IATA sees Kenya aviation doubling in two decades

Kenya’s aviation sector growth is expected to double in the next two decades, a move that is expected to boost the Gross Domestic Product by $11.3 billion, says International Air Travel Association (IATA).

The IATA says the growth will result from an increase in journeys made through the Jomo Kenyatta International Airport (JKIA) that is expected to grow by additional 11.3 million passengers, creating over 449,000 jobs.

“Over the next 20 years the Kenyan market could more than double in size, resulting in an additional passenger journeys and a $11.3 billion boost to GDP by 2037,” says IATA regional vice president Muhammad Ali Albakri.

IATA recently published a study on the value of aviation in Kenya, which showed that the sector and tourism contributed $3.2 billion to GDP in 2017. Currently the sector accounts for 4.6 percent of Kenya’s economy and supports 410,000 jobs.

However, IATA has identified four key areas that the government needs to address in order to promote aviation growth and bring even more value to the country. This include improving operational efficiency at JKIA if the facility is to remain a competitive connecting hub in the region.

“Improving operational efficiency at JKIA is essential if Nairobi is to remain a competitive connecting hub and East Africa’s main air cargo hub,” the agency says.

The second item that IATA wants the government to work on is the implementation of Single Africa Air Transport Market (SAATM). The move, argues the agency, will open Africa skies and ease the movement of the airlines across the continent.

For Kenya to achieve this, IATA says Kenya ought to anchor its regulatory framework in law.

In 1988, a number of African countries came together with the view of creating an open airspace for ease of movement and boost trade on the continent in what was called Yamoussoukro Declaration.

In 2000, the decision was endorsed by heads of state and government at the Organisation of African Unity, — now African Union— and became fully binding in 2002.

However, to date, not much has been done in regard to adoption of the open skies policy by member states as 14 nations have not ratified the treaty.

African nations are protecting their airlines from stiff competition, putting in doubt whether the dream of open sky policy will be achieved.

Mr Albakri says African nations are hurting their economies by protecting their national carriers by failing to implement open sky policy.

“With open sky policy, it means that more airlines will fly and the cost of air ticket will be affordable. This ( also) means that countries’ economies will benefit from this,” he said.

Kenya refused to grant Ethiopian Airlines a new route in December last year in what was an apparent protection of Kenya Airways against one of the most successful airlines in the region.

The Kenya Civil Aviation Authority (KCAA) applied brakes on Ethiopian Airlines’ quest of getting a license to operate scheduled passenger flights on the Johannesburg-Nairobi–Brussels route.

Source: https://www.businessdailyafrica.com/corporate/shipping/IATA-sees-Kenya-aviation-doubling-in-two-decades/4003122-5276994-kv4lrn/index.html

Travel Agents Converge in Naivasha for their Annual Convention

Next week, more than 200 professionals in the travel industry are set to converge in Naivasha for the 2019 Annual KATA Convention.

Hosted by the Kenya Association of Travel Agents (KATA), the industry captains discussing the changing and emerging trends in the travel sector. The convention will be held on September 27 and 28, 2019 at the Enishapai Resort and Spa.

The two-day event will bring together experts in the travel industry including the Vice President of the Universal Federation of Travel Agents Associations (UFTAA) who is also the CEO of the Israeli Incoming Tour Operators Association Mr. Yossi Fatael.

Also expected at the convention is the IATA Special Envoy on Aero-political affairs Mr. Raphael Kuuchi, President of the National Association of Nigerian Travel Agents (NANTA) Mr. Bernard Bankole and the Rwanda Association of Travel Agents (RATA) President Ms. Uwizeye Louise as well as local industry players including government officials.

The forum comes at a time when the travel industry is keen on integrating the emerging technology trends in its trade, therefore, promoting growth. The theme of this year’s convention is ‘Travel in transition: Re-imagining Kenya’s future travel industry’.

“Discussions at the convention will focus on how industry players are dealing with the new changes happening in the industry which include but are not limited to technological, economic and structural disruptions, said KATA Chief Executive Officer Nicanor Sabula.

