TechOver Africa

Join us as we complete this two-part series on the DST.

• Wangari criticizes the Kenyan government's digital economy blueprint due to a lack of a legal framework to achieve the set objectives. This discrepancy is contributing to corruption and politicization in the digital economy.
• Despite Kenya being one of the first African countries to propose a smart city, it hasn't been realized due to these issues.
• Wangari draws parallels between the current situation and historical colonialism, suggesting that the government perpetuates a digital colonial apparatus.
• The conversation shifts to the impact of the digital service tax controversy on the creative economy in Kenya.
• Anto Neosoul criticizes the lack of governmental understanding of digitization and the creative industries, citing a lack of proactive action and an overreliance on reactive measures.
• Anto emphasizes the need for representation within the creative industry to effectively engage with the government and protect the interests of content creators.
• From a legal perspective, Teddy anticipates increased tax evasion and avoidance due to the digital service tax. He urges a review of the governing laws and policies.
• Rama discusses the financial implications of the digital service tax. He predicts that the tax will push the creative industry to seek alternatives for lowering their tax obligations, potentially driving them offshore or underground.
• Rama mentions a recently formed creators' union but doubts its effectiveness if it doesn't guarantee financial and policy independence.
• The panel concludes, praising the importance of such discussions and expressing the desire to continue them.

• Host: Wangari Njathi, Ph.D.
• Guests: Anthony "Anto Neosoul" Mwangi, a digital content creator, Ramah Nyang, a business journalist, and Teddy Ochieng, a tax expert and advocate of the high court.

Key points from the episode:

• The episode focuses on Kenya's digital service tax controversy.
• This episode is part one of two on the subject.
• A detailed discussion about the rise of the digital economy and creative sector in Kenya.
• The panelists discuss how the government's taxation policy is affecting content creators in the country.
• Anthony Mwangi, popularly known as Anto Neosoul, talks about his experience as a digital content creator and shares concerns about what he sees as a potential double taxation issue.
• Ramah Nyang, a business journalist, provides the broader financial and economic perspective behind the tax, talking about the government's increased spending and how this has led to a higher debt burden and, subsequently higher taxes.
• A tax expert, Teddy Ochieng explains the specifics of the finance bill 2023, which increased the digital service tax from 1.5% in 2021 to 3%.
• The guests argue that there is a disconnect between the government and the people it serves, especially in the area of digital content creation.
• The discussion underlines a general sentiment of frustration towards the taxation of digital content creators and a call for more transparency and understanding from the government.

In this episode we are talking about Africa, taking an active part in the world, digital economy, it's very important to understand. Digital inclusion and actually what that means when it comes to thinking about Africa being an active producer of technological products and services, as opposed to just being a consumer.

Our guests on today's podcast are Nicholas Sewe and Samantha Ndiwalana.

Nicholas Sewejoined WBA in March 2021. As the Engagement Manager for the Digital Inclusion Benchmark, he supports multi-stakeholder engagement, partnership building, and organizing global events.

Samantha conducts in-depth research and data analysis to support the development of the WBA’s benchmarks. She is passionate about innovative approaches to inclusive sustainable development and believes that companies cannot be excluded from the development agenda. Her focus is on "use."

We talk about the 2020 Digital Inclusion report, which was the first report. This year they will add 15 more companies and the next report will be out in December.  

The report is part of the efforts of the World Benchmarking Alliance to motivate and incentivize the work of the private sector to achieve their sustainable development goals. 

Digital inclusion is tracked across four measurement areas:

• Access
• Skills
• Use
• Innovation

We talk about the challenges facing Africa and whether or not digital inclusion is possible in our lifetime. We have many challenging including the rising costs of the internet and for those who can afford it, there is the issue of whether or not they have the skills to fully utilize it. 

The answer most likely is in conversations like this one but needs to include companies, governments, and policy makers if a lasting difference is going to be reached.

Topics discussed in this episode:

• Dr. Albert G. Zeufack, a Cameroonian national, is the World Bank’s Chief Economist for Africa. 
• We discuss the five building blocks for the Digital Economy in Africa
  1. Digital infrastructure - Broadband 
  2. Connectivity
  3. Digital entrepreneurship
  4. Financial inclusion - Digital finance
  5. Digital skills - perhaps the most important block we haven't been investing in enough.
• Availability, affordability, and digital literacy are still inadequate for much of Africa's population. There is still a lot of work to do.
• We spend time discussing the education system in Africa and it can start to prepare students for the digital economy by adding essential training to the core curriculum. 
• We talk about creating an entrepreneurship ecosystem and the challenges it faces.
• Although there is obvious room for growth in each of the building blocks of the Digital Economy, some of the leading countries in the world are in Africa. 
• Digital is not a sector, it is a cross-sectional enhancer of productivity. So taxing the digital sector as a commodity is a mistake.
• Less than 50% of Africans do not have access to electricity. We need to address this at the same time or the conversation about the digital economy could be moot. 
• Although we have so many obstacles right now, Dr. Zeufack remains excited about the digital economy is by choosing to look at the opportunities it will provide.
• Wangari asks Dr. Zeufack to put a monetary value on the digital economy in Africa. His response was getting to a number will be very difficult to measure. So given all the building blocks we spoke of earlier it would be better to focus on opportunities like job creation both at low-level skills and high-level skills and we should invest in that.
• We discuss how individuals can contribute to the development of Africa's digital economy.

Quotes from this episode:

• Our education systems should take this opportunity to reflect a deeper change that starts to produce the skills for the economy of the future. ~ Dr. Zeufack
• 20 years ago, if someone had said when it comes to technology, that the leading country of any kind would be an African country, it would have caused people to laugh... But it is the reality and we need to acknowledge progress. ~ Dr. Zeufack

Discussed in this episode:

• Dr. Albert G. Zeufack, World Bank's Chief Economist for Africa
• Hello Tractor