Country Diagnostic of Senegal E
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Public Disclosure Authorized DIGITAL ECONOMY FOR AFRICA (DE4A) Country Diagnostic Public Disclosure Authorized of Senegal Public Disclosure Authorized Public Disclosure Authorized WITH SUPPORT FROM: © 2019 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Cover image: Cover design: 3 Contents ACKNOWLEDGMENTS ............................................................................................................................8 ABBREVIATIONS ........................................................................................................................................9 EXECUTIVE SUMMARY ......................................................................................................................... 13 Introduction .................................................................... 14 Methodology .................................................................... 14 Key Findings .................................................................... 15 Recommendations ................................................................ 17 1. INTRODUCTION .................................................................19 A. Context ......................................................................20 B. Methodology ...................................................................25 2. DIAGNOSTIC OF THE DIGITAL ECONOMY IN SENEGAL ................... 29 A. Foundational Elements: Regulation, Competition, and Governance .........................30 1. Legal and Regulatory Environment in Transition ...................................................30 2. Challenge of Competitive Imbalances ...........................................................32 3. Governance Complexity and Limited Stakeholder Coordination .......................................34 B. Access and Digital Infrastructure .................................................. 37 1. Coverage, Cost, and Quality ..................................................................37 2. Digital Infrastructure Value Chain ..............................................................39 C. Digital Government: Shared Platforms and Services .....................................48 1. Digital Government Readiness Assessment .......................................................48 2. Two Priority Sectors ........................................................................50 D. Digital Finance ................................................................54 1. Context. .54 2. Digital Financial Services (DFS) Development in Senegal ............................................55 3. Policy and Regulation .......................................................................61 4 DIGITAL ECONOMY FOR AFRICA COUNTRY DIAGNOSTIC OF SENEGAL E. Digital Skills and Capabilities .....................................................64 1. Context and Key Challenges ..................................................................64 2. Digital Training in the Senegalese Education System. 65 3. Private Sector Initiatives for Digital Skills Development .............................................66 F. Entrepreneurship and Digital Innovation ..............................................67 1. Context and Key Challenges ..................................................................67 2. Government Priorities and Policies .............................................................69 3. TOWARDS A THRIVING DIGITAL ECONOMY IN SENEGAL ..................75 A. Enhancing Digital Economy Governance and Regulatory Framework ..........................76 1. Governance Framework ......................................................................76 2. Regulation and Competition ..................................................................76 B. Strengthening Five Building Blocks of the Digital Economy ...............................79 1. Digital infrastructure .......................................................................79 2. Digital Government .........................................................................80 3. Digital Financial Services ....................................................................81 4. Digital Skills .............................................................................82 5. Entrepreneurship and Digital Innovation .........................................................84 C. Projects Proposed to Accelerate Senegal’s Digital Economy ...............................87 1. Digital Identity ............................................................................87 2. Digital Taxation. .89 3. Digital Port ..............................................................................89 4. Additional Initiatives .......................................................................93 4. CONCLUSION ................................................................... 95 BIBLIOGRAPHY .......................................................................................................................................98 5 List of Boxes Box 1 Over-the-Top Regulation in Senegal .........................................................................32 Box 2. Effects Expected from a Full Opening of the Telecommunications Sector to Competition ................................35 Box 3. ADIE Infrastructure ....................................................................................42 Box 4. Capitalizing on Excess Public Fiber Optic: Case of the Democratic Republic of Congo ..................................43 Box 5. Excessive Spectrum Usage Costs in Senegal ..................................................................47 Box 6. Public Key Infrastructure ................................................................................51 Box 7. ORBUS Single Window: Establishing a One-Stop-Shop ..........................................................53 Box 8. GIM-UEMOA and Interoperability ......................................................................... 60 Box 9. Senegal’s Digital Development Fund: Vision, Strategy, and Expected Results .........................................73 Box 10. Afric’innov Program to Strengthen Innovative Entrepreneurship in Africa ...........................................86 Box 11. Leveraging the Expertise of an IT Industry Leader to Strengthen Digital Taxation ..................................... 90 List of Figures Figure 1. Key Components of the DE Ecosystem .....................................................................15 Figure 2. Contribution of the Digital Economy to GDP in Africa (iGDP1), 2013