He further said that delegates will get a chance to engage top players in the travel industry and participate in conversations that will revolutionize the travel business. “The forum will further offer a perfect networking platform for delegates,” Mr. Sabula added.

The two-day event will be capped by the KATA at 40 celebrations to commemorate the association’s 40 years of existence.

The event has been put together through the concerted efforts of Travelport, the national carrier Kenya Airways and Amadeus. Other sponsors include Heritage Insurance, I&M Bank and Mastercard.

The KATA Convention is an annual forum that brings together travel professionals from the travel ecosystem which include travel agents, airlines, travel technology companies, regulators, financial institutions, insurance companies, training institutions among others to caucus on matters related to the industry and share knowledge and experiences.

Source: Kenya Association of Travel Agents (KATA)

Airbus predicts doubling of commercial aircraft fleet by 2038

The world’s commercial aircraft fleet is forecast by Airbus to more than double to almost 48,000 by 2038.

Of the expected 47,680-strong fleet, 39,210 aircraft will be new with 8,470 remaining from today.

This will result in the need for 550,000 new pilots and 640,000 technicians with traffic growth of 4.3% a year.

The European manufacturer believes that by updating fleets with latest generation fuel efficient aircraft such as the A220, A320neo family, A330neo and A350, it will “largely contribute” to  the “progressive decarbonisation” of the air transport industry.

This will enable the company to meet the objective of carbon neutral growth from 2020 while connecting more people globally.

Airbus has simplified its segmentation to consider capacity, range and flight type to reflect today’s evolving aircraft technology.

A short haul A321 is small while the long-haul A321LR or XLR can be categorised asmedium.

While the core market for the wide-body A330 is classified as medium, it is likely a number will continue to be operated by airlines in a way that sits within the large market segmentation along with the bigger A350 XWB, according to Airbus. This segment will also be served by the A380 at the upper end, although production of the superjumbo ends in 2021 due to falling demand.

This new segmentation gives rise to a need for 39,210 new passenger and freighter aircraft – 29,720 small, 5,370 mediumand 4,120 large – according to Airbus’ latest global market forecast for 2019-2038.

Of these, 25,000 aircraft are for growth and 14,210 are to replace older models with newer ones offering “superior efficiency”.

Airbus and US rival Boeing are expected to account for the bulk of the demand for the almost 40,000 new aircraft by 2038.

Airbus said: “Resilient to economic shocks, air traffic has more than doubled since 2000. It is increasingly playing a key role in connecting large population centres, particularly in emerging markets where the propensity to travel is amongst the world’s highest as cost or geography make alternatives impossible.

“Today, about a quarter of the world’s urban population is responsible for more than a quarter of global GDP, and given both are key growth drivers, aviation mega cities will continue to power the global aviation network.

“Developments in superior fuel efficiency are further driving demand to replace existing less fuel efficient aircraft.”

Chief commercial officer and head of Airbus International, Christian Scherer (pictured), said: “The 4% annual growth reflects the resilient nature of aviation, weathering short term economic shocks and geo-political disturbances. Economies thrive on air transportation. People and goods want to connect.

“Globally, commercial aviation stimulates GDP growth and supports 65 million livelihoods, demonstrating the immense benefits our business brings to all societies and global trade.”

Source: http://www.travelweekly.co.uk/articles/343128/airbus-predicts-doubling-of-commercial-aircraft-fleet-by-2038

Jomo Kenyatta becomes second fastest-growing airport in cargo handling: ACI report

September 18, 2019: Airports Council International (ACI) World has released the latest World Airport Traffic Report showcasing the top airports for passengers, cargo and aircraft movements and highlighted the world’s fastest-growing airports in 2018.

The Jomo Kenyatta International Airport (JKIA) in Nairobi, Kenya secured number 2 position after Chicago Rockford International Airport, US, in terms of fastest-growing airports, which has handled over 2,50,000 metric tonnes of air cargo. JKIA has handled 3, 42,579 metric tonnes of cargo.

