The technological environment

Technology plays a major role in any economy today.

In the world technology has been used to streamline business operations, improve business efficiency and lower the cost of doing business. Use of robots, self driving cars, virtual realities, artificial intelligence, 3D printing, solar energy, energy efficiency and storage, sensors, drones and inventory control systems has greatly lowered operational costs, increased efficiency, increased innovation and increased labour productivity and in the long run increased business profits. Technology has helped cut down on the production and delivery time. As demand increases, supply can only be matched using technology. Business profits, economic development and the national income of a country increases as the production levels increase as a result of improved labour productivity and increased total output. Technology helps remove all wastages in the production process and businesses can use resources more effectively to benefit both business and the economy. Technology has had an impact on many fields such as healthcare, education, transport, advertising, marketing, finance, agriculture, purchasing and supplies and energy.

Technology is used to measure and predict business productivity and the national economic growth. With the use of technology, income increases, savings increases, demand increases as a result of reinvestment, capital formation increases and poverty is reduced.

With the use of technology, production increases and international business increases.

Technology has continued to lead to globalization with the increased exchange of information and cross-border trade and collaborations and allowed for access to new worldwide markets for products.

Televisions, radios, cell phones, the internet and social media have increased global connectivity and communication. The internet has helped break physical barriers to trade and communication and businesses today can reach and serve their customers from all over the world. Manufacturers and suppliers have developed online links with customers. Manufacturers and suppliers can keep track of inventory and track shipments. Social media has proven to be a strong and important marketing platform.

Technology has resulted to increased job opportunities. Tech companies such as computer programming companies, app development companies, networking companies, hardware development and vendor companies have created millions of jobs worldwide. Websites and social media platforms have created millions of jobs in the advertising and marketing industry. All these jobs have led to increased per capita income and improved living standards.

Technology has led to specialization and the creation of a new and skilled workforce. People and businesses all over the world have been forced to retrain and adopt new technology or be declared disposable, dispensable, expendable or useless. Manual jobs have been destroyed by technology in fields such as manufacturing, logistics, retailing, accounting and inventory. In the same light technology has greatly supported business processes in the same fields.

Technology results in advancements in infrastructural development such as developments in the energy sector. Technology also results in improved service delivery and industrial development.

Technology has reduced the number of tasks performed by humans. Production of cars, textile and other products has increased and the quality improved with the current use of robots in industries.

Technologies have been developed and made use of by private businesses leading to the creation of more startup businesses. Technology has led to an increase in entrepreneurship. The growth in technology, development of new software, development of new apps and new social platforms is the greatest opportunity for the establishment of startups, future jobs and future wealth creation. Examples are businesses such as Alibaba, Uber, Olx, Amazon and Jumuia.

Growth in technology has also led to more advanced research and development in various fields such as agriculture and healthcare.

In Africa inorder to sustain growth, stay on the growth path and maintain ties with the global economy, Africa will have to relay on technology. Success in Africa will depend on relevant skills building with technology and innovation taking centre stage.

Technology is creating transformative changes in the continent through the use of personal computers, smart phones, apps and different software that support e-business and e-learning.

Technology is already changing the lives of the people in Africa and beginning to make the people better informed and educated, healthier and wealthier.

In Africa and the world technology has made teaching in classrooms much more effective. In Kenya and with the new technology driven mode of teaching, teachers work in classrooms from electronic tablets with already centralized planned lessons. Government is therefore able to monitor the progress of each classroom in the country. Teachers are not allowed to change lessons, skip lessons or fall behind in the planned lessons.

Technology is used to educate masses, streamline business and government operations, improve efficiency and lower the cost of doing business, increase entrepreneurship, increase household income and reduce poverty. As a result technology has helped reduce and solve some of the continents’ longest and biggest problems such as poorly run government systems, high illiteracy, unemployment and disease levels and low agricultural and industrial productivity. Thanks to the internet and other technologies, Africa is today able to find new global markets and best prices for its farm and industrial produce.

Productivity in Africa continues to grow as a result of improved efficiency in labour and capital use. Increased productivity in African countries is attributed largely to changes in organisational and managerial practices, application of technology and reliance on science, innovation, investments made in information technology and its use and an increase in skilled workforce in the continent.

