Senegal

Digital technologies are increasingly accessible in lower-income countries, potentially offering substantial productivity gains, but there’s a catch.

Search and trust frictions have historically made it hard for small firms in lower-income countries to buy inputs from foreign markets. Consider a clothing wholesaler in Senegal, who wants to start selling high quality European-made jeans.

Search and trust frictions have historically made it hard for small firms in lower income countries to buy inputs from foreign markets. The growth in smartphone ownership and social media usage has the potential to alleviate these barriers.

Digital technologies have the potential to increase firm productivity. However, they often come bundled with data observability, which can be a double-edged sword.

In developing countries, access to opportunities within the private sector are often unequally distributed. Advantages accrue to those with connections to the state or to those with privileged social status.

In developing countries, access to opportunities within the private sector are often unequally distributed. Advantages accrue to those with connections to the state or to those with privileged social status.

Since 2008, the 10% largest firms in Senegal have consistently accounted for 90% of the total revenue of the private formal sector.