Nairobi Airport was followed by Liege Airport, Belgium; Xi’An Xianyang International Airport, China; and Philadelphia International Airport, US. Rockford’s traffic grew 56.6 percent in 2018, as it positioned itself as an e-commerce freight hub for online retail giant Amazon.s

The world’s top three airports for passenger traffic volume – Hartsfield-Jackson Atlanta International Airport, Beijing Capital International Airport, and Dubai International Airport, respectively – have held their positions while Los Angeles International Airport (fourth) and Tokyo International Airport (fifth) have swapped places in the top five from last year.

“The World Airport Traffic Report shows that, even as smaller airports around the world continue to make strong gains, the largest hub airports continue to grow,” ACI World director general Angela Gittens said. “There were 16 airports handling more than 40 million passengers per annum in 2008 and there are now 54.

The report found that, in total, the world’s airports accommodated 8.8 billion passengers, 122.7 million metric tonnes of cargo, and 99.9 million aircraft movements.

“Collectively, these airports achieved a year-over-year passenger traffic growth of 5.1 percent in 2018 which is significant considering a large proportion of these airports are in the mature and capacity-constrained markets of North America and Europe.”

Most of the world’s fastest-growing airports are located in emerging markets, a significant proportion of them being in the Asia-Pacific region. As many as 12 of the fastest-growing top 30 airports in 2018 are located in either China or India.

“Major Russian airports also experienced significant gains in traffic following on from difficult economic times in 2015 and 2016 and they also received a boost in traffic numbers as a result of the FIFA World Cup.”

As regards total cargo volumes, the top five airports – Hong Kong International Airport, Memphis International Airport, Shanghai Pudong International Airport, Incheon International Airport, and Ted Stevens Anchorage International Airport all held their positions from the previous year, respectively.

Big movers were Los Angeles International Airport which jumped three places from thirteenth to tenth this year and Doha International Airport which advanced five places from sixteenth to eleventh.

Source: https://www.logupdateafrica.com/jomo-kenyatta-airport-ranks-no-2-in-cargo-handling-aci-report-aviation

Ryanair strike: dates in September 2019, how flights are affected and what happens if you already have tickets

UK-based Ryanair pilots are set to stage a series of 24-hour stoppages between 18 and 29 September, which could affect traveller hoping to benefit from the post-Summer Holidays window.

There will be a 48-hour walkout on 18 and 19 September, as well as 24-hour stoppages on 21, 23, 25, 27 and 29 September.

Though the strikes are expected to go ahead, 95% of Ryanair’s UK pilots “have confirmed that they will work their rosters”, according to the airline.

Therefore, “Ryanair expects all its flights to/from UK airports on Weds 18th & Thurs 19th to operate as scheduled.”

The budget airline was recently hit by similar industrial action when pilots staged strikes between 2 and 4 September, but was able to operate all of its scheduled UK flights by bringing in more contractors and moving its pilots from around Europe.

22 August also saw a 48 hour strike, though travellers were met with minimal disruption after the “volunteerism of the vast majority of our UK based pilots” meant passengers could “expect their scheduled Ryanair flight to depart on time.”

In a statement Balpa said: “Decades of Ryanair refusing to deal with unions has resulted in two things.

“Firstly, a management that apparently doesn’t understand how to work with unions, and secondly a company that doesn’t have a number of standard agreements that any union would reasonably expect in any workplace.”

Discussions with Ryanair management over pensions, loss of licence insurance, maternity benefits, allowances and “a fair, transparent, and consistent pay structure” had made no progress, said Balpa.

Brian Strutton, Balpa General Secretary, said “We have had no formal offer from Ryanair and it is imperative that we resolve this dispute urgently to avoid strike action.

“Pilots in Ryanair are seeking the same kind of policies and agreements that exist in other airlines – our demands are not unreasonable.

“No pilot wants to spoil the public’s travel plans but at the moment it seems we have no choice.”

