US study shows Kenya among top African countries prepared for digital investments
A Safaricom agent transacts at an M-Pesa outlet. US-based researchers have ranked Kenya among Africa’s most prepared countries for digital investments. PHOTO | FILE
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Saying Kenya was well prepared to contribute big time for the world’s next billion Internet users, it said the successful use of the mobile phone as a conveyor for cash in settling transactions and transferring cash from one to another opened a myriad of opportunities for investors and firms.
Kenya, it said, had infrastructure and policies in place that meet the challenges as well as take advantage of the opportunities the digital world presents.
US-based researchers have ranked Kenya among Africa’s most prepared countries for digital investments in yet another survey that celebrates the country’s mobile money transfer record.
The digital revolution index prepared by researchers from the American-based Tufts University’s Fletcher School in collaboration with MasterCard and DataCash placed Kenya second after Egypt but ahead of Nigeria.
It cites M-Pesa which enables about 31.1 million Kenyans to move more than Sh250 billion annually in a country that enjoys 72.5 per cent mobile penetration has aroused interest among cashless firms from around the world and investors keen on venturing into the cashless revolution known for its secure and affordable process carried on virtual networks.
The report also fetes Kenya for its move to enhance adoption of various technologies via regulatory approvals and investment in the underground fibre optic cables that enabled launch of various products in select towns.
Banks and telcos have partnered with malls, supermarkets, restaurants and service stations where payments for goods and services are done via mobile phone-based transactions.
Saying Kenya was well prepared to contribute big time for the world’s next billion Internet users, it said the successful use of the mobile phone as a conveyor for cash in settling transactions and transferring cash from one to another opened a myriad of opportunities for investors and firms.
Kenya, it said, had infrastructure and policies in place that meet the challenges as well as take advantage of the opportunities the digital world presents.
Safaricom has since ventured into launching the 4G network which provide fast Internet for clients anywhere in the country with its recently launched cloud business taking shape.
Saying discerning investors must “watch out” for Kenya with a current base of 39 per cent Internet users, the survey added that this was a major frontier in launching cashless platforms for payment of goods and services.
Last week, Central Bank of Kenya gave Safaricom the green light to offer its Lipa na M-Pesa after it partnered with third parties where physical receipts would be issued to clients.
Others also seeking a piece of the Sh2 billion generated for processing fare payments for the public service vehicle operators are KCB, Co-operative Bank and Equity Bank that were given the go-ahead on September 19.
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