Five strategies Ruto should adopt to improve economy

Five strategies Ruto should adopt to improve economy

Five strategies Ruto should adopt to improve economy

The World Bank has outlined five economic areas that it believes are most likely to  support long-term economic growth and job expansion in Kenya. The World Bank outlined five ways the country’s services sector, in particular, may  speed up economic growth in a paper titled “Kenya Country Economic  Memorandum – Seizing Kenya’s Services Momentum.”

First, the paper recommends that the services industry move to higher-value-added industries like professional, financial, and information technology (IT)  services. Despite the fact that these services account for 14% of the GDP and 19%  of  economic development, just 2% of workers are working in these fields for pay.

In order to accelerate growth, the Bretton Woods organization is urging a stronger  emphasis on these sectors and the use of a more qualified workforce. The World Bank claims that encouraging talented individuals to pursue degrees in  STEM fields will aid in the development of this workforce.

The bank also emphasizes that the greatest method to create a skilled labor force is  to utilize Technical and Vocational Education and Training institutions (TVETs). The World Bank recommended stronger ties between the service sector and other  industries like manufacturing in its study.

For instance, government extension agents could benefit from educating small-scale farmers, who make significant contributions to the agricultural industry, about the most recent techniques for crop protection and production.Notably, the use of software to automate activities like production, tracking of the flow of commodities, and payment is limited to large businesses in the nation. Therefore, it is urged that more small and medium-sized businesses adopt automated services.

Adopting more effective strategies to increase productivity in the services sector is another suggestion. Although Kenya is leading Africa in terms of technology, the success is based on a small number of top companies, therefore more competitors would be advantageous.Kenya’s labor productivity is lower than that of South Africa, Ghana, and Nigeria. This is a result of the scarcity of capital. In order to compete on the global market, the research suggests moving away from lower value-added industries including personal and retail services.Additionally, the research claims that Kenya places severe limitations on the trade and investment in services.

For instance, there are two processes involved in starting a business in Kenya: registration and acquiring the necessary operating permits. While opening a business is simple and may be done online, getting the necessary permits can be difficult.This is due to the fact that numerous licenses are necessary, and various county governments have various criteria. Having a single company permit that addresses several issues including food, health, and fire safety would be a solution. Additionally, the tax policies must to be transparent and foreseeable.

Additionally, removing obstacles to services like cross-border data transfers can improve digital trade. This can be accomplished by taking part in the East African Community’s single  regional data market.

The paper also recommends employing technology to increase inclusion in the  services industry, enabling more impoverished people to access services. This is possible by enhancing access to credit services and extending connectivity  to underserved communities.