Browsing: Africa’s digital economy.

  • With just $40, customers in Kenya will buy a locally assembled smartphone starting July, 2023.
  • Kenya’s mobile network coverage stands at 89.1 percent and is a key enabler of the country’s digital economy.
  • The government will lay around 52 percent of 100,000km fibre network while the private sector will handle the remaining 48 percent.

Kenya’s telecommunication industry is about to gain a significant boost as the government plans to roll out the first consignment of one million domestically manufactured smartphones. They will roll out the gadgets in two months even as plans on digital transformation and e-commerce gather pace.

Kenya has been at the forefront of East Africa’s digital economy for some time now. Numerous investment opportunities have come up within the East Africa’s biggest economy catching the eye of many investors. 

Transforming telecommunication industry

According to statistics, Kenya’s mobile network coverage stands at 89.1 percent, a wave that is

Blockchain technology

Africa is a strong contender for developing technologies such as blockchain and cryptocurrency owing to the continent’s growing mobile tech adoption rates. Considering the turbulent global financial markets, expensive remittance costs, and restricted banking access, blockchain in Africa offers alternatives to tackle their day-to-day issues.…

  • AfDB estimates that the size of global digital wealth will skyrocket from $217 billion in 2022 to over $1 trillion by 2031. 
  • The Investments in Digital and Creative Enterprises programme launched in Abuja ushering in a new era for the continent.
  • Nigeria accounts for almost 30% of Africa’s funded ventures, with at least 180 startups.

The African Development Bank (AfDB) has launched The Investment in Digital and Creative Enterprises (I-DICE) program in Abuja. This marks one of the latest initiatives to boost Africa’s digital transformation which the AfDB estimates will generate $712 billion by 2050 in Africa and $1 trillion in global value by 2030.

This program comes at a defining moment as Africa expands its exports of digital and creative services beyond the continent spurring the rise of new unicorn startups.

The I-DICE is an initiative that partners with the Federal Government of Nigeria. It aims to promote entrepreneurship

Blockchain and e-commerce
  • Blockchain is one of the pioneer technologies leading the 4th Industrial revolution alongside AI. It has proven its compatibility with Africa's diverse economy.

  • According to Statista, the total economic revenue drawn from E-commerce within Africa exceeded their initial estimate of $16.5 billion and at an all-time high of $37.77 billion. 

  • Individually blockchain and E-commerce have revolutionized Africa's digital world. Although combined, they ensure rapid efficiency and improvement in Africa's digital economy.

Over the past decade, Africa has relatively gone through a slow but steady metamorphosis within its overall economy. The upcoming 4th Industrial Revolution has shifted young African entrepreneurs' minds. Long gone are the days when Africa is only recognized for its agriculture as the continent steps into a headstrong digital age.

E-commerce has thrived within Africa's borders, having organizations like Jumia, which achieved its unicorn status simply from its endeavours within Africa. E-commerce is a thriving economy slowly but

  • Vodafone Group developed a business tailor-made to deal with Africa’s rising digital economy
  • Etisalat, Vodafone’s largest shareholder, is currently exploring options for investment in Vodacom Africa.
  • A decision to divest assets in a specific market or sell a stake in Vodacom Africa to fund new projects is also on the table

Vodafone Group is mulling strategies of extracting more value from its 65% stake in Vodacom Africa. According to Bloomberg, the telco is working with several advisers to evaluate the various strategic options available including mergers and acquisitions. A decision to divest assets in a specific market or sell a stake in Vodacom Africa to fund new projects is also on the table With the recent decline in Vodacom Africa and its market value in Safaricom, the organization is considering other alternatives.

This new take is crucial given that Vodafone has acquired new interested investors. Liberty Global, Xavier Niel,

  • Mpesa has a 7 % penetration of the GSM base in Egypt and 40% in Ghana while having a dominant 90% in Kenya.
  • Kenya’s 91 startups got the third-largest capital inflow in Africa.
  • A report released by Disrupt Africa indicated that Kenya’s average investment size was $6.3 million.

Africa’s tech Industry received a significant reveal as Kenyan tech startups accumulated $574.8 million(Ksh 71.7 billion) in funding last year. This figure astonishes many within the industry since it truly puts into perspective the current direction of Africa’s digital economy. Nowadays, funding tech startups is one of the few ways governments and organizations plan to stay ahead of the 4th Industrial Revolution. 

It is crucial to understand that Kenya, along with Nigeria and South Africa are at the top of Africa’s tech industry. In Kenya, 308 promising tech startups have inspired various organizations and governments to invest in them Nairobi, is the

A favourable balance of payment translates to good exchange rates for the shilling against the dollar. A strong shilling means more value per shilling, allowing the country to make even larger purchases or investments.

Another aspect is the fact that a decrease in the oil price should translate to similar, if not multiple decreases in the cost of doing business and even the cost of living. This is because the cost of transportation is expected to fall, and with it, the cost of the goods being delivered is another gain for Africa (where borders were not closed during that time).

Also, in economic terms, there is a difference between an increase or decrease and rise or fall in price. An increase or decrease in price means a short-term price hike or price drop, which is what we expected to see during the period of oil price increase/decrease.

On the other …