As we try to know the fourth industrial revolution and its influence on our work and our lives, the dialog on the digital economic system turns into vital to understanding the alternatives that know-how brings to the fore. The time period ‘digital economic system’ has continued to evolve with an array of definitions, every trying to seize the potential and influence of applied sciences to the economic system.
Whereas we will not dwell a lot on the definitions, there may be one by Deloitte that I discovered somewhat exhaustive and easy to know. They outline the digital economic system as “the financial exercise that outcomes from billions of on a regular basis on-line connections between individuals, companies, gadgets, information and processes”.
Principally, it’s any financial exercise that’s generated because of human and know-how connections on-line. This can vary from a enterprise that makes use of know-how to ship items and companies to prospects, to prospects making funds utilizing technology-enabled platforms, to on-line buying, to accessing academic materials on-line, to content material streaming platforms and even working from house utilizing know-how.
Given our extremely digital lives, it’s secure to say that the digital economic system is changing into extra ubiquitous than we might ever think about, and shortly, it is perhaps the one method we all know tips on how to conduct enterprise.
In Africa, the Web economic system is anticipated to considerably develop and influence the continent’s gross home product (GDP). In response to a 2020 report by the Worldwide Finance Company (IFC) and Google, Africa’s web economic system has the potential to achieve over $180 billion by 2025, contributing to five.2 per cent of the continent’s GDP. Additionally it is projected that the Web economic system will attain over $712 billion by 2050 and contribute 8.5 per cent of the continent’s GDP.
Additional, digitisation is predicted to be one of many continent’s largest drivers to leapfrog into monetary stability. In a 2018 report by Prof Njuguna Ndung’u, digitisation is remodeling African economies throughout 4 main themes: retail fee methods, monetary inclusion, sustainable enterprise fashions and income administration. With the world’s youngest inhabitants, rising schooling ranges and a vibrant begin up sector, Africa is a main candidate for reaping most advantages from the promising digital economic system.
We now have not solely seen continental methods such because the Digital Transformation Technique (DTS) by the African Union, but additionally national-level methods that map out particular plans for leveraging the digital economic system.
Particularly, in Kenya, we’ve the Digital Economic system Blueprint that lays out a conceptual framework to ship an inclusive digital economic system throughout 5 themes: Digital authorities, digital enterprise, infrastructure, innovation-driven entrepreneurship and digital abilities and values.
The identical IFC and Google report notes that Kenya’s web GDP potential might attain $12 billion by 2025, contributing 9.24 per cent of the nation’s GDP, rating the nation alongside Nigeria, South Africa and Egypt.
Dr Chege is a media and know-how researcher.