He added: “While this action has considerably disrupted Ryanair, forcing them to engage contractors and bring in foreign crews to run its operation, it has had limited impact on the public’s travel plans.

“Ryanair should stop dragging its feet and get back to the negotiating table.”

Ryanair had previously said that Balpa have “no mandate” to disrupt customers’ holidays and flights, “particularly at a time when UK pilots are facing job losses due to the Boeing MAX delivery delays, and the threat of a no deal Brexit on 31 Oct.”

The airline added last year its UK pilots agreed a 20 per cent salary increase, with senior captains earning up to £180,000 p.a.

Balpa invited Ryanair to fresh talks earlier in the summer, but the airline instead chose to take the legal route, challenging the legitimacy of the strike in the High Court, a challenge which it lost.

Flights could be affected on 18 and 19 September, as well as 21, 23, 25, 27 and 29 September. However, Ryanair insisted that there will be minimal disruption to its services when faced with previous strikes.

In a message to customers, Ryanair said that flights to and from UK airports “will operate as scheduled thanks to the efforts of over 95% of our UK pilots who have confirmed that they will work their rosters, and will not support this failed Balpa strike action.”

The company added: “We do not expect any pilot strike disruptions to our schedule.”

If your flight is cancelled, you usually have a legal right to either a full refund within seven days or a replacement flight.

However, if the flight was cancelled due to reasons beyond the airline’s control such as an act of terrorism, a volcanic eruption, extreme weather or a strike, the airline is not obliged to compensate you.

So in the event of industrial action, it’s at the airline’s discretion whether to compensate you.

You’re advised to check all your travel arrangements ahead of your trip, to ensure you have as smooth a journey as possible. Ryanair’s pilot walkouts won’t be the only thing worrying those who’ve booked their travels.

British Airways pilots will walk after 93 per cent of members of Balpa voted in favour of industrial action, and the dates come after the end of the summer break: pilots will be walking out on Friday 27 September.

While there had been fears of a strike from EasyJet staff at Stansted Airport, Stobart Aviation Services – the provider of logistical requirements for airports – has confirmed that it has reached a pay agreement with its front of house employees based at London Stansted Airport.

Source: https://inews.co.uk/inews-lifestyle/travel/ryanair-strike-dates-september-2019-flights-affect-what-to-do-tickets-action-compensation-494394

KQ pilots call off planned strike as board insists on contract hires

Kenya Airways pilots have shelved their planned strike which was set for this Friday even as the airline’s board maintains on the need for contractual pilot hires.

Insiders close to the Kenya Airline Pilots Association’s (KALPA) afternoon-long closed-door meeting on Tuesday attributed the cancellation of the strike to the creation of further room for stakeholder engagement even as KALPA officials held no official position.

“We will come up with an official position and share. I cannot disclose more at this time, KALPA Secretary General Murithi Nyagah told Citizen Digital in a phone interview.

At the center of the pilots discretion has been the KQ’s board planned hiring of 20-contract pilots to ease the stretch on current staff numbers.

In a letter seen by Citizen Digital, the pilots had given a seven day ultimatum to September 19 while sighting the infringement of the union’s Collective Bargain Agreement on the hiring of local pilots.

Even so, Kenya Airways Chief Executive Officer Sebastian Mikosz has insisted on the hiring of local talent while pointing a finger of blame at KALPA’s perceived stranglehold on key recruitment.

“We are hiring 20 local pilots on the Embraer even if 100 pilots is what we require on a minimum. The pilots have been resisting hires on other fleets. This will prevent growth for the airline as most of our potential is in middle fleets,” he said.

“I don’t think they are any emotions about an industrial strike. We hire on contract as per the moderation of the CBA with the recruited staff standing in for pilots in training.”

The divergence in sentiments between KQ’s board and that of its pilot’s union digs further into a growing rift which has seen the pair counter blame each other over the continued carrier’s financial plight.

While KALPA has clapped back on the board’s accusation of culpability in the contribution of massive delayed to taint it as a mere excuse, KQ Chairman Michael Joseph has lashed out at the pilots for the continued tying up of current managers with the airline ailments.

