Notes

Statistics and Demographics (Agence nationale de la Statistique et de la Démographie, AnSD). The fAT survey may be incorporated into the standard set of firm-level surveys implemented regularly by AnSD because of the value added of evidence-based policy making supported by this work. The complementary survey of largely informal, micro firms compiled by research ICT Africa (rIA) in 2017–18 should be replicated in panel format, including a larger number of firms over time.18 In addition, the work helped implement the COVID Business Pulse Survey (BPS), which has provided a rapid diagnostic of the effects of COVID-19 on firms and has identified characteristics allowing firms to cope during the crisis. future rounds of the BPS would allow some of the same firms to be tracked over time, generating deeper insights about the connection between policies, firm behavior, and better jobs for more people. Moreover, the book presents a new methodology to identify local entrepreneurship ecosystems using firm-level census data, which is now being replicated in a few other countries, including Kenya. finally, the work has contributed to the technical debate on the importance of DTs for achieving inclusive growth in Senegal by means of integrating different sources of data, including household survey data, firm-level data, customs data, and digital infrastructure coverage maps.

The background studies underpinning this book address a wide array of policy questions—on the barriers to DT adoption as well as on the effects of DTs on efficiency and equity—that could help support the jobs and economic transformation agenda in Senegal and beyond. This work begins to close significant knowledge gaps and suggests concrete policy recommendations to foster more inclusive technology upgrading. Key findings and insights could be explored by other low- and middle-income countries and allow for effective benchmarking. The work is a critical input into the forthcoming World Bank flagship report on the foundations of the digital economy for Africa, Technological Transformation for Jobs in Africa: How Digital Can Support Inclusive Growth (Begazo-gomez, Blimpo, and Dutz, forthcoming) and could inform joint African union and World Bank DE4A operational initiatives. The findings are a contribution to the ongoing policy discussion on the costs and benefits of expanding the coverage, access, and productive use of DTs by households and enterprises across the country and at the regional level. By showing the potential of DTs for enhanced firm performance and better jobs for more people, poverty reduction, and broader welfare gains, the work provides evidence and suggests recommendations that policy makers should consider when making decisions on the next wave of policy and program reforms. finally, this book could inform operational engagements by the World Bank and other development partners aimed at fostering business development, entrepreneurship, and inclusion. It is hoped that the wide collaboration with government agencies in Senegal in the preparation of this book will provide a context for greater consensus-building and more effective multisectoral implementation during the COVID-19 recovery and beyond.

NOTES

 1. As the PAP2/PSE states (in section II.2.1, “Challenges”), “the acceleration of structural transformation cannot be achieved without high productivity in high-growth sectors, massive job creation and an increase and diversification of exports. As such, it remains

fundamental to increase productive investments, to consolidate existing value chains and to implement, at the level of the regions, infrastructures to support development. It is equally important to accelerate the industrialization process, by relying on the development of SMEs, the promotion of national champions, the attraction of direct investments to capitalize on innovation opportunities, leveraging the potential of agricultural, tourism and mining, as well as the development of a new oil & gas ecosystem and a more innovative digital economy.” The PAP 2A (Adjusted and Accelerated), spanning 2021–23, was modified in September 2020 and approved by the president on September 29, 2020. It is the latest plan that aims to implement the PSE initiated in 2012. The PAP 2A document states that the COVID crisis has brought new challenges related to the need for abundant, resilient, and high-quality agriculture; inclusive health; a high-performing education system; a strong local private sector; stronger social protection; and digital transformation.  2. See section I.3.3. of the PAP2/PSE.  3. In the PAP2, these are Costa rica, Côte d’Ivoire, Kenya, Malaysia, Morocco, and Peru.  4. See para. 10, Senegal numerique 2016–2025 (Sn2025) strategy in appendix A.  5. Data are for 2017 and are from the World Bank’s World Development Indicators database

October 2020 edition. Internet penetration rate is defined as the number of individuals using the internet as a percentage of the population. Internet users are those individuals who have used the internet (from any location) in the past three months. The internet can be accessed via a computer, mobile phone, personal digital assistant, games machine, digital TV, and so on. Data are from the World Bank’s World Development Indicators database October 2020 edition. Source organization: International Telecommunication union, World Telecommunication/ICT Development report and database.  6. Based on an exchange rate of uS$1.00 = CfAf 555.45 in 2018. International financial

Statistics (database), International Monetary fund, Washington, DC, https://data.imf .org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b.  7. Informal firms are defined in two ways: (a) In our work on larger firms (5 or more fulltime employees), informal firms include all firms that do not use a standardized accounting system (according to AnSD, Senegal’s national Statistical Agency’s definition in its latest national enterprise census). (b) In our work on micro firms (where more than half of the sample are self-employed household enterprises with no full-time paid employees), informal firms are firms not having all the following indicators of formality: being registered with a local authority, being registered with the national revenue authority, paying local or municipal taxes, and being registered for VAT or sales tax.  8. The state of Ceará has about 9 million inhabitants and is ranked in the lower half of states in per capita income, 18th in a total of 27 states in Brazil, according to the Brazilian

Institute of geography and Statistics (IBgE) in 2019.  9. This book and most of the supporting background studies define firm size in terms of full-time paid employees: micro firms include self-employed firms with no employees up to 4–5 employees, small firms include 5–19 employees, medium firms include 20–99 employees, and large firms include 100 or more employees. 10. These tools include accounting and inventory control/point-of-sales (POS) software; the latter facilitates documenting and tracking the changing levels of inventories and customer purchases over time. 11. Including by the Agency for Development and Supervision of Small and Medium

Enterprises (Agence de Développement et d’Encadrement des Petites et Moyennes

Entreprises, ADEPME), Business upgrading Agency (Bureau de Mise à niveau des

Entreprises, BMn), and general Delegation (fund) for the Acceleration of

Entrepreneurship (Délégation générale à l’Entreprenariat rapide, DEr). 12. See chapter I.3.3., figure 6a, PAP2/PSE. 13. PrEAC is the government’s business environment and competitiveness reform program, which is embedded in the Plan Sénégal Émergent (PSE). The PrEAC is entering its third phase, hence the abbreviation “PrEAC3.” references to the PrEAC can be found in key

PSE documents, such as PAP2/PSE. 14. See IfC (2020) Creating Markets in Senegal: Country Private Sector Diagnostic, which summarizes findings from prior analytical work, including the World Bank group’s

Senegal Enterprise Survey (2014), the World Bank group’s Doing Business (2020), and the

World Economic forum’s “Executive Opinion Survey” (2017). These priorities are also aligned with the PAP2/PSE highlighted in particular in section III.2.3. on reforms.