ICT companies in Kenya are increasingly relying on the web to sell their products and gain new customers. While there are plenty of offline businesses, the ability to target the world with a click of a button has its perks.
The ICT Company in Kenya (ICT) industry in Kenya is expanding at a fast pace. This is largely attributed to the fact that more people than ever before are now purchasing goods and services online. In fact, according to a study by the UN and the World Bank, approximately 40% of Kenyans now shop online on a regular basis.
But aside from pure market share gains, the world-wide-web has also been credited with playing a pivotal role in the success of many businesses in the ICT sector. This is because the web enables companies to increase customer engagement and improve the quality of their products. In turn, this benefits customers, creates new opportunities for businesses, and boosts the economy as a whole.
For instance, one company, Netki, saw a 400% uptick in their user base after they implemented the agile marketing techniques that the web provides. This allowed them to rapidly expand their customer base while reducing financial risk. As a result, Netki was able to raise almost $500,000 in venture capital and expand their operations to four different countries.
According to experts, the key to ensuring a smooth transition from regular browsing to purchasing a product or service is by utilizing e-commerce platforms and the like.
The Rising ICT Sector In Kenya
In 2017, the ICT sector in Kenya generated revenue of over $30 million, up from only $12 million just four years ago. Furthermore, over 80,000 jobs were linked to the ICT industry in Kenya as of 2017, up from fewer than 50,000 in 2012. So, if you're looking for an emerging market that's rapidly expanding then look no further than Kenya.
Kenya's economy is largely divided between the private and public sectors. The private sector accounts for nearly 70% of the country's economic output and is made up of small and medium enterprises. These businesses often operate in constrained environments, which provides them and the country as a whole with an edge when it comes to innovation. This is because they are forced to become more creative in order to remain competitive.
As a result of this creative streak, Kenya has been responsible for some prominent invention including the mobile phone and the m-Pesa (mobile money transfer service). In fact, Kenya was one of the first nations to offer mobile money transfer. The service allows customers to withdraw funds from their phones, similar to the way cash advances work. It also provides small businesses with a way to accept credit card payments over the phone. This has enabled many industries, such as retail and pharmaceuticals, to operate more efficiently.
The Benefits of the Information and Communication Technology Industry
The ICT sector not only benefits consumers and businesses, but it also plays a pivotal role in the overall economic health of a nation. In fact, as a results of the rapid expansion of e-commerce and online purchasing in the last few years, many economists have forecasted an uptick in economic growth. This trend is likely to continue as more and more consumers are expected to follow suit.
Furthermore, the ICT industry provides valuable skills to businesses and individuals. In Kenya, for example, over 80% of the population either works within the industry or as an affiliate marketer, which is largely attributed to the fact that over 30% of the country's gross domestic product is generated through online marketing.
Kenya As An Investment Opportunity
Kenya presents itself as an interesting investment opportunity for those looking for a new market to sink their dollars into. This is because while the economy has been struggling to keep pace with the rest of the world for the last few years, it continues to have a very high information-technology infrastructure that could potentially be used to create web-based businesses.
Furthermore, over the last year, the Nairobi Securities Exchange (NSE) has seen a massive surge in the number of initial public offerings (IPOs). This trend, coupled with Kenya's relatively young population and increasing economic activity, makes for a potent combination. Many investors are now looking to enter the market, which has created a healthy investment climate.
Many experts predict that over the next five years, the ICT sector in Kenya will continue to grow at a rapid pace. The government has also taken steps to encourage web-based businesses by waiving regulatory fees and reducing downtime charges. In 2018, for example, the Government of Kenya issued over 500 ICT licenses, which was approximately 100% above the previous year's number. So, as one might expect, entrepreneurs have taken advantage of this opportunity and have rushed to set up shop in Kenya.
If you're looking for an emerging market that has a promising future then look no further than Kenya.