“Put up a candidate for the CEO position. I would be very welcome to seeing a CEO from the Kenyan pilots,” he said.

Costs to delayed flights which have grown sharply in 2019 have been approximated at Ksh.5 billion annually in a factor further exacerbating the carriers poor run of results.

In August, Kenya Airways posted a more than double increase in losses in the first six months of the year to Ksh.8.6 billion as rising operational and impairment costs wiped out marginal growth in operating revenues.

Source: https://citizentv.co.ke/business/kq-pilots-call-off-planned-strike-as-board-insists-on-contract-hires-276814/

Top 5 Reasons to Attend the 2019 KATA Annual Convention

The KATA Annual Convention has become the travel and tourism’s premier event, where attendees interact with travel industry professionals that include; travel agents, airlines executives, travel technology partners, accommodation providers, financial institutions, Insurance providers among others.

The Kenya Association of Travel Agents (KATA) will hold the 2019 KATA Annual Convention from 27th to 29th September 2019 at Enashipai Resort & SPA in Naivasha.

Discussions at the convention will focus on how industry players are dealing with the new changes happening in the industry which include but are not limited to technological, economic and structural disruptions.

This year our theme is Travel in transition: Re-imagining Kenya’s Future Travel Industry.

Let us break it down to you in five simple reasons why you should join us this September, 27th -29th September, in Naivasha – Kenya;

  1. Gain Knowledge:We have put together a team of speakers both local and international who will be sharing on various issues/trends currently affecting the industry.  They include senior airline executives, travel technology experts, travel agents’ association officials, IATA representatives and a motivational speaker.
  2. Engage with Captains of Industry:Network with top executives, influencers, and decision makers from companies across the travel and tourism industry professionals that include fellow travel agents, airlines executives, travel technology partners, financial institutions, insurance providers among others who are defining the future of travel.
  3. Elevate your mission: Think deeply about the travel industry’s responsibility to the world. Learn how your company can refine their strategy, unlock opportunities, and mitigate risks that lie ahead.
  4. Social Networking Events:This is an event like no other.  Connect and strike business deals with delegates during social events such as the welcoming cocktail on 27th September, the morning run on 28th September, boat rides and excursions
  5. Have Some Fun:This year we are celebrating 40 years of our existence and this is reason enough to throw a party. After the serious convention discussions, we invite you to the gala dinner and the after party to unwind while we take you down the memory lane. Theme for the party is – taking it back to the 70’s. You do not want to be left out on this. (Click here for Dress code)

Passengers Stranded as IATA Suspends Bankrupt French Low-Cost Carrier

About 13,000 AIgle Azur passengers were left stranded after the French low-cost carrier declared bankruptcy.

Aigle Azur declared bankruptcy last week which further led to their suspension by the International Air Transport Association (IATA).

The airline cancelled its flights leaving the majority of the passengers stranded in Algeria. Others were left in Senegal, Mali, Lebanon and Russia.

IATA suspended all ticketing activities urging all travel agents to suspend ticketing activities on behalf of the airline.

“BSP Travel Agents must immediately suspend all ticketing activities on behalf of Aigle Azur, including the use of all automated systems for processing of refunds or other transactions on behalf of Aigle Azur. BSP Travel Agents must immediately stop using Aigle Azur’s name and numeric code as a ticketing airline, “Juan Antonio Rodriguez, IATA Global Delivery Center said.

Travel agents were further urged to settle outstanding billings directly with the airline.

The outstanding billing, Mr. Rodriguez said, will include any amount due to or from an airline to an agent for which the Remittance Date has not yet occurred – whether or not the underlying ticket sale occurred post-suspension.

All agents with outstanding billings which include pending sales and pending refund claims or any future transactions have been advised to settle the matter directly with the now defunct airline.