Investments in technology have allowed African businesses to better manage their inventory and supply chain processes.

Investments in technology have allowed African businesses to meet consumer demands by tracking changes in consumer tastes and offering more choices consumers.

Investments in technology have allowed African businesses to track labour performances and productivity and therefore give better payoffs to the productive workforce in the industries and organisations.

Investments in technology have allowed African businesses and governments to develop innovative products and processes. The innovative processes are fast, cost effective, customer friendly and allow for economic growth. The Huduma Centers in Kenya is one such innovative process by the government and is based on technology. All important government services are offered under one roof and can be accessed easily and in one central location by all persons needing government services.

Increased connectivity and communication in Africa has led to greater and expanded access to information and knowledge, new business opportunities, social inclusion, social sustainability, access to financial services, access to better healthcare services and cohesion amongst the people therefore reducing civil and tribal wars in the continent.

More and more opportunities are created in Africa as a result of technology. New opportunities created allow for job creation, innovation, participation in economic growth in the continent and the world and collaboration and cooperation amongst the people in Africa.

Africa continues to connect its people by not only constructing roads and railway lines but also through laying of fibre optic cables to expand internet connectivity and use in the continent.

Government and businesses in Kenya have used technology to improve on service delivery, information delivery and to reach more customers. Sectors in Kenya that have taken advantage of technology to improve their operations include education, agriculture, health and finance. Technology is a key component for Kenya to compete well with other developed economies and countries in the world.

Technology is the key driver of change. Technology is also the key driver of development, improved productivity, higher incomes, increased consumption, increased investments, reduced unemployment levels in Kenya, better service delivery by business, improve access to public government services, reduced startup costs and the cost of doing business, reduced barriers of trade and doing business, redesigned business models and changing and measureable advertising and marketing concepts, improved quality of life and even increased leisure and holiday activities.

Kenya’s continued investment in technology and infrastructure has made product and service delivery efficient and affordable. It has also led to continued economic growth.

Government uses information technologies to efficiently provide required services such as business registration, birth registration, identity card issuance, license renewal, driving license renewal and property registration. Information technology has also been used to ease tax payment and collection. Such government projects have proven to be sustainable and beneficial to the people and show how government can use technology to improve on service delivery. Information technology has helped the government bring services closer to the people.

The Kenya government introduced a new information technology based education system so as to effectively manage and monitor the education system in the country.

Use of information technology, mobile phones and apps has helped farmers find market and best prices for their produce, monitor seed, vaccine and fertilizer distribution, learn how to increase farm yields and enabled access to other relevant farming information.

In Kenya, doctors and patients use the internet to access medical consultancy services and learn of new medical procedures. Technology is used to improve access to medical care, provide health tips, procure health services and procure and distribute medicines, medical equipment and other supplies.

The mobile money platform, Mpesa by telecommunications company Safaricom has allowed for access to startup capital, job creation as more people country wide register agents and even helped bring money transfer services closer to the people.

Technology has provided online jobs to many youth in the country and the government has been supporting and encouraging the growth of the information and communication sector. The government has also been supporting and encouraging the youth to take up an active role in the sectors.

What hinders technological growth in the world?

Many technologies have not been proven to be useful such as the remote control pillow, the bluetooth toaster, the air conditioned shoes, the anti-radiation underwear and the smart water and wine bottles.

Other technologies get to be absolute over time such as the DVD, the Compact disc, the CD player, faxes, the typewriter and the analog television.

Some states of the world have prohibited the development of some technologies such as mobile phones in Cuba, Google street view in Austria and Greece, Facebook in Pakistan and iPads in Israel.

Other states of the world especially in the less developed democracies creativity within the society is suppressed whereas without creativity there cannot be innovation and development of new technologies. Such is the case in the most censored countries of the world such as Eritrea, North Korea, Saudi Arabia, Ethiopia, Azerbaijan, Vietnam, Iran, Myanmar and Cuba.

Even when research is widely publicized discoveries made are never made public.

Corruption and theft hinders the growth and use of technology. Such is the case when copyright and patent rights are disregarded.

Businesses have no adequate skilled manpower, business structures or models, the knowledge, capital or equipment required to develop new technologies.

Inadequate cooperation between state bodies, local universities, the local private sector and international bodies hinders the growth of technology. It is only through such cooperations that technologies can be developed, improved on and be made sustainable.

