Impact of the Internet on Kenyan Businesses - Case study Facebook


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Impact of the Internet on Kenyan Businesses - Case study Facebook

  1. 1. 1Contents:1) Market overview2) Kenya’s GDP and Communication contribution3) Internet environment in Kenya4) Mobile subscribers in Kenya5) Fixed broadband internet in Kenya6) Facebook in Africa7) Facebook in Kenya8) Opportunities for Facebook in Kenya9) Facebook Adoption in Kenya by SME’s / Freelancers10) Recommendations and Opportunities in KenyaMarket Overview• Kenya’s population 43M (Jul 2012) ,with an estimated 38M households ,• On average Pop growth is 2% YoYGDP Key Contributors %• Agriculture(Tea and Coffee) 25%• Transport and Communication 27%• Manufacturing 11%• Real estate 10.8 %• Education 6.7%FACEBOOK IN AFRICA PROPOSAL
  2. 2. 2• Services 7%• Construction 4%• Public Admin 3.7%• Electricity and water 2.6 %The Internet environment In Kenya• 17M+ Internet users in Kenya• Representing a growth of 11.6 % which surpassed the use of voice services• The number of Internet subscribers increased by 75.1% (2012) compared to sameperiod in the previous year• "Mobile data/internet continued to dominate the Internet market contributing 99% ofthe total internet/data subscriptions in the country," (CCK- communications commissionof Kenya). Internet penetration went up by 4.3% to reach 41.1% up from 36.8% duringthe previous period.Kenya’s GDP the Last 11 years, slow BUT a steady growth
  3. 3. 3• The total number of mobile subscribers in Kenya rose to 30.7 million, representing amarginal growth of 1.0 percent from the previous quarter.Mobile subscribers in Kenya
  4. 4. 4Fixed Broadband Internet SubscribersFacebook in Africa (Market Overview)1,073,380,925 population estimate for Africa in 2012.167,385,751 Internet users in Africa on Dec 31, 2012, a 15.6% penetration rate.51,612,460 Facebook subscribers on Dec 31/12, a 4.8% penetration rate.Source:
  5. 5. 5Facebook Presence in Kenya - , the numbers …KENYAKE - 43,013,341 population (2012) - Country Area: 581,787 sq kmCapital City: Nairobi - population 3,476,632 (2012)12,043,735 Internet users on June 30, 2012, 28.0% of the population, per IWS.2,045,900 Facebook users on Dec 31/12, 4.8% penetration rate.Source: Internetworldstats.comOpportunities for Facebook in Kenya, More Sales for Freelancers?Users creating pages to enhance freelance sales as a solution (Peer to Peer Conversation) majorly dueto lack of knowledge about the sponsored Ad.Facebook can make Ads more Affordable
  6. 6. 6More and More Small businesses can buy sponsored Ads in KenyaThis means there is a potential market in Kenya, which has not been tapped by Facebook; I seerevenue growth of up to 80% increase when properly tuned.More Businesses TargetingKenyans are able to buysponsored Ads and yet theydon’t know how to feature asponsored Ad.
  7. 7. 7Recommendations – Why Facebook should come to Kenya? Mpesa with a subscription base of 14.6M (1stof March 2012), a mobile payments solutionsprovided by Safaricom Kenya users are purchase items online, Facebook can leverage on thisopportunity. The Safaricom subscribers are currently at 19.3M ( MPESA is also supported by over 40,000 Agents in Kenya (the, Facebook canride on this to encourage SME’s to sponsor Ads Via MPESA . Facebook can partner with Data providers (Telco’s ) to Offer subsidized fee for browsing onFacebook, (Safaricom, Airtel and Orange Kenya) CSR activities in Africa can woo many people to Join Facebook and even double the number ofsubscribers to 4,000,000 users by March 2014 Facebook needs to grow its Agency Network in Kenya and Africa to make more salesPrepared by:Kennedy NyabwalaCategory Manager – OLX Inc.Nairobi – Kenya+254723 418