More People

to increase competition in digital infrastructure and service provision, including by stimulating market entry of new service providers, while reducing the market power of dominant operators, can also help reduce tariffs for all. Importantly, a recently adopted infrastructure sharing policy for rural areas should be implemented with adequate safeguards to prevent anticompetitive conduct. To take advantage of sizable regional benefits by spurring the development of fully regional data markets, Senegal should also consider playing a leadership role in increasing regional harmonization, including ensuring coordination at the supranational level regarding the West African Economic and Monetary union (WAEMu) electronic communications framework and Economic Community of West African States (ECOWAS) rules, implementing fully the ECOWAS roaming regulations, and advocating for the elimination of restrictive (or lack of) rules across ECOWAS countries.

Concomitant demand-side policies are necessary to enhance the positive effects of mobile broadband internet access and ensure its productive use. Policies that reduce budget constraints for households, such as social assistance transfers and the removal of barriers to financial inclusion, are critical to improving mobile internet uptake. Encouraging zero pricing for messaging applications—for instance, through a low-usage package attractive only to low-income households—can help take advantage of network effects. Promoting local language content and continuing to invest in digital skills can ensure that mobile coverage translates into effective use. Importantly, vulnerable groups may require specific attention, including approaches that are tailored to individuals’ gender, age, and location.

Although a detailed regulatory analysis goes beyond the scope of this book, some regulatory aspects on both the supply and the demand side are touched upon in the analysis. The book thereby highlights the importance of regulatory frameworks for expanded adoption and use of DTs. Particularly critical are promoting market entry and innovation and adopting a broader approach to data, digital business models, and privacy/data sharing concerns, which help shape the inclusiveness of digitally driven growth. An in-depth analysis of these issues is provided by the World Development Report 2021: Data for Better Lives.

OVERVIEW OF CHAPTER 3—ENTERPRISES: INNOVATION FOR BETTER JOBS FOR MORE PEOPLE

Better jobs for more people require better and more firms. Better and more firms, in turn, require the following: technology upgrading and use of new technologies by existing enterprises, more new firms and entrepreneurship, and better access to financing. Senegal needs to focus its support policies on both formal and informal firms.7 formal private sector jobs account for only 5 percent of the active working-age population, or fewer than 200,000 jobs. Meanwhile, the working-age population is increasing by 300,000 per year and is expected to rise to roughly 430,000 per year by 2030. So, to support more inclusive growth, the policy focus also needs to include boosting productivity of informal firms, with public support for them sufficiently attractive to lead those firms to eventual formalization.

The following overview describes the three essential ways to support better and more firms.