In this blog, I want to share a less successful example of an ICT project in underprivileged areas. The Kenya Electronic Single Window System, also known as Kenya TradeNet, was launched in 2005 with the aim of simplifying and streamlining trade processes, reducing corruption, and improving efficiency in Kenya’s international trade. While the project had noble goals and utilized information and communications technology (ICT) to digitize trade-related processes, it has faced significant challenges and criticisms.
One of the most significant hurdles was the system’s complexity. Rather than simplifying trade processes, Kenya TradeNet seemed to add layers of bureaucracy. Businesses, especially small and medium-sized enterprises (SMEs), found themselves grappling with a digital labyrinth of government agencies and requirements. The very system designed to make trade more accessible became a source of frustration for many.
Another issue was the high costs associated with the platform. While it was intended to be a game-changer for businesses of all sizes, many SMEs found it financially prohibitive. The fees for using the system were steep, making it difficult for smaller players to participate fully in international trade.
Connectivity also posed a challenge. Kenya’s digital infrastructure was improving but still faced issues with reliability and accessibility, particularly in rural and remote areas. This digital divide hindered some businesses from harnessing the full potential of Kenya TradeNet.
Furthermore, despite the project’s goal of reducing corruption, reports of corrupt practices within the trade ecosystem persisted. Digitization alone couldn’t root out deeply entrenched issues of corruption and inefficiency.
Perhaps one of the most concerning aspects was the exclusion of the informal sector. Kenya TradeNet primarily catered to formal businesses, inadvertently leaving out a significant portion of the economy—the informal sector. This omission perpetuated economic inequality and missed an opportunity to uplift a vital segment of Kenya’s economy. There were a lot of misunderstandings and resistance among users.
Source: KenTrade, A formal launch in 2014
In conclusion, Kenya TradeNet was a well-intentioned effort to leverage ICT for the betterment of Kenya’s trade ecosystem. However, its journey was marked by complexity, high costs, connectivity challenges, and exclusionary practices. I think this serves as a reminder that successful ICT projects must be user-friendly, affordable, and transparent, and they should address the unique needs and challenges faced by businesses, especially SMEs. Moreover, combating corruption and inefficiency often requires more comprehensive reforms that extend beyond the realm of digitalization.