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KEPSA
7th Floor, South Tower, Two Rivers, Limuru Rd, Nairobi.
info@kepsa.or.ke
The Ajira Digital program continues with the Eastern region counties' engagement forums in efforts to sensitize businesses in these counties to embrace digital transformation for increased productivity, the creation of jobs for young people, and the growth of the economy. On 21st September 2023, the Program hosted business owners, government representatives, technology providers, and young people as well as digital economy key players at the Semara Hotel in Machakos for an engagement forum.
The Machakos forum was graced by Francis Mwangangi, Deputy Governor of Machakos County among other county leadership including the County Assembly Majority Leader, Nzioki Wangondi. Also, in attendance were Ajira Digital Partners including Dr. Ehud Gachugu, Director of Ajira Digital and Youth Employment at the Kenya Private Sector Alliance, Damaris Kilango of Mastercard Foundation, and Ruth Amoit of eMobilis.
The digital transformation for SMEs and job creation forum for Machakos is well aligned with the ongoing national efforts in promoting Kenya across the globe for investment opportunities and trade relations with a particular focus on nurturing Kenya’s thriving start-up sector, especially in tech. Digital Technologies are an enabler for SMEs to maximize access to market opportunities and trade on the continent which is a key emphasis of the African Continental Free Trade Area (AfCFTA). For SMEs to tap into the foreseen outcomes of AfCFTA which include boosting the regional income by US 450 billion and lifting 30 million people out of extreme poverty by 2035, digital technologies will help strengthen the readiness of small businesses to participate in the AfCFTA marketplace.
Here are key highlights and takeout from the forum:
“Digital technologies not only transform businesses but also the lives of our people. For instance, if a young parent today gets their child has a fever, the first thing before rushing them to a health center is to check on possible home remedies via the internet. The same applies to a person thinking of starting a business where they begin with benchmarking from other entrepreneurs online who have a similar business and are doing well. Such information is available online.” - Francis Mangagi, Deputy Mwangangi, Deputy Governor, Machakos County.
“The profile of Kenya as a talent hub destination is rapidly rising internationally through the various participation by the leadership at global forums. However, businesses need to think through how they will match the set standards to enhance their capacities and compete globally while at the same time improving the livelihoods of the people through the creation of work opportunities. SMEs are at the heart of solving global complex problems and should consider adapting technologies to help achieve the same. Also, businesses should be intentional about youth employment as they form their future customers.” - Dr. Ehud Gachugu, Director, Ajira Digital Program and Youth Employment at the Kenya Private Sector Alliance (KEPSA).
“Digital technologies offer standardization and measure of quality. For instance, digital platforms like Fundis can highlight and indicate the profile and ratings of an artisan onboard giving the client an opportunity to pick the best hence increasing their confidence in the delivery of the expected service.” - Alex Kamanga, Co-founder, Fundis, a web and mobile application that helps contractors and individuals find and hire competent, vetted, and accredited artisans and builders.
The dangers of businesses not keeping up with the digital transformation as highlighted at the forum was the issue of some businesses closing shops due to lack of an online presence. Some business owners explained how their beauty and clothing shops are experiencing losses due to competition from other similar businesses that are riding on digital marketing.
On the issue of accessing capital financing from lenders, the Equity Bank as well as the Youth Fund representatives highlighted the importance of businesses having an online presence as that can be used to convince the lenders on the potential and operationalization of one's business. Also, technologies have also helped in record keeping and data analysis which can be used as collateral.
“I trained with Ajira Digital on content writing and digital marketing and have been offering digital solutions to businesses in Ireland where I make about Ksh. 40,000 per month. Again, I am an entrepreneur and whenever I get more clients I am able to sub-contract the work to my peers who are also offering digital work services. Hence, I also help to create jobs.” - Brian Otwoma, a digital work participant from Machakos.
Additionally, the forum had an attendance of persons with disabilities who created awareness of the businesses and corporates to consider engaging and outsourcing this category of persons to offer them services. Persons with disabilities are big on technology and have mastered various skills that can be beneficial to businesses. In addition, digital technologies offer them an opportunity for inclusion to deliver their expertise and talents to businesses.
With the heavy attendance of close to 200 businesses from Machakos attending the forum, this was proof of how SMEs are enthusiastic about taking advantage of emerging digital technologies. From the feedback drawn after the session, most of these business owners were planning to implement digitization in their enterprises as well as take advantage of the data to advise on their customers' behavior and expectations. Highlighting the evolution of policies that support the digital economy and service delivery at the county level, the deputy governor also called for ideas on how they can resolve county and trader conflicts, mainly referred to as hawkers, using digital technologies and coexist in harmony.