Business and technological rivalry hinders the growth of technology since a lot of money, time and other resources are spent and wasted on replicating the rivals’ technology, unnecessary marketing campaigns and court battles between rivals.

Technological development is suppressed when illiteracy levels are high. The people also do not know of present technologies available to them.

When people earn moderate incomes then technological development is hindered since people do not have the money to put into research and development. Poor countries have inadequate resources to investment in proper education systems, science, research and development.

When there is corruption, poor administration in government bodies and misappropriation or misallocation of resources in a country, then technological development is again hindered. Government staff may also sometimes lack the skills to make use of new technologies.

As much as they should, African governments do not focus on building new technologies. Technology can be used to increase opportunities, create jobs, offer human development, improve efficiency in government and business operations and transform the continent but due to competing priorities and limited resources little is spent on science, research and technology. Investments in research and technology have to come from foreign investors and from aid and grants from foreign states. Poverty in Africa only widens the technological gap between Africa and the rest of the developed and industrialized continents and states of the world. Poor technological capacity hinders Africa’s possibilities of achieving sustainable development in the continent.

African states do not have in place the legislations and policies to stimulate technological and economic growth in the continent. Such legislations and policies help establish goals and important partnerships to encourage technological growth. To stimulate technological growth in the country there needs to be partnerships between state bodies, government and the local private sector players, government and the local universities and government and foreign agencies and states. Copy right and patent laws are also not well established in Africa.

Majority of Africans still mistrust and do not understand new technologies. Africans still make use of traditional methods of communication, transport, education and health treatment. Africans have misconceptions about new technologies, there long term possibilities and the potential of these technologies to positively impact and change their lives.

The cost of establishing businesses and developing new technologies is still relatively high in Africa as compared to the rest of the world.

The high levels of corruption in most African countries hinder the growth of technology.

Africans do not support local technologies and still trust and relay on foreign products therefore hindering the growth of local brands, industries, businesses and technology in the continent. Technology used in Africa comes from elsewhere and such is the case with vehicles, motorcycles, clothes, industrial and farm inputs and materials, smart phones, personal computers, medicines, machinery and equipments.

African states have inadequate skilled workforce required to build innovative technologies. It takes considerable time and investments in the education sector so as to build the required human capital to foster technological development.

Africa also has weak higher education systems with low enrolments that do not focus on innovation and technology.

Corruption in the private and public sectors still remains the biggest hindrance to entrepreneurial, economic and technological progress in Kenya.

Other factors hindering technological development in Kenya include inadequate infrastructure, high cost of acquiring and developing new technology, insufficient funds to invest in research and development, cyber crime and inadequate trained and skilled workforce.

A very small percentage of people and businesses make use of e-commerce in Kenya. It will therefore take a consider time and effort by government and the private sector before the introduction and adoption of new technology takes place in Kenya.

Old leadership that still clenches to power and continues to head government bodies and companies refuse to adopt new technology leading to inefficiency, corruption and collapse of the states owned companies.

What measures are being taken to spur technological growth in the world?

American companies such as Google and Microsoft have set up training facilities all over the world so as to train people in different places of the world and promote technical skills building.

Such companies also provide training to investors and companies on technical, financial and marketing aspects of their businesses.

Businesses continue to make use of information technology and other technologies such as robotics and inventory control systems to improve production, profit margins and to help grow the economy.

Due to a growing world market for technology, modern technology is today becoming more affordable to many in the world.

Educational institutions worldwide continue to make use of technology so as to provide services such as online training, online courses, online books and libraries and online book sale.

Countries in the world are competing and boosting cooperation, building networks and fostering collaboration between public and private sector to fund research.

Goal 9 of the Sustainable Development Goals talks about Industry development, Innovation and Infrastructure development. This goes a long way towards spurring technological growth in the world.

Africa is taking various measures to promote technological development in the continent including:

Increasing the per capita income and fighting poverty.

Encouraging investments in science, research and development and Kenya has set up Kenya Agricultural Research Institute (KARI) and Kenya Medical Research Institute (KEMRI) to encourage research in agriculture and medicine respectively.

Developing education systems suited for relevant skills training and innovation.

