Over the past five years, we have seen the emergence of a number of eGovernment applications and platforms in East Africa, leveraging the growth of internet and smartphone penetration to improve the reach and quality of government service delivery. While a number of these technology solutions, particularly in tax administration, trade facilitation and financial management systems, have been sourced from international providers – based in the United States, India and Singapore – African information and computer technology (ICT) firms have also played a major role in this surge in online service delivery to citizens and businesses.
The use of various “managed service” models, such as eGovernment public-private partnerships (PPPs) and cloud hosting, has allowed even governments with limited in-house ICT capacity to deliver services online in a sustainable manner. The World Bank Group (WBG) has also played an important role in developing the ability of local firms to effectively provide services to government clients by sharing good international practices and by funding the development of these locally grown technology solutions.
Kenya e-Citizen improves revenue generation as it cuts compliance costs for citizens and businesses
This digital services and payment platform – https://www.ecitizen.go.ke/ – was initially piloted in 2014 with seed funding from the Kenya Investment Climate Program of the WBG's Trade & Competitiveness (T&C) Global Practice. The technology platform was developed and is now managed through an outsourcing arrangement by government with a local ICT firm. It has grown organically, expanding from eight government-to-citizen (G2C) and government-to-business (G2B) services to more than 100 today, covering such areas as driver’s licenses, passport and visa applications, company and business name registration, work permit administration and civil registration. Citizens are able to register and obtain login credentials online, through a validation process involving the national ID and SIM card registry databases. They can also pay for services using a variety of methods, including bank transfers, credit cards, MPesa (“mobile wallet”) and other mobile money systems.
If you’ve opened a bank account in the last few years, you likely had to answer a bunch of more or less intrusive questions about yourself, your background and why you wanted to open the account. Annoying, but part and parcel of Anti-Money Laundering/Combating the Financing of Terrorism (“AML/CFT”) rules that all banks, in all parts of the world, are subject to.
The ostensible purpose is to enable banks to prevent bad actors using the financial system to launder their funds and, where bad actors are not identified at entry, to detect any suspicious financial activity and provide appropriate background to competent authorities. (Whether they are successful in this endeavour is another question.)
More recently large international banks have been upping the ante and have started to disengage altogether from clients from certain geographical regions or certain sectors because they consider the AML/CFT risks too great- a development known as “de-risking”. Often the business lines or countries exited are those that aren’t particularly profitable; the argument being that only a substantial profit margin justifies taking a larger than average risk. The amount of due diligence to be conducted on a customer cuts into that profit margin and the higher the perceived risk of that customer, the more the due diligence, the lower the profit.
One of the sectors particularly affected are non-profit organizations (NPOs). This is an unfortunate consequence of the mistaken and remarkably persistent idea that all NPOs pose a high AML/CFT risk. According to a report published earlier this month by the Charity and Security Network, two-thirds of U.S.-based NPOs working abroad are facing problems accessing financial services. Apart from account closures and account refusals, these also include delays in wire transfers and increased fees.
As a result of these delays, they are sometimes forced to move money through less transparent, traceable, and safe channels. The prevalence and types of problems vary by program area, with NPOs working in peace operations/peacebuilding, public health, development/ poverty reduction, human rights/ democracy building, and humanitarian relief reporting the greatest difficulties. One NPO was prevented from sending immediate relief to the persecuted Rohingya minority in Myanmar in the midst of a dire humanitarian crisis. Timely transmittal of those funds might have saved lives, the charity’s director explained.
It’s now been about a month since the Trade & Competitiveness Global Practice of the World Bank Group launched TCdata360, our new platform for open trade and competitiveness data from the Bank and external sources. The initial response has been overwhelmingly positive, and it has included a mixture of the anticipated and the unexpected.
Egypt has been the most popular country page during this period, the indicator on the number of days to start a business has been the second most visited page (though it seems to be ceding its spot to the page on venture capital availability) and we have been struck by the number of people that have searched for information on countries that have laws against sexual harassment in the work place (it’s steadily been one of the top 10 most visited pages on the site). Our data stories have attracted attention as well, especially in social media and there has been consistent interest in the API.
The question now is: Where should we take TCdata360 from here? How does a platform grow after the initial excitement around its release has dissipated? How can you or your organization contribute to the growth of the platform?
Here are a few of our ideas at the moment:
- More data – we have a growing inventory of new datasets.
- Better user experience – we are tweaking several things, while keeping what people like (which is most of the site).
- More analytics – we have experimented with Datascoper, a tool to uncover hidden patterns in data, but work remains to make these tools more usable and meaningful.
- Better engagement with our users – we want to show off your work on the site. Tell us about the insightful work you do using our data; we will share it with all our users. And we are all ears about your ideas for other ways to collaborate.
- Continue contributing to the open data community – we plan to offer data literacy and other support; stay tuned for greater emphasis on applied data; we are working to make this and other data truly useful in an applied sense to governments, the private sector, and others.
- Better linkages with the open source world – we built the site on open source and want to share our work with the community; we are constantly looking for tools that we can either integrate into the site or that we should be using. Tell us about them.
Start-up ecosystems are emerging in urban areas across the world. Today, a technology-based start-up develops a functioning prototype with as little as $3,000, six weeks of work, and a working Internet connection.
Entrepreneurs are not seeking large investments in hardware or office space. Rather, they look for access to professional networks, mentors, interdisciplinary learning, and diverse talent. Cities are best suited to meet their needs, as they provide diversity and allow for constant interaction and collaboration. Thus, the shift caused by the so-called “fourth industrial revolution” makes cities the new ground for organic innovation.
The urban innovation model can be applied in cities in both developed and developing countries. The same trends are driving the urbanization of organic innovation ecosystems in New York City, London, Stockholm, Mumbai, Buenos Aires and Nairobi. This presents a great opportunity for developing countries to build innovation ecosystems in cities and create communities of entrepreneurs to support the creation of new sectors and businesses.
But while some cities have organically developed urban innovation ecosystems, nurturing a sustainable and scalable ecosystem usually requires determined action. Moreover, not all cities are building their innovation ecosystems at the same pace.
To support a local innovation ecosystem and accelerate its growth cities can promote collaboration through creative spaces and support networks, while also hosting competitions to solve local problems.
As World Bank staff working on financial inclusion, our days revolve around a critical question: what are the most promising ways to improve access to and usage of appropriate financial products for the underserved? A big part of our job is to track the wide range of experiences and learnings from around the world and incorporate them into our work advising policymakers and regulators. We thought it would be useful to share our current thinking, distilled into a list of the top eight approaches to accelerate financial inclusion. This list is from a policymaker perspective, and takes into account the fact that policymakers play a multi-faceted role in financial inclusion, balancing promotion, protection and stability.
First, two caveats. This is subjective list, drawn from our experience. We expect reasonable people to disagree with some of our choices and that’s OK – in fact, debate is welcome.
Second, country context plays a critical role in formulating appropriate approaches to financial inclusion. This list is meant as a general guide for what is impactful in most countries, most of the time.