Let us leverage technology to build a strong digital infrastructure

The face of banking will never be the same again. Whichever way you look at it.

More and more customers are doing their transactions online and on their mobile devices.

Banks have had to soup up their offering to provide robust digital platforms to drive access to financial services while at the same time ensuring that customers enjoy a great experience and safety around their finances.

The big question then remains how Kenya can build an even stronger digital infrastructure to anchor this ongoing transformation.

The truth is that digital applications are already driving socio-economic transformation, increasing efficient production and distribution of goods and services, opening new opportunities for income generation for millions of poor people, and enhancing connectivity between people, societies, governments, and organisations.

As the fourth industrial revolution sweeps the world, and the Internet of Things rides the wave, the reality here and now is that organisations of the future are destined to be digital by default.

We need to prepare for this transformation by attempting to ensure that a strong foundation, infrastructure, and enablers are in place to survive and be successful in the new generation of technology.

Now, more than ever, Kenya is looking to digital solutions to increase productivity and drive development.

Although increased internet access and related infrastructure could have a profound impact across the continent, Africa remains far behind much of the rest of the world in terms of the fibre network and broadband connectivity, spectrum, and data centre processing capabilities.

The potential for digital growth opportunities in Africa is vast, but it will depend critically on ensuring that digital access is affordable and widespread.

According to a report by the International Finance Corporation (IFC) and Google's e-Conomy Africa 2020 Report, Africa's internet economy is one of the largest overlooked investment opportunities available, with the potential to add $180 billion (Sh25.2 trillion) to Africa's GDP by 2025.

While the continent still has a long way to go to catch up with developed countries, many initiatives and innovations suggest Africa is starting to close the gap.

Millions of Africans are joining the middle classes every year, as they are becoming increasingly upwardly mobile.
Africa is appealing due to its rigorous efforts in building a digital economy. But what's more interesting is the less pronounced outcome - the impact on six sectors which in turn could hugely benefit the African economy.

Initial trials reveal that technology-driven productivity gains could potentially reach between $148 billion (Sh20.7 trillion) to $318 billion (Sh44.5 trillion) by 2025 if well utilised, especially in the financial services, education, health, retail, agriculture, and government sectors

Sub-Saharan Africa, where the digital transition has long been touted to leapfrog traditional infrastructure, is especially vulnerable to falling behind.

Chronic challenges in the power sector such as low electrification rates, high prices, and appalling reliability have significantly impacted the region's digital competitiveness.

The power-internet gap in sub-Saharan Africa will only get wider in an increasingly digital post-Covid world if current energy system challenges remain unaddressed.

This vicious cycle in the power-internet nexus is best exemplified by the data centres that sit at the core of the internet's infrastructure - centralising data storage, computing power, and networking equipment.

With Africa set to become one of the world's economic powerhouse over the next decade, now is the time to get on board and invest in its future.

But it is equally important to get that investment right by putting the money into the areas where it is most needed: the continent's internet infrastructure.