“For remittance purposes, this means that the total amounts to be paid by BSP Travel Agents to the BSP for future Remittance Dates shall not contain any amounts due to or from Aigle Azur, including any refund actually or potentially owing by Aigle Azur. Again, no refunds may be deducted or carried out from Aigle Azur’s Outstanding Billings, pending sales, or any other future transaction,” the IATA official further said in a statement.

Travel agents are also required to adjust direct debit payments or advance payments made before the next remittance.

Agents who have already made remittances to the clearing bank ahead of the next remittance date have been asked to follow up with Aigle Azur while those issuing payment via Direct Debit should adjust the settlement amount following laid down instructions whereby, they may be required to use manual payment for this settlement.

“Failure to adjust your remittance in accordance with these instructions may result in the excess amount being withheld by IATA in accordance with applicable law, and completion by IATA of any required adjustments (such as the removal of refund claims). All amounts remitted by BSP Travel Agents to IATA for Aigle Azur will be withheld by IATA pending an analysis of applicable law. It is possible that applicable law may require these funds to be paid to the Airline rather than returned to the BSP Travel Agents,” IATA cautioned.

The closure of the airline that was recorded to have 1.9 passengers in 2018 has also affected 1, 150 employees and 500 crew members.

UNWTO Star: Hon. Najib Balala from Kenya

The Minister of Tourism of Kenya, The Hon. Minister Najib Balala was elected yesterday to chair the UNWTO executive council.

This election took place Friday during the UNWTO General Assembly in Saint Petersburg, Russia.

Immediately after this important election the African Tourism Board chairman Cuthbert Ncube congratulated in saying: “The African Tourism Board congratulates the Kenyan minister, the Honorable Najib Balala t his election to lead the UNWTO Executive Council.

This is an important achievement not only for him but for Africa and its vibrant travel and tourism industry. It shows the importance and richness of Africa as a driver in the global travel and tourism industry.

We’re looking forward to working with Kenya as an important leader in improving our Communities through Sustainable Tourism.”

Congratulations are coming in from tourism leaders around the world.

Najib Balala was born on September 20, 1967  He studied Business Administration and International Urban Management and Leadership from the University of Toronto and the John F. Kennedy School of Government at Harvard.

Source; http://worldtourismwire.com/the-unwto-star-hon-najib-balala-from-kenya-4414/

 

Why Kenya Is One Of Six Countries Driving Africa Digital Growth.

Kenya is among six countries identified as leaders in expansion of Africa’s share in the global digital economy, according to a new research.

These countries, the report says, are making remarkable progress in digital realm, boosting financial inclusion by creating digital platforms “that work for everyone and everywhere”.

The research conducted by Mastercard Center for Inclusive Growth in collaboration with The Fletcher School at Tufts University in the US, says the six countries are harnessing “the true potential of technology to drive inclusive growth, in a period of changing global market demands”.

The report, Getting Lions to Leapfrog: Can Digital Technologies Deliver on Africa’s Delayed Promise of Inclusive Growth? uses Kenya, Egypt, Ethiopia, Nigeria, Rwanda, and South Africa as case studies to provide insights on key drivers that could accelerate digital inclusion across the continent.

The six countries were examined against three primary variables — ease of creating digital jobs, resilience of governance and infrastructure and foundational digital potential.

The African Leapfrog Index (ALI) examines the possibility of technology helping overcome the primary barriers that have long held back African economies.

“The ultimate aim of the research was to help countries across Africa optimise their burgeoning digital evolutions, in order to accelerate economic development. These six countries were selected based on their size, economic growth, the median age of residents, quality of governance and digital momentum,” the report reads.

Mastercard’s Division President for Sub-Saharan Africa Raghav Prasad told Digital that Africa has come of age as it has more technology thinkers.

“There are wonderful dynamics in the digital economy and the continent has the potential to increase access to crucial services using mobile technologies and eventually help narrow the gap that exists,” he said.

“In the next ten years, Africa will have achieved substantial growth in digital inclusion and is set to leapfrog the rest of the world due to the numerous opportunities that exist.”

The rise of e-commerce, entrepreneurship and digital adoption represents tremendous potential for inclusive growth across Sub-Saharan Africa. But in order to realise this potential, the continent needs to ensure everyone has access to networks and resources they need.

