalization through its National ICT Policy 2023 and the Eighth National Development Plan. Now, more than ever, collaborative action between the government, industry, and stakeholders is needed to create the enabling environment for digital transformation. The future of Zambia lies in digital connectivity. With the right policies, we can close the digital divide, empower communities, and unlock new economic opportunities. The Zambia Digital Economy Report provides a clear roadmap to ensure that every citizen benefits from the digital revolution. Now is the time for bold action."

What are your thoughts about the report's findings? What digital transformation opportunities are you seeing in Zambia's mobile technology sector.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.