To promote technological development Africa is maintaining political stability and security in the continent.

To promote technological development Africa is encouraging cooperation and research funding between African states and foreign states and agencies.

To promote technological development Africa is encouraging transfer of skills and technology between African states and foreign states and agencies.

The inclusion of the youth in leadership has promoted the use of technology since the youth are seen to be more receptive to new technology.

The AU Science Technology and Innovation Strategy and blocs formed in Africa promote and strengthen research and development in science and technology in the continent.

Africa is strengthening research efforts and increasing investments in agriculture, information technology, health and energy.

Africa continues to grow its specialized human resources responsible for research and technological development, utilization and implementation of new technology and technology distribution and transfer.

Africa continues to put in place actions required to foster technological development in the continent such as acquiring high speed computers, acquiring relevant new technologies, utilizing new technologies, creating a health environment for innovation and competition, utilizing new technologies developed within the continent and establishing systems, legislations and laws required to promote technological development. Policies, regulations and legislations translate into market growth for new technology and provision of a health environment for business growth, collaboration and competition.

African governments are also encouraging collaboration between themselves and local universities to develop and utilize new technologies especially in human medicine and agriculture.

The Ministry of Information, Communication and Technology was set up in Kenya to encourage the growth of the information technology and communication sector in Kenya.

The government of Kenya is encouraging the growth of information technology in the country by removing all taxes related to the importation of personal computers and other devices.

The government encourages the use of technology in the country to respond to the needs of the community and encourages the youth to take up online jobs so as to help solve the problem of youth unemployment in Kenya.

The government encourages the growth of the information, communication and telecommunication sector so as to promote innovation, promote creative science and technology, build and nurture talents, raise the standards of living and create employment, promote economic growth of the country and provide sustainable economic and social development. The Ajira project between the Kenya government and the Rockefeller foundation is meant to encourage the youth to take up online jobs, enable access to online jobs, promote Kenya as a new hub for online workers and provide mentorship to the youth. Public and private sector collaboration helps provide finance and technical assistance required to grow the sector.

The Kenya government makes use of technology to provide essential services and to move service delivery closer to the people. Government services provided online include business registration, business license renewal, birth certificate application and driving license renewal.

A World Bank report of 2018, on the ease of doing business moved Kenya up 12 places to position 80 in the world due to reforms undertaken by the government to ease the payment of taxes and cross border trading. The government also makes use of information technology with the launch of the National E-Trade portal and the Integrated Devolution Data Portal meant to provide businesses with import and export information and encourage information sharing amongst different counties respectively. Cross border trade has been enhanced partly due to the use of the Single Window System meant to allow for electronic submission of custom entries and cargo tracking. Tax payment has been improved due to the introduction of the electronic tax filing system in the country. Kenya also makes use of information technology to provide information for investment, legal information, economic information, industrial and trade information and market information to investors, manufacturers and other stake holders.

Money transfer, mobile banking and online shopping are some of the online services provided by the private sector in Kenya.

The government also allows and supports local universities to assemble personal computers, laptops and tablets. Assembled devices are used in primary schools in Kenya.

The Kenya government continues to focus on providing a better education system based on technology, talent nurturing and innovation. Primary school going students in Kenya are today exposed to technology as they make use of tablets in schools. Only an educated and informed population can be innovative.

More and more private training institutions are opened in Kenya and train on information technology.

The government continues to provide an enabling environment for technological development through sponsored secondary school science congresses held annually in the country. Here students and sponsors of the congress get to exchange knowledge and information, utilize technology infrastructures, promote utilization of technology and disseminate scientific and technical knowledge and information. Such meetings held annually also make the distribution of scientific and technological information easy.

With efficient, well managed and regulated banking and financial institutions businesses and the youth in particular are getting access to funds to invest, import and make use of new technology.

Technology driven companies such as Access Kenya and Safaricom are also allowed to list in the Nairobi Securities Exchange.

Different government agencies and ministries work together to promote technology use and development in Kenya. Cost sharing programs between ministries to sponsor training and information exchange programs help promote the growth of technology in Kenya.

Kenya is developing the Konza technology city. The city is the largest technology hub planned by the Kenya government and targets both local and international companies to set up offices, labs and training institutions.

Cheers,

Peter Kirimi Mburugu.

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