Also, in order to make important strides in the global digital economy, Africa needs to create an enabling environment to support areas of rapid digital growth, the report notes.

Prof. Bhaskar Chakravorti, Dean of global business and founding executive director of Fletcher’s Institute at Tufts University, notes that for a sustainable digital transformation that involves all African states to take off, new ideas must be accommodated in the tech ecosystem.

“All talents in the technology front should be harnessed and nurtured as a sure away to inspire innovation. Capital goods and infrastructure such as roads, electricity and mobile networks should be enhanced to create solutions for commercial and societal needs,” noted that Prof. Chakravorti who also serves on the World Economic Forum’s Global Future Council on Innovation and Entrepreneurship.

Sub-Saharan Africa’s already burgeoning youth population, which is expected to grow by over 50 percent by 2050, presents a significant opportunity to create a demographic dividend, unlocking further investment in digital infrastructure as well as creating a more robust and inclusive workforce. These elements are banked on to help Africa embrace the Fourth Industrial Revolution at a more rapid pace, ultimately making the region’s economies more globally competitive.

Kenya, for instance, has been at the forefront of the African digital revolution over the past decade, and currently has over 80 percent internet penetration.

The country has been looking into leveraging various segments of digital economy such as e-commerce, taxi hailing services and blockchain to create jobs and spur growth.

South Africa has been expanding the integration and use of digital technologies across all segments of society, particularly to those who sit at the lower end of the pyramid.

Although Africa’s digital outlook is generally encouraging, there are still reasons for concern. A report by the United Nations Conference on Trade and Development (UNCTAD) reveals that Africa and Latin America account for less than one percent of the global digital economy.

“On almost all fronts, Africa seems to be lagging behind which reveals the continent may be losing when it comes to the value of the digital economy,” reads The United Nations Digital Economy Report 2019.

Mr Prasad is, however, optimistic that with the ongoing global trend in reduction of internet costs, Africa will benefit in the process as technologies such as cloud computing reduce initial costs of starting businesses.

“This will spur more growth and drive new innovations that will contribute to a bigger share of the global digital economy,” he said.

“With the right policies and support from the private sector, the capability to create new business models will be raised.”

Experts say for entrepreneurship to be the engine of digital growth, there is need to create a conducive business atmosphere to reduce the high number of start-ups folding few years after being established. According to Forbes, nine out of ten start-ups fail within the first five years of operation.

“Multiple players must be involved to invest in the passion of young entrepreneurs. There should be mentoring programmes for start-ups with more access given to new platforms,” said Mr Prasad.

Prof. Chakravorti echoes Mr Prasad remarks, asserting that a conducive environment forms the foundation of the success of any business.

“The necessary conditions must exist as well as a strong nurture and support ecosystem that attracts both local and foreign investors,” Prof. Chakravorti said.

With nearly 50 million people added to the African labour force in the next few years, most of whom will fall somewhere on a spectrum between digitally sentient and digitally sophisticated, the digital economy is poised to be not just the driver of consumption but also of livelihoods.

Natasha Jamal, Regional Director, Mastercard Center for Inclusive Growth for Middle East and Africa, said the company is rethinking what growth means for everyone in today’s digital economy, as well as helping to provide the tools and networks that can help people reach their potential and achieve a more secure future.

“Independent research like the ALI equips policymakers and community leaders with data-driven insights to inform economic development; and it can help other key stakeholders across all sectors better understand the opportunity for — and pathways to — digital inclusion on the continent,” she said.

“The ALI is intended to help countries and stakeholders in Africa recognise where the potential for technology-led leapfrogging is high.

This means acknowledging the strengths of each country and which policy areas are prime candidates for intervention to enable stakeholders to prioritise resources appropriately,” said Prof Chakravorti.

Source: https://www.businessdailyafrica.com/corporate/tech/Kenya-driving-Africa-digital-growth/4258474-5269450-spqane/index.html