Categories: Technology

GSMA introduces the Digital Africa Index to advance digital transformation

The GSMA has unveiled the Digital Africa Index (DAI), a comprehensive analytical tool that tracks digital adoption and utilization across Africa. Launched alongside the latest report on Kenya’s digital economy, the index serves as a guide for policymakers to identify focus areas and advance digital transformation, highlighting Kenya as a model for regulatory innovation and mobile broadband growth.

Kenya’s strong performance on the DAI reflects its progress in digital financial services and mobile technology, achievements fueled by forward-thinking policies and frameworks.

This, in turn, has placed the country among the continent’s top scorers, positioning it as a leader in digital financial services and technological innovation.

Complementing the DAI is the Digital Policy and Regulatory Index (DPRI), which benchmarks policy environments across Africa, offering insights into overcoming obstacles to digital growth.

In addition to the DAI, GSMA’s new report, Driving Digital Transformation of the Economy in Kenya, projects that Kenya’s digital economy will contribute approximately $5.13 billion (KES 662 billion) to GDP by 2028, spurred by reforms in sectors like agriculture, manufacturing, transport, and trade.

This growth is anticipated to create around 300,000 jobs and increase tax revenues by $1.16 billion (KES 150 billion).

Digital transformation has become a cornerstone of Kenya’s economic agenda, with the Kenya Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA) identifying digitalization as essential for sustainable growth.

The GSMA report emphasizes the importance of continued digital adoption, with digital expansion projected to significantly impact key sectors that together account for 58% of Kenya’s GDP.

In 2023, Kenya’s mobile ecosystem contributed KES 1.2 trillion to GDP and generated KES 212 billion in government revenues, demonstrating the sector’s economic importance.

However, GSMA’s analysis points to the need for policies that will further stimulate demand, lower supply costs, and foster investment in telecom infrastructure, digital services, and mobile money platforms, ensuring sustainable digital growth across Africa.

Joan Mwaniki

Recent Posts

KCB customers withdraw $7.7 million due to system glitch during migration

A system malfunction during a key data migration allowed customers at KCB Group, Kenya’s largest…

1 day ago

Mozambique social media restricted as runner-up in hiding

Mozambique's social media platforms have been restricted as Venâncio Mondlane, a main opposition figure in…

2 days ago

Young Africans turn to smartphones to expand access to sexual and reproductive health

Young Africans are leveraging smartphones and social media to advocate for improved sexual and reproductive…

2 days ago

Binance has announced a strategic partnership with Amazon Web Services (AWS) to harness generative AI

Binance, the world's largest cryptocurrency exchange by user base and trading volume, has announced a…

2 days ago

Mastercard and Diamond Trust Bank 10-year deal to boost digital payments in East Africa

Mastercard and Diamond Trust Bank (DTB) have signed a landmark 10-year agreement aimed at accelerating…

2 days ago

Kenya’s smartphone imports set to decline in 2025 due to stricter regulations

Kenya is bracing for a significant reduction in smartphone imports starting in 2025, following the…

2 days ago