GSMA Launches The Digital Africa Index

The GSMA has launched the Digital Africa Index (DAI) – a comprehensive tool that assesses digital adoption and usage across Africa.

The DAI is designed to support policymakers in identifying areas of improvement to accelerate digital transformation. With Kenya among the top performers in Africa, the index highlights the importance of progressive policy and regulatory frameworks, which have facilitated Kenya’s leadership in mobile broadband adoption and innovation.

The Digital Africa Index further reinforces the potential for growth across Africa, with Kenya scoring above 50, alongside a few other African nations. The DAI and the accompanying Digital Policy and Regulatory Index (DPRI) help identify policy bottlenecks and offer benchmarks for countries aiming to boost their digital economies.

Alongside launching DAI, GSMA also launched its latest report, Driving Digital Transformation of the Economy in Kenya, which projects that Kenya’s digital economy will contribute $5.13 Billion (KSH 662 billion) to GDP by 2028.

Driven by strategic policy reforms, this is expected to accelerate digitalisation 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 $1.16 Billion (KSH 150 billion).

Kenya has firmly positioned itself as a leader in mobile financial services and digital innovation. The Government of Kenya has recognised digitalisation as a cornerstone of its economic strategy, with the Kenya Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA) underscoring the integration of digital technologies into key sectors as essential for driving growth.

The GSMA’s study outlines the economic benefits of expanding digital adoption and provides a roadmap for maximising these gains through targeted policy actions.

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 digitalisation as a key driver of economic growth, government revenue, and socio-economic development.

The GSMA’s report on Kenya’s digital economy highlights the transformative potential of digitalisation in key sectors that account for 58% of Kenya’s GDP. The adoption of digital technologies across agriculture, manufacturing, transport, and trade is expected to significantly contribute to GDP, create hundreds of thousands of jobs, and generate substantial tax revenues by 2028.

In 2023, the mobile ecosystem contributed KSH 1.2 trillion to Kenya’s GDP and KSH 212 billion in government revenues. However, the GSMA notes that significant gaps remain, and addressing these will require bold policy initiatives to stimulate demand, reduce supply costs, and encourage investments in mobile money services, telecom infrastructure, and digital services.