The latest report on Africa Internet Economy report shows that Kenya is among the leading countries in Africa in the internet economy. The report which was recently released by International Finance Corporation organization (IFC) shows Kenya is on the front line in various internet economy aspects.
The report shows that mobile Internet is transforming life across the continent with the support of growing local connectivity and mobility and a dynamic, young urban population. It also reveals that African internet economy has the potential to add up to $180 billion to Africa’s gross domestic product (GDP) by 2025
Startups have been placed as the front runners in offering unique tech solutions in areas such as healthcare for remote populations, employment opportunities for women, and the ability to securely send and receive money.
The report also places Africa on the front line as the fastest growing economy in the world. African economy has grown by 4% in the last decade compared to Europe and Latin America which have grown by 1.7% percent each.
On internet connectivity the report shows that since 2000, the number of people with Internet access across Africa has grown to over 520 million, or 40% of the population; and 60% of the population accesses the Internet via mobile. Increasing Internet access to reach 75% of the population is projected to create 44 million jobs.
On internet readiness index by country, Kenya ranks second at 87% behind Ivory Coast at 89%. Kenya also ranks well at 3rd position in internet index rank by country at position 64 globally behind South Africa and Morocco who are ranked position 60 and 62 respectively.
Kenya on the Lead In Africa Internet Economy
Over the past decade, Africa’s Internet gross domestic product (iGDP) —defined as the Internet’s contribution to the GDP— growth has been strong. Kenya is leading In Africa as of 2020 with 7.70% which is equivalent to 7.42 Billion to the country’s economy followed by Morocco at 6.82%. The report also projects that Kenya will still be the leader in iGDP contribution with Kenya expected to contribute 9.24% equivalent to 12.84 Billion to the country’s economy by 2025.
The report also reveals that Kenya and South Africa have the most comprehensive regulations in place, while Ghana, Mozambique, Nigeria, Rwanda, and Seychelles require some major amendments to their frameworks. Cameroon, Gabon, Madagascar, and Senegal have fragmented and dispersed individual regulations, with much room for improvement.
The report has also highlighted the impact of Covid-19 on the African Digital Economy with the study showing a slight negative effect on the digital market.
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